WOTSO Property (WOT) AI Stock Analysis

• Market Cap: AU$100.28M
• Dividend Yield: 3.23%
• Average Volume (3M): 8.91K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.23
• Revenue Growth: -6.61%
• EPS Growth: -47.55%
• Country: AU
• Employees: 97
• Sector: Real Estate
• Sector Strength: 61
• Industry: REIT - Diversified
• EPS (TTM): -0.02
• Shares Outstanding: 161,748,520
• 10 Day Avg. Volume: 3,279
• 30 Day Avg. Volume: 8,913
• PEG Ratio: >-0.01
• Price to Book (P/B): 0.44
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 12.13
• 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$0.50
• Price Target Upside: -19.35% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 51 Neutral
• Price Target: AU$0.50 ▼(-19.35%Downside)

The overall stock score is driven by stable revenue and strong cash flow performance, but hindered by declining operational efficiency and negative earnings. Technical indicators show the stock is under pressure, trading below key moving averages. Valuation is unattractive due to the negative P/E ratio, despite a modest dividend yield.

WOTSO Property Business Overview & Revenue Model

Company Description

Wotso Property is a real estate investment trust externally managed by BlackWall Fund Services Limited. It invests in the real estate markets across Australia. It primarily invests in the industrial, retail and commercial Australian properties, and unlisted property securities. Wotso Property is based in Australia.

How the Company Makes Money

WOTSO Property generates revenue primarily through leasing its flexible workspaces to businesses and individuals on both short-term and long-term agreements. The company's revenue streams include membership fees for coworking spaces, rental income from private offices, charges for meeting room bookings, and additional services such as virtual offices and event hosting. WOTSO's business model capitalizes on the growing demand for agile work environments, leveraging strategic locations to attract a wide range of clientele. Partnerships with property owners and developers also play a crucial role, enabling WOTSO to expand its footprint while minimizing upfront capital expenditure.

WOTSO Property Financial Statement Overview

Summary

WOTSO Property shows stable revenue and strong gross margins. However, the net loss and declining operational efficiency raise concerns. The balance sheet is healthy with manageable debt, but the reduction in assets and equity needs attention. Strong cash flow performance indicates good liquidity despite the net loss.

Income Statement

WOTSO Property has shown a modest revenue growth of 2.4% from the previous year, indicating stability in revenue generation. However, the company experienced a net loss, leading to a negative net profit margin (-0.05%). The gross profit margin stands at 50.9%, which is significant, but declining EBIT and EBITDA margins to 6.5% and 35.1% from the previous year suggest reduced operational efficiency.

Balance Sheet

The company's balance sheet reflects a high debt-to-equity ratio of 0.58, which is typical for the REIT industry but indicates a moderate level of financial leverage. The equity ratio is healthy at 60.3%, showing a strong equity base relative to total assets. However, the decrease in stockholders' equity and total assets over the past year is a point of concern.

Cash Flow

WOTSO Property's cash flow statement shows a robust increase in free cash flow by 145.7%, which is a positive indicator of cash generation. The operating cash flow to net income ratio is not applicable due to net loss, but a strong operating cash flow suggests healthy cash operations. The free cash flow to net income ratio is also not meaningful due to the net loss.

Breakdown	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement
Total Revenue	49.72M	49.00M	39.82M	30.27M	24.02M
Gross Profit	25.09M	15.27M	25.51M	17.06M	14.45M
EBITDA	19.13M	19.65M	50.20M	24.21M	33.44M
Net Income	-23.00K	855.00K	30.57M	5.73M	7.40M
Balance Sheet
Total Assets	392.06M	481.86M	485.02M	420.27M	346.33M
Cash, Cash Equivalents and Short-Term Investments	3.67M	7.45M	2.51M	7.47M	16.19M
Total Debt	137.24M	192.37M	164.74M	140.69M	87.00M
Total Liabilities	151.82M	205.25M	188.16M	147.74M	89.11M
Stockholders Equity	236.55M	245.99M	255.57M	234.17M	209.06M
Cash Flow
Free Cash Flow	5.70M	2.32M	18.43M	9.78M	6.29M
Operating Cash Flow	17.13M	13.10M	20.67M	12.48M	6.36M
Investing Cash Flow	-18.45M	-15.54M	-21.39M	-23.01M	-10.59M
Financing Cash Flow	-10.26M	7.37M	-7.68M	-145.00K	10.70M

WOTSO Property Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.62
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:WOT, the sentiment is Negative. The current price of 0.62 is below the 20-day moving average (MA) of 0.62, below the 50-day MA of 0.63, and below the 200-day MA of 0.67, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 48.07 is Neutral, neither overbought nor oversold. The STOCH value of 12.50 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AU:WOT.

