Peter Warren Automotive Holdings Ltd (PWR) AI Stock Analysis

• Market Cap: AU$258.01M
• Dividend Yield: 4.97%
• Average Volume (3M): 69.78K
• Price to Earnings (P/E): 14.1
• Beta (1Y): 0.57
• Revenue Growth: 10.15%
• EPS Growth: -61.72%
• Country: AU
• Employees: 2,300
• Sector: Consumer Cyclical
• Sector Strength: 73
• Industry: Auto - Dealerships
• EPS (TTM): 0.02
• Shares Outstanding: 172,256,070
• 10 Day Avg. Volume: 65,773
• 30 Day Avg. Volume: 69,778
• PEG Ratio: -0.34
• Price to Book (P/B): 0.54
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 5.21
• 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$1.45
• Price Target Upside: -5.23% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 68 Neutral
• Price Target: ―

Peter Warren Automotive Holdings Ltd demonstrates strong revenue growth and a solid cash flow position, which support its operational capabilities. However, declining profit margins and significant leverage pose risks to financial stability. The stock's technical indicators suggest a bearish trend, yet it offers an attractive dividend yield and reasonable P/E valuation. The overall score reflects these mixed factors, with financial and valuation strengths offset by technical and leverage concerns.

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. These sales are complemented by its robust aftersales services, including vehicle servicing, repairs, and maintenance, which provide regular revenue from existing vehicle owners. Additionally, the company earns income from the sale of automotive parts and accessories, as well as through financing and insurance products offered to vehicle buyers. Strategic partnerships with major automotive manufacturers allow PWR to maintain a diverse inventory, catering to a wide range of customer preferences and needs. These partnerships, along with a focus on customer service, contribute significantly to its earnings.

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
TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement		Total Revenue
2.50B	2.47B	2.06B	1.70B	1.61B	1.37B
	Gross Profit
404.09M	179.22M	165.06M	327.06M	274.68M	64.20M
	EBIT
166.67M	96.14M	104.88M	86.48M	78.08M	23.51M
	EBITDA
162.91M	118.91M	139.66M	122.67M	102.09M	65.54M
	Net Income Common Stockholders
18.25M	36.09M	56.36M	56.51M	37.55M	8.91M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
22.71M	35.89M	55.51M	56.85M	45.34M	76.31M
	Total Assets
1.42B	1.45B	1.20B	1.10B	846.90M	744.04M
	Total Debt
777.16M	790.62M	575.49M	491.53M	328.55M	535.52M
	Net Debt
754.46M	755.43M	524.86M	439.35M	285.63M	460.84M
	Total Liabilities
902.25M	927.22M	690.61M	622.49M	427.44M	614.07M
	Stockholders Equity
509.36M	516.48M	514.24M	478.95M	419.46M	129.98M
Cash Flow		Free Cash Flow
53.12M	64.33M	63.38M	63.21M	-68.58M	70.51M
	Operating Cash Flow
65.18M	75.01M	73.85M	74.86M	56.55M	74.77M
	Investing Cash Flow
-46.65M	-74.67M	-10.35M	-102.99M	-132.41M	-4.51M
	Financing Cash Flow
-19.73M	-15.79M	-65.04M	37.39M	44.10M	-21.63M

Peter Warren Automotive Holdings Ltd Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 1.53
• 50DMA: Positive
• 100DMA: Positive
• 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 Neutral. The current price of 1.53 is below the 20-day moving average (MA) of 1.54, above the 50-day MA of 1.45, and below the 200-day MA of 1.57, indicating a neutral trend. The MACD of 0.03 indicates Positive momentum. The RSI at 48.47 is Neutral, neither overbought nor oversold. The STOCH value of 30.60 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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
PWR	68 Neutral	AU$258.01M	14.14	3.56%	4.97%	10.15%	-61.72%
Sector *	62 Neutral	$6.84B	11.23	3.09%	3.95%	2.66%	-25.23%
ARBFF		$1.64B	24.15	15.18%	2.31%	―	―
WN6		€7.78B	49.71	8.51%	2.28%	―	―
0BS		€1.01B	―	-16.06%	2.84%	―	―
APE	73 Outperform	AU$4.61B	22.27	15.87%	4.15%	13.62%	-27.61%
SUL	73 Outperform	AU$3.17B	13.99	17.52%	4.96%	2.56%	-13.62%

Peter Warren Automotive Holdings Ltd Corporate Events

Peter Warren Automotive Announces Registry Address Change

Peter Warren Automotive Holdings Limited has announced a change in the address of its registry office in Sydney, effective from April 14, 2025. The registry, managed by MUFG Corporate Markets (AU) Limited, will move to Liberty Place, Level 41, 161 Castlereagh St, Sydney NSW 2000, with telephone numbers and postal addresses remaining unchanged. This change is part of the company’s ongoing operational adjustments and does not affect its overall business operations or stakeholder engagements.

Perpetual Limited Acquires Substantial Stake in Peter Warren Automotive

Perpetual Limited has become a substantial holder in Peter Warren Automotive Holdings Ltd, acquiring a 5.805% voting power through 10 million ordinary shares. This acquisition signifies a strategic investment move by Perpetual Limited, potentially impacting the company’s shareholder dynamics and market perception.

Regal Funds Management Reduces Stake in Peter Warren Automotive

Regal Funds Management Pty Limited, along with its associates, has announced a change in its substantial holding in Peter Warren Automotive Holdings Ltd. The notice reveals a decrease in voting power from 10.83% to 8.10%, reflecting a reduction in the number of shares held. This change may impact the company’s shareholder dynamics and influence its market positioning.