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Wharf (Holdings)

OTCPK:WARF.Y
Snowflake Description

Adequate balance sheet and fair value.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
WARF.Y
OTCPK
HK$66B
Market Cap
  1. Home
  2. US
  3. Real Estate
Company description

Founded in 1886 as the 17th company incorporated in Hong Kong, The Wharf (Holdings) Limited (Stock code: 0004) is a premier company with a long history and Hong Kong as its base. The last earnings update was 52 days ago. More info.


Add to Portfolio Compare Print
  • Wharf (Holdings) is a fund or ETF! Currently our data availability for these is poor, we only recommend using them as part of a portfolio.
WARF.Y Share Price and Events
7 Day Returns
-5.1%
OTCPK:WARF.Y
-2.2%
US Real Estate
-2.1%
US Market
1 Year Returns
-18.1%
OTCPK:WARF.Y
-17.2%
US Real Estate
1.3%
US Market
WARF.Y Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Wharf (Holdings) (WARF.Y) -5.1% -2.3% -15.3% -18.1% -49.2% -61.7%
US Real Estate -2.2% -9.8% -12.3% -17.2% 13.7% -0.3%
US Market -2.1% -4.2% 0% 1.3% 33.5% 38%
1 Year Return vs Industry and Market
  • WARF.Y underperformed the Market in United States of America which returned 1.3% over the past year.
Price Volatility
WARF.Y
Industry
5yr Volatility vs Market

Value

 Is Wharf (Holdings) undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Wharf (Holdings) to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Wharf (Holdings).

OTCPK:WARF.Y Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 13 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 12.3%
Perpetual Growth Rate 10-Year US Government Bond Rate 2.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for OTCPK:WARF.Y
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 6.7%
Real Estate Unlevered Beta Simply Wall St/ S&P Global 1.11
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.106 (1 + (1- 25%) (66.82%))
1.443
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.44
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (1.443 * 6.65%)
12.32%

Discounted Cash Flow Calculation for OTCPK:WARF.Y using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Wharf (Holdings) 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:WARF.Y DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (HKD, Millions) Source Present Value
Discounted (@ 12.32%)
2019 -4,841.00 Analyst x2 -4,309.83
2020 3,751.00 Analyst x3 2,973.01
2021 3,943.00 Analyst x1 2,782.28
2022 4,113.14 Est @ 4.31% 2,583.88
2023 4,271.06 Est @ 3.84% 2,388.68
2024 4,420.83 Est @ 3.51% 2,201.16
2025 4,565.55 Est @ 3.27% 2,023.79
2026 4,707.57 Est @ 3.11% 1,857.77
2027 4,848.62 Est @ 3% 1,703.49
2028 4,990.03 Est @ 2.92% 1,560.81
Present value of next 10 years cash flows HK$15,765.04
OTCPK:WARF.Y DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= HK$4,990.03 × (1 + 2.73%) ÷ (12.32% – 2.73%)
HK$53,427.79
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= HK$53,427.79 ÷ (1 + 12.32%)10
HK$16,711.40
OTCPK:WARF.Y Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= HK$15,765.04 + HK$16,711.40
HK$32,476.44
Equity Value per Share
(HKD)
= Total value / Shares Outstanding
= HK$32,476.44 / 3,047.13
HK$10.66
OTCPK:WARF.Y Discount to Share Price
Calculation Result
Non-primary Listing Adjustment Factor 1 share in OTCPK:WARF.Y represents 0.25302x of SEHK:4
(This could be a different class, a depositary receipt, a different currency, or all of these things.)
0.25302x
Value per Share
(Listing Adjusted, USD)
= Value per Share (HKD) x Listing Adjustment Factor
= HK$ 10.66 x 0.25302
$2.70
Value per share (USD) From above. $2.70
Current discount Discount to share price of $5.44
= -1 x ($5.44 - $2.70) / $2.70
-101.7%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of Wharf (Holdings) is above its future cash flow value.
Often investors are willing to pay a premium 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 Wharf (Holdings)'s earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Wharf (Holdings)'s earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
OTCPK:WARF.Y PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-12-31) in HKD HK$2.18
SEHK:4 Share Price ** SEHK (2019-05-24) in HKD HK$21.5
United States of America Real Estate Industry PE Ratio Median Figure of 26 Publicly-Listed Real Estate Companies 14.91x
United States of America Market PE Ratio Median Figure of 3,082 Publicly-Listed Companies 17.36x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Wharf (Holdings).

