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Abacus Property Group (AU:ABG)
:ABG

Abacus Property Group (ABG) AI Stock Analysis

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AU

Abacus Property Group

(Sydney:ABG)

Rating:56Neutral
Price Target:
Abacus Property Group faces significant financial challenges, with declining revenue and negative profitability impacting its overall score. The high leverage and potential liquidity concerns are critical risks. On the technical side, the stock shows stability, though momentum indicators are mixed. Valuation is less favorable due to a negative P/E ratio, but the high dividend yield offers some appeal. Overall, these factors suggest cautious optimism, with a need for financial improvements.

Abacus Property Group (ABG) vs. iShares MSCI Australia ETF (EWA)

Abacus Property Group Business Overview & Revenue Model

Company DescriptionAbacus Property Group is a diversified Australian REIT with an investment portfolio concentrated in the Commercial property and Self Storage sectors. We invest capital in real estate opportunities to deliver superior long term returns and maximise securityholder value. Abacus is a strong asset backed, annuity style business model where capital is directed towards assets that provide potential for enhanced income growth and ultimately create value. Our people, market insight and repositioning capability together with strategic partnering are the key enablers of our strategy. Abacus is listed on the Australian Stock Exchange and is included in the S&P/ASX 200 Index and the FTSE EPRA NAREIT Global Real Estate Index Series. Abacus is comprised of Abacus Group Holdings Limited (the nominated parent entity), Abacus Group Projects Limited and Abacus Storage Operations Limited, Abacus Trust, Abacus Income Trust and Abacus Storage Property Trust. The shares and units in these entities are stapled together and trade as one security in ABP.
How the Company Makes MoneyAbacus Property Group generates revenue through a diversified portfolio of property investments. The company's primary revenue streams include rental income from leasing its commercial, retail, and industrial properties to tenants. Additionally, ABG capitalizes on property value appreciation and strategic asset sales to realize capital gains. The company also engages in property development projects which contribute to earnings through the sale or leasing of newly developed properties. Abacus Property Group may form strategic partnerships with other real estate entities for joint ventures or co-investments, enhancing its ability to undertake large-scale projects and diversify its investment portfolio. The company's earnings are further supported by its focus on maintaining high occupancy rates and optimizing property management operations to drive cost efficiencies.

Abacus Property Group Financial Statement Overview

Summary
Abacus Property Group faces financial challenges with declining revenue and profitability, coupled with high leverage. The income statement shows negative margins, and the balance sheet indicates substantial leverage. Although there is stability in equity, cash flow trends suggest potential liquidity concerns.
Income Statement
40
Negative
The company's income statement shows a significant decline in total revenue from the previous year, with negative EBIT and EBITDA margins, indicating operational challenges. Additionally, the net profit margin has turned negative, reflecting a substantial net loss. This financial performance suggests potential issues in revenue generation and cost management.
Balance Sheet
55
Neutral
The balance sheet reveals a high debt-to-equity ratio, indicating substantial leverage, which can pose risks during periods of financial instability. However, the company maintains a stable equity ratio, suggesting an adequate level of equity relative to its total assets. Return on equity has deteriorated significantly due to the net loss.
Cash Flow
50
Neutral
The cash flow statement highlights declining free cash flow and operating cash flow, with a negative free cash flow growth rate. The operating cash flow to net income ratio is positive, indicating cash generation from operations despite the recorded net loss. The cash flow situation requires careful monitoring to ensure liquidity.
Breakdown
TTMJun 2024Jun 2023Jun 2022Jun 2021Jun 2020
Income StatementTotal Revenue
217.67M144.37M147.07M308.39M242.44M284.30M
Gross Profit
175.16M100.78M105.19M238.74M180.74M206.05M
EBIT
142.67M62.03M58.55M85.94M169.45M175.00M
EBITDA
138.78M-204.10M-193.78M89.24M171.75M176.80M
Net Income Common Stockholders
-103.19M-241.04M25.50M517.16M369.41M84.73M
Balance SheetCash, Cash Equivalents and Short-Term Investments
40.95M23.56M71.90M176.50M57.99M127.31M
Total Assets
2.59B2.63B5.61B5.41B4.06B3.34B
Total Debt
943.07M939.33M1.01B1.71B988.52M1.01B
Net Debt
902.12M915.77M934.61M1.53B930.53M882.45M
Total Liabilities
1.02B1.02B2.24B1.91B1.16B1.14B
Stockholders Equity
1.56B1.61B3.36B3.50B2.90B2.20B
Cash FlowFree Cash Flow
93.04M75.95M81.16M154.52M124.78M205.40M
Operating Cash Flow
46.10M75.97M89.46M158.26M131.60M205.40M
Investing Cash Flow
20.32M46.00M-295.51M-823.50M-511.66M-578.67M
Financing Cash Flow
-72.93M-202.20M101.42M783.92M310.76M411.51M

