Peter Warren Automotive Holdings Ltd (PWR) AI Stock Analysis

• Market Cap: AU$243.39M
• Dividend Yield: 3.05%
• Average Volume (3M): 106.56K
• Price to Earnings (P/E): 10.8
• Beta (1Y): 0.79
• Revenue Growth: 0.32%
• EPS Growth: -66.48%
• Country: AU
• Employees: 2,300
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Auto - Dealerships
• EPS (TTM): 0.04
• Shares Outstanding: 172,256,070
• 10 Day Avg. Volume: 91,115
• 30 Day Avg. Volume: 106,559
• PEG Ratio: -0.31
• Price to Book (P/B): 0.48
• Price to Sales (P/S): 0.10
• P/FCF Ratio: 4.27
• 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$2.05
• Price Target Upside: 44.37% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 6
• EPS Forecast (FY): 0.12
• Revenue Forecast (FY): AU$2.63B

• Rating: 57 Neutral
• Price Target: AU$1.50 ▲(5.63% Upside)
• Action: Reiterated Date: 12/20/25
• Date: Action: Reiterated 12/20/25

The overall stock score of 57 reflects a mixed financial performance with strengths in gross profit margins and cash flow generation, but challenges in revenue growth and high leverage. Technical indicators suggest a positive short-term trend, but valuation concerns persist with a high P/E ratio. The absence of earnings call and corporate events data limits further insights.

Positive Factors

Improving Gross Margin

A material uplift in gross margin signals stronger pricing power or better cost controls at the dealership level. Sustained higher gross margins increase resilience to vehicle-sales volatility, supporting long-term operating cash generation and margin recovery even if volumes fluctuate.

Strong Free Cash Flow

Positive FCF growth and a high FCF-to-net-income ratio indicate the business converts earnings into cash efficiently. Durable cash generation enhances capacity to fund capex, service debt, and support shareholder returns without relying on external financing during industry cycles.

Dealership Model with Aftersales Recurring Revenue

A diversified dealership model combining new/used vehicle sales with recurring aftersales services creates repeatable revenue streams. Aftersales margins are typically more stable, providing a structural earnings floor and cross-sell opportunities that support long-term cash flow stability.

Negative Factors

High Leverage

Significant leverage increases refinancing and interest-rate risk, constraining strategic flexibility. A moderate equity base with low ROE reduces the buffer to absorb shocks, making the company more vulnerable to downturns in vehicle sales or margin pressure over the medium term.

Weak Revenue Trend and Low Net Margin

A recent decline in top-line growth combined with a near-zero net margin signals limited earnings scalability and sensitivity to cost or volume shocks. Persistently weak revenue trends and compressed margins could undermine long-term profitability and returns unless sales momentum is restored.

Operating Cash Coverage Shortfall

Operating cash flows cover only a small fraction of reported net income, suggesting earnings are not fully converting to cash. This raises concerns about working-capital demands or accounting timing differences that can strain liquidity and limit sustainable investment or debt reduction over time.

Peter Warren Automotive Holdings Ltd Business Overview & Revenue Model

Company Description

Peter Warren Automotive Holdings Limited engages in the retail of new and used cars in Australia. The company also provides vehicle maintenance and repair services, parts, and protection and other aftermarket products; and extended service contracts, as well as financing and insurance services. It operates 82 franchise operations. The company was founded in 1958 and is based in Sydney, Australia.

How the Company Makes Money

Peter Warren Automotive Holdings generates revenue through multiple streams. Primarily, the company earns income from the sale of new and used vehicles, which is augmented by additional services such as automotive financing and insurance products. The dealership also profits from after-sales services, including maintenance, repairs, and the sale of parts, which contribute significantly to recurring revenue. The company may engage in partnerships with financial institutions and automotive manufacturers, enhancing its ability to offer competitive financing options to customers, thus driving additional sales. Overall, PWR's business model leverages both vehicle sales and ongoing service relationships to create a sustainable revenue stream.

Peter Warren Automotive Holdings Ltd Financial Statement Overview

Summary

Peter Warren Automotive Holdings Ltd demonstrates strengths in improving gross profit margins and generating positive free cash flow growth. However, challenges remain with declining revenue growth, high leverage, and pressure on net profitability. The company needs to focus on enhancing revenue growth and managing debt levels to improve financial health.

