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Peach Property Group (LTS:0QOJ) Financial Strength : 3 (As of Dec. 2023)


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What is Peach Property Group Financial Strength?

Peach Property Group has the Financial Strength Rank of 3. It displays poor financial strength and is likely in financial distress. Usually this is caused by too much debt for the company.

Warning Sign:

Peach Property Group Ltd displays poor financial strength. Usually, this is caused by too much debt for the company.

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors:

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.
2. Debt to revenue ratio. The lower, the better.
3. Altman Z-Score.

Peach Property Group's Interest Coverage for the quarter that ended in Dec. 2023 was 1.50. Peach Property Group's debt to revenue ratio for the quarter that ended in Dec. 2023 was 11.87. As of today, Peach Property Group's Altman Z-Score is 0.01.


Competitive Comparison of Peach Property Group's Financial Strength

For the Real Estate Services subindustry, Peach Property Group's Financial Strength, along with its competitors' market caps and Financial Strength data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Peach Property Group's Financial Strength Distribution in the Real Estate Industry

For the Real Estate industry and Real Estate sector, Peach Property Group's Financial Strength distribution charts can be found below:

* The bar in red indicates where Peach Property Group's Financial Strength falls into.



Peach Property Group Financial Strength Calculation

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

Peach Property Group's Interest Expense for the months ended in Dec. 2023 was CHF-20.7 Mil. Its Operating Income for the months ended in Dec. 2023 was CHF31.0 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2023 was CHF1,307.0 Mil.

Peach Property Group's Interest Coverage for the quarter that ended in Dec. 2023 is

Interest Coverage=-1*Operating Income (Q: Dec. 2023 )/Interest Expense (Q: Dec. 2023 )
=-1*31.017/-20.716
=1.50

The higher the ratio, the stronger the company's financial strength is.

Warning Sign:

Ben Graham prefers companies' interest coverage to be at least 5. Peach Property Group Ltd interest coverage is 1.47, which is low.

2. Debt to revenue ratio. The lower, the better.

Peach Property Group's Debt to Revenue Ratio for the quarter that ended in Dec. 2023 is

Debt to Revenue Ratio=Total Debt (Q: Dec. 2023 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(69.193 + 1306.958) / 115.928
=11.87

3. Altman Z-Score.

Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.

The zones of discrimination were as such:

When Z-Score is less than 1.81, it is in Distress Zones.
When Z-Score is greater than 2.99, it is in Safe Zones.
When Z-Score is between 1.81 and 2.99, it is in Grey Zones.

Peach Property Group has a Z-score of 0.01, indicating it is in Distress Zones. This implies bankrupcy possibility in the next two years.

Warning Sign:

Altman Z-score of 0.01 is in distress zone. This implies bankruptcy possibility in the next two years.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Peach Property Group  (LTS:0QOJ) Financial Strength Explanation

The maximum rank is 10. Companies with rank 7 or higher will be unlikely to fall into distressed situations. Companies with rank of 3 or less are likely in financial distress.

Peach Property Group has the Financial Strength Rank of 3. It displays poor financial strength and is likely in financial distress. Usually this is caused by too much debt for the company.


Peach Property Group Financial Strength Related Terms

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Peach Property Group (LTS:0QOJ) Business Description

Traded in Other Exchanges
Address
Neptunstrasse 96, Zurich, CHE, 8032
Peach Property Group Ltd is a real estate investor with an investment focus in the residential economic area in Germany. Its main activities include site and portfolio evaluation, structuring and financing of purchases, active asset management letting, and further selling. It has one operating segment which comprises investment in and selling of rela estate. The company operates in Germany and Switzerland out of which the majority of the revenue is generated from Germany.

Peach Property Group (LTS:0QOJ) Headlines

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