OTCPK:WARF.Y PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= SEHK:4 Share Price ÷ EPS (both in HKD)

= 21.5 ÷ 2.18

9.88x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Wharf (Holdings) is good value based on earnings compared to the US Real Estate industry average.
  • Wharf (Holdings) is good value based on earnings compared to the United States of America market.
Price based on expected Growth
Does Wharf (Holdings)'s expected growth come at a high price?
Raw Data
OTCPK:WARF.Y PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 9.88x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 13 Analysts
8.7%per year
United States of America Real Estate Industry PEG Ratio Median Figure of 12 Publicly-Listed Real Estate Companies 0.43x
United States of America Market PEG Ratio Median Figure of 2,120 Publicly-Listed Companies 1.5x

*Line of best fit is calculated by linear regression .

OTCPK:WARF.Y PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 9.88x ÷ 8.7%

1.13x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Wharf (Holdings) is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Wharf (Holdings)'s assets?
Raw Data
OTCPK:WARF.Y PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-12-31) in HKD HK$44.44
SEHK:4 Share Price * SEHK (2019-05-24) in HKD HK$21.5
United States of America Real Estate Industry PB Ratio Median Figure of 51 Publicly-Listed Real Estate Companies 1.5x
United States of America Market PB Ratio Median Figure of 5,207 Publicly-Listed Companies 1.8x
OTCPK:WARF.Y PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= SEHK:4 Share Price ÷ Book Value per Share (both in HKD)

= 21.5 ÷ 44.44

0.48x

* Primary Listing of Wharf (Holdings).

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Wharf (Holdings) is good value based on assets compared to the US Real Estate industry average.
X
Value checks
We assess Wharf (Holdings)'s value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Real Estate industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Real Estate industry average (and greater than 0)? (1 check)
  5. Wharf (Holdings) has a total score of 3/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is Wharf (Holdings) expected to perform in the next 1 to 3 years based on estimates from 13 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
8.7%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Wharf (Holdings) expected to grow at an attractive rate?
  • Wharf (Holdings)'s earnings growth is expected to exceed the low risk savings rate of 2.7%.
Growth vs Market Checks
  • Wharf (Holdings)'s earnings growth is positive but not above the United States of America market average.
  • Wharf (Holdings)'s revenue growth is expected to exceed the United States of America market average.
Annual Growth Rates Comparison
Raw Data
OTCPK:WARF.Y Future Growth Rates Data Sources
Data Point Source Value (per year)
OTCPK:WARF.Y Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 13 Analysts 8.7%
OTCPK:WARF.Y Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 13 Analysts 13.7%
United States of America Real Estate Industry Earnings Growth Rate Market Cap Weighted Average 4%
United States of America Real Estate Industry Revenue Growth Rate Market Cap Weighted Average 4.7%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 13.7%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.3%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
OTCPK:WARF.Y Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (4 months ago) See Below
Future Estimates Average of up to 13 Analyst Estimates (S&P Global) See Below
All numbers in HKD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
OTCPK:WARF.Y Future Estimates Data
Date (Data in HKD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2021-12-31 31,771 13,405 8,498 8
2020-12-31 26,920 10,443 7,917 13
2019-12-31 22,892 7,167 7,031 13
OTCPK:WARF.Y Past Financials Data
Date (Data in HKD Millions) Revenue Cash Flow Net Income *
2018-12-31 21,055 -8,091 6,623
2018-09-30 27,544 -12,207 11,459
2018-06-30 34,033 -16,322 16,295
2018-03-31 38,653 -5,557 19,086
2017-12-31 43,273 5,208 21,876
2017-09-30 43,471 13,868 22,516
2017-06-30 43,669 22,527 23,156
2017-03-31 45,148 25,806 22,298
2016-12-31 46,627 29,084 21,440
2016-09-30 44,809 29,090 18,616
2016-06-30 42,990 29,095 15,791
2016-03-31 41,933 26,574 15,908

