NZSE:PFI

Stock Analysis Report

Property For Industry

Executive Summary

Property For Industry Limited engages in the property investment and management business in New Zealand.

Rewards

PE ratio (9.4x) is below the NZ market (20x)

Earnings grew by 46.1% over the past year

Pays a high and reliable dividend of 3.17%

Risk Analysis

Earnings are forecast to decline by an average of -17.5% per year for the next 3 years

Large one-off items impacting financial results

Shareholders have been diluted in the past year



Snowflake Analysis

Established dividend payer with proven track record.

Share Price & News

How has Property For Industry's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

-0.2%

PFI

0.3%

NZ REITs

0.6%

NZ Market


1 Year Return

35.3%

PFI

25.6%

NZ REITs

22.2%

NZ Market

Return vs Industry: PFI exceeded the NZ REITs industry which returned 25.6% over the past year.

Return vs Market: PFI exceeded the NZ Market which returned 22.2% over the past year.


Shareholder returns

PFIIndustryMarket
7 Day-0.2%0.3%0.6%
30 Day1.3%1.1%2.4%
90 Day-0.6%-3.3%2.9%
1 Year40.8%35.3%31.2%25.6%27.3%22.2%
3 Year78.1%54.5%65.7%42.4%61.8%40.5%
5 Year104.5%59.7%97.5%52.2%96.2%52.5%

Price Volatility Vs. Market

How volatile is Property For Industry's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Property For Industry undervalued compared to its fair value and its price relative to the market?

9.41x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: PFI (NZ$2.4) is trading above our estimate of fair value (NZ$2.19)

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


Price To Earnings Ratio

PE vs Industry: PFI is good value based on its PE Ratio (9.4x) compared to the REITs industry average (12.1x).

PE vs Market: PFI is good value based on its PE Ratio (9.4x) compared to the NZ market (20x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: PFI is overvalued based on its PB Ratio (1.3x) compared to the NZ REITs industry average (1.2x).


Next Steps

Future Growth

How is Property For Industry forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

-17.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: PFI's earnings are forecast to decline over the next 3 years (-17.5% per year).

Earnings vs Market: PFI's earnings are forecast to decline over the next 3 years (-17.5% per year).

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

Revenue vs Market: PFI's revenue (1.1% per year) is forecast to grow slower than the NZ market (4.9% per year).

High Growth Revenue: PFI's revenue (1.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: PFI's Return on Equity is forecast to be low in 3 years time (4.6%).


Next Steps

Past Performance

How has Property For Industry performed over the past 5 years?

12.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: PFI has a large one-off gain of NZ$81.9M impacting its June 30 2019 financial results.

Growing Profit Margin: PFI's current net profit margins are higher than last year .


Past Earnings Growth Analysis

Earnings Trend: PFI's earnings have grown by 12.9% per year over the past 5 years.

Accelerating Growth: PFI's earnings growth over the past year (46.1%) exceeds its 5-year average (12.9% per year).

Earnings vs Industry: PFI earnings growth over the past year (46.1%) exceeded the REITs industry -6.6%.


Return on Equity

High ROE: PFI's Return on Equity (13.5%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Property For Industry's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

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

Debt Coverage by Assets: PFI's debt is not covered by short term assets (assets are 0x debt).


Financial Institutions Analysis

Asset Level: PFI's level of assets compared to its equity is low.

Allowance for Bad Loans: Insufficient data to determine if PFI has a sufficient allowance for bad loans.

Low Risk Liabilities: PFI reports no customer deposits, loans are made up entirely of externally borrowed funds.

Loan Level: Insufficient data to determine if PFI has an acceptable proportion of non-loan assets held.

Low Risk Deposits: PFI has advanced significantly more loans than the customer deposits it holds.

Level of Bad Loans: Insufficient data to determine if PFI has an appropriate level of bad loans.


Next Steps

Dividend

What is Property For Industry's current dividend yield, its reliability and sustainability?

3.17%

Current Dividend Yield


Dividend Yield vs Market

company3.2%marketbottom25%2.9%markettop25%5.4%industryaverage3.7%forecastin3Years3.3%

Current dividend yield vs market & industry

Notable Dividend: PFI's dividend (3.17%) is higher than the bottom 25% of dividend payers in the NZ market (2.95%).

High Dividend: PFI's dividend (3.17%) is low compared to the top 25% of dividend payers in the NZ market (5.45%).


Stability and Growth of Payments

Stable Dividend: PFI's dividends per share have been stable in the past 10 years.

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


Current Payout to Shareholders

Dividend Coverage: At its current payout ratio (85%), PFI's payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: PFI's dividends in 3 years are forecast to be covered by earnings (85.5% payout ratio).


Next Steps

Management

What is the CEO of Property For Industry's salary, the management and board of directors tenure and is there insider trading?

0.9yrs

Average management tenure


CEO

Simon Woodhams 0

0.9yrs

Tenure

NZ$541,000

Compensation

Mr. Simon Woodhams has been Chief Executive Officer of Property for Industry Ltd. since January 2019. Mr. Woodhams was General Manager of Property for Industry Ltd. since July 2015 until January 2019. Mr.  ...


CEO Compensation Analysis

Compensation vs Market: Simon's total compensation ($USD355.73K) is below average for companies of similar size in the NZ market ($USD667.35K).

Compensation vs Earnings: Simon's compensation has increased by more than 20% in the past year.


Management Age and Tenure

0.9yrs

Average Tenure

Experienced Management: PFI's management team is not considered experienced ( 0.9 years average tenure), which suggests a new team.


Board Age and Tenure

5.8yrs

Average Tenure

Experienced Board: PFI's board of directors are considered experienced (5.8 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.


Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 3.3%.


Management Team

  • Greg Reidy

    Non-Executive Director

    • Tenure: 7.9yrs
    • Compensation: NZ$436.00k
  • Simon Woodhams

    Chief Executive Officer

    • Tenure: 0.9yrs
    • Compensation: NZ$541.00k
  • Craig Peirce

    Chief Finance & Operating Officer

    • Tenure: 0.9yrs
    • Compensation: NZ$541.00k
  • Nathan Williams

    Financial Controller

    • Tenure: 1.9yrs

Board Members

  • Anthony Beverley

    Board Chairman

    • Tenure: 0yrs
    • Compensation: NZ$106.00k
  • Humphry Rolleston

    Independent Director

    • Tenure: 25.4yrs
    • Compensation: NZ$70.00k
  • Greg Reidy

    Non-Executive Director

    • Tenure: 7.9yrs
    • Compensation: NZ$436.00k
  • Susan Peterson

    Independent Director

    • Tenure: 3.6yrs
    • Compensation: NZ$76.00k
  • David Thomson

    Independent Director

    • Tenure: 1.8yrs
    • Compensation: NZ$62.00k

Company Information

Property For Industry Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Property For Industry Limited
  • Ticker: PFI
  • Exchange: NZSE
  • Founded: 1994
  • Industry: Industrial REITs
  • Sector: Real Estate
  • Market Cap: NZ$1.189b
  • Shares outstanding: 498.72m
  • Website: https://www.propertyforindustry.co.nz

Location

  • Property For Industry Limited
  • Shed 24
  • Prince's Wharf
  • Auckland
  • 1140
  • New Zealand

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
PFINZSE (New Zealand Stock Exchange)YesOrdinary SharesNZNZDJan 1995

Biography

Property For Industry Limited engages in the property investment and management business in New Zealand. The company invests in industrial properties located in North Harbour, Avondale, Penrose, Mount Well ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/12 10:33
End of Day Share Price2019/12/11 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.