Peter Warren Automotive Holdings Ltd (PWR) AI Stock Analysis

• Market Cap: AU$294.99M
• Dividend Yield: 4.43%
• Average Volume (3M): 285.25K
• Price to Earnings (P/E): 15.6
• Beta (1Y): 0.81
• Revenue Growth: 10.15%
• EPS Growth: -61.72%
• Country: AU
• Employees: 2,300
• Sector: Consumer Cyclical
• Sector Strength: 64
• Industry: Auto - Dealerships
• EPS (TTM): 0.02
• Shares Outstanding: 172,256,070
• 10 Day Avg. Volume: 662,775
• 30 Day Avg. Volume: 285,251
• PEG Ratio: -0.31
• Price to Book (P/B): 0.50
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 4.82
• 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$1.62
• Price Target Upside: -5.81% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 3

• Rating: 72 Outperform
• Price Target: AU$2.00 ▲(16.28%Upside)

Peter Warren Automotive Holdings Ltd shows strong operational performance with solid cash flow and revenue growth, which are primary strengths. However, high financial leverage and declining profit margins introduce risks. Technical indicators suggest short-term bullish momentum, though the stock may be nearing overbought levels. The valuation is reasonable, supported by an attractive dividend yield, yet not overly compelling.

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 Ltd generates revenue primarily through the sale of new and used vehicles. This includes a wide range of brands, ensuring a broad market appeal. In addition to vehicle sales, the company earns significant income from after-sales services such as vehicle servicing, repairs, and parts sales. These services not only provide a continuous revenue stream but also help in building long-term customer relationships. The company may also benefit from finance and insurance products offered to customers purchasing vehicles. Strategic partnerships with automotive manufacturers and financial institutions further enhance its revenue model by providing better access to inventory and financial products.

Peter Warren Automotive Holdings Ltd Financial Statement Overview

Summary

Peter Warren Automotive Holdings Ltd exhibits solid revenue growth and a strong cash flow position, which are positive indicators of operational strength. However, declining profit margins and high financial leverage present potential risks. The company should focus on improving profitability and managing debt levels to enhance financial stability.

Income Statement

Peter Warren Automotive Holdings Ltd has shown consistent revenue growth, with a notable increase of 20.06% from 2023 to 2024. However, margins have declined, with the gross profit margin dropping to 7.24% and the net profit margin to 1.46%. The EBIT margin is at 3.89%, while the EBITDA margin is slightly better at 4.80%. Despite revenue growth, declining margins suggest pressure on profitability.

Balance Sheet

The company has a high debt-to-equity ratio of 1.53, indicating significant leverage, which could pose risks. The return on equity is modest at 6.99%, and the equity ratio stands at 35.56%, suggesting a moderate reliance on equity financing. Overall, the balance sheet reflects stability but with notable leverage concerns.

Cash Flow

Operating cash flow remains healthy with a slight growth from the previous year, and the free cash flow to net income ratio is strong at 1.78. However, the free cash flow growth rate is minimal at 1.50%. The ability to generate cash remains robust, supporting the company's operational needs.

Breakdown	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement
Total Revenue	2.47B	2.06B	1.70B	1.61B	1.37B
Gross Profit	179.22M	165.06M	327.06M	274.68M	64.20M
EBITDA	118.91M	139.66M	122.67M	102.09M	65.54M
Net Income	36.09M	56.36M	56.51M	37.55M	8.91M
Balance Sheet
Total Assets	1.45B	1.20B	1.10B	846.90M	744.04M
Cash, Cash Equivalents and Short-Term Investments	35.89M	55.51M	56.85M	45.34M	76.31M
Total Debt	790.62M	575.49M	491.53M	328.55M	535.52M
Total Liabilities	927.22M	690.61M	622.49M	427.44M	614.07M
Stockholders Equity	516.48M	514.24M	478.95M	419.46M	129.98M
Cash Flow
Free Cash Flow	64.33M	63.38M	63.21M	-68.58M	70.51M
Operating Cash Flow	75.01M	73.85M	74.86M	56.55M	74.77M
Investing Cash Flow	-74.67M	-10.35M	-102.99M	-132.41M	-4.51M
Financing Cash Flow	-15.79M	-65.04M	37.39M	44.10M	-21.63M

Peter Warren Automotive Holdings Ltd Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1.72
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:PWR, the sentiment is Positive. The current price of 1.72 is above the 20-day moving average (MA) of 1.48, above the 50-day MA of 1.48, and above the 200-day MA of 1.53, indicating a bullish trend. The MACD of 0.05 indicates Negative momentum. The RSI at 70.74 is Negative, neither overbought nor oversold. The STOCH value of 87.44 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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	79 Outperform	AU$233.97M	13.46	8.49%	4.73%	3.76%	-26.42%
PWR	72 Outperform	AU$294.99M	15.55	3.56%	4.43%	10.15%	-61.72%
ASG	72 Outperform	AU$502.04M	13.66	7.39%	4.71%	0.90%	-45.49%
APE	69 Neutral	AU$4.84B	23.36	15.87%	3.95%	13.62%	-27.61%
Sector *	63 Neutral	$17.10B	10.62	-8.48%	2.94%	1.62%	-25.72%
BBN	60 Neutral	AU$229.36M	79.07	2.78%	1.03%	-2.62%	-70.47%
AMA	48 Neutral	AU$444.78M	465.00	1.53%	―	-1.09%	―

Peter Warren Automotive Holdings Ltd Corporate Events

Magellan Financial Group Ceases Substantial Holding in Peter Warren Automotive

Peter Warren Automotive Holdings Ltd has announced that Magellan Financial Group Ltd and its related bodies have ceased to be substantial holders in the company as of July 23, 2025. This change in substantial holding could impact the company’s shareholder structure and influence in voting securities, potentially affecting future corporate decisions and stakeholder interests.

The most recent analyst rating on (AU:PWR) stock is a Hold with a A$1.85 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 Holdings Projects Increased Profit for FY25

Peter Warren Automotive Holdings Limited has announced a preliminary trading update for the fiscal year ending June 30, 2025, with an expected underlying profit before tax of approximately $22 million. This improvement is attributed to increased seasonality from end-of-financial-year marketing campaigns and efforts to optimize inventory and costs, signaling a positive impact on the company’s operational efficiency and market positioning.

The most recent analyst rating on (AU:PWR) stock is a Hold with a A$1.85 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 New Performance Rights

Peter Warren Automotive Holdings Limited has announced the issuance of 815,828 performance rights as part of an employee incentive scheme. These securities are unquoted and are intended to enhance employee engagement and retention, potentially impacting the company’s operational efficiency and market competitiveness.

The most recent analyst rating on (AU:PWR) stock is a Hold with a A$1.98 price target. To see the full list of analyst forecasts on Peter Warren Automotive Holdings Ltd stock, see the AU:PWR Stock Forecast page.