What is Cromwell Property Group Financial Strength?
Cromwell Property Group has the Financial Strength Rank of 2. It displays poor financial strength and is likely in financial distress. Usually this is caused by too much debt for the company.
Warning Sign:
Cromwell Property Group 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.
Cromwell Property Group's Interest Coverage for the quarter that ended in Dec. 2023 was 1.34.
Cromwell Property Group's debt to revenue ratio for the quarter that ended in Dec. 2023 was 6.01.
As of today, Cromwell Property Group's Altman Z-Score is 0.07.
Competitive Comparison of Cromwell Property Group's Financial Strength
For the REIT - Office subindustry, Cromwell 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.
Cromwell Property Group's Financial Strength Distribution in the REITs Industry
For the REITs industry and Real Estate sector, Cromwell Property Group's Financial Strength distribution charts can be found below:
* The bar in red indicates where Cromwell Property Group's Financial Strength falls into.
Cromwell 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:
Cromwell Property Group's Interest Expense for the
months ended in Dec. 2023 was A$-37.7 Mil. Its Operating Income for the
months ended in Dec. 2023 was A$50.6 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2023 was A$1,290.5 Mil.
Cromwell Property Group's Interest Coverage for the quarter that ended in Dec. 2023 is
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. Cromwell Property Group interest coverage is 1.43, which is low.
2. Debt to revenue ratio. The lower, the better.
Cromwell Property Group's Debt to Revenue Ratio for the quarter that ended in Dec. 2023 is
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.
Cromwell Property Group has a Z-score of 0.07, indicating it is in Distress Zones. This implies bankrupcy possibility in the next two years.
Warning Sign:
Altman Z-score of 0.07 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.
Cromwell Property Group (ASX:CMW) Business Description
Traded in Other Exchanges
Address
200 Mary Street, Level 19, Brisbane, QLD, AUS, 4000
Cromwell Property Group is an internally managed Australian real estate investment trust. It owns an Australian portfolio of (mostly office) properties and also develops and manages properties on behalf of third-party investors. The group is exploring opportunities to sell some assets, and to spin out its office portfolio into a separate REIT, leaving the Cromwell business to focus more on funds management. The timetable is uncertain given high interest rates are a headwind for property sales and sentiment toward office stocks has been depressed since the rise of hybrid working.
Cromwell Property Group (ASX:CMW) Headlines
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