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Wharf (Holdings)'s earnings are expected to grow by 8.7% yearly, however this is not considered high growth (20% yearly).
  • Wharf (Holdings)'s revenue is expected to grow by 13.7% 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.
Raw Data
OTCPK:WARF.Y Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (4 months ago) See Below
Future Estimates Average of up to 13 Analyst Estimates (S&P Global) See Below

All data from Wharf (Holdings) Company Filings, last reported 4 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

OTCPK:WARF.Y Future Estimates Data
Date (Data in HKD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2021-12-31 2.74 3.13 2.34 8.00
2020-12-31 2.62 3.41 2.19 11.00
2019-12-31 2.29 2.43 2.16 9.00
OTCPK:WARF.Y Past Financials Data
Date (Data in HKD Millions) EPS *
2018-12-31 2.18
2018-09-30 3.77
2018-06-30 5.36
2018-03-31 6.29
2017-12-31 7.21
2017-09-30 7.42
2017-06-30 7.64
2017-03-31 7.36
2016-12-31 7.07
2016-09-30 6.14
2016-06-30 5.21
2016-03-31 5.25

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Wharf (Holdings) is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Wharf (Holdings)'s future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Wharf (Holdings) has a total score of 2/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Wharf (Holdings) performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Wharf (Holdings)'s growth in the last year to its industry (Real Estate).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Wharf (Holdings)'s year on year earnings growth rate was negative over the past 5 years and the most recent earnings are below average.
  • Wharf (Holdings)'s 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • Wharf (Holdings)'s 1-year earnings growth is negative, it can't be compared to the US Real Estate industry average.
Earnings and Revenue History
Wharf (Holdings)'s revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Wharf (Holdings) Company Filings, last reported 4 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

OTCPK:WARF.Y Past Revenue, Cash Flow and Net Income Data
Date (Data in HKD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-12-31 21,055.00 6,623.00 2,031.00
2018-09-30 27,544.00 11,459.00 2,067.00
2018-06-30 34,033.00 16,295.00 2,103.00
2018-03-31 38,653.00 19,085.50 2,238.00
2017-12-31 43,273.00 21,876.00 2,373.00
2017-09-30 43,471.00 22,516.00 2,673.50
2017-06-30 43,669.00 23,156.00 2,974.00
2017-03-31 45,148.00 22,298.00 3,022.50
2016-12-31 46,627.00 21,440.00 3,071.00
2016-09-30 44,808.50 18,615.50 3,128.00
2016-06-30 42,990.00 15,791.00 3,185.00
2016-03-31 41,932.50 15,907.50 3,223.00
2015-12-31 40,875.00 16,024.00 3,261.00
2015-09-30 40,301.00 23,605.50 3,133.00
2015-06-30 39,727.00 31,187.00 3,005.00
2015-03-31 38,931.50 33,558.50 2,969.00
2014-12-31 38,136.00 35,930.00 2,933.00
2014-09-30 35,729.00 29,885.50 3,029.00
2014-06-30 33,322.00 23,841.00 3,125.00
2014-03-31 32,604.50 26,610.50 3,116.00
2013-12-31 31,887.00 29,380.00 3,107.00
2013-09-30 29,686.50 35,118.50 3,008.00
2013-06-30 27,486.00 40,857.00 2,909.00
2013-03-31 29,171.00 44,060.00 2,828.00
2012-12-31 30,856.00 47,263.00 2,747.00
2012-09-30 31,682.50 43,587.50 2,676.50
2012-06-30 32,509.00 39,912.00 2,606.00

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Wharf (Holdings) has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Wharf (Holdings) used its assets less efficiently than the US Real Estate industry average last year based on Return on Assets.
  • Wharf (Holdings) has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Wharf (Holdings)'s performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Real Estate industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. 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.
Wharf (Holdings) has a total score of 1/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Wharf (Holdings)'s financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Wharf (Holdings)'s finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Wharf (Holdings) is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Wharf (Holdings)'s cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Wharf (Holdings)'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 checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is covered by short term assets, assets are 1.5x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, 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.
Raw Data

All data from Wharf (Holdings) Company Filings, last reported 4 months ago.

