NZSE:WHS

Stock Analysis Report

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Executive Summary

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


Snowflake Analysis

Excellent balance sheet and good value.


Similar Companies

Share Price & News

How has Warehouse Group's share price performed over time and what events caused price changes?


Latest Share Price and Events

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.


Market Performance


7 Day Return

-1.2%

WHS

-1.0%

NZ Multiline Retail

0.3%

NZ Market


1 Year Return

-10.5%

WHS

19.1%

NZ Multiline Retail

7.8%

NZ Market

Return vs Industry: WHS underperformed the NZ Multiline Retail industry which returned 19.1% over the past year.

Return vs Market: WHS underperformed the NZ Market which returned 7.8% over the past year.


Shareholder returns

WHSIndustryMarket
7 Day-1.2%-1.0%0.3%
30 Day9.9%5.1%4.4%
90 Day24.4%6.2%7.6%
1 Year-10.5%-10.5%23.6%19.1%11.8%7.8%
3 Year47.8%24.4%76.4%11.8%48.9%29.5%
5 Year35.4%-1.9%118.9%26.5%103.2%54.2%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Warehouse Group undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: WHS (NZ$2.55) is trading below our estimate of fair value (NZ$54.33)

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


Price To Earnings Ratio

PE vs Industry: WHS is good value based on its PE Ratio (19.8x) compared to the XX Multiline Retail industry average (25.9x).

PE vs Market: WHS is good value based on its PE Ratio (19.8x) compared to the NZ market (23.5x).


Price to Earnings Growth Ratio

PEG Ratio: WHS is poor value based on its PEG Ratio (1.1x)


Price to Book Ratio

PB vs Industry: WHS is overvalued based on its PB Ratio (2.3x) compared to the XO Multiline Retail industry average (1.9x).


Next Steps

Future Growth

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

18.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: WHS's forecast earnings growth (18.4% per year) is above the savings rate (2.6%).

Earnings vs Market: WHS's earnings (18.4% per year) are forecast to grow faster than the NZ market (11.5% per year).

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

Revenue vs Market: WHS's revenue (1.1% per year) is forecast to grow slower than the NZ market (5.6% per year).

High Growth Revenue: WHS'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: WHS's Return on Equity is forecast to be low in 3 years time (19.1%).


Next Steps

Past Performance

How has Warehouse Group performed over the past 5 years?

-7.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: WHS has a large one-off loss of NZ$53.1M impacting its August 2 2020 financial results.

Growing Profit Margin: WHS's current net profit margins (1.4%) are lower than last year (2.2%).


Past Earnings Growth Analysis

Earnings Trend: WHS's earnings have declined by 7.9% per year over the past 5 years.

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

Earnings vs Industry: WHS had negative earnings growth (-33.7%) over the past year, making it difficult to compare to the Multiline Retail industry average (-32.7%).


Return on Equity

High ROE: WHS's Return on Equity (11.6%) is considered low.


Next Steps

Financial Health

How is Warehouse Group's financial position?


Financial Position Analysis

Short Term Liabilities: WHS's short term assets (NZ$646.2M) exceed its short term liabilities (NZ$626.3M).

Long Term Liabilities: WHS's short term assets (NZ$646.2M) do not cover its long term liabilities (NZ$852.2M).


Debt to Equity History and Analysis

Debt Level: WHS's debt to equity ratio (7.2%) is considered satisfactory.

Reducing Debt: WHS's debt to equity ratio has reduced from 61.2% to 7.2% over the past 5 years.

Debt Coverage: WHS's debt is well covered by operating cash flow (1506.1%).

Interest Coverage: WHS's interest payments on its debt are well covered by EBIT (3.4x coverage).


Balance Sheet


Next Steps

Dividend

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

6.64%

Forecast Dividend Yield


Dividend Yield vs Market

Notable Dividend: Unable to evaluate WHS's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate WHS's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if WHS's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if WHS's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: WHS is not paying a notable dividend for the NZ market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of WHS's dividend in 3 years as they are not forecast to pay a notable one for the NZ market.


Next Steps

Management

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

3.6yrs

Average management tenure


CEO

Nick Grayston

4.92yrs

Tenure

NZ$2,237,000

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 ($USD0.00) is below average for companies of similar size in the NZ market ($USD678.66K).

Compensation vs Earnings: Nick's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Nick Grayston
Group Chief Executive Officer4.92yrsNZ$2.24mno data
Jonathan Oram
Group Chief Financial Officer2.75yrsno datano data
Mark Yeoman
Chief Operating Officerno datano datano data
Timothy Kasbe
Chief Information & Digital Officer3.33yrsno datano data
Tanya Henderson
Group Public Relations Managerno datano datano data
Jonathan Waecker
Chief Marketing Officerno datano data0.0058%
NZ$ 51.0k
Richard Parker
Chief Human Resource Officer0.92yrno datano data
Michelle Anderson
Chief Digital Officerno datano datano data
David Benattar
Chief Experience Officer4.17yrsno datano data
Scott Newton
Chief Transformation Officer2.83yrsno datano data
Tania Benyon
Chief Executive Officer of Group Sourcing Support & TWL Merchandise6.92yrsno datano data
Pejman Okhovat
Chief Executive Officer of Warehouse & Warehouse Stationery Brands3.92yrsno datano data

3.6yrs

Average Tenure

Experienced Management: WHS's management team is considered experienced (3.6 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Joan Withers
Independent Chair4.25yrsNZ$166.00k0.52%
NZ$ 4.6m
Keith Smith
Independent Deputy Chairman9.58yrsNZ$123.00k0.18%
NZ$ 1.6m
John William Journee
Independent Non-Executive Director7.17yrsNZ$86.03k0.050%
NZ$ 438.6k
Antony Balfour
Independent Non-Executive Director8.17yrsNZ$84.53kno data
Julia Raue
Independent Non-Executive Director4.25yrsNZ$86.03kno data
Dean Hamilton
Independent Non-Executive Director0.67yrno datano data
William Easton
Independent Non-Executive Director2.17yrsno datano data

4.3yrs

Average Tenure

63.5yo

Average Age

Experienced Board: WHS's board of directors are considered experienced (4.3 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: WHS 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 company bio, 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
  • Market Cap: NZ$880.480m
  • Shares outstanding: 345.29m
  • Website: https://www.thewarehousegroup.co.nz

Number of Employees


Location

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

Listings

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

Biography

The Warehouse Group Limited, together with its subsidiaries, engages in the retail of general merchandise and apparel in New Zealand. It also sells stationery products, technology and appliance products, a...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/12/05 06:02
End of Day Share Price2020/12/04 00:00
Earnings2020/08/02
Annual Earnings2020/08/02


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.