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Peter Warren Automotive Holdings Limited
Consumer Cyclical · Auto & Truck Dealerships
Updated 10 hours ago
$0.83
Peter Warren Automotive Holdings Limited engages in the sale of new and used motor vehicles in Australia. The company offers automotive products and services, including vehicle maintenance and repair services, parts and accessories, extended service contracts, protection and other aftermarket products.
View full descriptionThe Warsi Rating combines two proven approaches: value investing principles and dividend strategy. A stock must score 70+ on both to be rated Solid or higher.
MARKET CAP
$142.97M
P/E RATIO
11.8
DIV. YIELD
4.3%
FRANKING
100%
10-year ROE trends, dividend history, price ceiling calculations, and every red flag explained.
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Persistently negative free cash flow can force reliance on borrowing or equity issuance to maintain payouts.
Positive cash flow means dividends are funded by actual money, not accounting profits. As Buffett says, "Cash is fact, profit is opinion." Your income is backed by real cash generation.
Short-term assets vs. short-term debts
Current ratio of 1.00 is below ideal 1.5. Adequate but limited cushion for unexpected expenses.
Current Snapshot
Current Ratio
1.00x
Warning Floor
1.00x
Target
1.50x
Why It Matters
Liquidity supports operational stability. Companies with weak liquidity can face pressure even when long-term fundamentals are sound.
Formula
Current Assets / Current LiabilitiesMethod
Compare the current ratio to the warning floor and target level used in the framework.
Worked Example
This company's current ratio is 1.00x — it has $1.00 in short-term assets for every $1 of short-term liabilities. The target is 1.5x, with a warning floor at 1.0x.
How to Interpret
Ratios above the target suggest healthier short-term resilience; ratios below 1.0x can indicate immediate funding risk.
Limited liquidity increases the risk of dividend cuts if cash flow becomes stressed during a downturn. There's less buffer to absorb surprises.
Sources
Profit generated per $1 of shareholder investment
8.5% average is below the 15% threshold. This suggests the business may lack a durable competitive advantage. Note: COVID-19 Pandemic year(s) excluded — ROE recovered to 137% of target.
Current Snapshot
10Y Avg
8.5%
Threshold
15.0%
Worst Year
1.2%
Why It Matters
ROE shows how effectively management turns shareholder capital into profit. High and stable ROE can signal pricing power, cost discipline, or both.
Formula
Net Income / Shareholders' Equity x 100Method
Use the 10-year average ROE and review the weakest year to check whether returns stayed resilient across cycles.
Worked Example
This company's 10-year average ROE is 8.5%, meaning each $1 of shareholder equity generates $0.09 in annual profit. The threshold is 15%, and the worst single year was 1.2%.
How to Interpret
Higher and steadier ROE generally supports stronger long-term compounding. Large drawdowns in weak years can point to fragility.
Lower ROE means your investment compounds more slowly. At 8.5%, this business needs more capital to generate the same returns as competitors. Consider whether other strengths (yield, stability) compensate for weaker profitability.
Sources
How much the company owes vs. what it owns
Debt-to-equity of 1.54 is 1.0x over Buffett's limit. High leverage increases risk during downturns.
Current Snapshot
Current D/E
1.54x
Industry Limit
1.50x
Headroom
-0.04x
Why It Matters
Debt-to-equity shows balance-sheet risk. Lower leverage usually means more flexibility when earnings soften.
Formula
Total Debt / Shareholders' EquityMethod
Compare current D/E against the industry threshold used in the scoring framework, then assess remaining headroom.
Worked Example
This company's D/E is 1.54, meaning it carries 154 cents of debt for every $1 of equity. The consumer cyclical & retail limit is 1.50, leaving it 0.04 over the limit.
How to Interpret
Lower values generally imply lower refinancing pressure and lower dividend stress in downturns.
High debt means interest payments come before dividends. During recessions, heavily indebted companies often cut dividends first to preserve cash. This adds risk to your income stream.
Sources
Profit after production costs, before overhead
Worst year margin (16.1%) fell below 35% minimum. Volatility suggests weak pricing power or one-time issues.
Current Snapshot
10Y Avg
17.4%
Threshold
40%
Worst Year
16.1%
Why It Matters
Gross margin indicates how much room a business has to absorb costs and still generate profit.
Formula
(Revenue - Cost of Goods Sold) / Revenue x 100Method
Assess both the long-term average and the weakest year. The framework checks for both level and consistency.