OTCPK:WARF.Y Past Debt and Equity Data
Date (Data in HKD Millions) Total Equity Total Debt Cash & Short Term Investments
2018-12-31 138,760.00 43,779.00 17,448.00
2018-09-30 138,760.00 43,779.00 17,448.00
2018-06-30 145,984.00 45,845.00 15,651.00
2018-03-31 145,984.00 45,845.00 15,651.00
2017-12-31 145,471.00 37,330.00 44,995.00
2017-09-30 145,471.00 37,330.00 44,995.00
2017-06-30 333,127.00 52,518.00 25,552.00
2017-03-31 333,127.00 52,518.00 25,552.00
2016-12-31 325,406.00 62,514.00 32,530.00
2016-09-30 325,406.00 62,514.00 32,530.00
2016-06-30 316,129.00 66,686.00 18,436.00
2016-03-31 316,129.00 66,686.00 18,436.00
2015-12-31 317,180.00 72,750.00 23,745.00
2015-09-30 317,180.00 72,750.00 23,745.00
2015-06-30 317,806.00 79,038.00 16,729.00
2015-03-31 317,806.00 79,038.00 16,729.00
2014-12-31 314,111.00 79,743.00 18,625.00
2014-09-30 314,111.00 79,743.00 18,625.00
2014-06-30 290,520.00 81,275.00 20,270.00
2014-03-31 290,520.00 81,275.00 20,270.00
2013-12-31 284,255.00 83,769.00 24,485.00
2013-09-30 284,255.00 83,769.00 24,485.00
2013-06-30 271,695.00 83,036.00 28,269.00
2013-03-31 271,695.00 83,036.00 28,269.00
2012-12-31 256,906.00 76,547.00 17,235.00
2012-09-30 256,906.00 76,547.00 17,235.00
2012-06-30 232,573.00 74,796.00 18,711.00
  • Wharf (Holdings)'s level of debt (31.6%) compared to net worth is satisfactory (less than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (29.5% vs 31.6% today).
  • Operating cash flow is negative therefore debt is not well covered.
  • Interest payments on debt are well covered by earnings (EBIT is 18.5x coverage).
X
Financial health checks
We assess Wharf (Holdings)'s financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Wharf (Holdings) has a total score of 4/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

 What is Wharf (Holdings)'s current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
3.02%
Current annual income from Wharf (Holdings) dividends. Estimated to be 3.52% next year.
If you bought $2,000 of Wharf (Holdings) shares you are expected to receive $60 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Wharf (Holdings)'s pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.47%).
  • Wharf (Holdings)'s dividend is below the markets top 25% of dividend payers in United States of America (3.76%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
OTCPK:WARF.Y Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 13 Analyst Estimates (S&P Global) See Below
United States of America Real Estate Industry Average Dividend Yield Market Cap Weighted Average of 16 Stocks 2.8%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 2008 Stocks 2.5%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.5%
United States of America Top 25% Dividend Yield 75th Percentile 3.8%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

OTCPK:WARF.Y Future Dividends Estimate Data
Date (Data in HK$) Dividend per Share (annual) Avg. No. Analysts
2021-12-31 0.79 8.00
2020-12-31 0.79 13.00
2019-12-31 0.69 11.00
OTCPK:WARF.Y Past Annualized Dividends Data
Date (Data in HK$) Dividend per share (annual) Avg. Yield (%)
2019-03-07 0.650 2.825
2018-08-09 1.200 5.542
2018-04-06 1.590 6.171
2018-03-08 1.590 5.722
2017-03-31 2.150 4.572
2017-03-09 2.150 3.176
2016-04-07 1.900 3.683
2016-03-09 1.900 4.577
2015-04-13 1.810 3.953
2015-03-16 1.810 3.364
2014-04-29 1.700 2.972
2014-03-27 1.700 3.126
2013-03-26 1.650 2.611
2012-08-23 1.150 1.991
2012-04-26 1.060 2.444
2012-03-22 1.060 2.436
2011-08-25 1.000 2.435
2011-03-23 1.000 1.847
2010-03-23 1.000 2.118

