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Goodman Group

ASX:GMG
Snowflake Description

Solid track record with excellent balance sheet.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
GMG
ASX
A$26B
Market Cap
  1. Home
  2. AU
  3. Real Estate
Company description

Goodman Group is an integrated property group with operations throughout Australia, New Zealand, Asia, Continental Europe, the United Kingdom, North America and Brazil. The last earnings update was 52 days ago. More info.


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GMG Share Price and Events
7 Day Returns
-0.3%
ASX:GMG
0.1%
AU REITs
1.3%
AU Market
1 Year Returns
41.8%
ASX:GMG
20.5%
AU REITs
9.9%
AU Market
GMG Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Goodman Group (GMG) -0.3% 3.7% -6.8% 41.8% 101.7% 166.5%
AU REITs 0.1% 0.4% -2.8% 20.5% 23.4% 58.9%
AU Market 1.3% -0.6% -1% 9.9% 17.6% 17.8%
1 Year Return vs Industry and Market
  • GMG outperformed the REITs industry which returned 20.5% over the past year.
  • GMG outperformed the Market in Australia which returned 9.9% over the past year.
Price Volatility
GMG
Industry
5yr Volatility vs Market

GMG Value

 Is Goodman Group undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Goodman Group to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Goodman Group.

ASX:GMG Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity using Adjusted Funds From Operations
Levered Adjusted Funds From Operations Average of 7 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 7.1%
Perpetual Growth Rate 10-Year AU Government Bond Rate 2.3%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for ASX:GMG
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year AU Govt Bond Rate 2.3%
Equity Risk Premium S&P Global 6%
REITs Unlevered Beta Simply Wall St/ S&P Global 0.47
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.47 (1 + (1- 30%) (11.47%))
0.671
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.8
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.31% + (0.8 * 5.96%)
7.08%

Discounted Cash Flow Calculation for ASX:GMG using 2 Stage Free Cash Flow to Equity using Adjusted Funds From Operations Model

ASX:GMG Discount to Share Price
Calculation Result
Value per share (AUD) From above. A$14.15
Current discount Discount to share price of A$14.18
= -1 x (A$14.18 - A$14.15) / A$14.15
-0.2%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of Goodman Group is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Goodman Group's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Goodman Group's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
ASX:GMG PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-06-30) in AUD A$0.90
ASX:GMG Share Price ** ASX (2019-10-11) in AUD A$14.18
Australia REITs Industry PE Ratio Median Figure of 38 Publicly-Listed REITs Companies 15.7x
Australia Market PE Ratio Median Figure of 557 Publicly-Listed Companies 17.93x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Goodman Group.

ASX:GMG PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= ASX:GMG Share Price ÷ EPS (both in AUD)

= 14.18 ÷ 0.90

15.78x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Goodman Group is overvalued based on earnings compared to the AU REITs industry average.
  • Goodman Group is good value based on earnings compared to the Australia market.
Price based on expected Growth
Does Goodman Group's expected growth come at a high price?
Raw Data
ASX:GMG PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 15.78x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 7 Analysts
6.6%per year
Australia REITs Industry PEG Ratio Median Figure of 31 Publicly-Listed REITs Companies 1.2x
Australia Market PEG Ratio Median Figure of 357 Publicly-Listed Companies 1.69x

*Line of best fit is calculated by linear regression .

ASX:GMG PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 15.78x ÷ 6.6%

2.38x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Goodman Group is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Goodman Group's assets?
Raw Data
ASX:GMG PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-06-30) in AUD A$5.80
ASX:GMG Share Price * ASX (2019-10-11) in AUD A$14.18
Australia REITs Industry PB Ratio Median Figure of 43 Publicly-Listed REITs Companies 1.11x
Australia Market PB Ratio Median Figure of 1,705 Publicly-Listed Companies 1.8x
ASX:GMG PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= ASX:GMG Share Price ÷ Book Value per Share (both in AUD)

= 14.18 ÷ 5.80

2.44x

* Primary Listing of Goodman Group.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Goodman Group is overvalued based on assets compared to the AU REITs industry average.
X
Value checks
We assess Goodman Group's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the REITs industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the REITs industry average (and greater than 0)? (1 check)
  5. Goodman Group has a total score of 1/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

