Latest news with #PremierInvestments'
Yahoo
31-03-2025
- Business
- Yahoo
Time To Worry? Analysts Just Downgraded Their Premier Investments Limited (ASX:PMV) Outlook
The analysts covering Premier Investments Limited (ASX:PMV) delivered a dose of negativity to shareholders today, by making a substantial revision to their statutory forecasts for this year. This report focused on revenue estimates, and it looks as though the consensus view of the business has become substantially more conservative. This technology could replace computers: discover the 20 stocks are working to make quantum computing a reality. Following the latest downgrade, the twelve analysts covering Premier Investments provided consensus estimates of AU$809m revenue in 2025, which would reflect a painful 50% decline on its sales over the past 12 months. Statutory earnings per share are supposed to plummet 24% to AU$1.12 in the same period. Before this latest update, the analysts had been forecasting revenues of AU$998m and earnings per share (EPS) of AU$1.22 in 2025. Indeed, we can see that analyst sentiment has declined measurably after the new consensus came out, with a substantial drop in revenue estimates and a minor downgrade to EPS estimates to boot. View our latest analysis for Premier Investments It'll come as no surprise then, to learn that the analysts have cut their price target 10.0% to AU$23.79. Of course, another way to look at these forecasts is to place them into context against the industry itself. We would highlight that sales are expected to reverse, with a forecast 75% annualised revenue decline to the end of 2025. That is a notable change from historical growth of 3.8% over the last five years. Compare this with our data, which suggests that other companies in the same industry are, in aggregate, expected to see their revenue grow 5.0% per year. It's pretty clear that Premier Investments' revenues are expected to perform substantially worse than the wider industry. The most important thing to take away is that analysts cut their earnings per share estimates, expecting a clear decline in business conditions. Regrettably, they also downgraded their revenue estimates, and the latest forecasts imply the business will grow sales slower than the wider market. The consensus price target fell measurably, with analysts seemingly not reassured by recent business developments, leading to a lower estimate of Premier Investments' future valuation. Given the stark change in sentiment, we'd understand if investors became more cautious on Premier Investments after today. With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At Simply Wall St, we have a full range of analyst estimates for Premier Investments going out to 2027, and you can see them free on our platform here. Another way to search for interesting companies that could be reaching an inflection point is to track whether management are buying or selling, with our free list of growing companies backed by insiders. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Yahoo
20-03-2025
- Business
- Yahoo
Returns On Capital Are Showing Encouraging Signs At Premier Investments (ASX:PMV)
There are a few key trends to look for if we want to identify the next multi-bagger. Firstly, we'd want to identify a growing return on capital employed (ROCE) and then alongside that, an ever-increasing base of capital employed. Put simply, these types of businesses are compounding machines, meaning they are continually reinvesting their earnings at ever-higher rates of return. With that in mind, we've noticed some promising trends at Premier Investments (ASX:PMV) so let's look a bit deeper. For those who don't know, ROCE is a measure of a company's yearly pre-tax profit (its return), relative to the capital employed in the business. To calculate this metric for Premier Investments, this is the formula: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) 0.16 = AU$345m ÷ (AU$2.5b - AU$315m) (Based on the trailing twelve months to July 2024). Therefore, Premier Investments has an ROCE of 16%. In absolute terms, that's a pretty normal return, and it's somewhat close to the Specialty Retail industry average of 15%. Check out our latest analysis for Premier Investments In the above chart we have measured Premier Investments' prior ROCE against its prior performance, but the future is arguably more important. If you'd like to see what analysts are forecasting going forward, you should check out our free analyst report for Premier Investments . The trends we've noticed at Premier Investments are quite reassuring. The data shows that returns on capital have increased substantially over the last five years to 16%. The amount of capital employed has increased too, by 36%. The increasing returns on a growing amount of capital is common amongst multi-baggers and that's why we're impressed. A company that is growing its returns on capital and can consistently reinvest in itself is a highly sought after trait, and that's what Premier Investments has. And with the stock having performed exceptionally well over the last five years, these patterns are being accounted for by investors. Therefore, we think it would be worth your time to check if these trends are going to continue. One more thing to note, we've identified 1 warning sign with Premier Investments and understanding it should be part of your investment process. For those who like to invest in solid companies, check out this free list of companies with solid balance sheets and high returns on equity. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Sign in to access your portfolio
Yahoo
20-02-2025
- Business
- Yahoo
Investors in Premier Investments (ASX:PMV) have seen stellar returns of 116% over the past five years
The last three months have been tough on Premier Investments Limited (ASX:PMV) shareholders, who have seen the share price decline a rather worrying 31%. But the silver lining is the stock is up over five years. In that time, it is up 32%, which isn't bad, but is below the market return of 53%. So let's assess the underlying fundamentals over the last 5 years and see if they've moved in lock-step with shareholder returns. View our latest analysis for Premier Investments While markets are a powerful pricing mechanism, share prices reflect investor sentiment, not just underlying business performance. One imperfect but simple way to consider how the market perception of a company has shifted is to compare the change in the earnings per share (EPS) with the share price movement. During five years of share price growth, Premier Investments achieved compound earnings per share (EPS) growth of 19% per year. The EPS growth is more impressive than the yearly share price gain of 6% over the same period. So it seems the market isn't so enthusiastic about the stock these days. The graphic below depicts how EPS has changed over time (unveil the exact values by clicking on the image). Dive deeper into Premier Investments' key metrics by checking this interactive graph of Premier Investments's earnings, revenue and cash flow. As well as measuring the share price return, investors should also consider the total shareholder return (TSR). The TSR is a return calculation that accounts for the value of cash dividends (assuming that any dividend received was reinvested) and the calculated value of any discounted capital raisings and spin-offs. So for companies that pay a generous dividend, the TSR is often a lot higher than the share price return. In the case of Premier Investments, it has a TSR of 116% for the last 5 years. That exceeds its share price return that we previously mentioned. This is largely a result of its dividend payments! Premier Investments shareholders are up 11% for the year (even including dividends). But that was short of the market average. It's probably a good sign that the company has an even better long term track record, having provided shareholders with an annual TSR of 17% over five years. It may well be that this is a business worth popping on the watching, given the continuing positive reception, over time, from the market. I find it very interesting to look at share price over the long term as a proxy for business performance. But to truly gain insight, we need to consider other information, too. Even so, be aware that Premier Investments is showing 1 warning sign in our investment analysis , you should know about... Of course Premier Investments may not be the best stock to buy. So you may wish to see this free collection of growth stocks. Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on Australian exchanges. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Sign in to access your portfolio