WOTSO Property Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
APW	83 Outperform	AU$134.45M	1.84	40.87%	―	-27.82%	330.61%
Sector *	70 Outperform	¥236.19B	14.54	10.69%	3.77%	18.33%	21.20%
GOZ	60 Neutral	AU$1.80B	―	-10.45%	8.49%	2.70%	-8.39%
CLW	55 Neutral	AU$2.89B	―	-5.75%	6.14%	-15.42%	65.86%
TOT	54 Neutral	AU$90.91M	―	-17.33%	7.14%	-0.74%	27.60%
ABG	54 Neutral	AU$1.05B	―	-6.24%	7.26%	―	―
WOT	51 Neutral	AU$100.28M	―	-1.43%	3.23%	-6.61%	-47.55%

WOTSO Property Corporate Events

WOTSO Director Increases Stake with On-Market Acquisition

WOTSO Property announced a change in the director’s interest, with Joseph Glew acquiring an additional 39,576 ordinary securities through an on-market acquisition, increasing his total holdings to 39,396,648. This transaction reflects ongoing investment activity within the company, potentially signaling confidence in its market position and future prospects.

WOTSO Property Announces Registry Office Relocation

WOTSO Property announced a change in the location of its registry office, with Computershare Investor Services moving to a new address in Sydney, effective from June 10, 2025. This relocation is part of the company’s ongoing efforts to streamline operations and enhance service delivery, potentially impacting its operational efficiency and stakeholder engagement.

WOTSO Completes Minimum Holding Buy-Back Program

WOTSO has completed a minimum holding buy-back program for securityholders with less than a marketable parcel of securities. This initiative allowed eligible securityholders to sell their securities back to the company without incurring brokerage or handling costs, resulting in the buy-back of 451,328 securities valued at $237,849.86. This move is likely to streamline the company’s shareholder base and potentially improve liquidity for remaining shareholders.

WOTSO Property Launches Sale of Key Queensland Asset

WOTSO Property has initiated a sale campaign for its industrial property located at 54 Pioneer Road, Yandina, Queensland, which currently houses News Corp’s Queensland printing facility. This strategic move aims to unlock value from the asset and reallocate capital towards new opportunities, potentially enhancing the company’s operational efficiency and market positioning.

WOTSO Property: A Growing Force in Flexible Workspaces

WOTSO Property is trading at a discount to its NTA and NAV, offering a potential value opportunity for investors. The company has experienced significant growth, with 31 sites across Australia and New Zealand, generating over $32 million in annual revenue. The property portfolio boasts a 97% occupancy rate, contributing $15 million annually. WOTSO’s strategic focus on suburban markets and operational expertise has driven consistent growth, with membership occupancy exceeding 80% and a strong pipeline of acquisition opportunities.

WOTSO Property Expands Flexspace Network with New Openings

WOTSO Property has reported an 8% increase in revenue for Q3 FY25 compared to the same period last year, reflecting its continued expansion in the flexspace market. The company plans to open four new locations in Q4 and two more in Q1 FY26, enhancing its presence in suburban and regional areas. This expansion is expected to support revenue growth and improve occupancy rates, contributing to the company’s profitability and market positioning.

WOTSO Transitions to Flexible Workspace Platform with Name Change

WOTSO has officially changed its name from WOTSO Property to WOTSO, reflecting its transition from a traditional real estate investment trust to a flexible workspace platform. This strategic shift aims to enhance long-term value creation through operating income expansion and active asset repositioning, while maintaining a strong real estate foundation and a lowly geared balance sheet.