September 2019


Stock I'm watching this month:-

MGR - Mirvac Group

Sector: Real Estate
Market Cap:  12.16 Billion
Price/Earnings: 11.2
Price/Book: 1.23
Return On Equity: 11%
Return On Assets: 3.28%
Debt/Equity: 35.96%

Reasons to watch: Mirvac Group is an Australian REIT. They own and manage a diverse portfolio of assets across the office, retail, industrial and residential sectors. Investment in A-REIT is a good way to be exposed to the property sector without actually buying a property (which costs a lot of upfront cash payment and a long term mortgage). Mirvac is one of the higher quality A-REIT and is well diversified. The quick look valuation measures are average to good but on a discounted cash flow basis they are on the expensive side at the moment. 

Risk: The property sector in Australia has been in a downtrend since mid 2017 and is bottoming out but might still take time to recover as excess supply is being absorbed. Retail is also facing headwinds as people transition to online shopping.

Sentiment: Hold
Disclosure: Held
Current Price: $3.09
My Strike Price: $1.41 (Discounted Cash Flow Estimate: $2.82)




Disclaimer: This does not constitute any financial advice or stock recommendations. As always, Do Your Own Research.

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