SWX:NREN

Stock Analysis Report

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Executive Summary

Novavest Real Estate AG engages in real estate activities in Switzerland.


Snowflake Analysis

Questionable track record unattractive dividend payer.

Share Price & News

How has Novavest Real Estate's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: NREN has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0.2%

NREN

-0.3%

CH Real Estate

0.9%

CH Market


1 Year Return

7.3%

NREN

0.5%

CH Real Estate

1.8%

CH Market

Return vs Industry: NREN exceeded the Swiss Real Estate industry which returned -0.4% over the past year.

Return vs Market: NREN exceeded the Swiss Market which returned 1.8% over the past year.


Shareholder returns

NRENIndustryMarket
7 Day0.2%-0.3%0.9%
30 Day1.1%-2.8%0.4%
90 Day3.4%-1.7%7.7%
1 Year7.7%7.3%3.5%0.5%5.3%1.8%
3 Year27.0%17.0%18.4%6.4%20.2%7.7%
5 Year51.3%32.4%50.6%25.5%29.6%7.8%

Price Volatility Vs. Market

How volatile is Novavest Real Estate's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Novavest Real Estate undervalued compared to its fair value and its price relative to the market?

16.39x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: NREN (CHF45) is trading above our estimate of fair value (CHF22.05)

Significantly Below Fair Value: NREN is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: NREN is poor value based on its PE Ratio (16.4x) compared to the Real Estate industry average (13x).

PE vs Market: NREN is good value based on its PE Ratio (16.4x) compared to the Swiss market (19x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate NREN's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: NREN is overvalued based on its PB Ratio (1.1x) compared to the CH Real Estate industry average (1.1x).


Next Steps

Future Growth

How is Novavest Real Estate forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

-10.7%

Forecasted Real Estate industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Novavest Real Estate has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has Novavest Real Estate performed over the past 5 years?

31.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: NREN has a large one-off gain of CHF6.6M impacting its December 31 2019 financial results.

Growing Profit Margin: NREN's current net profit margins (66.7%) are higher than last year (61.4%).


Past Earnings Growth Analysis

Earnings Trend: NREN's earnings have grown significantly by 31.6% per year over the past 5 years.

Accelerating Growth: NREN's earnings growth over the past year (19.9%) is below its 5-year average (31.6% per year).

Earnings vs Industry: NREN earnings growth over the past year (19.9%) underperformed the Real Estate industry 45.8%.


Return on Equity

High ROE: NREN's Return on Equity (5.5%) is considered low.


Next Steps

Financial Health

How is Novavest Real Estate's financial position?


Financial Position Analysis

Short Term Liabilities: NREN's short term assets (CHF27.0M) do not cover its short term liabilities (CHF81.3M).

Long Term Liabilities: NREN's short term assets (CHF27.0M) do not cover its long term liabilities (CHF243.9M).


Debt to Equity History and Analysis

Debt Level: NREN's debt to equity ratio (117.8%) is considered high.

Reducing Debt: NREN's debt to equity ratio has increased from 110.1% to 117.8% over the past 5 years.

Debt Coverage: NREN's debt is not well covered by operating cash flow (3.9%).

Interest Coverage: NREN's interest payments on its debt are well covered by EBIT (4.8x coverage).


Balance Sheet


Next Steps

Dividend

What is Novavest Real Estate current dividend yield, its reliability and sustainability?

3.67%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: NREN's dividend (3.67%) is higher than the bottom 25% of dividend payers in the Swiss market (1.95%).

High Dividend: NREN's dividend (3.67%) is low compared to the top 25% of dividend payers in the Swiss market (3.98%).


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, NREN has been paying a dividend for less than 10 years.

Growing Dividend: NREN's dividend payments have increased, but the company has only paid a dividend for 4 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (60.1%), NREN's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

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

6.5yrs

Average management tenure


CEO

Peter Mettler (60yo)

6.5yrs

Tenure

CHF572,630

Compensation

Mr. Peter Mettler serves as Chief Executive Officer and Director of Senioresidenz AG. Mr. Mettler is the Founder of Mettler2Invest AG. He is a CEO of Mettler2Invest AG, which is heavily involved in project ...


CEO Compensation Analysis

Compensation vs Market: Peter's total compensation ($USD610.06K) is below average for companies of similar size in the Swiss market ($USD993.25K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Peter Mettler
CEO, Member of the Management Board & Director6.5yrsCHF572.63k3.67% CHF10.6m
Patrick Hauser
CFO & Member of the Management Board0.50yrCHF223.65kno data
Stefan Schreiber
Partner and Portfolio Manager9.5yrsno datano data

6.5yrs

Average Tenure

Experienced Management: NREN's management team is seasoned and experienced (6.5 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.


Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 25%.


Top Shareholders

Company Information

Novavest Real Estate AG's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Novavest Real Estate AG
  • Ticker: NREN
  • Exchange: SWX
  • Founded:
  • Industry: Real Estate Operating Companies
  • Sector: Real Estate
  • Market Cap: CHF289.695m
  • Shares outstanding: 6.44m
  • Website: https://www.novavest.ch

Location

  • Novavest Real Estate AG
  • Feldeggstrasse 26
  • Zurich
  • Zurich
  • 8008
  • Switzerland

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
NRENSWX (SIX Swiss Exchange)YesRegistered A SharesCHCHFJul 2013

Biography

Novavest Real Estate AG engages in real estate activities in Switzerland. It develops and manages residential, mixed used, and office and commercial properties; courthouses, community buildings, schools, shopping malls, hotels, or leisure facilities; industrial plants; and conversion and refurbishment properties The company is based in Zurich, Switzerland. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/07/08 20:59
End of Day Share Price2020/07/08 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.