Premier Investments Limited (PMV) AI Stock Analysis

• Market Cap: AU$3.54B
• Dividend Yield: 4.56%
• Average Volume (3M): 222.53K
• Price to Earnings (P/E): 17.9
• Beta (1Y): 1.19
• Revenue Growth: -27.48%
• EPS Growth: -27.96%
• Country: AU
• Employees: 9,000
• Sector: Consumer Cyclical
• Sector Strength: 73
• Industry: Apparel - Retail
• EPS (TTM): 0.63
• Shares Outstanding: 159,880,000
• 10 Day Avg. Volume: 217,483
• 30 Day Avg. Volume: 222,535
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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$24.50
• Price Target Upside: 10.71% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

• Rating: 73 Outperform
• Price Target: AU$23.00 ▲(3.93% Upside)

Premier Investments Limited scores well due to its strong financial performance characterized by consistent profitability, solid cash flows, and a robust balance sheet. Technical analysis indicates moderate momentum without strong directional bias. The valuation is reasonable with a fair P/E ratio and an attractive dividend yield, enhancing its overall attractiveness as an investment.

Positive Factors

Earnings and Growth

Higher-than-expected EBIT margin in PA/Smiggle with an increase in forecasted earnings.

Market Strategy

Increased visibility on Apparel Brands growth path suggests opportunities through an omni-channel sales model and data-driven strategies.

Negative Factors

Earnings

FY24 Group EBIT of A$320mn -10% YoY.

Financial Performance

Premier Investments Ltd. FY24 Group sales -2.9% YoY, implying 2H24 -3.0% YoY with misses in Apparel Brands and Smiggle.

Stock Performance

The stock traded -10% over the day on a combination of weaker than expected results as well as delay of strategic review of PA and Smiggle brands.

Premier Investments Limited Business Overview & Revenue Model

Company Description

Premier Investments Limited operates various specialty retail fashion chains in Australia, New Zealand, Asia, and Europe. It operates through two segments, Retail and Investment. The company offers casual wear, women's wear, and non-apparel products. It has a portfolio of retail brands consisting of Just Jeans, Jay Jays, Jacqui E, Portmans, Dotti, Peter Alexander, and Smiggle. The company provides its products through retail stores, as well as through wholesale and online channels. In addition, it invests in securities. The company was incorporated in 1987 and is based in Melbourne, Australia.

How the Company Makes Money

Premier Investments Limited generates revenue primarily through the sale of its branded retail products across its multiple store locations and e-commerce platforms. The company makes money by leveraging its established brand portfolio to attract consumers in the fashion and stationery sectors. A significant portion of its revenue is derived from its successful brands like Smiggle, which specializes in children's stationery and accessories, and Peter Alexander, known for its sleepwear and loungewear. Additionally, Premier Investments benefits from strategic international expansion and partnerships that enhance its market presence and drive sales growth. The company also focuses on optimizing its supply chain and retail operations to increase profitability and shareholder value.

Premier Investments Limited Financial Statement Overview

Summary

Premier Investments Limited demonstrates a strong financial position with consistent profitability, effective cost management, and solid cash flows. Despite minor fluctuations in revenue and EBIT, the company maintains healthy margins and a robust balance sheet, supported by a conservative leverage approach.

Income Statement

The company has shown a consistent revenue growth trend over the years, although there was a slight dip in the latest period. Gross and net profit margins remain strong, indicating good cost management and profitability. The EBIT and EBITDA margins also reflect operational efficiency, despite a decrease in EBIT this year.

Balance Sheet

The balance sheet is robust with a strong equity base, resulting in a healthy equity ratio. The debt-to-equity ratio is well-managed, reflecting a conservative leverage approach. Return on equity remains solid, showcasing effective use of equity to generate profits.

Cash Flow

Cash flow generation is strong with consistent free cash flow. The operating cash flow to net income ratio indicates efficient cash conversion, while the free cash flow has slightly declined but remains positive, suggesting ongoing investment in growth while maintaining liquidity.

Breakdown	Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Income Statement
Total Revenue	1.60B	1.64B	1.50B	1.45B	1.22B
Gross Profit	999.35M	1.02B	969.80M	927.90M	741.73M
EBITDA	528.68M	548.17M	562.10M	562.74M	417.22M
Net Income	257.92M	271.08M	285.17M	271.84M	137.75M
Balance Sheet
Total Assets	2.52B	2.52B	2.30B	2.28B	2.20B
Cash, Cash Equivalents and Short-Term Investments	409.48M	417.65M	471.27M	523.36M	448.83M
Total Debt	478.27M	499.33M	308.28M	384.32M	450.55M
Total Liabilities	728.01M	776.79M	627.22M	748.32M	855.08M
Stockholders Equity	1.80B	1.74B	1.68B	1.53B	1.35B
Cash Flow
Free Cash Flow	377.97M	375.19M	359.45M	392.71M	490.23M
Operating Cash Flow	407.13M	391.64M	368.33M	395.75M	497.82M
Investing Cash Flow	-42.94M	-50.85M	-24.02M	-19.54M	-7.59M
Financing Cash Flow	-372.80M	-399.00M	-393.68M	-302.35M	-230.59M

Premier Investments Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 22.13
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:PMV, the sentiment is Positive. The current price of 22.13 is above the 20-day moving average (MA) of 21.31, above the 50-day MA of 20.52, and below the 200-day MA of 22.17, indicating a neutral trend. The MACD of 0.41 indicates Negative momentum. The RSI at 66.04 is Neutral, neither overbought nor oversold. The STOCH value of 92.52 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AU:PMV.

Premier Investments Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PMV	73 Outperform	AU$3.54B	17.86	14.01%	4.56%	-27.48%	-27.96%
Sector *	61 Neutral	$17.43B	12.62	-6.02%	3.11%	1.71%	-15.47%
LO7	―	€2.15B	40.14	82.71%	―	―	―
AX1	67 Neutral	AU$940.54M	13.70	14.35%	6.37%	6.29%	-12.42%
30M	―	€639.08M	20.12	8.55%	―	―	―
SUL	77 Outperform	AU$3.66B	16.16	17.52%	7.34%	2.56%	-13.62%
UNI	72 Outperform	AU$683.58M	27.43	16.47%	4.63%	14.03%	-7.57%

Premier Investments Limited Corporate Events

Premier Investments Undergoes Internal Reorganization

Premier Investments Limited, a company involved in investment activities, has undergone an internal reorganization within the Lew Group, which holds a substantial interest in its voting shares. Despite the reorganization, the total voting power of the Lew Group in Premier Investments remains unchanged, although the voting power of certain members has been diluted due to changes in the company’s issued shares.

The most recent analyst rating on (AU:PMV) stock is a Hold with a A$33.00 price target. To see the full list of analyst forecasts on Premier Investments Limited stock, see the AU:PMV Stock Forecast page.

Magellan Acquires Substantial Stake in Premier Investments

Magellan Financial Group Ltd has become a substantial holder in Premier Investments Limited, acquiring a 5.07% voting power through 8,120,815 ordinary fully paid shares. This acquisition indicates a significant investment by Magellan, potentially impacting Premier Investments’ shareholder dynamics and market perception.

The most recent analyst rating on (AU:PMV) stock is a Hold with a A$33.00 price target. To see the full list of analyst forecasts on Premier Investments Limited stock, see the AU:PMV Stock Forecast page.