GMG Future Performance

 How is Goodman Group expected to perform in the next 1 to 3 years based on estimates from 7 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
6.6%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Goodman Group expected to grow at an attractive rate?
  • Goodman Group's earnings growth is expected to exceed the low risk savings rate of 2.3%.
Growth vs Market Checks
  • Goodman Group's earnings growth is positive but not above the Australia market average.
  • Goodman Group's revenues are expected to decrease over the next 1-3 years, this is below the Australia market average.
Annual Growth Rates Comparison
Raw Data
ASX:GMG Future Growth Rates Data Sources
Data Point Source Value (per year)
ASX:GMG Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 7 Analysts 6.6%
ASX:GMG Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 7 Analysts -6.3%
Australia REITs Industry Earnings Growth Rate Market Cap Weighted Average 2.5%
Australia REITs Industry Revenue Growth Rate Market Cap Weighted Average -3.7%
Australia Market Earnings Growth Rate Market Cap Weighted Average 10.2%
Australia Market Revenue Growth Rate Market Cap Weighted Average 3.6%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
ASX:GMG Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 7 Analyst Estimates (S&P Global) See Below
All numbers in AUD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
ASX:GMG Future Estimates Data
Date (Data in AUD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2022-06-30 1,723 1,207 1,509 4
2021-06-30 1,620 1,114 1,290 4
2020-06-30 1,504 1,003 1,001 4
2019-10-13
ASX:GMG Past Financials Data
Date (Data in AUD Millions) Revenue Cash Flow Net Income *
2019-06-30 2,851 828 1,628
2019-03-31 2,883 872 1,556
2018-12-31 2,312 916 1,485
2018-09-30 2,101 1,038 1,291
2018-06-30 2,494 1,161 1,098
2018-03-31 2,259 993 931
2017-12-31 2,024 825 764
2017-09-30 1,998 705 771
2017-06-30 1,972 586 778
2017-03-31 2,046 689 845
2016-12-31 2,120 792 912
2016-09-30 2,108 811 1,093

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Goodman Group's earnings are expected to grow by 6.6% yearly, however this is not considered high growth (20% yearly).
  • Goodman Group's revenue is expected to decrease over the next 1-3 years, this is not considered high growth.
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
ASX:GMG Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 7 Analyst Estimates (S&P Global) See Below

All data from Goodman Group Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

ASX:GMG Future Estimates Data
Date (Data in AUD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2022-06-30 0.64 0.64 0.64 2.00
2021-06-30 0.57 0.62 0.49 3.00
2020-06-30 0.54 0.57 0.49 3.00
2019-10-13
ASX:GMG Past Financials Data
Date (Data in AUD Millions) EPS *
2019-06-30 0.90
2019-03-31 0.86
2018-12-31 0.82
2018-09-30 0.72
2018-06-30 0.61
2018-03-31 0.52
2017-12-31 0.43
2017-09-30 0.43
2017-06-30 0.44
2017-03-31 0.47
2016-12-31 0.51
2016-09-30 0.62

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Goodman Group is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Goodman Group's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Australia market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Australia market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Goodman Group has a total score of 1/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

GMG Past Performance

  How has Goodman Group performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Goodman Group's growth in the last year to its industry (REITs).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Goodman Group's year on year earnings growth rate has been positive over the past 5 years.
  • Goodman Group's 1-year earnings growth exceeds its 5-year average (48.2% vs 5.3%)
  • Goodman Group's earnings growth has exceeded the AU REITs industry average in the past year (48.2% vs -16.3%).
Earnings and Revenue History
Goodman Group's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Goodman Group Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

