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Recommendation: Buy |
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Note: Marker indicates price at previous close |
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INVESTMENT RATING (Last update: 27/05/2008)
PPT has an excellent long-term record of earnings and dividend growth. Although the company performs better during bull markets it still managed to increase its dividend throughout the 2000-03 downturn. Favourable demographics and government policy enable the wealth management industry to grow more quickly than the economy. PPT tracks the local sharemarket because rising markets lead to higher management fee income and greater inflows to managed funds. PPT´s competitive advantage is its strong brand and reputation with planners and the investing public, although this depends on sustained investment performance. Other risks include loss of the best fund management staff, competitive pressures on fees, unit pricing, regulatory and compliance risks, and litigation risks.
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Previous Close |
52 week High |
52 Week Low |
|
$43.750 |
$80.450 |
$37.250 |
| Sector |
Diversified Financials |
| Market Cap |
$1,806 Million |
|
|
Total Shareholder Return (avg annual rate) |
|
| 1yr |
3yr |
5yr |
10yr |
-41.1% |
-7.1% |
12.3% |
16.7% |
|
|
Intrinsic Valuation |
|
$64.50 |
| Moat Rating |
Narrow |
| Business Risk |
Medium |
| Pricing Risk |
Medium |
| Company Beta |
1.17 |
| Sector Beta |
1.41 |
|
|
Year |
6/06A |
6/07A |
6/08E |
6/09E |
|
| NPAT ($m) |
114.1 |
145.3 |
140.0 |
170.0 |
| EPS (c) |
279.7 |
352.9 |
331.3 |
402.4 |
| % Change |
13.7 |
26.2 |
-6.1 |
21.5 |
| DPS (c) |
426.0 |
360.0 |
375.0 |
390.0 |
| Franking (%) |
100.0 |
100.0 |
100.0 |
100.0 |
| Yield (%) |
6.4 |
4.8 |
8.7 |
9.1 |
| PER (x) |
15.4 |
12.2 |
13.0 |
10.7 |
Source: Aspect Huntley analyst estimates |
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Index Participation |
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Price Chart |
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Index Name |
Weight |
|
S&P/ASX 100 |
0.18% |
All Ordinaries |
0.14% |
S&P/ASX MIDCAP 50 |
1.33% |
S&P/ASX MIDCAP 50 INDUSTRIALS |
1.78% |
S&P/ASX 100 INDUSTRIAL |
0.26% |
S&P/ASX 200 INDUSTRIAL |
0.24% |
S&P/ASX 300 INDUSTRIAL |
0.24% |
S&P/ASX 200 |
0.17% |
S&P/ASX 300 |
0.16% |
S&P/ASX 200 Diversified Financials (Industry Group) |
6.01% |
S&P/ASX 300 Diversified Financials (Industry Group) |
5.99% |
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Business Description
Perpetual Ltd (PPT) offers a range of managed investment fund, financial advice, wealth management, estate, private clients, trustee and superannuation management services for individuals, families, charities and institutional investors. The group also provides a range of corporate trust services to fund managers, superannuation trustees and capital market participants. There are five business units: Australian Equities, Global Equities, Income and Multi Sector, Private Wealth and Operations.
Aspect Huntley – 29072008
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