Worked Example
This company's 6-year average gross margin is 17.4% — it keeps 17 cents of every revenue dollar after production costs. The threshold is 40%, and the weakest year was 16.1%.
How to Interpret
Sustained high margins usually support durability. Sharp margin swings can signal weaker control or cyclical pressure.
Thin margins leave no cushion for unexpected costs. A small increase in expenses or drop in prices could squeeze profits and threaten the dividend.
Sources
Price versus estimated intrinsic value and required return thresholds.
What percentage of the stock price comes back as earnings each year
Strong value. 8.5% earnings yield exceeds the threshold, and multiple valuation checks confirm it's attractively priced.
Current Snapshot
Current Yield
8.5%
Required Yield
7.5%
Spread
+1.0pp
Why It Matters
Earnings yield reframes valuation as return on price paid. It helps compare equity earnings power against lower-risk alternatives.
Formula
(Earnings per Share / Stock Price) x 100Method
Calculate current earnings yield, then compare it to the required yield for the stock's industry setting.
Worked Example
With EPS of $0.07 and a share price of $0.83, earnings yield is 8.5%. The required yield for this industry is 7.5% (based on 4.5% government bond rate plus a risk premium).
How to Interpret
A yield above the required level suggests better valuation support; below it indicates thinner compensation for equity risk.
Multiple ways of measuring value agree: you're getting a fair deal. The stock offers solid returns compared to what you'd earn from safe bonds.
Sources
How current price compares with estimated intrinsic value
How much earnings are consumed by capital expenditure
Moderate capital intensity. 34% of earnings goes to CapEx — within the 50% threshold for this sector.
Current Snapshot
10Y CapEx Intensity
34%
Threshold
50%
Buffer
+16%
Why It Matters
CapEx intensity estimates how much of earnings must be reinvested just to sustain operations.
Formula
Cumulative CapEx (10yr) / Cumulative Net Income (10yr) x 100Method
Aggregate 10-year CapEx and net income, then compare the ratio with the sector threshold in the framework.
Worked Example
Over 10 years, 34% of this company's cumulative earnings were consumed by capital expenditure. The consumer cyclical & retail threshold is 50%, leaving a buffer of +16%.
How to Interpret
Lower ratios usually indicate better cash conversion. Higher ratios can reduce room for dividends and buybacks.
Capital needs are manageable for this sector. The business retains enough earnings to fund both maintenance and shareholder returns.
Sources
Years of earnings needed to retire all long-term debt
Percentage of revenue that becomes profit after all expenses
How efficiently the company turns money into profit
Consistency of profits over time
Is the business growing — and is debt being managed responsibly?
Revenue and debt both growing — check whether debt is funding productive growth or covering shortfalls. Sustainable dividends require revenue to outpace debt over time.
Current Snapshot
Revenue Change
+67.2%
Debt Change
+147.4%
Trend State
Mixed
Why It Matters
Revenue trend shows whether the business is expanding or contracting. Debt trend adds context on whether growth is being funded conservatively.
Formula
Revenue Change (%) = (Latest Revenue - Earliest Revenue) / |Earliest Revenue| x 100; Debt Change (%) = (Latest Debt - Earliest Debt) / |Earliest Debt| x 100Method
Map annual revenue history and, where relevant, annual debt history. For financial companies, debt is excluded because deposits and reserves distort this signal.
Worked Example
Revenue changed by +67.2% across the displayed period, while debt changed by +147.4%.
How to Interpret
Rising revenue with stable or falling debt is typically stronger than rising revenue funded by rapidly rising leverage.
Revenue and debt both growing — check whether debt is funding productive growth or covering shortfalls. Sustainable dividends require revenue to outpace debt over time.
Sources
Insufficient dividend history. Barsi methodology requires 6 years of data to calculate average yield.
Current Snapshot
6Y Avg Yield
N/A
6% Requirement
6.0%
Gross Yield
N/A
Why It Matters
Yield translates dividend income into a percentage of the price paid, which is central to income-first screening.
Formula
Annual Dividends per Share / Stock Price x 100Method
Use the 6-year average annual dividend for consistency and compare the result with the 6% framework requirement.
Worked Example
If annual dividends are $0.60 and the share price is $10, dividend yield is 6.0%.
How to Interpret
Higher sustainable yield improves upfront income, but unusually high yields may reflect elevated risk or weak coverage.
Without 6 years of dividend history, we can't assess whether the yield is sustainable or a one-time spike. More data is needed to evaluate income potential.
