Premier Investments Limited (PMV) AI Stock Analysis

• Market Cap: AU$3.26B
• Dividend Yield: 6.57%
• Average Volume (3M): 218.19K
• Price to Earnings (P/E): 16.5
• Beta (1Y): 1.34
• Revenue Growth: -27.48%
• EPS Growth: -27.96%
• Country: AU
• Employees: 9,000
• Sector: Consumer Cyclical
• Sector Strength: 66
• Industry: Apparel - Retail
• EPS (TTM): 0.63
• Shares Outstanding: 159,880,000
• 10 Day Avg. Volume: 189,820
• 30 Day Avg. Volume: 218,194
• PEG Ratio: -0.74
• Price to Book (P/B): 4.40
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 10.09
• 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$24.45
• Price Target Upside: 19.97% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 9

• Rating: 71 Outperform
• Price Target: AU$23.00 ▲(12.86%Upside)

Premier Investments Limited benefits from a strong financial foundation marked by consistent profitability and effective cost management. Its valuation is fair, supported by an attractive dividend yield. Technical indicators suggest a stable market trend without strong momentum in any direction. These factors collectively position the stock as a solid, well-rounded investment in the apparel retail industry.

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 apparel, accessories, and stationery products across its various retail brands. The company's revenue model is centered on retail operations, where income is derived from both physical store sales and online e-commerce platforms. Significant revenue streams include the fashion segments through brands like Just Jeans and Portmans, and the lifestyle and home segments through Peter Alexander and Smiggle. The company also benefits from its strategic partnerships and global expansion initiatives, especially with Smiggle, which has a strong international presence. By utilizing a multi-channel retail strategy, Premier Investments effectively maximizes its market reach and customer engagement, contributing to its overall profitability.

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. While there are minor fluctuations in revenue and EBIT, the company has maintained healthy margins and a strong balance sheet. The conservative approach to leverage and solid equity base underpin its financial stability, making it well-positioned in the competitive apparel retail industry.

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
TTM	Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Income Statement		Total Revenue
1.17B	1.60B	1.66B	1.52B	1.45B	1.24B
	Gross Profit
339.87M	999.35M	1.04B	989.15M	938.77M	761.17M
	EBIT
229.39M	319.04M	370.32M	364.10M	343.12M	215.67M
	EBITDA
371.29M	507.90M	528.01M	540.62M	545.52M	410.61M
	Net Income Common Stockholders
197.74M	257.92M	271.08M	285.17M	271.84M	137.75M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
478.09M	409.48M	417.65M	471.27M	523.36M	448.83M
	Total Assets
2.57B	2.52B	2.52B	2.30B	2.28B	2.20B
	Total Debt
472.42M	478.27M	499.33M	308.28M	384.32M	450.55M
	Net Debt
-5.67M	68.79M	81.69M	-162.99M	-139.04M	1.72M
	Total Liabilities
753.87M	728.01M	776.79M	627.22M	748.32M	855.08M
	Stockholders Equity
1.81B	1.80B	1.74B	1.68B	1.53B	1.35B
Cash Flow		Free Cash Flow
342.14M	377.97M	375.19M	359.45M	392.71M	490.23M
	Operating Cash Flow
379.63M	407.13M	391.64M	368.33M	395.75M	497.82M
	Investing Cash Flow
-56.34M	-42.94M	-50.85M	-24.02M	-19.54M	-7.59M
	Financing Cash Flow
-383.86M	-372.80M	-399.00M	-393.68M	-302.35M	-230.59M

Premier Investments Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 20.38
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:PMV, the sentiment is Negative. The current price of 20.38 is below the 20-day moving average (MA) of 20.91, below the 50-day MA of 20.52, and below the 200-day MA of 23.12, indicating a bearish trend. The MACD of -0.16 indicates Positive momentum. The RSI at 44.46 is Neutral, neither overbought nor oversold. The STOCH value of 40.84 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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	71 Outperform	AU$3.26B	16.45	14.01%	6.57%	-27.48%	-27.96%
Sector *	63 Neutral	$6.96B	11.51	2.80%	3.85%	2.70%	-24.43%
RFD		€140.78M	36.42	3.33%	1.98%	―	―
ID9		€135.91M	7.81	7.99%	10.41%	―	―
30M		€678.44M	21.54	8.55%	5.59%	―	―
JBH	75 Outperform	AU$12.16B	26.45	29.07%	3.24%	6.21%	0.20%
KMD		AU$208.03M	―	-7.70%	―	―	―

Premier Investments Limited Corporate Events

AustralianSuper Acquires Significant Stake in Premier Investments

AustralianSuper Pty Ltd has become a substantial holder in Premier Investments Limited, acquiring a 5.13% voting power with 8,203,094 ordinary shares. This acquisition signifies a notable investment by AustralianSuper, potentially impacting Premier Investments’ shareholder composition and influencing future strategic decisions.

Perpetual Limited Increases Stake in Premier Investments

Perpetual Limited and its related entities have increased their voting power in Premier Investments Limited from 9.09% to 10.201%. This change in substantial holding indicates a growing interest and influence in Premier Investments, potentially impacting its strategic decisions and stakeholder dynamics.