Swire Properties Limited, together with its subsidiaries, develops, owns, and operates mixed-use, primarily commercial properties in Hong Kong, Mainland China, the United States, and internationally.
The last earnings update was 42 days ago.
Discounted Cash Flow Calculation for OTCPK:SWRO.Y using 2 Stage Free Cash Flow to Equity Model
The calculations below outline how an intrinsic value for
is arrived at by discounting future cash flows to their present value using the 2 stage method.
We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.
OTCPK:SWRO.Y DCF 1st Stage: Next 10 year cash flow forecast
The current share price of
is above its future cash flow value.
Often investors are willing to pay a
for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for
it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing
when they are out of season, or how much your home is worth.
The amount the stock market is willing to pay for
is considered below, and whether this is a fair price.
Price based on past earnings
Swire Properties's earnings available for a low price, and how does
this compare to other companies in the same industry?
Swire Properties's earnings are expected to decrease over the next 1-3 years, this is not considered high growth.
Swire Properties's revenue is expected to grow by 2.8% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can
be gauged below. We look back 3 years and see if they were any good at
predicting what actually occurred. We also show the highest and lowest estimates
looking forward to see if there is a wide range.
Swire Properties's performance over the past 5 years by checking for:
Has earnings increased in past 5 years? (1 check)
Has the earnings growth in the last year exceeded that of the
industry? (1 check)
Is the recent earnings growth over the last year higher than the average annual growth over the
past 5 years? (1 check)
Is the Return on Equity (ROE) higher than 20%? (1 check)
Is the Return on Assets (ROA) above industry average? (1 check)
Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent
earnings report. Some checks require at least 3 or 5 years worth of data.
has a total score of
2/6, see the detailed checks below.
Note: We use GAAP Net Income excluding extraordinary items in all our calculations.
A company's financial position is much like your own financial position,
it includes everything you own
The boxes below represent the relative size of what makes up
Swire Properties's finances.
The net worth of a company is the difference between its assets and liabilities.
Swire Properties is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
Swire Properties's long term commitments exceed its cash and other short term assets.
This treemap shows a more detailed breakdown of
Swire Properties's finances. If any of them are yellow this
indicates they may be out of proportion and red means they relate to one of the
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
Low level of unsold assets.
Debt is not covered by short term assets, assets are 0.7x debt.
Nearly all companies have debt. Debt in itself isn’t
however if the debt is too high, or the company can’t afford to pay the interest
on its debts this may have impacts in the future.
The graphic below shows equity (available funds) and debt, we ideally want to
see the red area (debt) decreasing.
If there is any debt we look at the companies capability to repay it, and
whether the level has increased over the past 5 years.
Management is one of the most important areas of a company. We look at
unreasonable CEO compensation, how long the team and board of directors have
been around for and insider trading.
Guy Martin CouttsBradley
TENURE AS CEO
Mr. Guy Martin Coutts Bradley has been Chief Executive Officer of Swire Properties Limited since January 1, 2015 and has been its Executive Director since January 1, 2008. Mr. Bradley has been the Chief Operating Officer for Hong Kong at Swire Properties Ltd since January 2010. He served as an Executive Director of Swire Pacific Limited since January 2015 until May 5, 2017. He joined the Swire Group in 1987 and in addition to Hong Kong, has worked with the Group in Papua New Guinea, Japan, U.S.A., Vietnam, Mainland China, Taiwan and the Middle East. He is seconded from the JSS Group and has no other role in the JSS Group. He serves as a Director of Swire Properties MTN Financing Limited. He is a member of The Royal Institution of Chartered Surveyors and The Hong Kong Institute of Surveyors. Mr. Bradley graduated from the University of Oxford in 1987 with a Bachelor of Arts degree in Politics, Philosophy and Economics and obtained a Master of Arts degree from the University of Oxford in 1991.
Guy Martin Coutts's compensation has been consistent with company performance over the past year.
Guy Martin Coutts's remuneration is lower than average for companies of similar size in United States of America.
Management Team Tenure
Average tenure and age of the
management team in years:
The tenure for the Swire Properties management team is about average.
Merlin Bingham Swire
Guy Martin Coutts Bradley
CEO & Executive Director
Finance Director & Executive Director
Director of Business Development
Director Human Resources
Deputy Chairman of Swire Hotels
Director of Development & Valuations
Board of Directors Tenure
Average tenure and age of the
board of directors in years:
The tenure for the Swire Properties board of directors is about average.
Swire Properties Limited, together with its subsidiaries, develops, owns, and operates mixed-use, primarily commercial properties in Hong Kong, Mainland China, the United States, and internationally. It operates through three segments: Property Investment, Property Trading, and Hotels. The company is involved in the development, leasing, and management of commercial, retail, and residential properties; the development, construction, and sale of residential apartments; and operation of hotels. It also provides landscaping, financial, and real estate agency services. The company was founded in 1972 and is based in Hong Kong, Hong Kong. Swire Properties Limited is a subsidiary of Swire Pacific Limited.
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