ASX:PMV

Stock Analysis Report

Premier Investments

Executive Summary

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

Snowflake

Fundamentals

Excellent balance sheet with proven track record.


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


Market Performance


7 Day Return

1.6%

PMV

-0.2%

AU Specialty Retail

1.3%

AU Market


1 Year Return

9.0%

PMV

22.6%

AU Specialty Retail

9.9%

AU Market

Return vs Industry: PMV underperformed the Australian Specialty Retail industry which returned 22.6% over the past year.

Return vs Market: PMV matched the Australian Market which returned 9.9% over the past year.


Share holder returns

PMVIndustryMarket
7 Day1.6%-0.2%1.3%
30 Day23.0%4.4%-0.7%
90 Day20.2%18.0%-0.4%
1 Year13.3%9.0%28.2%22.6%16.3%9.9%
3 Year40.5%25.4%21.1%5.5%35.8%17.6%
5 Year136.0%99.4%89.9%54.8%51.9%17.8%

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 based on future cash flows and its price relative to the stock market?

28.53x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

Undervalued: PMV (A$19.26) is trading above our estimate of fair value (A$18.5)

Significantly Undervalued: PMV is trading above our estimate of fair value.


Price Based on Earnings

PE vs Industry: PMV is poor value based on its PE Ratio (28.5x) compared to the Specialty Retail industry average (16x).

PE vs Market: PMV is poor value based on its PE Ratio (28.5x) compared to the Australian market (17.9x).


Price Based on Expected Growth

Low PEG Ratio: PMV is poor value based on its PEG Ratio (2x)


Price Based on Value of Assets

PB vs Industry: PMV is overvalued based on its PB Ratio (2.3x) compared to the AU Specialty Retail industry average (2.2x).


Next Steps

Future Growth

How is Premier Investments expected to perform in the next 1 to 3 years based on estimates from 7 analysts?

14.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Earnings vs Savings Rate: PMV's forecast earnings growth (14.5% per year) is above the savings rate (2.3%).

Earnings vs Market: PMV's earnings (14.5% per year) are forecast to grow faster than the Australian market (10.2% per year).

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

Revenue vs Market: PMV's revenue (5.4% per year) is forecast to grow faster than the Australian market (3.6% per year).

High Growth Revenue: PMV's revenue (5.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Estimates


Future Return on Equity

High Future ROE: PMV's Return on Equity is forecast to be low in 3 years time (12.4%).


Next Steps

Past Performance

How has Premier Investments performed over the past 5 years?

4.2%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: PMV's earnings have grown by 4.2% per year over the past 5 years.

Accelerating Growth: PMV's earnings growth over the past year (27.5%) exceeds its 5-year average (4.2% per year).

Earnings vs Industry: PMV earnings growth over the past year (27.5%) exceeded the Specialty Retail industry -2.1%.


Return on Equity

High ROE: PMV's Return on Equity (7.9%) is considered low.


Return on Assets

ROA vs Industry: PMV's Return on Assets is below or equal to the Specialty Retail industry average last year.


Return on Capital Employed

ROCE Improving: PMV has improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is Premier Investments's financial position?


Financial Position Analysis

Short Term Liabilities: PMV's short term assets (A$405.2M) exceeds its short term liabilities (A$144.9M)

Long Term Liabilities: PMV's short term assets (405.2M) exceeds its long term liabilities (274.5M)


Debt to Equity History and Analysis

Debt Level: PMV's debt to equity ratio (12.6%) is considered satisfactory

Reducing Debt: PMV's debt to equity ratio has increased from 9.2% to 12.6% over the past 5 years.

Debt Coverage: PMV's debt is well covered by operating cash flow (81.6%).

Interest Coverage: PMV's interest payments on its debt are well covered by EBIT (21.2x coverage).


Balance Sheet

Inventory Level: PMV has a high level of physical assets or inventory.

