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AHA

Arrowhead PropertiesJSE:AHA Stock Report

Market Cap

R4.5b

7D

0%

1Y

84.5%

Updated

17 Oct, 2021

Data

Company Financials
AHA fundamental analysis
Snowflake Score
Valuation0/6
Future Growth0/6
Past Performance0/6
Financial Health1/6
Dividends3/6

AHA Overview

Arrowhead is a diversified South African Real Estate Investment Trust (“REIT”) focused on creating long-term shareholder value.

Arrowhead Properties Competitors

SA Real Estate

JSE:SAC

R5.5b

Attacq

JSE:ATT

R4.7b

Emira Property Fund

JSE:EMI

R4.7b

Dipula Income Fund

JSE:DIA

R3.3b

Price History & Performance

Summary of all time highs, changes and price drops for Arrowhead Properties
Historical stock prices
Current Share PriceR14.00
52 Week HighR7.01
52 Week LowR14.00
Beta0.64
1 Month Change7.69%
3 Month Change27.27%
1 Year Change84.45%
3 Year Changen/a
5 Year Changen/a
Change since IPO38.34%

Recent News & Updates

Shareholder Returns

AHAZA REITsZA Market
7D0%-0.4%1.6%
1Y84.5%39.5%21.3%

Return vs Industry: AHA exceeded the ZA REITs industry which returned 39.5% over the past year.

Return vs Market: AHA exceeded the ZA Market which returned 21.3% over the past year.

Price Volatility

Is AHA's price volatile compared to industry and market?
AHA volatility
AHA Beta0.64
Industry Beta0.89
Market Beta1

Stable Share Price: AHA is not significantly more volatile than the rest of ZA stocks over the past 3 months, typically moving +/- 8% a week.

Volatility Over Time: AHA's weekly volatility (8%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
201134Mark Kaplanhttps://www.arrowheadproperties.co.za

Arrowhead is a diversified South African Real Estate Investment Trust (“REIT”) focused on creating long-term shareholder value. Arrowhead holds a diverse portfolio of retail, office and industrial properties valued at R9.7 billion. As at 30 September 2020, Arrowhead also held a 60.0% interest (2019: 59.6 %) in its subsidiary, Indluplace Properties Limited (“Indluplace”), which owns a portfolio of residential properties.

Arrowhead Properties Fundamentals Summary

How do Arrowhead Properties's earnings and revenue compare to its market cap?
AHA fundamental statistics
Market CapR4.54b
Earnings (TTM)-R187.26m
Revenue (TTM)R2.01b

6.7x

P/S Ratio

-72.2x

P/E Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
AHA income statement (TTM)
RevenueR2.01b
Cost of RevenueR913.82m
Gross ProfitR1.09b
ExpensesR1.28b
Earnings-R187.26m

Last Reported Earnings

Mar 31, 2021

Next Earnings Date

n/a

Earnings per share (EPS)-0.19
Gross Margin54.45%
Net Profit Margin-9.33%
Debt/Equity Ratio74.2%

How did AHA perform over the long term?

See historical performance and comparison

Dividends

8.2%

Current Dividend Yield

78%

Payout Ratio

Valuation

Is Arrowhead Properties undervalued compared to its fair value and its price relative to the market?

2.04x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: AHA (ZAR14) is trading above our estimate of fair value (ZAR8.4)

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


Price To Earnings Ratio

PE vs Industry: AHA is unprofitable, so we can't compare its PE Ratio to the ZA REITs industry average.

PE vs Market: AHA is unprofitable, so we can't compare its PE Ratio to the ZA market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate AHA's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: AHA is overvalued based on its PB Ratio (2x) compared to the ZA REITs industry average (0.6x).


Future Growth

How is Arrowhead Properties forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

11.9%

Forecasted Real Estate industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Arrowhead Properties has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Past Performance

How has Arrowhead Properties performed over the past 5 years?

-64.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: AHA is currently unprofitable.

Growing Profit Margin: AHA is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: AHA is unprofitable, and losses have increased over the past 5 years at a rate of 64.5% per year.

Accelerating Growth: Unable to compare AHA's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: AHA is unprofitable, making it difficult to compare its past year earnings growth to the REITs industry (132.9%).


Return on Equity

High ROE: AHA has a negative Return on Equity (-3.49%), as it is currently unprofitable.


Financial Health

How is Arrowhead Properties's financial position?


Financial Position Analysis

Short Term Liabilities: AHA's short term assets (ZAR1.1B) exceed its short term liabilities (ZAR1.1B).

Long Term Liabilities: AHA's short term assets (ZAR1.1B) do not cover its long term liabilities (ZAR5.2B).


Debt to Equity History and Analysis

Debt Level: AHA's debt to equity ratio (74.2%) is considered high.

Reducing Debt: AHA's debt to equity ratio has increased from 28.1% to 74.2% over the past 5 years.

Debt Coverage: AHA's debt is not well covered by operating cash flow (8.5%).

Interest Coverage: AHA's interest payments on its debt are not well covered by EBIT (2.1x coverage).


Balance Sheet


Dividend

What is Arrowhead Properties's current dividend yield, its reliability and sustainability?

8.25%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: AHA's dividend (8.25%) is higher than the bottom 25% of dividend payers in the ZA market (3.07%).

High Dividend: AHA's dividend (8.25%) is in the top 25% of dividend payers in the ZA market (8.09%)


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, AHA has been paying a dividend for less than 10 years.

Growing Dividend: AHA's dividend payments have increased, but the company has only paid a dividend for 2 years.


Current Payout to Shareholders

Dividend Coverage: At its current payout ratio (78.1%), AHA's payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

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

3.6yrs

Average management tenure


CEO

Mark Kaplan (41 yo)

4.75yrs

Tenure

R10,625,466

Compensation

Mr. Mark Jonathan Kaplan, BBusSc, Finance (Hons), has been Chief Executive Officer and Executive Director of Arrowhead Properties limited. He was the co-founder of Arrowgem. Mr. Kaplan had been the Chief E...


CEO Compensation Analysis

Compensation vs Market: Mark's total compensation ($USD726.65K) is about average for companies of similar size in the ZA market ($USD731.45K).

Compensation vs Earnings: Mark's compensation has increased whilst the company is unprofitable.


Leadership Team

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


Board Members

Experienced Board: AHA's board of directors are considered experienced (4.7 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

Arrowhead Properties Limited's employee growth, exchange listings and data sources


Key Information

  • Name: Arrowhead Properties Limited
  • Ticker: AHA
  • Exchange: JSE
  • Founded: 2011
  • Industry: Diversified REITs
  • Sector: Real Estate
  • Market Cap: R4.543b
  • Shares outstanding: 965.40m
  • Website: https://www.arrowheadproperties.co.za

Number of Employees


Location

  • Arrowhead Properties Limited
  • Upper Building
  • 3rd Floor
  • Johannesburg
  • Gauteng
  • 2196
  • South Africa

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/10/17 17:01
End of Day Share Price2021/10/15 00:00
Earnings2021/03/31
Annual Earnings2020/09/30


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.