ASX:GMG Past Revenue, Cash Flow and Net Income Data
Date (Data in AUD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-06-30 2,851.10 1,627.90 464.30
2019-03-31 2,882.80 1,556.30 429.95
2018-12-31 2,311.80 1,484.70 395.60
2018-09-30 2,101.35 1,291.45 385.30
2018-06-30 2,493.60 1,098.20 375.00
2018-03-31 2,258.70 931.10 358.00
2017-12-31 2,023.80 764.00 341.00
2017-09-30 1,998.10 771.05 337.30
2017-06-30 1,972.40 778.10 333.60
2017-03-31 2,046.30 845.10 340.65
2016-12-31 2,120.20 912.10 347.70
2016-09-30 2,108.25 1,093.35 334.20
2016-06-30 2,096.30 1,274.60 320.70
2016-03-31 1,979.80 1,444.60 309.40
2015-12-31 1,863.30 1,614.60 298.10
2015-09-30 1,720.25 1,411.30 285.60
2015-06-30 1,577.20 1,208.00 273.10
2015-03-31 1,593.50 1,108.80 266.00
2014-12-31 1,609.80 1,009.60 258.90
2014-09-30 1,549.80 833.45 250.80
2014-06-30 1,489.80 657.30 242.70
2014-03-31 1,393.35 412.05 229.90
2013-12-31 1,296.90 166.80 217.10
2013-09-30 1,198.50 163.90 204.75
2013-06-30 1,100.10 161.00 192.40
2013-03-31 1,005.10 261.95 187.75
2012-12-31 910.10 362.90 183.10

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Goodman Group has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Goodman Group used its assets more efficiently than the AU REITs industry average last year based on Return on Assets.
  • Goodman Group has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Goodman Group's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the REITs industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Goodman Group has a total score of 5/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

GMG Health

 How is Goodman Group's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Goodman Group's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Goodman Group is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Goodman Group's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of Goodman Group's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Debt is not covered by short term assets, assets are 0.8x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Goodman Group Company Filings, last reported 3 months ago.

ASX:GMG Past Debt and Equity Data
Date (Data in AUD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-06-30 10,522.50 2,975.00 1,607.10
2019-03-31 10,522.50 2,975.00 1,607.10
2018-12-31 10,007.10 2,958.50 2,062.60
2018-09-30 10,007.10 2,958.50 2,062.60
2018-06-30 9,173.70 3,081.50 2,406.80
2018-03-31 9,173.70 3,081.50 2,406.80
2017-12-31 8,672.30 3,130.60 2,343.80
2017-09-30 8,672.30 3,130.60 2,343.80
2017-06-30 8,622.20 2,878.30 2,095.10
2017-03-31 8,622.20 2,878.30 2,095.10
2016-12-31 8,680.90 2,902.90 1,709.50
2016-09-30 8,680.90 2,902.90 1,709.50
2016-06-30 8,393.30 2,865.20 1,337.00
2016-03-31 8,393.30 2,865.20 1,337.00
2015-12-31 8,216.70 2,848.80 844.70
2015-09-30 8,216.70 2,848.80 844.70
2015-06-30 7,376.10 2,772.30 746.50
2015-03-31 7,376.10 2,772.30 746.50
2014-12-31 6,783.90 2,583.20 480.00
2014-09-30 6,783.90 2,583.20 480.00
2014-06-30 6,230.40 2,235.20 359.90
2014-03-31 6,230.40 2,235.20 359.90
2013-12-31 5,997.80 2,309.60 565.70
2013-09-30 5,997.80 2,309.60 565.70
2013-06-30 5,835.70 2,276.50 645.40
2013-03-31 5,835.70 2,276.50 645.40
2012-12-31 5,649.50 2,153.10 378.10
  • Goodman Group's level of debt (28.3%) compared to net worth is satisfactory (less than 40%).
  • The level of debt compared to net worth has been reduced over the past 5 years (35.9% vs 28.3% today).
  • Debt is well covered by operating cash flow (27.8%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 42.6x coverage).
X
Financial health checks
We assess Goodman Group's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Goodman Group has a total score of 5/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

GMG Dividends

 What is Goodman Group's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
2.12%
Current annual income from Goodman Group dividends. Estimated to be 2.27% next year.
If you bought A$2,000 of Goodman Group shares you are expected to receive A$42 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Goodman Group's pays a lower dividend yield than the bottom 25% of dividend payers in Australia (2.5%).
  • Goodman Group's dividend is below the markets top 25% of dividend payers in Australia (5.6%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
ASX:GMG Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 7 Analyst Estimates (S&P Global) See Below
Australia REITs Industry Average Dividend Yield Market Cap Weighted Average of 40 Stocks 4.4%
Australia Market Average Dividend Yield Market Cap Weighted Average of 407 Stocks 4.2%
Australia Minimum Threshold Dividend Yield 10th Percentile 1.6%
Australia Bottom 25% Dividend Yield 25th Percentile 2.5%
Australia Top 25% Dividend Yield 75th Percentile 5.6%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

