Search ASX code:
Generic filters

Was Goodman’s (ASX:GMG) FY19 Result Too Good To Pass On The Shares?

Goodman Group (ASX: GMG) has reported its FY19 result to the market, are the shares are a buy?

Goodman is an integrated property group is the largest industrial property business on the ASX and one of the largest in the world. It’s described as integrated because it develops, owns and manages property across the world. It has operations in Australia, New Zealand, Asia, Europe, the UK, North America and Brazil. The various properties in its portfolio includes warehouses, large logistics facilities (think Amazon), business and office parks.

Was Goodman’s FY19 Report Better Than Good?

The Goodman operating profit was revealed to be 11.4% higher than it was in FY18, growing to $942.3 million. According to consensus estimates, the market was expecting a net profit of $941 million. Operating profit/earnings per share (EPS) grew by 10.5% to 51.6 cents.

Goodman boasted of strong property fundamentals with an occupancy of 98% and like for like net property income growth of 3.3%. Management earnings were 48% higher for the year and the average partnership total returns was 16%.

Total assets under management (AUM) increased by 21% to $46.2 billion and ‘external AUM’ rose by 22% to $42.9 billion. The property business significantly benefited from a valuation lift of $3.8 billion across the group and partnerships.

The development work in progress (WIP) was $4.1 billion across 55 projects in 13 countries with a forecast yield on cost of 6.6%.

Net tangible assets (NTA) per share increased by 15% to $5.34, which is one of the ways that investors value property shares, against the balance sheet/book value of the business.

Goodman Distribution

Goodman’s distribution for FY19 is 30 cents per share, which was an increase of 7% compared to last year. That puts the current distribution yield at 2%.

Is The Goodman Share Price A Buy?

For FY20 Goodman is predicting that operating profit can grow by 10.4% to $1 billion, operating EPS per share of 56.3 cents (up 9% on FY19) and a distribution of 30 cents per share again.

The continuing focus by various businesses on improved logistics in urban environments should benefit Goodman. However, it’s trading at a very high premium compared to its NTA, so I’m not sure it’s good value at today’s price.

For steady growth of profit and dividends I’d rather consider the reliable businesses in the free report below compared to Goodman.

At the time of publishing, Jaz does not have a financial interest in any of the companies mentioned.

Afterpay, Zip Co, Sezzle…

Is BNPL the opportunity of a lifetime or is the sector a ticking time bomb?

Rask's analyst has just finished a 7,500-word report, The Ultimate BNPL Sector Report, taking a deep dive into this booming ASX sector. It shines a spotlight on each of the major players. You can get the full analyst report for FREE by CLICKING HERE NOW or entering your email below.

Note: the report is 100% free.

Unsubscribe anytime. Read our TermsFinancial Services GuidePrivacy Policy. We’ll never sell your email address. Our company is Australian owned.

Afterpay, Zip Co, Sezzle…

Is BNPL the opportunity of a lifetime or is the sector a ticking time bomb?

Rask's analyst has just finished a 7,500-word report, The Ultimate BNPL Sector Report, taking a deep dive into this booming ASX sector. It shines a spotlight on each of the major players. You can get the full analyst report for FREE by CLICKING HERE NOW.

Note: the report is 100% free.

Information warning: The information on this website is published by The Rask Group Pty Ltd (ABN: 36 622 810 995) is limited to factual information or (at most) general financial advice only. That means, the information and advice does not take into account your objectives, financial situation or needs. It is not specific to you, your needs, goals or objectives. Because of that, you should consider if the advice is appropriate to you and your needs, before acting on the information. If you don’t know what your needs are, you should consult a trusted and licensed financial adviser who can provide you with personal financial product advice. In addition, you should obtain and read the product disclosure statement (PDS) before making a decision to acquire a financial product. Please read our Terms and Conditions and Financial Services Guide before using this website. The Rask Group Pty Ltd is a Corporate Authorised Representative (#1280930) of AFSL #383169.

Keep reading:

Rask Media’s Ultimate BNPL Sector Report

Afterpay, Zip, Sezzle… is this the opportunity of a lifetime? Or is BNPL a ticking time bomb? This 7,500-word analyst report takes a deep dive into the BNPL sector and shines a spotlight on each of the major players in this booming market. 

Unsubscribe anytime. Read our TermsFinancial Services GuidePrivacy Policy. We’ll never sell your email address. Our company is Australian owned.

As we emerge from COVID-19, some tech companies are growing faster than ever. Rask’s investment analysts have identified 3 growth stocks set to benefit. Big time.

Enter your email below to access this report for free, including the names, ticker codes and analysis.

Unsubscribe anytime. Read our TermsFinancial Services GuidePrivacy Policy. We’ll never sell your email address. Our company is Australian owned.