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WHS

Warehouse Group NZSE:WHS Stock Report

Last Price

NZ$3.39

Market Cap

NZ$1.2b

7D

4.3%

1Y

-8.4%

Updated

07 Aug, 2022

Data

Company Financials +
WHS fundamental analysis
Snowflake Score
Valuation5/6
Future Growth2/6
Past Performance6/6
Financial Health6/6
Dividends5/6

WHS Stock Overview

The Warehouse Group Limited, together with its subsidiaries, engages in the retail of general merchandise and apparel in New Zealand.

Warehouse Group Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Warehouse Group
Historical stock prices
Current Share PriceNZ$3.39
52 Week HighNZ$4.25
52 Week LowNZ$2.86
Beta0.40
1 Month Change3.67%
3 Month Change3.99%
1 Year Change-8.38%
3 Year Change48.68%
5 Year Change62.20%
Change since IPO175.80%

Recent News & Updates

Aug 02
The Warehouse Group Limited's (NZSE:WHS) Intrinsic Value Is Potentially 75% Above Its Share Price

The Warehouse Group Limited's (NZSE:WHS) Intrinsic Value Is Potentially 75% Above Its Share Price

In this article we are going to estimate the intrinsic value of The Warehouse Group Limited ( NZSE:WHS ) by taking the...

Apr 28
Is The Warehouse Group Limited (NZSE:WHS) Trading At A 34% Discount?

Is The Warehouse Group Limited (NZSE:WHS) Trading At A 34% Discount?

Does the April share price for The Warehouse Group Limited ( NZSE:WHS ) reflect what it's really worth? Today, we will...

Apr 11
Here's Why I Think Warehouse Group (NZSE:WHS) Is An Interesting Stock

Here's Why I Think Warehouse Group (NZSE:WHS) Is An Interesting Stock

Like a puppy chasing its tail, some new investors often chase 'the next big thing', even if that means buying 'story...

Shareholder Returns

WHSNZ Multiline RetailNZ Market
7D4.3%2.6%2.1%
1Y-8.4%-24.9%-11.3%

Return vs Industry: WHS exceeded the NZ Multiline Retail industry which returned -24.9% over the past year.

Return vs Market: WHS exceeded the NZ Market which returned -11.3% over the past year.

Price Volatility

Is WHS's price volatile compared to industry and market?
WHS volatility
WHS Average Weekly Movement3.8%
Multiline Retail Industry Average Movement4.7%
Market Average Movement4.4%
10% most volatile stocks in NZ Market8.2%
10% least volatile stocks in NZ Market3.0%

Stable Share Price: WHS is not significantly more volatile than the rest of NZ stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: WHS's weekly volatility (4%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
1982n/aNick Graystonhttps://www.thewarehousegroup.co.nz

The Warehouse Group Limited, together with its subsidiaries, engages in the retail of general merchandise and apparel in New Zealand. The company also sells stationery products, technology and appliance products, and outdoor and sporting equipment. It operates 90 The Warehouse stores, 70 Warehouse Stationery stores, 71 Noel Leeming stores, and 21 Torpedo7 stores, as well as online stores.

Warehouse Group Fundamentals Summary

How do Warehouse Group's earnings and revenue compare to its market cap?
WHS fundamental statistics
Market CapNZ$1.17b
Earnings (TTM)NZ$113.13m
Revenue (TTM)NZ$3.34b

10.3x

P/E Ratio

0.4x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
WHS income statement (TTM)
RevenueNZ$3.34b
Cost of RevenueNZ$2.15b
Gross ProfitNZ$1.19b
Other ExpensesNZ$1.07b
EarningsNZ$113.13m

Last Reported Earnings

Jan 30, 2022

Next Earnings Date

Sep 28, 2022

Earnings per share (EPS)0.33
Gross Margin35.53%
Net Profit Margin3.39%
Debt/Equity Ratio0%

How did WHS perform over the long term?

See historical performance and comparison

Dividends

8.1%

Current Dividend Yield

84%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

Is WHS undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

5/6

Valuation Score 5/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for WHS?

Other financial metrics that can be useful for relative valuation.

WHS key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue0.6x
Enterprise Value/EBITDA7.7x
PEG Ratio2.6x

Price to Earnings Ratio vs Peers

How does WHS's PE Ratio compare to its peers?

WHS PE Ratio vs Peers
The above table shows the PE ratio for WHS vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average14.8x
BGP Briscoe Group
14.1xn/aNZ$1.2b
KMD KMD Brands
22.1x33.6%NZ$779.9m
HLG Hallenstein Glasson Holdings
12.8xn/aNZ$324.1m
CMO Colonial Motor
10.4xn/aNZ$312.9m
WHS Warehouse Group
10.3x4.0%NZ$1.2b

Price-To-Earnings vs Peers: WHS is good value based on its Price-To-Earnings Ratio (10.3x) compared to the peer average (14.8x).