Income Statement

The income statement shows a mixed performance with a declining revenue growth rate of -0.75% in the latest year, indicating challenges in maintaining sales momentum. Gross profit margin improved significantly from 7.25% to 16.06%, suggesting better cost management or pricing strategies. However, the net profit margin decreased to 0.49%, reflecting pressure on profitability. The EBIT and EBITDA margins also declined, indicating operational challenges.

Balance Sheet

The balance sheet reveals a high debt-to-equity ratio of 1.50, indicating significant leverage which could pose financial risks. Return on equity has decreased to 2.34%, suggesting reduced efficiency in generating profits from shareholders' equity. The equity ratio stands at 35.82%, showing a moderate level of financial stability.

Cash Flow

Cash flow analysis shows a positive free cash flow growth rate of 8.42%, indicating improved cash generation capabilities. The operating cash flow to net income ratio is 0.11, suggesting that operating cash flows are not fully covering net income, which could be a concern. However, the free cash flow to net income ratio is strong at 0.84, indicating efficient cash conversion.

Breakdown	TTM	Jun 2025	Jun 2024	Jun 2023	Jun 2022	Jun 2021
Income Statement
Total Revenue	2.52B	2.48B	2.47B	2.06B	1.70B	1.61B
Gross Profit	159.03M	154.63M	179.22M	165.06M	144.48M	122.08M
EBITDA	112.10M	108.51M	131.60M	139.66M	122.67M	102.09M
Net Income	15.93M	12.09M	36.09M	56.36M	56.51M	37.55M
Balance Sheet
Total Assets	1.38B	1.44B	1.45B	1.20B	1.10B	846.90M
Cash, Cash Equivalents and Short-Term Investments	31.80M	49.33M	35.89M	55.51M	56.85M	45.34M
Total Debt	930.27M	776.58M	790.62M	575.49M	491.53M	328.55M
Total Liabilities	850.37M	917.75M	927.22M	690.61M	622.49M	427.44M
Stockholders Equity	517.92M	516.77M	516.48M	514.24M	478.95M	419.46M
Cash Flow
Free Cash Flow	56.77M	57.59M	64.33M	63.38M	63.21M	-68.58M
Operating Cash Flow	64.06M	68.17M	75.01M	73.85M	74.86M	56.55M
Investing Cash Flow	-7.08M	-17.30M	-74.67M	-10.35M	-102.99M	-132.41M
Financing Cash Flow	-47.88M	-38.02M	-15.79M	-65.04M	37.39M	44.10M

Peter Warren Automotive Holdings Ltd Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.42
• 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:PWR, the sentiment is Negative. The current price of 1.42 is below the 20-day moving average (MA) of 1.58, below the 50-day MA of 1.70, and below the 200-day MA of 1.68, indicating a bearish trend. The MACD of -0.06 indicates Positive momentum. The RSI at 35.51 is Neutral, neither overbought nor oversold. The STOCH value of 32.74 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AU:PWR.

Peter Warren Automotive Holdings Ltd Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MTO	69 Neutral	AU$200.91M	5.11	8.86%	4.13%	11.62%	―
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
PWR	57 Neutral	AU$243.39M	10.76	2.34%	3.05%	0.32%	-66.48%
AMA	56 Neutral	AU$303.33M	-101.48	-4.58%	―	13.54%	66.33%
APE	55 Neutral	AU$6.23B	28.28	16.06%	2.90%	16.46%	-20.08%
ASG	54 Neutral	AU$588.56M	9.11	6.57%	2.04%	8.22%	-46.33%
BBN	54 Neutral	AU$266.74M	46.89	8.94%	―	4.72%	465.60%

Peter Warren Automotive Holdings Ltd Corporate Events

Peter Warren boosts profit, dividend and growth plans on stronger H1

Peter Warren Automotive Holdings reported a strong first half for FY26, with underlying profit before tax rising 76.1% to $12.5 million on 3.2% revenue growth to $1.27 billion, aided by tighter inventory control, lower interest costs and a richer mix of high-margin services. Margins held steady, net debt fell and the board lifted the interim dividend to 3.0 cents per share, reflecting confidence in earnings momentum.

The group advanced its consolidation strategy by agreeing to acquire Wakeling Automotive in Western Sydney, a deal expected to increase revenue by about 20% and deepen its footprint in one of Australia’s fastest-growing regions. Management also highlighted its expanding portfolio of leading Chinese brands, new senior appointments in finance, operations and technology, and reiterated its intention to pursue further M&A as competition in the new car market intensifies.