Sources
Track record of consistent dividend payments
Insufficient dividend history for estimation
| Ex-Date | Pay Date | Gross | Franking | Net | Credit |
|---|---|---|---|---|---|
| 25 Feb 2026Interim | 26 Mar 2026 | $0.04 | 100% | $0.03 | $0.01 |
| 3 Sept 2025Final | 2 Oct 2025 | $0.06 | 100% | $0.04 | $0.02 |
| 26 Feb 2025Interim | 2 Apr 2025 | $0.02 | 100% | $0.02 | $0.01 |
| 3 Sept 2024Final | 8 Oct 2024 | $0.09 | 100% | $0.06 | $0.03 |
| 27 Feb 2024Interim | 2 Apr 2024 | $0.12 | 100% | $0.09 | $0.04 |
| 4 Sept 2023Final | 9 Oct 2023 | $0.16 | 100% | $0.11 | $0.05 |
| 27 Feb 2023Interim | 3 Apr 2023 | $0.16 | 100% | $0.11 | $0.05 |
| 8 Sept 2022Final | 13 Oct 2022 | $0.19 | 100% | $0.13 | $0.06 |
| 25 Feb 2022Interim | 1 Apr 2022 | $0.13 | 100% | $0.09 | $0.04 |
Only 5 years of dividend history available. Barsi methodology requires 6+ years to evaluate consistency.
Current Snapshot
History
5yr
Predictability
N/A
Payout Health
Elevated
Why It Matters
Payment consistency is a direct test of dividend reliability. Large cuts or skips often appear before confidence recovers.
Formula
Consecutive Years = count of years with dividend payments and no disqualifying skip/cut eventsMethod
Require at least 6 years of history, then check for skipped years and large cuts, allowing approved systemic-event exceptions.
Worked Example
This company has 5 years of dividend history (2022–2026). No suspensions detected — 5 consecutive years of payments. Predictability: N/A. Payout health: Elevated. The minimum requirement is 6 years.
How to Interpret
Longer uninterrupted records generally signal stronger income reliability than high yield alone.
Without 6 years of history, we can't verify this company maintained dividends through economic cycles. Longer track records provide confidence your income will continue.
Sources
Industry category of the business
Consumer Cyclical is not a BESST sector. Non-BESST stocks receive a lower base score but can still qualify with exceptional dividend metrics.
Current Snapshot
Industry
Auto & Truck Dealerships
BESST Match
No
Score Impact
No bonus
Why It Matters
Sector classification helps contextualise risk and demand durability, which can materially affect dividend stability.
Formula
BESST Match = Sector in {Banks, Energy, Sanitation, Insurance, Telecom}Method
Match company sector or industry against BESST categories. A match adds scoring support but does not replace core dividend checks.
Worked Example
This company operates in Auto & Truck Dealerships (Consumer Cyclical sector). It does not match a BESST sector, so it receives the standard base score. Non-BESST stocks can still qualify with strong dividend metrics.
How to Interpret
BESST alignment is a positive context signal. Non-BESST stocks can still qualify with strong yield and dividend consistency.
Non-essential businesses face demand drops during recessions — discretionary spending is first to be cut. This increases cyclical risk for dividends, but companies with decades of consistent payments can still demonstrate durability.
Sources
How much of a company's earnings are paid out as dividends
The company is paying out more in dividends than it earns (190%). This is unsustainable long-term and often signals a dividend cut ahead. An inflated payout also distorts the price ceiling calculation used in our analysis.
Current Snapshot
Latest Ratio
189.7%
Healthy Range
30%-75%
Zone
Unsustainable
Why It Matters
Payout ratio links dividends to earnings capacity and helps evaluate whether current distributions are likely to remain supportable.
Formula
Payout Ratio (%) = (Annual Dividend per Share / Earnings per Share) x 100Method
Calculate year-by-year payout ratios where EPS is positive, classify each year by sustainability zone, and compare with the current TTM ratio.
Worked Example
$0.06 dividend / $0.07 EPS equals 79.7% payout ratio.
How to Interpret
Ratios in the middle range are usually more sustainable than very high ratios. Values above 100% indicate dividends exceeded earnings in that period.
The company is paying out more in dividends than it earns (190%). This is unsustainable long-term and often signals a dividend cut ahead. An inflated payout also distorts the price ceiling calculation used in our analysis.
