SEHK:19

Stock Analysis Report

Executive Summary

Swire Pacific Limited engages in property, aviation, beverages, marine services, and trading and industrial businesses in Hong Kong, Asia, the United States, and internationally.

Snowflake

Fundamentals

Good value with adequate balance sheet and pays a dividend.


Similar Companies

Share Price & News

How has Swire Pacific's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

0.8%

19

2.1%

HK Real Estate

0.9%

HK Market


1 Year Return

-12.9%

19

10.5%

HK Real Estate

0.6%

HK Market

Return vs Industry: 19 underperformed the Hong Kong Real Estate industry which returned 10.5% over the past year.

Return vs Market: 19 underperformed the Hong Kong Market which returned 0.6% over the past year.


Shareholder returns

19IndustryMarket
7 Day0.8%2.1%0.9%
30 Day-1.3%2.9%0.5%
90 Day-23.6%-8.3%-4.3%
1 Year-9.7%-12.9%14.8%10.5%4.2%0.6%
3 Year-3.5%-11.8%39.9%25.3%15.6%4.0%
5 Year-14.2%-28.0%63.9%35.7%20.0%-0.08%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Swire Pacific undervalued compared to its fair value and its price relative to the market?

35.6%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 19 (HK$73.2) is trading below our estimate of fair value (HK$113.6)

Significantly Below Fair Value: 19 is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: 19 is good value based on its PE Ratio (6.1x) compared to the Real Estate industry average (6.2x).

PE vs Market: 19 is good value based on its PE Ratio (6.1x) compared to the Hong Kong market (10.3x).


Price to Earnings Growth Ratio

PEG Ratio: 19's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: 19 is good value based on its PB Ratio (0.4x) compared to the HK Real Estate industry average (0.5x).


Next Steps

Future Growth

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

-29.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 19's earnings are forecast to decline over the next 3 years (-29% per year).

Earnings vs Market: 19's earnings are forecast to decline over the next 3 years (-29% per year).

High Growth Earnings: 19's earnings are forecast to decline over the next 3 years.

Revenue vs Market: 19's revenue (4.3% per year) is forecast to grow slower than the Hong Kong market (10.3% per year).

High Growth Revenue: 19's revenue (4.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 19's Return on Equity is forecast to be low in 3 years time (3.9%).


Next Steps

Past Performance

How has Swire Pacific performed over the past 5 years?

18.0%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: 19's earnings have grown by 18% per year over the past 5 years.

Accelerating Growth: 19's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 19 had negative earnings growth (-34.1%) over the past year, making it difficult to compare to the Real Estate industry average (-12.4%).


Return on Equity

High ROE: 19's Return on Equity (6.5%) is considered low.


Return on Assets

ROA vs Industry: 19 has a higher Return on Assets than the Real Estate industry average last year.


Return on Capital Employed

ROCE Improving: 19's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Swire Pacific's financial position?


Financial Position Analysis

Short Term Liabilities: 19's short term assets (HK$41.7B) exceeds its short term liabilities (HK$36.4B)

Long Term Liabilities: 19's short term assets (41.7B) do not cover its long term liabilities (75.6B)


Debt to Equity History and Analysis

Debt Level: 19's debt to equity ratio (21.2%) is considered satisfactory

Reducing Debt: 19's debt to equity ratio has reduced from 26.6% to 21.2% over the past 5 years.

Debt Coverage: 19's debt is not well covered by operating cash flow (16.4%).

Interest Coverage: 19's interest payments on its debt are well covered by EBIT (5.6x coverage).


Balance Sheet

Inventory Level: 19 has a low level of unsold assets or inventory.

Debt Coverage by Assets: 19's debt is not covered by short term assets (assets are 0.6x debt).


Next Steps

Dividend

What is Swire Pacific's current dividend yield, its reliability and sustainability?

4.92%

Current Dividend Yield


Dividend Yield vs Market

company4.9%marketbottom25%2.3%markettop25%6.3%industryaverage4.4%forecastin3Years5.0%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: 19's dividend (4.92%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.27%).

High Dividend: 19's dividend (4.92%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.25%).

Stable Dividend: 19's dividend payments have been volatile in the past 10 years.

Growing Dividend: 19's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (26.2%), 19's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 19's dividends in 3 years are forecast to be covered by earnings (54% payout ratio).


Next Steps

Management

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

6.8yrs

Average management tenure


CEO

Swire Pacific has no CEO, or we have no data on them.


Management Age and Tenure

6.8yrs

Average Tenure

54yo

Average Age

Experienced Management: 19's management team is seasoned and experienced (6.8 years average tenure).