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Wharf (Holdings) has been paying a dividend for less than 10 years and during this time payments have been volatile (annual drop of over 20%).
  • Wharf (Holdings) has only been paying a dividend for 9 years, and since then dividends per share have fallen.
Current Payout to shareholders
What portion of Wharf (Holdings)'s earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by earnings (3.3x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (3.4x coverage).
X
Income/ dividend checks
We assess Wharf (Holdings)'s dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Wharf (Holdings) afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Wharf (Holdings) has a total score of 3/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of Wharf (Holdings)'s salary, the management and board of directors tenure and is there insider trading?

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.
CEO
Stephen Ng
COMPENSATION HK$29,712,000
AGE 66
TENURE AS CEO 30 years
CEO Bio

Mr. Tin Hoi Ng, also known as Stephen, serves as the Chief Executive Officer of Harbour Centre Development Limited. Mr. Ng has been the Managing Director of The Wharf (Holdings) Limited since 1989. He had been the Chairman of i-CABLE Communications Limited since August 2001 until September 15, 2017 and Chief Executive Officer since 1999 until September 15, 2017. He serves as the Chairman, Chief Executive Officer and President at Wharf T&T Ltd. He joined The Wharf (Holdings) Limited in 1981. He served as President of i-CABLE Communications Limited since 1999 until September 2017. Mr. Ng has been Chairman and Managing Director of Wharf Real Estate Investment Company Ltd since August 8, 2017 and October 24, 2017 Respectively. Mr. Ng performs a leadership role in monitoring and evaluating the Group’s business, and is primarily responsible for the overall strategic planning and major decision making for the Group. He formerly served as chairman and chief executive officer of publicly listed i-CABLE Communications Limited until his resignation in September 2017 and a non-executive director of publicly listed Greentown China Holdings Limited until his resignation in March 2015. He is chairman of Project WeCan Committee, and served as chairman of Hong Kong General Chamber of Commerce until May 18, 2018, and serves as a council member of both Employers’ Federation and serves as its Vice Chairman since May 25, 2018 and of Hong Kong and Hong Kong Trade Development Council until May 18, 2018. He has been the Chairman of Harbour Centre Development Limited since April 2, 2009. He has been the Chairman of Wheelock Properties (Singapore) Limited since April 01, 2013 and its Director since December 24, 2012. Mr. Ng has been Non-Executive Chairman of Joyce Boutique Holdings Ltd., since November 2007. He serves as Chairman of Wharf Communications Limited, Wharf Hong Kong Limited, Wharf Limited, Wharf Logistics Limited, and The "Star" Ferry Company, Limited. He serves as Vice Chairman of Wharf Estates Limited. He serves as Chairman of Modern Terminals Limited. He has been the Chairman of The Wharf (Holdings) Limited since May 15, 2015 and served as its Deputy Chairman since 1994. He has been Deputy Chairman of Wheelock and Company Ltd. since 1995 and as its Executive Director since August 23, 1988. He serves as Director of Ansett Limited, Dannette Holdings Limited, Harbour City Estates Limited, HCDL China Development Limited, Wharf Hotels Management Limited, Myers Investments Limited, Star Attraction Limited, Times Square Limited, Wharf China Development (0004) Limited, Wharf China Estates (0004) Limited, Wharf China Holdings (0004) Limited, Wheelock Investments Limited Director and Wheelock China Limited. He served as Vice Chairman of Wheelock Properties since December 24, 2012. He served as a Deputy Chairman of i-CABLE Communications Limited. He served as Non-Executive Non-Independent Director of Hotel Properties Limited since July 25, 2014 until December 28, 2018. He has been a Director of Joyce Boutique Holdings Ltd. since August 2000 and The Wharf (Holdings) Limited since 1998. He had been Executive Director of i-CABLE Communications Ltd. since 1999 until September 15, 2017. He serves as a Director of Wharf Communications Ltd. and WF Investment Partners Ltd. He is a Member of the Hong Kong - United States Business Council. Mr. Ng served as chairman of HCDL and Wheelock Properties (Singapore) Limited (“WPSL”) (all being publicly listed fellow subsidiaries of the Company in Hong Kong or Singapore. Mr. Ng served as a Non-Executive Director at Greentown China Holdings Limited from August 2, 2012 to March 27, 2015. He is a Member of the General Committee of the Hong Kong General Chamber of Commerce. Mr. Ng attended Ripon College in Ripon, Wisconsin, U.S.A. and the University of Bonn, Germany from 1971 to 1975 and graduated with a major in Mathematics.

