JSE:BWN

Stock Analysis Report

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Executive Summary

Balwin Properties Limited develops and sells residential properties in the low-to-middle market segments in South Africa. More Details


Snowflake Analysis

Good value with adequate balance sheet.


Similar Companies

Share Price & News

How has Balwin Properties's share price performed over time and what events caused price changes?


Latest Share Price and Events

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

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


Market Performance


7 Day Return

-6.2%

BWN

2.0%

ZA Real Estate

0%

ZA Market


1 Year Return

15.6%

BWN

-35.7%

ZA Real Estate

-3.7%

ZA Market

Return vs Industry: BWN exceeded the ZA Real Estate industry which returned -37% over the past year.

Return vs Market: BWN exceeded the ZA Market which returned -5% over the past year.


Shareholder returns

BWNIndustryMarket
7 Day-6.2%2.0%0%
30 Day-10.5%31.1%6.5%
90 Day25.7%11.6%8.6%
1 Year19.6%15.6%-33.1%-35.7%2.3%-3.7%
3 Year-14.2%-26.1%-50.6%-58.7%2.2%-19.2%
5 Year-34.9%-48.4%-47.3%-57.0%37.1%-0.3%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Balwin Properties 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: BWN (ZAR3.77) is trading below our estimate of fair value (ZAR27.84)

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


Price To Earnings Ratio

PE vs Industry: BWN is good value based on its PE Ratio (4.3x) compared to the ZA Real Estate industry average (52.1x).

PE vs Market: BWN is good value based on its PE Ratio (4.3x) compared to the ZA market (12.9x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: BWN is overvalued based on its PB Ratio (0.6x) compared to the ZA Real Estate industry average (0.4x).


Next Steps

Future Growth

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

19.3%

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 Balwin 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.


Next Steps

Past Performance

How has Balwin Properties performed over the past 5 years?

-0.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: BWN has high quality earnings.

Growing Profit Margin: BWN's current net profit margins (14.1%) are lower than last year (17.3%).


Past Earnings Growth Analysis

Earnings Trend: BWN's earnings have declined by 0.4% per year over the past 5 years.

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

Earnings vs Industry: BWN had negative earnings growth (-9%) over the past year, making it difficult to compare to the Real Estate industry average (-47.3%).


Return on Equity

High ROE: BWN's Return on Equity (13.9%) is considered low.


Next Steps

Financial Health

How is Balwin Properties's financial position?


Financial Position Analysis

Short Term Liabilities: BWN's short term assets (ZAR4.5B) exceed its short term liabilities (ZAR1.3B).

Long Term Liabilities: BWN's short term assets (ZAR4.5B) exceed its long term liabilities (ZAR355.4M).


Debt to Equity History and Analysis

Debt Level: BWN's debt to equity ratio (48.1%) is considered high.

Reducing Debt: BWN's debt to equity ratio has increased from 36.1% to 48.1% over the past 5 years.

Debt Coverage: BWN's debt is well covered by operating cash flow (27.8%).

Interest Coverage: BWN earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet


Next Steps

Dividend

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

6.21%

Current Dividend Yield


Upcoming Dividend Payment


Dividend Yield vs Market

Notable Dividend: BWN's dividend (6.21%) is higher than the bottom 25% of dividend payers in the ZA market (3.12%).

High Dividend: BWN's dividend (6.21%) is low compared to the top 25% of dividend payers in the ZA market (9.33%).


Stability and Growth of Payments

Stable Dividend: BWN has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: BWN has only been paying a dividend for 5 years, and since then payments have fallen.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (29.8%), BWN's dividend payments are well 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?

8.6yrs

Average management tenure


CEO

Steve Brookes (55 yo)

24.92yrs

Tenure

R7,624,000

Compensation

Mr. Stephen Volker Brookes, also known as Steve, has been the Chief Executive Officer and Executive Director of Balwin Properties Limited since January 1996 and since November 14, 2003 respectively. Mr. Br...


CEO Compensation Analysis

Compensation vs Market: Steve's total compensation ($USD496.88K) is above average for companies of similar size in the ZA market ($USD307.11K).

Compensation vs Earnings: Steve's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Stephen Brookes
Founder24.92yrsR7.62m36.11%
ZAR 626.5m
Jonathan Weltman
CFO, Financial Director & Executive Director6.33yrsR7.73m0.050%
ZAR 865.0k
Rodney Gray
COO & MDno dataR7.85m10.2%
ZAR 176.9m
Ulrich Gschnaidtner
Chief Project Officerno dataR12.84m2.17%
ZAR 37.7m
Raaziq Ismail
Head of Legalno datano datano data
Johannes Antonius Diepenbroek
General Manager3.83yrsno datano data

8.6yrs

Average Tenure

53.5yo

Average Age

Experienced Management: BWN's management team is seasoned and experienced (8.6 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Stephen Brookes
Founder24.92yrsR7.62m36.11%
ZAR 626.5m
Jonathan Weltman
CFO, Financial Director & Executive Director6.33yrsR7.73m0.050%
ZAR 865.0k
Hilton Saven
Independent Non-Executive Chairman5.25yrsR884.00kno data
Kholeka Mzondeki
Independent Non-Executive Director5.25yrsR507.00kno data
Thoko Mokgosi-Mwantembe
Independent Non-Executive Director3.58yrsR342.00kno data
Arnold Shapiro
Independent Non-Executive Director4.17yrsR613.00kno data
Ronen Zekry
Non-Executive Director5.25yrsR499.00k0.78%
ZAR 13.5m
Tomi Amosun
Independent Non-Executive Director3.58yrsR461.00k0.0020%
ZAR 34.9k
Duncan Westcott
Independent Non-Executive Director1.17yrsR171.00kno data
Julian Scher
Independent Non-Executive Director1.17yrsR154.00kno data

4.7yrs

Average Tenure

56yo

Average Age

Experienced Board: BWN'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

Balwin Properties Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Balwin Properties Limited
  • Ticker: BWN
  • Exchange: JSE
  • Founded: 1989
  • Industry: Real Estate Development
  • Sector: Real Estate
  • Market Cap: R1.735b
  • Shares outstanding: 467.63m
  • Website: https://www.balwin.co.za

Location

  • Balwin Properties Limited
  • Block 1
  • Townsend Office Park
  • Johannesburg
  • Gauteng
  • South Africa

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
BWNJSE (The Johannesburg Securities Exchange)YesOrdinary SharesZAZAROct 2015

Biography

Balwin Properties Limited develops and sells residential properties in the low-to-middle market segments in South Africa. The company offers sectional title apartments. It also operates as a fiber network ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/12/03 17:04
End of Day Share Price2020/12/03 00:00
Earnings2020/02/29
Annual Earnings2020/02/29


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.