Board Age and Tenure

3.6yrs

Average Tenure

60yo

Average Age

Experienced Board: 19's board of directors are considered experienced (3.6 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.


Ownership Breakdown


Management Team

  • David Fu (55yo)

    Company Secretary

    • Tenure: 13.8yrs
  • Merlin Bingham Swire (45yo)

    Chairman of the Board

    • Tenure: 1.3yrs
    • Compensation: HK$10.34m
  • Cindy Cheung

    Manager Group Public Affairs

    • Tenure: 0yrs
  • Michelle Low (59yo)

    Finance Director & Executive Director

    • Tenure: 2.3yrs
    • Compensation: HK$7.28m
  • Ivan Chu (57yo)

    Executive Director

    • Tenure: 5.6yrs
    • Compensation: HK$6.15m
  • Patrick Healy (53yo)

    Executive Director of the Beverages Division

    • Tenure: 6.8yrs
    • Compensation: HK$12.98m
  • David Peter Cogman (45yo)

    Executive Director

    • Tenure: 2.2yrs
    • Compensation: HK$8.88m
  • Karen So

    Executive Director of China Operations for Swire Beverages

    • Tenure: 0yrs

Board Members

  • Martin Cubbon (61yo)

    Non-Executive Director

    • Tenure: 0.9yrs
    • Compensation: HK$2.97m
  • Tim Freshwater (74yo)

    Independent Non-Executive Director

    • Tenure: 11.8yrs
    • Compensation: HK$690.00k
  • Paul Kenneth Etchells (68yo)

    Independent Non Executive Director

    • Tenure: 2.4yrs
    • Compensation: HK$979.00k
  • Chien Lee (66yo)

    Independent Non-Executive Director

    • Tenure: 26.8yrs
    • Compensation: HK$1.08m
  • Merlin Bingham Swire (45yo)

    Chairman of the Board

    • Tenure: 1.3yrs
    • Compensation: HK$10.34m
  • Michelle Low (59yo)

    Finance Director & Executive Director

    • Tenure: 2.3yrs
    • Compensation: HK$7.28m
  • Ivan Chu (57yo)

    Executive Director

    • Tenure: 5.6yrs
    • Compensation: HK$6.15m
  • Rose Lee (66yo)

    Independent Non-Executive Director

    • Tenure: 7.3yrs
    • Compensation: HK$750.00k
  • Samuel Compton Swire (39yo)

    Non-Executive Director

    • Tenure: 4.8yrs
  • David Peter Cogman (45yo)

    Executive Director

    • Tenure: 2.2yrs
    • Compensation: HK$8.88m

Company Information

Swire Pacific Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Swire Pacific Limited
  • Ticker: 19
  • Exchange: SEHK
  • Founded: 1816
  • Industry: Diversified Real Estate Activities
  • Sector: Real Estate
  • Market Cap: HK$100.402b
  • Shares outstanding: 1.50b
  • Website: https://www.swirepacific.com

Number of Employees


Location

  • Swire Pacific Limited
  • One Pacific Place
  • 33rd Floor
  • Hong Kong
  • Hong Kong

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SWIDB (Deutsche Boerse AG)YesSeries A SharesDEEURMay 1981
SWRA.FOTCPK (Pink Sheets LLC)YesSeries A SharesUSUSDMay 1981
19SEHK (The Stock Exchange of Hong Kong Ltd.)YesSeries A SharesHKHKDMay 1981
19SHSC (Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect)YesSeries A SharesHKHKDMay 1981
19SZSC (The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect)YesSeries A SharesHKHKDMay 1981
SWRB.FOTCPK (Pink Sheets LLC)Series B SharesUSUSDJan 1992
87SHSC (Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect)Series B SharesHKHKDJan 1992
SWI1DB (Deutsche Boerse AG)Series B SharesDEEURJan 1992
87SZSC (The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect)Series B SharesHKHKDJan 1992
87SEHK (The Stock Exchange of Hong Kong Ltd.)Series B SharesHKHKDJan 1992
SWRB.YOTCPK (Pink Sheets LLC)ADR CL BUSUSDAug 1994
SWRA.YOTCPK (Pink Sheets LLC)SPON ADR AUSUSDJul 1995

Biography

Swire Pacific Limited engages in property, aviation, beverages, marine services, and trading and industrial businesses in Hong Kong, Asia, the United States, and internationally. Its Property division deve ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/21 12:42
End of Day Share Price2019/10/21 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.