BWP Trust (BWP) AI Stock Analysis

• Market Cap: AU$2.63B
• Dividend Yield: 5%
• Average Volume (3M): 1.02M
• Price to Earnings (P/E): 9.0
• Beta (1Y): 0.52
• Revenue Growth: 19.08%
• EPS Growth: N/A
• Country: AU
• Employees: N/A
• Sector: Real Estate
• Sector Strength: 73
• Industry: REIT - Industrial
• EPS (TTM): 0.41
• Shares Outstanding: 713,511,200
• 10 Day Avg. Volume: 1,068,389
• 30 Day Avg. Volume: 1,020,247
• PEG Ratio: -1.37
• Price to Book (P/B): 1.28
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 21.81
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: AU$3.83
• Price Target Upside: 4.08% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 2

• Rating: 81 Outperform
• Price Target: ―

BWP Trust is well-positioned with strong financial performance, as evidenced by its growing revenues and high profit margins. The technical analysis supports a stable positive trend, while the valuation indicates potential undervaluation with a favorable dividend yield. The absence of earnings call data and corporate events does not detract from the overall positive outlook.

BWP Trust Business Overview & Revenue Model

Company Description

Established and listed on the Australian Securities Exchange ("ASX") in 1998 (see prospectus), BWP Trust ("BWP" or "the Trust") is a real estate investment trust investing in and managing commercial properties throughout Australia. The majority of the Trust's properties are large format retailing properties, in particular, Bunnings Warehouses, leased to Bunnings Group Limited ("Bunnings"). Bunnings is the leading retailer of home improvement and outdoor living products in Australia and New Zealand, and a major supplier to project builders, commercial trades people, and the housing industry. Full details on the Trust's property portfolio can be found in the Our Properties section of this website. The Trust is managed by an external responsible entity, BWP Management Limited ("the responsible entity") which is appointed under the Trust's constitution and operates under an Australian Financial Services Licence. The responsible entity is committed to managing the Trust solely and is paid an annual fee based on the gross assets of the Trust. Both Bunnings and the responsible entity are wholly-owned subsidiaries of Wesfarmers Limited ("Wesfarmers"), one of Australia's largest listed companies. Wesfarmers also owns approximately 24.75 per cent of the issued units in the Trust.

How the Company Makes Money

BWP Trust makes money primarily through the rental income generated from its portfolio of commercial properties. The trust leases its properties to tenants, with Bunnings Warehouse being its major tenant, providing a stable and reliable source of revenue. Additionally, BWP Trust may engage in property development activities to enhance the value and appeal of its properties, thereby increasing rental income potential. The trust also benefits from periodic property revaluations that can lead to capital growth, which contributes to overall earnings. The company's revenue model relies heavily on maintaining high occupancy rates and negotiating favorable lease agreements with tenants, ensuring a consistent cash flow for its investors.

BWP Trust Financial Statement Overview

Summary

BWP Trust demonstrates strong financial health with growing revenues and efficient cost management leading to high profit margins. The balance sheet indicates moderate leverage and substantial shareholder equity, contributing to financial stability. The company also showcases robust cash flow generation, supporting its net income effectively. This positions BWP Trust well for continued growth and stability within the REIT - Industrial sector.

Income Statement

BWP Trust has shown a solid financial performance with a consistent increase in total revenue from $158 million in 2023 to $174 million in 2024. The Gross Profit Margin is approximately 83.45%, indicating efficient cost management. The Net Profit Margin has significantly improved to 103.31%, primarily due to a substantial increase in net income. The EBIT and EBITDA margins are robust at 82.49% and 82.72%, respectively, reflecting strong operational performance.

Balance Sheet

The company maintains a strong balance sheet with a Debt-to-Equity Ratio of 0.29, which implies moderate leverage. The Return on Equity stands at 6.66%, showing a reasonable return on stockholders' investment. An Equity Ratio of 75.51% suggests that a large portion of the company's assets are funded by shareholders' equity, indicating financial stability.

Cash Flow

BWP Trust's Free Cash Flow showed a growth rate of 7.53% year-over-year, indicating healthy cash generation. The Operating Cash Flow to Net Income Ratio is 0.71, suggesting that a significant portion of net income is supported by operating cash flow. The Free Cash Flow to Net Income Ratio is also 0.71, reflecting strong cash flow management relative to net income.

Breakdown
TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement		Total Revenue
192.39M	174.46M	158.16M	153.27M	152.24M	155.78M
	Gross Profit
172.03M	145.59M	131.11M	129.38M	129.70M	141.42M
	EBIT
165.34M	155.89M	130.27M	128.48M	128.95M	132.60M
	EBITDA
173.96M	205.67M	53.41M	128.48M	128.95M	226.16M
	Net Income Common Stockholders
284.10M	180.22M	36.69M	486.64M	263.17M	210.64M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
27.91M	27.30M	16.83M	11.86M	33.07M	64.19M
	Total Assets
3.68B	3.59B	2.96B	3.02B	2.67B	2.55B
	Total Debt
786.87M	771.60M	466.00M	452.70M	471.10M	499.60M
	Net Debt
758.95M	744.30M	449.17M	440.85M	438.03M	435.41M
	Total Liabilities
883.60M	878.78M	554.31M	535.58M	558.19M	583.83M
	Stockholders Equity
2.80B	2.71B	2.41B	2.49B	2.12B	1.97B
Cash Flow		Free Cash Flow
125.53M	128.76M	119.75M	111.04M	112.35M	109.67M
	Operating Cash Flow
125.53M	128.76M	119.75M	111.04M	112.35M	109.67M
	Investing Cash Flow
14.46M	-23.14M	-10.15M	4.35M	2.54M	-26.98M
	Financing Cash Flow
-130.95M	-95.16M	-104.62M	-136.60M	-146.01M	-36.42M

BWP Trust Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3.68
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:BWP, the sentiment is Positive. The current price of 3.68 is above the 20-day moving average (MA) of 3.60, above the 50-day MA of 3.57, and above the 200-day MA of 3.46, indicating a bullish trend. The MACD of 0.02 indicates Negative momentum. The RSI at 65.10 is Neutral, neither overbought nor oversold. The STOCH value of 83.41 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AU:BWP.

BWP Trust Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BWP	81 Outperform	AU$2.63B	8.97	10.93%	5.00%	19.08%	―
Sector *	61 Neutral	$2.85B	10.99	0.40%	6.10%	5.75%	-21.23%
CNRAF		$7.35B	10.95	7.73%	5.04%	―	―
DEXSF		$4.85B	―	-9.22%	3.24%	―	―
GPTGF		$6.06B	―	-1.94%	4.67%	―	―
STGPF		$12.41B	17.99	5.94%	4.53%	―	―
MQV		€1.32B	12.83	6.37%	6.55%	―	―

BWP Trust Corporate Events

BWP Trust Announces Changes in Substantial Holder Interests

BWP Trust has announced a change in the interests of a substantial holder, with State Street Bank and Trust Company and its subsidiaries holding significant voting power in the company. This change reflects the dynamic nature of investment management and trustee roles within the financial sector, potentially impacting the company’s governance and decision-making processes.