OTCPK:SWRB.Y

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 Analysis

Established dividend payer with adequate balance sheet.


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

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


Market Performance


7 Day Return

1.8%

SWRB.Y

-1.6%

US Real Estate

-1.1%

US Market


1 Year Return

-21.9%

SWRB.Y

7.6%

US Real Estate

17.8%

US Market

Return vs Industry: SWRB.Y underperformed the US Real Estate industry which returned 6.5% over the past year.

Return vs Market: SWRB.Y underperformed the US Market which returned 17.9% over the past year.


Shareholder returns

SWRB.YIndustryMarket
7 Day1.8%-1.6%-1.1%
30 Day-2.8%1.5%1.5%
90 Day3.8%6.0%6.6%
1 Year-18.7%-21.9%8.5%7.6%20.2%17.8%
3 Year-12.1%-20.1%26.4%23.3%47.5%38.1%
5 Year-28.2%-40.2%13.8%10.1%71.2%52.4%

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

No news available

Valuation

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

6.01x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: SWRB.Y ($7.4) is trading above our estimate of fair value ($6.73)

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


Price To Earnings Ratio

PE vs Industry: SWRB.Y is good value based on its PE Ratio (6x) compared to the Real Estate industry average (22.8x).

PE vs Market: SWRB.Y is good value based on its PE Ratio (6x) compared to the US market (18.2x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: SWRB.Y is good value based on its PB Ratio (0.4x) compared to the US Real Estate industry average (1.4x).


Next Steps

Future Growth

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

-38.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SWRB.Y's earnings are forecast to decline over the next 3 years (-38.6% per year).

Earnings vs Market: SWRB.Y's earnings are forecast to decline over the next 3 years (-38.6% per year).

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

Revenue vs Market: SWRB.Y's revenue (3.6% per year) is forecast to grow slower than the US market (7.6% per year).

High Growth Revenue: SWRB.Y's revenue (3.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: SWRB.Y's Return on Equity is forecast to be low in 3 years time (3.5%).


Next Steps

  • Explore growth companies in the Real Estate industry.

Past Performance

How has Swire Pacific performed over the past 5 years?

18.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SWRB.Y has a large one-off gain of HK$12.0B impacting its June 30 2019 financial results.

Growing Profit Margin: SWRB.Y's current net profit margins (21.2%) are lower than last year (33.3%).


Past Earnings Growth Analysis

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

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

Earnings vs Industry: SWRB.Y had negative earnings growth (-34.1%) over the past year, making it difficult to compare to the Real Estate industry average (-31.1%).


Return on Equity

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


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Swire Pacific's financial position?


Financial Position Analysis

Short Term Liabilities: SWRB.Y's short term assets (HK$41.7B) exceed its short term liabilities (HK$36.4B).

Long Term Liabilities: SWRB.Y's short term assets (HK$41.7B) do not cover its long term liabilities (HK$75.6B).


Debt to Equity History and Analysis

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

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

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

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


Balance Sheet

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

Debt Coverage by Assets: SWRB.Y'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?

4.98%

Current Dividend Yield


Dividend Yield vs Market

company5.0%marketbottom25%1.4%markettop25%3.7%industryaverage2.3%forecastin3Years4.9%

Current dividend yield vs market & industry

Notable Dividend: SWRB.Y's dividend (4.98%) is higher than the bottom 25% of dividend payers in the US market (1.45%).

High Dividend: SWRB.Y's dividend (4.98%) is in the top 25% of dividend payers in the US market (3.73%)


Stability and Growth of Payments

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

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


Current Payout to Shareholders

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


Future Payout to Shareholders

Future Dividend Coverage: SWRB.Y's dividends in 3 years are forecast to be covered by earnings (57.8% payout ratio).


