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Thoughts on retailer Peter Warren (PWR)

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Thoughts on retailer Peter Warren (PWR)

Hi guys In my research i came across peter warren pwr It has nearly a 10% dividend fully franked and unlike many of the others in the retail sector it is well off its highs and according to commsec a pe of 7 Do you think it is good buying at these levels Thanks Tony

Answer

Hi,

For subscribers not familiar with PWR it’s a $429mn NSW retailer of new & used vehicles. The company has only been listed since 2021 but over that time it has paid a strong dividend and is currently estimated to yield more than 9% over the coming year. However, the stock has fallen over -35% in this time while the broader market has pushed to new all-time highs.

Eagers Automotive (APE) is obviously the biggest in this space and after a fantastic bump during 2020/21, the momentum in that business has eased. Without knowing PWR as intimately, we would suspect they listed after a strong period of growth, and the numbers have not been replicated since IPO causing some disappointment and thus pressure on the stock.

  • We are neutral the stock taking the above into account although ~$2.50 the underlying metrics do look solid.
  • One to add to the radar for our Emerging Companies Portfolio.
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Peter Warren Automotive Holdings (PWR)
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