Abacus Property Group Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price1.21
Price Trends
50DMA
1.16
Positive
100DMA
1.16
Positive
200DMA
1.17
Positive
Market Momentum
MACD
0.01
Positive
RSI
51.92
Neutral
STOCH
36.67
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:ABG, the sentiment is Neutral. The current price of 1.21 is below the 20-day moving average (MA) of 1.21, above the 50-day MA of 1.16, and above the 200-day MA of 1.17, indicating a neutral trend. The MACD of 0.01 indicates Positive momentum. The RSI at 51.92 is Neutral, neither overbought nor oversold. The STOCH value of 36.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for AU:ABG.

Abacus Property Group Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
61
Neutral
$2.82B10.840.42%8439.00%5.74%-20.95%
AUABG
56
Neutral
AU$1.08B-6.24%7.02%
$7.24B10.957.73%5.23%
$5.80B299.751.03%2.51%
$4.92B-9.22%5.87%
$5.90B-1.94%5.16%
$8.50B28.534.54%4.58%
* Real Estate Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AU:ABG
Abacus Property Group
1.20
0.10
9.09%
CNRAF
Vicinity Centres
1.30
0.10
8.33%
CTOUF
Charter Hall Group
11.97
3.88
47.96%
DEXSF
Dexus
4.52
0.14
3.20%
GPTGF
GPT Group
3.08
0.35
12.82%
STKAF
Stockland
3.54
0.64
22.07%

Abacus Property Group Corporate Events

Abacus Property Group’s Trusts Set for MIT Qualification and Proposal Assessment
May 6, 2025

Abacus Property Group has announced that its trusts, Abacus Trust and Abacus Income Trust, are likely to qualify as withholding managed investment trusts starting from July 2025. This change will affect the tax withholding on distributions to non-residents, with a new rate of 15% for countries with an Exchange of Information agreement with Australia, while distributions to Australian-based securityholders remain unaffected. Additionally, the company is evaluating an indicative proposal from Ki Corporation Limited and Public Storage, with an independent board committee formed to assess its merits, although no conclusions have been reached yet.

Abacus Storage King Receives Acquisition Proposal from Ki and Public Storage
Apr 7, 2025

Abacus Property Group announced that Abacus Storage King has received a non-binding indicative proposal from Ki Corporation Limited and Public Storage to acquire all outstanding stapled securities not already held by Ki. The proposal includes a scheme of arrangement and trust scheme, with securityholders offered A$1.47 per stapled security. If successful, Public Storage would own approximately 50% of ASK’s securities, with the remainder held by Ki. The proposal is contingent on several conditions, including board approvals, regulatory clearances, and tax rulings. This acquisition could significantly impact Abacus’s operations and market positioning, as well as influence stakeholder interests.

Abacus Property Group Announces Substantial Holder Interest Change
Apr 6, 2025

Abacus Property Group has announced a change in the interests of its substantial holder, with Calculator Australia Pty Ltd transferring its stake to Ki Corporation Limited. This off-market transfer, valued at approximately $553 million, maintains the voting power of the substantial holder at 49.99%. The transaction reflects a strategic realignment within the group’s stakeholders, potentially impacting its governance and decision-making processes.

Abacus Property Group Updates Director’s Interest in Securities
Mar 13, 2025

Abacus Property Group announced a change in the director’s interest notice, highlighting adjustments in securities held by Director Steven Sewell. The notice reflects an increase in both Long-Term Incentive (LTI) and Short-Term Incentive (STI) rights, indicating a potential alignment of the director’s interests with the company’s long-term strategic goals. This change may influence the company’s governance and stakeholder confidence, as it underscores the director’s commitment to the company’s future growth and performance.

Abacus Property Group Issues Unquoted Equity Securities for Employee Incentive
Mar 13, 2025

Abacus Property Group announced the issuance of unquoted equity securities as part of an employee incentive scheme. This move, involving the allocation of LTI and STI deferral rights, is aimed at enhancing employee retention and aligning their interests with the company’s long-term goals, potentially impacting its operational dynamics and market positioning.

Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.