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To own Region Group, you generally need to believe in the resilience of Australian convenience and supermarket anchored retail centers, despite tenant and geographic concentration risks. The current on market buy back looks incremental rather than transformational and does not materially change the near term focus on income sustainability versus rising funding and capital expenditure demands.
The most relevant recent announcement here is Region Group’s on market buy back of up to A$100,000,000 of securities, partly funded by a A$76,000,000 asset sale. Together with the latest repurchases, this ties the short term catalyst to how effectively Region Group recycles capital and maintains distributions while managing debt and required investment in its centers.
Yet investors should also recognise how rising long term interest rates and competing real assets could pressure Region Group’s valuation and financial flexibility...
Read the full narrative on Region Group (it's free!)
Region Group’s narrative projects A$456.7 million in revenue and A$258.6 million in earnings by 2028.
Uncover how Region Group's forecasts yield a A$2.47 fair value, in line with its current price.
Simply Wall St Community members have two fair value estimates for Region Group, ranging from A$2.47 to A$2.71 per security, underlining how differently individuals assess the same business. When you weigh those views against the concentration risk in a handful of supermarket anchors, it becomes clear why many investors look at several perspectives before forming a view on Region Group’s prospects.
Explore 2 other fair value estimates on Region Group - why the stock might be worth as much as 12% more than the current price!
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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