Price to Earnings Ratio vs Industry

How does WHS's PE Ratio compare vs other companies in the Global Multiline Retail Industry?

Price-To-Earnings vs Industry: WHS is good value based on its Price-To-Earnings Ratio (10.3x) compared to the Oceanic Multiline Retail industry average (11.4x)


Price to Earnings Ratio vs Fair Ratio

What is WHS's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

WHS PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio10.3x
Fair PE Ratio12.2x

Price-To-Earnings vs Fair Ratio: WHS is good value based on its Price-To-Earnings Ratio (10.3x) compared to the estimated Fair Price-To-Earnings Ratio (12.2x).


Share Price vs Fair Value

What is the Fair Price of WHS when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: WHS (NZ$3.39) is trading below our estimate of fair value (NZ$5.99)

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


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Target price is less than 20% higher than the current share price.


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Future Growth

How is Warehouse Group forecast to perform in the next 1 to 3 years based on estimates from 3 analysts?

Future Growth Score

2/6

Future Growth Score 2/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


4.0%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: WHS's forecast earnings growth (4% per year) is above the savings rate (2.1%).

Earnings vs Market: WHS's earnings (4% per year) are forecast to grow slower than the NZ market (5.5% per year).

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

Revenue vs Market: WHS's revenue (1.4% per year) is forecast to grow slower than the NZ market (5.9% per year).

High Growth Revenue: WHS's revenue (1.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: WHS's Return on Equity is forecast to be high in 3 years time (22.7%)


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Past Performance

How has Warehouse Group performed over the past 5 years?

Past Performance Score

6/6

Past Performance Score 6/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


15.7%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: WHS has high quality earnings.

Growing Profit Margin: WHS's current net profit margins (3.4%) are higher than last year (2.1%).


Past Earnings Growth Analysis

Earnings Trend: WHS's earnings have grown by 15.7% per year over the past 5 years.

Accelerating Growth: WHS's earnings growth over the past year (63.2%) exceeds its 5-year average (15.7% per year).

Earnings vs Industry: WHS earnings growth over the past year (63.2%) exceeded the Multiline Retail industry -3.9%.


Return on Equity

High ROE: WHS's Return on Equity (24.9%) is considered high.


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Financial Health

How is Warehouse Group's financial position?

Financial Health Score

6/6

Financial Health Score 6/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: WHS's short term assets (NZ$802.8M) exceed its short term liabilities (NZ$752.5M).

Long Term Liabilities: WHS's short term assets (NZ$802.8M) exceed its long term liabilities (NZ$775.2M).


Debt to Equity History and Analysis

Debt Level: WHS is debt free.

Reducing Debt: WHS has no debt compared to 5 years ago when its debt to equity ratio was 59.1%.

Debt Coverage: WHS has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: WHS has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet


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Dividend

What is Warehouse Group current dividend yield, its reliability and sustainability?

Dividend Score

5/6

Dividend Score 5/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage


8.11%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: WHS's dividend (8.11%) is higher than the bottom 25% of dividend payers in the NZ market (2.95%).

High Dividend: WHS's dividend (8.11%) is in the top 25% of dividend payers in the NZ market (5.8%)


Stability and Growth of Payments

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

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


Earnings Payout to Shareholders

Earnings Coverage: At its current payout ratio (83.9%), WHS's payments are covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: With its reasonably low cash payout ratio (48.1%), WHS's dividend payments are well covered by cash flows.


Discover strong dividend paying companies

Management

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

3.7yrs

Average management tenure


CEO

Nick Grayston

6.58yrs

Tenure

NZ$2,378,000

Compensation

Mr. Nick Grayston has been Group Chief Executive Officer of The Warehouse Group Limited since January 2015. Mr. Grayston joined Warehouse Group Limited in December 2015. Prior to, he has held a number of s...


CEO Compensation Analysis

Compensation vs Market: Nick's total compensation ($USD1.48M) is above average for companies of similar size in the NZ market ($USD1.06M).

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


Leadership Team

Experienced Management: WHS's management team is considered experienced (3.7 years average tenure).


Board Members

Experienced Board: WHS's board of directors are considered experienced (5.9 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

The Warehouse Group Limited's employee growth, exchange listings and data sources


Key Information

  • Name: The Warehouse Group Limited
  • Ticker: WHS
  • Exchange: NZSE
  • Founded: 1982
  • Industry: General Merchandise Stores
  • Sector: Retail
  • Implied Market Cap: NZ$1.171b
  • Shares outstanding: 345.35m
  • Website: https://www.thewarehousegroup.co.nz

Number of Employees


Location

  • The Warehouse Group Limited
  • 26 The Warehouse Way
  • Northcote
  • Auckland
  • 627
  • New Zealand

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/08/07 00:00
End of Day Share Price2022/08/05 00:00
Earnings2022/01/30
Annual Earnings2021/08/01


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.