The stock had a significant correction since the peak reached in February 20. It is mainly due to a severe correction for their net result (expected to decrease from $49 m in FY 19 to $20-21 in FY 20) while they had steady earnings between FY 12 and FY 19.
CWP looks cheap now with a P/B of 1.13, providing that earnings reached the bottom in FY 6/20.
It seems to be the case as :
- no fundamental deterioration for the company in FY 6/20 (earning decrease only due to settlement postponement, while July settlements are now significant),
- good exposure of the company both geographically (56 % of their portfolio in WA where there is a housing recovery now) and in terms of products (70 % of their portfolio in land, 9 % in townhouse vs only 1 % in commercial).
The company has also a decent yield with a full year dividend expected to be around 25 c (if payout around 100 % like for H1) which gives a dividend yield of 4.7 %.
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