WOTSO Property (WOT) AI Stock Analysis

• Market Cap: AU$97.05M
• Dividend Yield: 3.33%
• Average Volume (3M): 24.65K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.25
• Revenue Growth: -6.61%
• EPS Growth: -47.55%
• Country: AU
• Employees: 97
• Sector: Real Estate
• Sector Strength: 56
• Industry: REIT - Diversified
• EPS (TTM): -0.02
• Shares Outstanding: 161,748,520
• 10 Day Avg. Volume: 21,627
• 30 Day Avg. Volume: 24,648
• PEG Ratio: >-0.01
• Price to Book (P/B): 0.42
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 11.78
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 56 Neutral
• Price Target: AU$0.50 ▼(-16.67%Downside)

The overall stock score for WOTSO Property is primarily driven by its stable financial performance, strong cash flow, and manageable debt levels, which are offset by challenges in operational efficiency and a net loss. The stock's technical analysis suggests limited momentum, while valuation concerns arise from a negative P/E ratio despite a reasonable dividend yield.

WOTSO Property Business Overview & Revenue Model

Company Description

WOTSO Property (WOT) is an Australian company that specializes in providing flexible workspace solutions. The company caters to a diverse clientele, including small businesses, startups, and large corporations, by offering co-working spaces, private offices, meeting rooms, and event spaces. WOTSO prides itself on creating vibrant and collaborative environments that foster innovation and networking opportunities for its members.

How the Company Makes Money

WOTSO Property generates revenue primarily through the leasing of its flexible workspace solutions. The company's key revenue streams include membership fees for co-working spaces, rental income from private offices, and charges for meeting rooms and event spaces. WOTSO also benefits from ancillary services such as virtual office memberships and mail handling services. The company's earnings are bolstered by its strategic locations across Australia, which attract a wide range of clients seeking professional and flexible workspace solutions. Additionally, partnerships with local businesses and community initiatives enhance WOTSO's value proposition, making it a preferred choice for companies seeking dynamic work environments.

WOTSO Property Financial Statement Overview

Summary

WOTSO Property has stable revenue and strong gross margins but faces challenges with declining operational efficiency and a net loss. The balance sheet shows manageable debt levels, though a decrease in assets and equity is concerning. Cash flow is strong, indicating 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	TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement
Total Revenue	47.47M	49.72M	49.00M	39.82M	30.27M	24.02M
Gross Profit	10.67M	25.09M	15.27M	25.51M	17.06M	14.45M
EBITDA	-2.17M	19.13M	19.65M	50.20M	24.21M	33.44M
Net Income	324.67M	-23.00K	855.00K	30.57M	5.73M	7.40M
Balance Sheet
Total Assets	395.52M	392.06M	481.86M	485.02M	420.27M	346.33M
Cash, Cash Equivalents and Short-Term Investments	1.53M	3.67M	7.45M	2.51M	7.47M	16.19M
Total Debt	92.89M	137.24M	192.37M	164.74M	140.69M	87.00M
Total Liabilities	156.11M	151.82M	205.25M	188.16M	147.74M	89.11M
Stockholders Equity	235.26M	236.55M	245.99M	255.57M	234.17M	209.06M
Cash Flow
Free Cash Flow	8.47M	5.70M	2.32M	18.43M	9.78M	6.29M
Operating Cash Flow	17.34M	17.13M	13.10M	20.67M	12.48M	6.36M
Investing Cash Flow	-15.87M	-18.45M	-15.54M	-21.39M	-23.01M	-10.59M
Financing Cash Flow	-5.62M	-10.26M	7.37M	-7.68M	-145.00K	10.70M

WOTSO Property Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.60
• 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:WOT, the sentiment is Negative. The current price of 0.6 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 0.68, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 44.53 is Neutral, neither overbought nor oversold. The STOCH value of 49.13 is Neutral, 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
CQR	74 Outperform	AU$2.23B	13.29	6.37%	6.46%	-7.70%	―
SCG	68 Neutral	$18.68B	17.75	5.94%	4.79%	5.05%	500.30%
Sector *	63 Neutral	$6.90B	18.98	-1.16%	7.10%	4.71%	-24.99%
DXS	58 Neutral	$7.16B	―	-9.22%	5.71%	0.32%	28.89%
WOT	56 Neutral	AU$97.05M	―	-1.43%	3.33%	-6.61%	-47.55%
MGR	55 Neutral	AU$8.68B	―	-6.29%	4.09%	22.66%	-3.80%
GOZ	53 Neutral	AU$1.79B	―	-10.45%	7.68%	2.70%	-8.39%

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.

WOTSO Property Announces Minimum Holding Buy-Back Initiative

WOTSO Property has announced a minimum holding buy-back for securityholders with less than a marketable parcel of securities, valued at under $500. This initiative allows eligible securityholders to sell their securities back to the company at a price of $0.527 per security, with no brokerage fees, aiming to streamline its shareholder base by reducing the number of unmarketable parcels.

WOTSO Property Director Increases Stake with Dividend in Specie

WOTSO Property announced a change in the director’s interest, with Joseph Glew acquiring an additional 2,502,237 ordinary securities, bringing his total to 39,357,072. This acquisition was made through the receipt of WOT securities from BlackWall Limited as a dividend in specie, indicating a strategic move that could impact the company’s financial positioning and shareholder value.

Increase in Voting Power for WOTSO Property’s Substantial Holder

Paul Tresidder, a substantial holder in WOTSO Property, has increased his voting power from 13.40% to 15.43% through the receipt of WOT securities as a dividend in specie from BlackWall Limited. This change in voting power may impact the company’s governance and decision-making processes, potentially affecting stakeholders and the company’s strategic direction.

BlackWall Limited Reduces Stake in WOTSO Property

BlackWall Limited has reduced its voting power in WOTSO Property from 25.26% to 19.97% by transferring WOTSO securities to its shareholders as a dividend in specie. This change in substantial holding may impact BlackWall’s influence over WOTSO Property’s strategic decisions and could have implications for other stakeholders in the company.