Goodman Group (GMG) is an integrated industrial property group with operations in Australia, New Zealand, UK, Asia and Europe.
| Key Statistics | |||||||
| 52-Week Range | Avg. Daily Vol (3 Mo) | Market Value | Dividend Yield | Float % | Target Price | Consensus Rating (5 strong buy – 1 strong sell) |
Next Earnings Announcement |
| 9.5 – 20.07 | 5,595,376 | 33,808.0 | 1.6% | 98.8% | 18.67 | 3.40 | 13/08/2021 |
Goodman’s activities include property investment, funds management, property development and property services. The property portfolio includes business parks, industrial estates, office parks and warehouse/distribution centres. In the face of a challenging global outlook due to the COVID-19 pandemic, GMG is well position to grow revenue having focused on inner-city developments and last mile logistics, favoured by the likes of Amazon and DHL, which have benefited from an increased focus in consumer behaviour to online purchases accelerated by COVID-19.
The company’s business model is to own, develop and manage whereby GMG owns high quality properties, develops properties in key locations and manages the real estate they invest in globally. In 2020 58% of revenue was generated by the development management, 34% from funds management (fees for externally managed properties) and 8% from gross property income (direct property and share of FUM). By geography, 49% of income was generated in Europe, 30% in Australia and New Zealand, 17% throughout Asia and 4% in America.
For the financial year ending June 2021 revenue is forecast to rise 10.6% to $1,214.38m and a further 10.7% in 2022 to $1,848.17m with earnings per share is expected to increase 9.8% in 2021 to $0.64 before rising a further 11.1% to $0.71 in 2022. That would see the stock trade of forward P/E multiples of 28.7 and 25.8 respectively, a premium to peers with median forward P/E’s of 17.14 and 15.47 respectively. The share price recently reached a new all-time high of $20.07 following a Q1 2021 operational update reaffirming EPS growth of 9% in 2021 and a further increase in development projects with $7.3 billion in work in progress and $1.7 billion in commencements.
The average target price of analysts covering the stock is $18.67 with 30% of analysts rating the stock as a buy, compared to 30% as a sell and 40% as a hold.