CEO Compensation
  • Stephen's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Stephen'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 Wharf (Holdings) management team in years:

10.9
Average Tenure
66
Average Age
  • The average tenure for the Wharf (Holdings) management team is over 5 years, this suggests they are a seasoned and experienced team.
Management Team

Stephen Ng

TITLE
Chairman & MD
COMPENSATION
HK$30M
AGE
66
TENURE
30 yrs

Doreen Lee

TITLE
Vice Chairman
COMPENSATION
HK$17M
AGE
62

Paul Tsui

TITLE
Vice Chairman & Group CFO
COMPENSATION
HK$19M
AGE
71
TENURE
10.9 yrs

Andrew Chow

TITLE
Deputy Chairman
COMPENSATION
HK$49M
AGE
68

Kevin Chan

TITLE
Executive Director
COMPENSATION
HK$17M
AGE
57

Agnes Hui

TITLE
Senior Manager

Kwong Ching Peter Woo

TITLE
Senior Counsel
AGE
71

Kevin Hui

TITLE
Company Secretary
AGE
61
TENURE
5.8 yrs
Board of Directors Tenure

Average tenure and age of the Wharf (Holdings) board of directors in years:

4
Average Tenure
65
Average Age
  • The tenure for the Wharf (Holdings) board of directors is about average.
Board of Directors

Stephen Ng

TITLE
Chairman & MD
COMPENSATION
HK$30M
AGE
66
TENURE
4 yrs

Doreen Lee

TITLE
Vice Chairman
COMPENSATION
HK$17M
AGE
62
TENURE
4 yrs

Paul Tsui

TITLE
Vice Chairman & Group CFO
COMPENSATION
HK$19M
AGE
71
TENURE
4 yrs

Andrew Chow

TITLE
Deputy Chairman
COMPENSATION
HK$49M
AGE
68
TENURE
4 yrs

Kevin Chan

TITLE
Executive Director
COMPENSATION
HK$17M
AGE
57
TENURE
4 yrs

Hans Michael Jebsen

TITLE
Independent Non-Executive Director
COMPENSATION
HK$350K
AGE
62
TENURE
18.3 yrs

Vincent Fang

TITLE
Independent Non-Executive Director
COMPENSATION
HK$300K
AGE
75
TENURE
26.3 yrs

Edward Chen

TITLE
Independent Non-Executive Director
COMPENSATION
HK$200K
AGE
73
TENURE
17.3 yrs

David Turnbull

TITLE
Independent Non-Executive Director
COMPENSATION
HK$350K
AGE
63
TENURE
5.5 yrs

Elizabeth Law

TITLE
Independent Non-Executive Director
COMPENSATION
HK$300K
AGE
64
TENURE
1.8 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
X
Management checks
We assess Wharf (Holdings)'s management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Wharf (Holdings) has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Company Info