ASX:GMG Future Dividends Estimate Data
Date (Data in A$) Dividend per Share (annual) Avg. No. Analysts
2022-06-30 0.34 7.00
2021-06-30 0.32 8.00
2020-06-30 0.30 8.00
2019-10-13
ASX:GMG Past Annualized Dividends Data
Date (Data in A$) Dividend per share (annual) Avg. Yield (%)
2019-08-22 0.300 2.115
2018-12-19 0.300 2.260
2018-08-17 0.285 2.725
2017-12-20 0.275 3.104
2017-08-21 0.264 3.137
2016-12-14 0.254 3.273
2016-08-10 0.242 3.455
2016-02-10 0.238 3.427
2016-02-01 0.230 3.806
2015-08-13 0.222 3.688
2015-08-12 0.222 3.518
2015-02-10 0.215 3.386
2014-08-21 0.207 3.692
2014-02-20 0.207 4.129
2013-06-24 0.194 4.040
2013-02-25 0.187 3.753
2012-08-09 0.180 4.150
2011-08-17 0.175 5.337
2011-02-28 0.170 4.854
2010-08-19 0.190 5.842
2010-02-24 0.150 4.656
2009-08-28 0.000 0.000
2009-02-20 0.965 55.360

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been volatile in the past 10 years (annual drop of over 20%).
  • Dividends per share have fallen over the past 10 years.
Current Payout to shareholders
What portion of Goodman Group's earnings are paid to the shareholders as a dividend.
  • Dividends paid are covered by earnings (1.6x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be thoroughly covered by earnings (3571.4x coverage).
X
Income/ dividend checks
We assess Goodman Group's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.6%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Goodman Group afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Goodman Group has a total score of 2/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

GMG Management

 What is the CEO of Goodman Group's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Greg Goodman
COMPENSATION A$12,800,759
AGE 56
TENURE AS CEO 21.2 years
CEO Bio

Mr. Gregory Leith Goodman, also known as Greg, serves as Chief Executive Officer of Goodman Logistics (HK) Limited. Mr. Goodman has been the Chief Executive Officer of Goodman Limited since July 1995. Mr. Goodman has been Group Chief Executive Officer of Goodman Funds Management Limited, a Responsible Entity of Goodman plus Trust since August 07, 1998. He has been Chief Executive Officer of Goodman Group since January 17, 1995. Mr. Goodman has been Director of Goodman Logistics (HK) Ltd since November 16, 2017. He is responsible for the overall management and operations of the Group. He also Co-Founded Goodman Industrial Trust (alternate name, Macquarie Goodman Industrial Trust) and served as its Chief Executive Officer since July 1995. He serves as the Chief Executive Officer at Macquarie Goodman Management Limited. He served as an Executive Director at Goodman Logistics (HK) Limited until September 20, 2016. Mr. Goodman served as the Chief Executive Officer of Macquarie Goodman Funds Management Limited at Macquarie Goodman Capital Trust since January 17, 1995 and was responsible for its overall management and operations. He has 30 years of experience in the property industry with significant expertise in the industrial property arena as well as mergers, acquisitions and initial public offers. He was a Co-Founder at Goodman, playing an integral role in establishing its specialist global position in the property market through various corporate transactions, including takeovers, mergers and acquisitions. He served as the Deputy Chairman at Ascendas Funds Management (S) Limited. He served as Deputy Chairman of Ascendas Real Estate Investment Trust from April 15, 2005 to March 26, 2008 and served as its Director from February 21, 2002 to March 26, 2008. He has been a Director of Goodman (NZ) Limited, Macquarie Goodman Asia Limited and Goodman Japan Limited since June 2007. Mr. Goodman has been a Director of Goodman Australia Finance Pty Limited since October 11, 2007. He has been an Executive Director of Goodman plus Trust since January 17, 1995. He has been an Executive Director of Goodman Group, Goodman Limited and Macquarie Goodman Management Limited since August 7, 1998. He serves as a Non-Executive Director of GMT Bond Issuer Limited and Goodman (NZ) Limited. He has been a Director of Macquarie Goodman Funds Management Limited since January 17, 1995. He has been a Director of Goodman HK Finance and GAIF Bond Issuer Pty Ltd. since February 11, 2011. He served as Director of Overall Management & Operations at Goodman Group. Mr. Goodman served as a Director of Goodman Industrial Trust since January 17, 1995. He serves as Non-executive Director at Goodman Property Trust since, December 23, 2003.

