HomeCo Daily Needs REIT (ASX:HDN) Net-Net Working Capital : A$-0.82 (As of Dec. 2023)

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What is HomeCo Daily Needs REIT Net-Net Working Capital?

In calculating the Net-Net Working Capital (NNWC), Benjamin Graham assumed that a company's accounts receivable is only worth 75% its value, its inventory is only worth 50% of its value, but its liabilities have to be paid in full. In addition, Graham believed that preferred stock belongs on the liability side of the balance sheet, not as part of capital and surplus. This is a conservative way of estimating the company's value.

HomeCo Daily Needs REIT's Net-Net Working Capital for the quarter that ended in Dec. 2023 was A$-0.82.

The industry rank for HomeCo Daily Needs REIT's Net-Net Working Capital or its related term are showing as below:

ASX:HDN's Price-to-Net-Net-Working-Capital is not ranked ^*
in the REITs industry.
Industry Median: 15.02
* Ranked among companies with meaningful Price-to-Net-Net-Working-Capital only.

HomeCo Daily Needs REIT Net-Net Working Capital Historical Data

The historical data trend for HomeCo Daily Needs REIT's Net-Net Working Capital can be seen below:

* 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.

* Premium members only.

HomeCo Daily Needs REIT Net-Net Working Capital Chart

HomeCo Daily Needs REIT Annual Data

Trend

Jun22

Jun23

Net-Net Working Capital

-0.82

-0.83

HomeCo Daily Needs REIT Semi-Annual Data
	Dec21	Jun22	Dec22	Jun23	Dec23
Net-Net Working Capital	-0.94	-0.82	-0.77	-0.83	-0.82

Competitive Comparison of HomeCo Daily Needs REIT's Net-Net Working Capital

For the REIT - Retail subindustry, HomeCo Daily Needs REIT's Price-to-Net-Net-Working-Capital, along with its competitors' market caps and Price-to-Net-Net-Working-Capital 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.

HomeCo Daily Needs REIT's Price-to-Net-Net-Working-Capital Distribution in the REITs Industry

For the REITs industry and Real Estate sector, HomeCo Daily Needs REIT's Price-to-Net-Net-Working-Capital distribution charts can be found below:

* The bar in red indicates where HomeCo Daily Needs REIT's Price-to-Net-Net-Working-Capital falls into.

HomeCo Daily Needs REIT Net-Net Working Capital Calculation

HomeCo Daily Needs REIT's Net-Net Working Capital (NNWC) per share for the fiscal year that ended in Jun. 2023 is calculated as

	Net-Net Working Capital		(A: Jun. 2023 )
=	(Cash, Cash Equivalents, Marketable Securities	+	0.75 * Accounts Receivable	+	0.5 * Total Inventories	-	Total Liabilities
-	Preferred Stock	-	Minority Interest)	/	Shares Outstanding (EOP)
=	(16.2	+	0.75 * 3.4	+	0.5 * 0	-	1749.3
-	0	-	0)	/	2074.37
=	-0.83

HomeCo Daily Needs REIT's Net-Net Working Capital (NNWC) per share for the quarter that ended in Dec. 2023 is calculated as

	Net-Net Working Capital		(Q: Dec. 2023 )
=	(Cash, Cash Equivalents, Marketable Securities	+	0.75 * Accounts Receivable	+	0.5 * Total Inventories	-	Total Liabilities
-	Preferred Stock	-	Minority Interest)	/	Shares Outstanding (EOP)
=	(14.6	+	0.75 * 6.1	+	0.5 * 0	-	1731.1
-	0	-	0)	/	2077.76
=	-0.82

In addition, Graham believed that preferred stock belongs on the liability side of the balance sheet, not as part of capital and surplus. In "Security Analysis", preferred stock is dubbed "an imperfect creditorship position" that is best placed on the balance sheet alongside funded debt.

This is a conservative way of estimating the company's value.

HomeCo Daily Needs REIT (ASX:HDN) Net-Net Working Capital Explanation

One research study, covering the years 1970 through 1983 showed that portfolios picked at the beginning of each year, and held for one year, returned 29.4 percent, on average, over the 13-year period, compared to 11.5 percent for the S&P 500 Index. Other studies of Graham's strategy produced similar results.

Benjamin Graham looked for companies whose market values were less than two-thirds of their net-net value. They are collected under our Net-Net screener.

HomeCo Daily Needs REIT Net-Net Working Capital Related Terms

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HomeCo Daily Needs REIT (ASX:HDN) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Real Estate » REITs » HomeCo Daily Needs REIT (ASX:HDN) » Definitions » Net-Net Working Capital

Comparable Companies

Traded in Other Exchanges

N/A

Address

1 Macquarie Place, Level 7, Gateway, Sydney, NSW, AUS, 2000

Website

https://www.home-co.com.au

HomeCo Daily Needs REIT, or HomeCo, is an externally managed property trust run by HMC Capital which also runs HealthCo Healthcare and Wellness REIT and unlisted funds. HomeCo targets 50% of assets in neighbourhood malls, 30% large-format, and 20% in health and services. After merging with Aventus Retail REIT in 2022, HomeCo is overweight large-format (just under half its portfolio) and underweight neighbourhood (one third of the portfolio), with health and services slightly below target. The plan is to move back to the target via redevelopment and tenant remixing, and potentially acquisitions. HomeCo seeks tenant leases before commencing developments, so we expect development opportunities will arise gradually, as population growth adds demand in HomeCo's catchments.

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