Sources
Exceptional discount: 74% BELOW the fair-value threshold (includes 30% margin of safety).
Current Snapshot
Current Margin
81.9%
Industry Threshold
30%
Status
74% Undervalued
Why It Matters
Margin of safety provides a valuation buffer against modelling uncertainty and adverse business outcomes.
Formula
(Estimated Intrinsic Value per Share - Current Price) / Estimated Intrinsic Value per Share x 100Method
Estimate intrinsic value using a two-stage DCF (10-year projection plus terminal value), then compare with current price.
Worked Example
For this stock now: intrinsic value is $4.59 per share, current price is $0.83, and margin of safety is 81.9%.
How to Interpret
Positive margin indicates price below modelled value; negative margin indicates price above modelled value. Compare against the industry's required buffer.
The market price sits far below your required entry threshold, providing a substantial valuation buffer if assumptions prove optimistic.
Sources
Could pay off long-term debt in 3.6 years — within the 4-year threshold but approaching the limit.
Current Snapshot
Payoff Years
3.6yr
Target Years
4yr
Gap
+0.4yr
Why It Matters
Debt payoff years converts leverage into an intuitive time measure, making debt burden easier to compare across stocks.
Formula
Long-Term Debt / Average Net Income (3yr)Method
Use current long-term debt and the 3-year average net income to smooth one-off profit noise.
Worked Example
With $66M in long-term debt and $18M in average annual earnings (3yr), it would take 3.6 years of earnings to pay off all debt. The consumer cyclical & retail threshold is 4 years.
How to Interpret
Lower values generally indicate stronger debt capacity. Very high values can constrain dividend resilience.
Debt is serviceable from earnings, but with limited headroom. An earnings dip could push this metric above the threshold — monitor debt levels and profitability trends.
Sources
0.3% net margin is below the 5% threshold. May reflect this sector's structural characteristics.
Current Snapshot
Current Margin
0.3%
Threshold
5.0%
Relative Position
-4.7%
Why It Matters
Net income margin shows how much profit the business keeps from each dollar of revenue after all costs.
Formula
Net Income / Total Revenue x 100Method
Compare current margin with the industry-specific threshold to avoid cross-sector distortions.
Worked Example
This company's net income margin is 0.3% — it keeps 0 cents of every revenue dollar as profit after all expenses. The consumer cyclical & retail threshold is 5%, putting it 4.7% below the requirement.
How to Interpret
Margins that are both strong and stable can indicate competitive strength; persistent weakness may limit reinvestment and payout capacity.
Lower margins in this sector are common, but they leave less cushion if costs rise or revenue drops. Monitor whether margins are stable over time — consistency matters more than the absolute level.
Sources
5.5% ROIC is below the 11.0% threshold. Company may not be earning enough to justify the money invested in it.
Current Snapshot
5Y Avg
5.5%
Threshold
11.0%
WACC Delta
-3.5pp
Why It Matters
ROIC measures capital efficiency. Businesses that repeatedly earn above their funding cost can compound value more effectively.
Formula
After-Tax Operating Profit / Invested Capital x 100Method
Use the 5-year average ROIC and compare it with industry WACC plus the required spread in this framework.
Worked Example
This company's 5-year average ROIC is 5.5%, with a cost of capital (WACC) of 9.0%. The -3.5pp gap below WACC suggests it may be destroying value on each dollar invested.
How to Interpret
A healthy spread above WACC suggests value creation; a narrow or negative spread points to weaker capital efficiency.
Returns below the cost of borrowing mean the business destroys value over time. This can erode the foundation that supports dividends — proceed with caution.
Sources
Only 5/6 positive EPS years. Buffett requires predictable earnings he can forecast 5-10 years out.
Current Snapshot
Positive Years
5/6
Allowed Losses
0 (limited)
EPS CAGR
-38.8%
Why It Matters
Consistency in EPS helps distinguish resilient earnings power from one-off performance spikes.
Formula
Positive EPS Years / Available EPS YearsMethod
For 8+ years of data, apply industry-specific loss tolerance. For limited data, every available year must be positive.
Worked Example
This company reported positive earnings in 5 of the last 6 years. With only 6 years of data, every year must be positive. EPS growth rate (CAGR) is -38.8%.
How to Interpret
Fewer loss years and stronger EPS continuity generally improve confidence in future dividend and valuation assumptions.
Volatile earnings create dividend uncertainty. When profits disappear, dividends often follow. Forecasting your future income becomes difficult.
Sources