The All Ordinaries Index (ASX: XAO) has dropped 2.2% in 2026, but this ASX All Ords stock has had a much harder time of it.
The struggling company in question is Peter Warren Automotive Holdings Limited (ASX: PWR).
Shares in the automotive dealership group were down 2.2% on Wednesday, trading for 88 cents apiece.
This puts the ASX All Ords stock down a sharp 51.9% year to date. Losses that will only be modestly eased by Peter Warren's fully franked 8.0% trailing dividend yield.
We'll look at why Ben Rundle, a partner at Hayborough Investment Partners, believes Peter Warren shares are now selling for a steep bargain below.
But first…
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What's been pressuring the ASX All Ords stock?
We need look no further than Peter Warren's 1 June trading update to see what's put the share price under heavy selling pressure.
Citing significant deterioration in trading conditions over recent weeks, the company substantially downgraded its FY 2026 underlying profit before tax guidance to $12 million to $15 million.
Shares in the ASX All Ords stock closed down 25.4% on the day.
"Trading conditions in recent weeks have been unprecedented," Peter Warren CEO Andrew Doyle said.
"Customer preferences are changing rapidly, accelerated by increased fuel prices and cost of living pressures," he added, pointing to the three RBA interest rate hikes this year and the ongoing conflict in the Middle East.
Looking ahead, Doyle added:
We have been increasing the pace of change in the company, continuing to add new brands to our portfolio. Our overall order intake is up significantly, with exceptional growth in our recently added Chinese brands. We are well placed as new and attractive models continue to come to market.
We are focussed on strengthening revenue and cost efficiency within areas of the business that we can control.
Why this fundie is snapping up Peter Warren shares
When asked which stock his fund holds that is most undervalued by the market, Hayborough Investment Partners' Rundle pointed to Peter Warren (courtesy of The Australian Financial Review).
"The recent fall in the share price of Peter Warren Automotive has allowed us to take a position in the company at what we think is an incredibly cheap valuation," he said.
"Car sales in Australia have declined rapidly, which has caused their earnings to fall. The current share price is trading well below the value of just the land they own," Rundle added.
Summarising his bullish longer-term outlook on the beaten-down ASX All Ords stock, Rundle concluded:
It essentially means we are getting the business of selling cars for free. The company has been operating for over 65 years, has been through many cycles and has three of Australia's most experienced car retailing families as shareholders.
The bottom of the cycle may not be in yet, but for a patient investor, today's share price looks attractive.