The most recent analyst rating on (AU:PWR) stock is a Hold with a A$1.50 price target. To see the full list of analyst forecasts on Peter Warren Automotive Holdings Ltd stock, see the AU:PWR Stock Forecast page.

Peter Warren Automotive Declares A$0.03 Interim Dividend

Peter Warren Automotive Holdings has declared an ordinary interim dividend of A$0.03 per fully paid share for the six-month period ended 31 December 2025. The dividend will trade ex-dividend on 25 February 2026, with a record date of 26 February and payment scheduled for 26 March, signalling continued capital returns to shareholders and providing income-focused investors with clearer visibility on near-term cash flows.

The announcement of this interim distribution underscores the company’s ongoing commitment to shareholder returns within the competitive Australian automotive retail sector. By maintaining a cash payout aligned with its half-year reporting cycle, Peter Warren Automotive reinforces confidence in its operating performance and balance sheet strength, which may support investor sentiment ahead of future reporting periods.

The most recent analyst rating on (AU:PWR) stock is a Hold with a A$1.50 price target. To see the full list of analyst forecasts on Peter Warren Automotive Holdings Ltd stock, see the AU:PWR Stock Forecast page.

Peter Warren Auto H1 Profit More Than Doubles as Dividend Increased

Peter Warren Automotive Holdings Limited has reported a solid first half for FY26, with revenues from ordinary activities rising 3.2% to $1.27 billion. The group’s profit after tax attributable to owners more than doubled to $7.4 million compared with the prior corresponding period, reflecting a significant rebound in earnings.

In a sign of confidence, the board declared a fully franked interim dividend of 3.0 cents per share for the year ending 30 June 2026, up from 1.6 cents a year earlier. The stronger payout underlines improved cash generation and offers a higher return for shareholders, reinforcing the company’s position in Australia’s competitive automotive retail market.

The most recent analyst rating on (AU:PWR) stock is a Hold with a A$1.50 price target. To see the full list of analyst forecasts on Peter Warren Automotive Holdings Ltd stock, see the AU:PWR Stock Forecast page.

Peter Warren Automotive Issues 752,280 Unquoted Performance Rights Under Incentive Scheme

Peter Warren Automotive Holdings Limited has notified the market of the issue of 752,280 unquoted performance rights under its employee incentive scheme, with an effective issue date of 29 January 2026. The new performance rights, which will not be quoted on the ASX, form part of the company’s remuneration and retention strategy for staff and executives, signalling ongoing use of equity-based incentives to align employees’ interests with shareholder value and support the firm’s operational and growth objectives.

The most recent analyst rating on (AU:PWR) stock is a Hold with a A$2.00 price target. To see the full list of analyst forecasts on Peter Warren Automotive Holdings Ltd stock, see the AU:PWR Stock Forecast page.

Peter Warren Automotive Sets Date for H1 FY26 Results and Investor Briefing

Peter Warren Automotive Holdings will release its half-year FY26 financial results for the six months ended 31 December 2025 on 20 February 2026, and will host a same-day webcast and conference call for investors and analysts led by CEO Andrew Doyle and CFO Victor Cuthell. The scheduled briefing underscores the company’s intention to actively engage the market on its performance and outlook, providing stakeholders with an opportunity to assess trading conditions across its broad portfolio of dealerships and brands on the eastern seaboard.

The most recent analyst rating on (AU:PWR) stock is a Hold with a A$2.00 price target. To see the full list of analyst forecasts on Peter Warren Automotive Holdings Ltd stock, see the AU:PWR Stock Forecast page.

Peter Warren Boosts Western Sydney Scale with $28m Wakeling Automotive Deal

Peter Warren Automotive Holdings has agreed to acquire Wakeling Automotive, a 40‑year‑old multi‑franchise dealership group based in Macarthur, NSW, with additional sites in Wollongong, Shellharbour and Moss Vale, for approximately $28 million funded from existing debt facilities. The deal adds 16 popular brands across 30 dealerships, brings roughly $500 million in annual turnover and about 370 staff into the group, is expected to be immediately earnings per share accretive after funding costs, and strengthens Peter Warren’s scale and footprint in the fast‑growing Western Sydney corridor, reinforcing its ongoing consolidation strategy subject to regulatory and manufacturer approvals.

The most recent analyst rating on (AU:PWR) stock is a Buy with a A$2.30 price target. To see the full list of analyst forecasts on Peter Warren Automotive Holdings Ltd stock, see the AU:PWR Stock Forecast page.