Description

Founded in 1886 as the 17th company incorporated in Hong Kong, The Wharf (Holdings) Limited (Stock code: 0004) is a premier company with a long history and Hong Kong as its base. As one of the 30 constituent stocks in the original Hang Seng Index 50 years ago, Wharf is among the top local blue chips that are most actively traded and widely held. Backed by a long standing mission of "Building for Tomorrow" and a proven track record in management and execution, the Group has produced consistent and productive performance over the years. To provide investors with choice, the Group completed a demerger in November 2017 to separately list its Hong Kong investment properties portfolio with a sharp focus. Today, The Wharf (Holdings) Limited is principally engaged in properties in Hong Kong and Mainland China. The Group also manages an expanding hotel portfolio in Asia under Wharf Hotels, a logistics business primarily in Hong Kong and the Mainland, and has started to invest in the new economy primarily in China under Wharf CME2. Wharf's Peak Portfolio redefines the concept of luxury living with a collection of the rarest and most prestigious residences nestled on the Peak, epitomising a unique and exclusive lifestyle at the most sought-after addresses in town. Other properties under development include 1 Plantation Road, 11 Plantation Road and 77 Peak Road. Kowloon East Waterfront Portfolio in the vibrant CBD2 under the Government's "Energising Kowloon East" initiative is another focus of the Group. It showcases a rare collection of premier developments that span a 500-metre coastline and enjoy a spectacular harbour view. In the Mainland, investment properties are led by the IFS series at the very heart of CBD or new CBD in select cities. IFS developments are positioned as trendsetting landmarks with unrivalled location, superior planning and design, retailer and shopper critical mass, as well as top-notch management. Chengdu IFS (which opened in 2014) and Changsha IFS (opening by phases in mid-2018) are comparable to Harbour City in Hong Kong in scale and dominance. The slightly smaller Chongqing IFS opened in 2017. The Group continues to adopt a selective land acquisition policy with strategic focuses on key Tier 1 or 2 cities in order to secure quality land bank and expected returns. As at the end of June 2018, the land bank of development properties in China was maintained at 3.8 million square metres. Wharf Hotels manages an expanding portfolio of 17 hotels in Asia. That is spearheaded by a prominent collection of four contemporary urban chic Niccolo hotels (including The Murray, Hong Kong and the newly opened Niccolo Changsha) and 13 Marco Polo hotels in Hong Kong, Mainland China and the Philippines. One more Niccolo hotel is due to open in the next two years. The Group also owns and operates Modern Terminals and Hong Kong Air Cargo Terminals, key components in Hong Kong’s success as a hub for international trade and international transportation for decades. Meanwhile, CME2 represents a strategic initiative and a long term investment in infrastructure in the new economy, with capital released from the exit from Wharf T&T and i-CABLE in 2016 and 2017 re-invested in a progressive CME2 arena that covers much larger markets with greater growth potential. "Building for Tomorrow" also extends to Wharf's "Business-in-Community" pursuit. In addition to the flagship school improvement programme "Project WeCan", the Group also supports Wu Zhi Qiao (Bridge to China) Charitable Foundation, Shanghai International Tower-running Grand Prix, and Operation Panda, etc. Backed by an enthusiastic team of staff volunteers, the Group also supports a series of "Business-in-Community" initiatives and works with different NGOs to bring benefits to different segments of society.

Details
Name: Wharf (Holdings) Limited
WARF.Y
Exchange: OTCPK
Founded: 1886
HK$8,346,315,818
3,047,127,327
Website: http://www.wharfholdings.com
Address: Wharf (Holdings) Limited
Ocean Centre,
16th Floor,
Kowloon City,
Kowloon, Hong Kong
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
SEHK 4 Ordinary Shares The Stock Exchange of Hong Kong Ltd. HK HKD 02. Jan 1992
OTCPK WARF.F Ordinary Shares Pink Sheets LLC US USD 02. Jan 1992
DB WHA Ordinary Shares Deutsche Boerse AG DE EUR 02. Jan 1992
SHSC 4 Ordinary Shares Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect HK HKD 02. Jan 1992
SZSC 4 Ordinary Shares The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect HK HKD 02. Jan 1992
OTCPK WARF.Y ADR Pink Sheets LLC US USD 11. Feb 2009
Number of employees
Current staff
Staff numbers
8,700
Wharf (Holdings) employees.
Industry
Diversified Real Estate Activities
Real Estate
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/05/25 00:18
End of day share price update: 2019/05/24 00:00
Last estimates confirmation: 2019/05/21
Last earnings filing: 2019/04/03
Last earnings reported: 2018/12/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.