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Premier Investments Limited (AU:PMV)
:PMV
Australian Market

Premier Investments Limited (PMV) AI Stock Analysis

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AU

Premier Investments Limited

(Sydney:PMV)

Rating:71Outperform
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 (PMV) vs. iShares MSCI Australia ETF (EWA)

Premier Investments Limited Business Overview & Revenue Model

Company DescriptionPremier 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 MoneyPremier 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
75
Positive
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
82
Very Positive
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
78
Positive
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
TTMSep 2024Sep 2023Sep 2022Sep 2021Sep 2020
Income StatementTotal Revenue
1.17B1.60B1.66B1.52B1.45B1.24B
Gross Profit
339.87M999.35M1.04B989.15M938.77M761.17M
EBIT
229.39M319.04M370.32M364.10M343.12M215.67M
EBITDA
371.29M507.90M528.01M540.62M545.52M410.61M
Net Income Common Stockholders
197.74M257.92M271.08M285.17M271.84M137.75M
Balance SheetCash, Cash Equivalents and Short-Term Investments
478.09M409.48M417.65M471.27M523.36M448.83M
Total Assets
2.57B2.52B2.52B2.30B2.28B2.20B
Total Debt
472.42M478.27M499.33M308.28M384.32M450.55M
Net Debt
-5.67M68.79M81.69M-162.99M-139.04M1.72M
Total Liabilities
753.87M728.01M776.79M627.22M748.32M855.08M
Stockholders Equity
1.81B1.80B1.74B1.68B1.53B1.35B
Cash FlowFree Cash Flow
342.14M377.97M375.19M359.45M392.71M490.23M
Operating Cash Flow
379.63M407.13M391.64M368.33M395.75M497.82M
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 Price20.38
Price Trends
50DMA
20.52
Negative
100DMA
21.45
Negative
200DMA
23.12
Negative
Market Momentum
MACD
-0.16
Positive
RSI
44.46
Neutral
STOCH
40.84
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

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
AUPMV
71
Outperform
AU$3.26B16.4514.01%6.57%-27.48%-27.96%
63
Neutral
$6.96B11.512.80%3.85%2.70%-24.43%
DERFD
€140.78M36.423.33%1.98%
DEID9
€135.91M7.817.99%10.41%
DE30M
€678.44M21.548.55%5.59%
AUJBH
75
Outperform
AU$12.16B26.4529.07%3.24%6.21%0.20%
AUKMD
AU$208.03M-7.70%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AU:PMV
Premier Investments Limited
20.23
-0.84
-3.99%
DE:RFD
Reject Shop Limited
3.70
1.84
98.92%
DE:ID9
Helloworld Travel Ltd
0.77
-0.38
-33.04%
DE:30M
Myer Holdings Limited
0.36
0.01
2.86%
AU:JBH
JB Hi-Fi Limited
111.26
52.90
90.64%
AU:KMD
KMD Brands Limited
0.29
-0.10
-25.64%

Premier Investments Limited Corporate Events

AustralianSuper Acquires Significant Stake in Premier Investments
Apr 14, 2025

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
Mar 18, 2025

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.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

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.