ASX:PMV

Stock Analysis Report

Premier Investments

Executive Summary

Premier Investments Limited operates various specialty retail fashion chains in Australia, New Zealand, Singapore, Hong Kong, Malaysia, the United Kingdom, and the Republic of Ireland.


Snowflake Analysis

Solid track record with excellent balance sheet.


Similar Companies

Share Price & News

How has Premier Investments's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: PMV's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-1.7%

PMV

6.8%

AU Specialty Retail

4.0%

AU Market


1 Year Return

-21.3%

PMV

-20.8%

AU Specialty Retail

-16.5%

AU Market

Return vs Industry: PMV matched the Australian Specialty Retail industry which returned -20.8% over the past year.

Return vs Market: PMV underperformed the Australian Market which returned -16.5% over the past year.


Shareholder returns

PMVIndustryMarket
7 Day-1.7%6.8%4.0%
30 Day-16.2%-27.2%-15.4%
90 Day-37.1%-38.6%-23.5%
1 Year-18.2%-21.3%-17.8%-20.8%-12.8%-16.5%
3 Year-1.5%-12.3%-16.7%-27.2%-0.9%-14.5%
5 Year17.2%-2.9%4.9%-15.7%11.2%-13.9%

Price Volatility Vs. Market

How volatile is Premier Investments's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Premier Investments undervalued compared to its fair value and its price relative to the market?

47.3%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: PMV (A$12.54) is trading below our estimate of fair value (A$23.81)

Significantly Below Fair Value: PMV is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: PMV is poor value based on its PE Ratio (16.9x) compared to the Specialty Retail industry average (7.4x).

PE vs Market: PMV is poor value based on its PE Ratio (16.9x) compared to the Australian market (13.4x).


Price to Earnings Growth Ratio

PEG Ratio: PMV is poor value based on its PEG Ratio (1x)


Price to Book Ratio

PB vs Industry: PMV is overvalued based on its PB Ratio (1.4x) compared to the AU Specialty Retail industry average (1.2x).


Next Steps

Future Growth

How is Premier Investments forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?

16.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: PMV's forecast earnings growth (16.8% per year) is above the savings rate (1.1%).

Earnings vs Market: PMV's earnings (16.8% per year) are forecast to grow faster than the Australian market (10.5% per year).

High Growth Earnings: PMV's earnings are forecast to grow, but not significantly.

Revenue vs Market: PMV's revenue (8.2% per year) is forecast to grow faster than the Australian market (4.1% per year).

High Growth Revenue: PMV's revenue (8.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: PMV's Return on Equity is forecast to be low in 3 years time (11.1%).


Next Steps

Past Performance

How has Premier Investments performed over the past 5 years?

3.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: PMV has high quality earnings.

Growing Profit Margin: PMV's current net profit margins (8.9%) are higher than last year (7.6%).


Past Earnings Growth Analysis

Earnings Trend: PMV's earnings have grown by 3.3% per year over the past 5 years.

Accelerating Growth: PMV's earnings growth over the past year (25.4%) exceeds its 5-year average (3.3% per year).

Earnings vs Industry: PMV earnings growth over the past year (25.4%) exceeded the Specialty Retail industry -2.2%.


Return on Equity

High ROE: PMV's Return on Equity (8.5%) is considered low.


Next Steps

Financial Health

How is Premier Investments's financial position?


Financial Position Analysis

Short Term Liabilities: PMV's short term assets (A$431.6M) exceed its short term liabilities (A$343.3M).

Long Term Liabilities: PMV's short term assets (A$431.6M) exceed its long term liabilities (A$393.6M).


Debt to Equity History and Analysis

Debt Level: PMV's debt to equity ratio (7.5%) is considered satisfactory.

Reducing Debt: PMV's debt to equity ratio has increased from 5.5% to 7.5% over the past 5 years.

Debt Coverage: PMV's debt is well covered by operating cash flow (248.7%).

Interest Coverage: PMV's interest payments on its debt are well covered by EBIT (14.6x coverage).


Balance Sheet


Next Steps

Dividend

What is Premier Investments's current dividend yield, its reliability and sustainability?

5.66%

Current Dividend Yield


Upcoming Dividend Payment


Dividend Yield vs Market

Notable Dividend: PMV's dividend (5.66%) is higher than the bottom 25% of dividend payers in the Australian market (3.01%).

High Dividend: PMV's dividend (5.66%) is low compared to the top 25% of dividend payers in the Australian market (7.94%).


Stability and Growth of Payments

Stable Dividend: PMV's dividend payments have been volatile in the past 10 years.

Growing Dividend: PMV's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (95.6%), PMV's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: PMV's dividends in 3 years are not forecast to be well covered by earnings (91.7% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

7.3yrs

Average board tenure


CEO

Premier Investments has no CEO, or we have no data on them.


Board Members

NamePositionTenureCompensationOwnership
Mark McInnes
CEO Premier Retail & Executive Director7.33yrsAU$6.15m0.46% A$9.0m
Solomon Lew
Chairman of the Board12.08yrsno data8% A$155.6m
Sally Herman
Non-Executive Director8.33yrsAU$100.00k0.0050% A$98.3k
Michael McLeod
Non-Executive Director17.67yrsAU$120.00k0.018% A$346.2k
David Crean
Independent Deputy Chairman4.75yrsAU$160.00kno data
Terrence McCartney
Non-Executive Director4yrsAU$340.00kno data
Sylvia Falzon
Independent Non-Executive Director2.08yrsAU$100.00kno data
Henry Lanzer
Non-Executive Director12.08yrsAU$80.00k0.017% A$339.8k
Timothy Antonie
Lead Independent Director 5.5yrsAU$120.00k0.0032% A$61.5k

7.3yrs

Average Tenure

54yo

Average Age

Experienced Board: PMV's board of directors are considered experienced (7.3 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Premier Investments Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Premier Investments Limited
  • Ticker: PMV
  • Exchange: ASX
  • Founded: 1987
  • Industry: Apparel Retail
  • Sector: Retail
  • Market Cap: AU$1.946b
  • Shares outstanding: 158.47m
  • Website: https://www.premierinvestments.com.au

Number of Employees


Location

  • Premier Investments Limited
  • 101 Collins Street
  • Level 53
  • Melbourne
  • Victoria
  • 3000
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
PMVASX (Australian Securities Exchange)YesOrdinary SharesAUAUDJan 1992
PMVCHIA (Chi-X Australia)YesOrdinary SharesAUAUDJan 1992

Biography

Premier Investments Limited operates various specialty retail fashion chains in Australia, New Zealand, Singapore, Hong Kong, Malaysia, the United Kingdom, and the Republic of Ireland. It operates through Retail and Investment segments. The company offers casual wear, women’s wear, and non-apparel products. It has a portfolio of retail brands consisting of Just Jeans, Jay Jays, Jacqui E, Portmans, Dotti, Peter Alexander, and Smiggle. The company provides its products through approximately 1,200 stores, as well as through wholesale and online. In addition, it invests in listed securities and money market deposits. The company was incorporated in 1987 and is based in Melbourne, Australia. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/08 12:02
End of Day Share Price2020/04/08 00:00
Earnings2020/01/25
Annual Earnings2019/07/27


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.