CEO Compensation
  • Greg's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Greg's remuneration is higher than average for companies of similar size in Australia.
Management Team Tenure

Average tenure and age of the Goodman Group management team in years:

11.2
Average Tenure
50
Average Age
  • The average tenure for the Goodman Group management team is over 5 years, this suggests they are a seasoned and experienced team.
Management Team

Greg Goodman

TITLE
Group CEO & Director
COMPENSATION
A$13M
AGE
56
TENURE
21.2 yrs

Nick Vrondas

TITLE
Group Chief Financial Officer
COMPENSATION
A$6M
AGE
49
TENURE
10.7 yrs

Michael O'Sullivan

TITLE
Chief Risk Officer
COMPENSATION
A$4M
AGE
52

Nick Kurtis

TITLE
Group Head of Equities
COMPENSATION
A$6M
AGE
44
TENURE
11.8 yrs

Anthony Rozic

TITLE
Deputy Group CEO
COMPENSATION
A$5M
AGE
50
TENURE
9.2 yrs

Danny Peeters

TITLE
Executive Director of Corporate & Director
COMPENSATION
A$3M
AGE
51

James Inwood

TITLE
Head of Group Stakeholder Relations
COMPENSATION
A$1M
AGE
47

Carl Bicego

TITLE
Group Head of Legal & Company Secretary
AGE
49
TENURE
2.5 yrs

Michelle Chaperon

TITLE
Head of Group Corporate Communications

Alison Brink

TITLE
Group General Manager of Marketing & Communications
AGE
50
TENURE
13.8 yrs
Board of Directors Tenure

Average tenure and age of the Goodman Group board of directors in years:

6.8
Average Tenure
56
Average Age
  • The tenure for the Goodman Group board of directors is about average.
Board of Directors

Ian Ferrier

TITLE
Independent Chairman
COMPENSATION
A$625K
AGE
78
TENURE
10.9 yrs

Greg Goodman

TITLE
Group CEO & Director
COMPENSATION
A$13M
AGE
56
TENURE
21.2 yrs

Anthony Rozic

TITLE
Deputy Group CEO
COMPENSATION
A$5M
AGE
50
TENURE
6.8 yrs

Danny Peeters

TITLE
Executive Director of Corporate & Director
COMPENSATION
A$3M
AGE
51
TENURE
6.8 yrs