Debt Coverage by Assets: PMV's debt is covered by short term assets (assets are 2.383170x debt).


Next Steps

Dividend

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

4.22%

Expected Dividend Yield


Upcoming Dividend Payment

Purchase Premier Investments before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield vs Market

company3.8%marketbottom25%2.5%markettop25%5.6%industryaverage4.2%forecastin3Years4.2%

Current dividend yield vs market & industry


Dividend Yield and Payments Analysis

Notable Dividend: PMV's dividend (3.84%) is higher than the bottom 25% of dividend payers in the Australian market (2.5%).

High Dividend: PMV's dividend (3.84%) is low compared to the top 25% of dividend payers in the Australian market (5.6%).

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 (103.7%), PMV's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: PMV's dividends in 3 years are forecast to be covered by earnings (80.3% payout ratio).


Next Steps

Management

What is the CEO of Premier Investments's salary, the management and board of directors tenure and is there insider trading?

2.2yrs

Average management tenure


CEO

Mark McInnes (54yo)

8.5yrs

Tenure

AU$6,826,481

Compensation

Mr. Mark McInnes, EMBA (MBS) has been the Chief Executive Officer of Premier Investments Limited and Just Group Limited since April 4, 2011. Mr. McInnes serves as Chief Executive Officer of Premier Retail  ...


CEO Compensation Analysis

Compensation vs. Market: Mark's total compensation ($USD4.65M) is about average for companies of similar size in the Australian market ($USD1.53M).

Compensation vs Earnings: Mark's compensation has been consistent with company performance over the past year.


Management Age and Tenure

2.2yrs

Average Tenure

Experienced Management: PMV's management team is considered experienced (2.2 years average tenure).


Board Age and Tenure

6.8yrs

Average Tenure

54yo

Average Age

Experienced Board: PMV's board of directors are considered experienced (6.8 years average tenure).


Insider Trading

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


Recent Insider Transactions

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Ownership Breakdown


Management Team

  • Mark McInnes (54yo)

    CEO & Executive Director

    • Tenure: 8.5yrs
    • Compensation: AU$6.83m
  • Nicole Peck

    Chief Financial Officer of Just Group Limited

    • Tenure: 0yrs
    • Compensation: AU$297.82k
  • J. Bryce

    Chief Financial Officer - Just Group Limited

    • Tenure: 2.2yrs
    • Compensation: AU$455.06k
  • Marinda Meyer

    Company Secretary

    • Tenure: 0.7yrs

Board Members

  • Solomon Lew

    Chairman of the Board

    • Tenure: 11.6yrs
  • Mark McInnes (54yo)

    CEO & Executive Director

    • Tenure: 8.5yrs
    • Compensation: AU$6.83m
  • Sally Herman (61yo)

    Non-Executive Director

    • Tenure: 7.8yrs
    • Compensation: AU$100.00k
  • Michael McLeod

    Non-Executive Director

    • Tenure: 17.2yrs
    • Compensation: AU$120.00k
  • David Crean (68yo)

    Deputy Chairman

    • Tenure: 4.3yrs
    • Compensation: AU$160.00k
  • Terry McCartney

    Non-Executive Director

    • Tenure: 3.5yrs
    • Compensation: AU$340.00k
  • Sylvia Falzon (54yo)

    Independent Non-Executive Director

    • Tenure: 1.6yrs
    • Compensation: AU$37.63k
  • Henry Lanzer

    Non-Executive Director

    • Tenure: 11.6yrs
    • Compensation: AU$80.00k
  • Tim Antonie (53yo)

    Lead Independent Director

    • Tenure: 5yrs
    • Compensation: AU$120.00k

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$3.028b
  • Shares outstanding: 158.43m
  • 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, the United Kingdom, Ireland, Malaysia, and Hong Kong. It operates through Retail and Inves ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/14 10:33
End of Day Share Price2019/10/14 00:00
Earnings2019/07/27
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.

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