Next Steps

Management

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

2.3yrs

Average management tenure


CEO

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


Leadership Team

NamePositionTenureCompensationOwnership
Merlin Bingham Swire
Chairman of the Board1.6yrsHK$10.34mno data
Mei Shuen Low
Finance Director & Executive Director2.6yrsHK$7.28mno data
Kwok Leung Chu
Executive Director5.9yrsHK$6.15mno data
David Peter Cogman
Executive Director2.5yrsHK$8.88mno data
Cindy Cheung
Manager Group Public Affairs0yrsno datano data
John Flaherty
Company Secretary0.08yrsno datano data
Patrick Healy
Executive Director of the Beverages Division7.1yrsHK$12.98mno data
Karen So
Executive Director of China Operations for Swire Beverages0yrsno datano data

2.3yrs

Average Tenure

55yo

Average Age

Experienced Management: SWRB.Y's management team is considered experienced (2.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Merlin Bingham Swire
Chairman of the Board1.6yrsHK$10.34mno data
Mei Shuen Low
Finance Director & Executive Director2.6yrsHK$7.28mno data
Kwok Leung Chu
Executive Director5.9yrsHK$6.15mno data
David Peter Cogman
Executive Director2.5yrsHK$8.88mno data
Martin Cubbon
Non-Executive Director1.3yrsHK$2.97m0.0013% HK$169.7k
Timothy George Freshwater
Independent Non-Executive Director12.1yrsHK$690.00k0.0027% HK$348.3k
Paul Kenneth Etchells
Independent Non Executive Director2.8yrsHK$979.00k0.00080% HK$102.1k
Chien Lee
Independent Non-Executive Director27.1yrsHK$1.08m0.31% HK$39.0m
Wai-Mun Lee
Independent Non-Executive Director7.6yrsHK$750.00kno data
Samuel Compton Swire
Non-Executive Director5.1yrsno datano data

3.9yrs

Average Tenure

60yo

Average Age

Experienced Board: SWRB.Y's board of directors are considered experienced (3.9 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.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

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


Key Information

  • Name: Swire Pacific Limited
  • Ticker: SWRB.Y
  • Exchange: OTCPK
  • Founded: 1816
  • Industry: Diversified Real Estate Activities
  • Sector: Real Estate
  • Market Cap: HK$99.366b
  • Listing Market Cap: HK$12.759b
  • 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
SWRA.FOTCPK (Pink Sheets LLC)YesSeries A SharesUSUSDMay 1981
19SEHK (The Stock Exchange of Hong Kong Ltd.)YesSeries A SharesHKHKDMay 1981
SWIDB (Deutsche Boerse AG)YesSeries A SharesDEEURMay 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
87SEHK (The Stock Exchange of Hong Kong Ltd.)Series B SharesHKHKDJan 1992
SWRB.FOTCPK (Pink Sheets LLC)Series B SharesUSUSDJan 1992
SWI1DB (Deutsche Boerse AG)Series B SharesDEEURJan 1992
87SHSC (Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect)Series B SharesHKHKDJan 1992
87SZSC (The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect)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 develops, owns, and operates mixed-use properties. This division’s property investment portfolio comprises office and retail premises, serviced apartments, other luxury residential accommodations, and commercial mixed-use developments; and trading portfolio consists of residential properties. It also owns and manages two hotels in Hong Kong and four hotels in Mainland China, as well as owns interests in the Mandarin Oriental hotel in the United States. The company’s Aviation division provides scheduled passenger and cargo services, and aviation maintenance and repair services. As of December 31, 2018, it operated 154 aircraft. Its Beverages division owns rights to manufacture, market, and distribute refreshing soft drinks to consumers. The company’s Marine Services division owns and operates offshore support vessels servicing the energy industry in the offshore production and exploration region outside the United States; and has a windfarm installation business, as well as a subsea inspection, maintenance, and repair business. As of December 31, 2018, it operated a fleet of 77 offshore support vessels. Its Trading & Industrial division retails and distributes footwear, apparel, and accessories through its 193 retail outlets; sells passenger cars, commercial vehicles, motorcycles, and scooters; operates a chain of bakeries; packages and sells sugar products under the Taikoo Sugar brand; and offers waste management services. The company was founded in 1816 and is based in Hong Kong. Swire Pacific Limited is a subsidiary of John Swire & Sons (H.K.) Limited. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/24 02:27
End of Day Share Price2020/02/21 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.