Phil Pryke

TITLE
Independent Director
COMPENSATION
A$379K
AGE
68
TENURE
9 yrs

Rebecca McGrath

TITLE
Independent Director
COMPENSATION
A$295K
AGE
54
TENURE
7.5 yrs

Stephen Johns

TITLE
Independent Director
COMPENSATION
A$305K
AGE
72
TENURE
1.8 yrs

Penny Winn

TITLE
Independent Director
COMPENSATION
A$280K
TENURE
1.7 yrs

Chris Green

TITLE
Independent Director
COMPENSATION
A$46K
TENURE
0.5 yrs
Who owns this company?
Recent Insider Trading
  • Goodman Group individual insiders have sold more shares than they have bought in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (A$) Value (A$)
23. Sep 19 Sell BlackRock, Inc. Company 15. Feb 18 20. Sep 19 -86,721,630 A$15.56 A$-1,343,839,090
23. Sep 19 Buy BlackRock, Inc. Company 14. Feb 18 20. Sep 19 55,433,171 A$15.53 A$851,667,414
24. Sep 19 Sell State Street Global Advisors, Inc. Company 30. Jan 19 20. Sep 19 -31,252,100 A$15.63 A$-484,701,399
24. Sep 19 Buy State Street Global Advisors, Inc. Company 30. Jan 19 20. Sep 19 16,363,219 A$16.07 A$256,315,816
29. Aug 19 Buy Rebecca McGrath Individual 27. Aug 19 27. Aug 19 1,129 A$14.99 A$16,924
29. Aug 19 Buy Ian Ferrier Individual 27. Aug 19 27. Aug 19 2,343 A$14.99 A$35,122
29. Aug 19 Sell Phillip Pryke Individual 27. Aug 19 27. Aug 19 -41,000 A$14.91 A$-611,253
29. Mar 19 Buy David Collins Individual 22. Mar 19 22. Mar 19 5,000 A$13.40 A$66,999
21. Mar 19 Buy Rebecca McGrath Individual 19. Mar 19 19. Mar 19 1,778 A$13.36 A$23,759
21. Mar 19 Buy Ian Ferrier Individual 19. Mar 19 19. Mar 19 3,687 A$13.36 A$49,269
25. Feb 19 Sell Gregory Goodman Individual 21. Feb 19 21. Feb 19 -400,000 A$12.68 A$-5,072,000
22. Feb 19 Sell Daniel Cornelius Peeters Individual 19. Feb 19 22. Feb 19 -650,000 A$12.77 A$-8,298,320
31. Jan 19 Buy State Street Global Advisors, Inc. Company 28. Sep 18 29. Jan 19 9,104,709 A$11.97 A$108,833,387
23. Dec 18 Sell The Vanguard Group, Inc. Company 19. Dec 16 19. Dec 18 -28,600,895 A$10.98 A$-313,438,072
23. Dec 18 Buy The Vanguard Group, Inc. Company 19. Dec 16 20. Dec 18 48,896,617 A$11.15 A$541,968,247
27. Nov 18 Sell Anthony Rozic Individual 21. Nov 18 26. Nov 18 -442,146 A$10.65 A$-4,707,878
05. Nov 18 Sell Anthony Rozic Individual 30. Oct 18 30. Oct 18 -66,482 A$10.52 A$-699,494
X
Management checks
We assess Goodman Group's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Goodman Group has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

GMG News

Simply Wall St News

Independent Chairman Ian Ferrier Just Bought Shares In Goodman Group (ASX:GMG)

Check out our latest analysis for Goodman Group The Last 12 Months Of Insider Transactions At Goodman Group The Group CEO & Director, Gregory Goodman, made the biggest insider sale in the last 12 months. … Over the last year we saw more insider selling of Goodman Group shares, than buying. … ASX:GMG Recent Insider Trading, August 31st 2019 Insider Ownership of Goodman Group Many investors like to check how much of a company is owned by insiders.

Simply Wall St -

How Much Did Goodman Group's (ASX:GMG) CEO Pocket Last Year?

According to our data, Goodman Group has a market capitalization of AU$27b, and pays its CEO total annual compensation worth AU$11m. … When we examined a group of companies with market caps over AU$12b, we found that their median CEO total compensation was AU$5.7m. … As you can see, Greg Goodman is paid more than the median CEO pay at large companies, in the same market.

Simply Wall St -

How Much Of Goodman Group (ASX:GMG) Do Institutions Own?

A look at the shareholders of Goodman Group (ASX:GMG) can tell us which group is most powerful. … See our latest analysis for Goodman Group ASX:GMG Ownership Summary, August 8th 2019 What Does The Institutional Ownership Tell Us About Goodman Group? … Insider Ownership Of Goodman Group While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders.

Simply Wall St -

Would Goodman Group (ASX:GMG) Be Valuable To Income Investors?

Today we'll take a closer look at Goodman Group (ASX:GMG) from a dividend investor's perspective. Owning a strong business and reinvesting the dividends is widely seen as an attractive way of growing your wealth. If you are hoping to live on your dividends, it's important to be more stringent with your investments than the average punter. Regular readers know we like to apply the same approach to each dividend stock, and we hope you'll find our analysis useful. While Goodman Group's 2.0% dividend yield is not the highest, we think its lengthy payment history is quite interesting. Before you buy any stock for its dividend however, you should always remember Warren Buffett's two rules: 1) Don't lose money, and 2) Remember rule #1. … We struggle to make a case for buying Goodman Group for its dividend, given that payments have shrunk over the past ten years. … Conclusion To summarise, shareholders should always check that Goodman Group's dividends are affordable, that its dividend payments are relatively stable, and that it has decent prospects for growing its earnings and dividend.

Simply Wall St -

How Many Goodman Group (ASX:GMG) Shares Have Insiders Sold, In The Last Year?

So we'll take a look at whether insiders have been buying or selling shares in Goodman Group (ASX:GMG). … As Peter Lynch said, 'insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise.' View our latest analysis for Goodman Group The Last 12 Months Of Insider Transactions At Goodman Group The Group CEO & Director, Gregory Goodman, made the biggest insider sale in the last 12 months. … Over the last year we saw more insider selling of Goodman Group shares, than buying.

Simply Wall St -

Investing In Property Through Goodman Group (ASX:GMG)

View our latest analysis for Goodman Group REIT investors should be familiar with the term Fund from Operations (FFO) – a REIT’s main source of cash flow from its day-to-day business activities. … This tells us how long it will take GMG to pay off its debt using its income from its main business activities, and gives us an insight into GMG’s ability to service its borrowings. … Goodman Group can bring about diversification for your portfolio, but before you decide to invest, take a look at the other aspects you must consider before investing: Future Outlook: What are well-informed industry analysts predicting for GMG’s future growth?

Simply Wall St -

If You Had Bought Goodman Group (ASX:GMG) Stock Five Years Ago, You Could Pocket A 160% Gain Today

For example, the Goodman Group (ASX:GMG) share price has soared 160% in the last half decade. … Over half a decade, Goodman Group managed to grow its earnings per share at 53% a year. … ASX:GMG Past and Future Earnings, June 3rd 2019 We consider it positive that insiders have made significant purchases in the last year.

Simply Wall St -

Should You Be Pleased About The CEO Pay At Goodman Group's (ASX:GMG)

In 1998 Greg Goodman was appointed CEO of Goodman Group (ASX:GMG). … First, this article will compare CEO compensation with compensation at other large companies. … How Does Greg Goodman's Compensation Compare With Similar Sized Companies?

Simply Wall St -

Is Goodman Group (ASX:GMG) A Great Dividend Stock?

Dividend paying stocks like Goodman Group (ASX:GMG) tend to be popular with investors, and for good reason - some research shows that a significant amount of all stock market returns come from reinvested dividends. … Yet sometimes, investors buy a stock for its dividend and lose money because the share price falls by more than they earned in dividend payments. … While Goodman Group's 2.4% dividend yield is not the highest, we think its lengthy payment history is quite interesting.

Simply Wall St -

Need To Know: Goodman Group (ASX:GMG) Insiders Have Been Selling Shares

So shareholders might well want to know whether insiders have been buying or selling shares in Goodman Group (ASX:GMG). … Over the last year, we can see that the biggest insider sale was by Group CEO & Director Gregory Goodman for AU$9.5m worth of shares, at about AU$10.59 per share. … Over the last year we saw more insider selling of Goodman Group shares, than buying

Simply Wall St -

GMG Company Info

Description

Goodman Group is an integrated property group with operations throughout Australia, New Zealand, Asia, Continental Europe, the United Kingdom, North America and Brazil. Goodman Group, comprised of the stapled entities Goodman Limited, Goodman Industrial Trust and Goodman Logistics (HK) Limited, is the largest industrial property group listed on the Australian Securities Exchange and one of the largest listed specialist investment managers of industrial property and business space globally. Goodman’s global property expertise, integrated own+develop+manage customer service offering and significant investment management platform ensures it creates innovative property solutions that meet the individual requirements of its customers, while seeking to deliver long-term returns for investors.

Details
Name: Goodman Group
GMG
Exchange: ASX
Founded: 2001
A$25,926,899,686
1,828,413,236
Website: http://www.goodman.com
Address: Goodman Group
60 Castlereagh Street,
Level 17,
Sydney,
New South Wales, 2000,
Australia
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
ASX GMG Stapled Securities Australian Securities Exchange AU AUD 02. Feb 2005
OTCPK GMGS.F Stapled Securities Pink Sheets LLC US USD 02. Feb 2005
DB MY4 Stapled Securities Deutsche Boerse AG DE EUR 02. Feb 2005
CHIA GMG Stapled Securities Chi-X Australia AU AUD 02. Feb 2005
Number of employees
Current staff
Staff numbers
959
Goodman Group employees.
Industry
Industrial REITs
Real Estate
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/10/13 10:33
End of day share price update: 2019/10/11 00:00
Last estimates confirmation: 2019/09/19
Last earnings filing: 2019/08/22
Last earnings reported: 2019/06/30
Last annual earnings reported: 2019/06/30


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.