Reece Limited (ASX:REH) Shares Could Be 41% Below Their Intrinsic Value Estimate
Apr 12
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Australian (ASX) Trade Distributors Industry Analysis
UpdatedApr 14, 2025
DataAggregated Company Financials
Companies12
- 7D5.6%
- 3M-11.7%
- 1Y-13.8%
- YTD-13.5%
In the last week, the Trade Distributors industry is up 5.6%, with Reece up 10%. During this same period, the Emeco Holdings underperformed, falling 6.8%. In the past year, the industry is down 14%. As for the next few years, earnings are expected to grow by 11% per annum.
Industry Valuation and Performance
Has the Australian Trade Distributors Industry valuation changed over the past few years?
| Date | Market Cap | Revenue | Earnings | PE | Absolute PE | PS |
|---|---|---|---|---|---|---|
| Mon, 14 Apr 2025 | AU$32.2b | AU$23.1b | AU$1.4b | 18.8x | 23x | 1.4x |
| Wed, 12 Mar 2025 | AU$33.1b | AU$23.1b | AU$1.4b | 20.7x | 23.6x | 1.4x |
| Fri, 07 Feb 2025 | AU$39.0b | AU$22.8b | AU$1.1b | 26.1x | 36x | 1.7x |
| Sun, 05 Jan 2025 | AU$37.5b | AU$22.8b | AU$1.1b | 26.6x | 34.6x | 1.6x |
| Tue, 03 Dec 2024 | AU$40.2b | AU$22.8b | AU$1.1b | 24.3x | 37.1x | 1.8x |
| Thu, 31 Oct 2024 | AU$35.2b | AU$22.8b | AU$1.1b | 21x | 32.4x | 1.5x |
| Sat, 28 Sep 2024 | AU$39.1b | AU$22.8b | AU$1.1b | 22.2x | 35.9x | 1.7x |
| Mon, 26 Aug 2024 | AU$36.2b | AU$22.8b | AU$1.1b | 20.9x | 33.2x | 1.6x |
| Wed, 24 Jul 2024 | AU$36.1b | AU$22.5b | AU$1.1b | 25.3x | 32.4x | 1.6x |
| Fri, 21 Jun 2024 | AU$34.7b | AU$22.5b | AU$1.1b | 26.2x | 31.2x | 1.5x |
| Sun, 19 May 2024 | AU$34.7b | AU$22.5b | AU$1.1b | 23.8x | 31.2x | 1.5x |
| Tue, 16 Apr 2024 | AU$35.5b | AU$22.5b | AU$1.1b | 26.3x | 31.9x | 1.6x |
| Thu, 14 Mar 2024 | AU$36.0b | AU$22.5b | AU$1.1b | 25.5x | 32.4x | 1.6x |
| Sat, 10 Feb 2024 | AU$30.9b | AU$21.9b | AU$1.2b | 21.4x | 26.7x | 1.4x |
| Mon, 08 Jan 2024 | AU$29.9b | AU$21.9b | AU$1.2b | 22.3x | 25.8x | 1.4x |
| Wed, 06 Dec 2023 | AU$26.9b | AU$21.9b | AU$1.2b | 22.2x | 23.2x | 1.2x |
| Fri, 03 Nov 2023 | AU$24.4b | AU$21.9b | AU$1.2b | 17.8x | 21.1x | 1.1x |
| Sun, 01 Oct 2023 | AU$25.8b | AU$21.9b | AU$1.2b | 18.4x | 22.3x | 1.2x |
| Tue, 29 Aug 2023 | AU$25.5b | AU$21.9b | AU$1.2b | 16.5x | 22.1x | 1.2x |
| Thu, 27 Jul 2023 | AU$24.0b | AU$20.3b | AU$239.8m | 19.2x | 100x | 1.2x |
| Sat, 24 Jun 2023 | AU$21.8b | AU$19.1b | AU$149.6m | 23x | 146x | 1.1x |
| Mon, 22 May 2023 | AU$21.8b | AU$19.1b | AU$150.1m | 23.1x | 145.4x | 1.1x |
| Wed, 19 Apr 2023 | AU$21.3b | AU$19.1b | AU$150.1m | 21.9x | 141.9x | 1.1x |
| Fri, 17 Mar 2023 | AU$19.8b | AU$19.1b | AU$150.1m | 17.1x | 132.1x | 1x |
| Sun, 12 Feb 2023 | AU$20.3b | AU$18.4b | AU$886.7m | 18.7x | 22.9x | 1.1x |
| Tue, 10 Jan 2023 | AU$18.4b | AU$18.4b | AU$886.7m | 18.6x | 20.8x | 1x |
| Thu, 08 Dec 2022 | AU$18.1b | AU$18.4b | AU$886.7m | 17.7x | 20.4x | 1x |
| Sat, 05 Nov 2022 | AU$17.5b | AU$18.4b | AU$889.0m | 17.1x | 19.7x | 1x |
| Mon, 03 Oct 2022 | AU$16.3b | AU$18.4b | AU$889.0m | 15.8x | 18.3x | 0.9x |
| Wed, 31 Aug 2022 | AU$18.2b | AU$18.4b | AU$884.6m | 16.8x | 20.6x | 1x |
| Fri, 29 Jul 2022 | AU$16.4b | AU$16.0b | AU$1.7b | 13.7x | 9.6x | 1x |
| Sun, 26 Jun 2022 | AU$16.0b | AU$16.0b | AU$1.7b | 12.6x | 9.3x | 1x |
| Tue, 24 May 2022 | AU$17.8b | AU$16.0b | AU$1.7b | 13.1x | 10.3x | 1.1x |
| Thu, 21 Apr 2022 | AU$19.8b | AU$16.0b | AU$1.7b | 15.2x | 11.5x | 1.2x |
Price to Earnings Ratio
11.5x
Current Industry PE
- Investors are pessimistic on the Australian Trade Distributors industry, indicating that they anticipate long term growth rates will be lower than they have historically.
- The industry is trading at a PE ratio of 23.0x which is lower than its 3-year average PE of 42.9x.
- The industry is trading close to its 3-year average PS ratio of 1.3x.
Past Earnings Growth
- The earnings for companies in the Trade Distributors industry have declined 6.5% per year over the last three years.
- Meanwhile revenues for these companies have grown 13% per year.
- This means that although more sales are being generated, either the cost of doing business or the level of investment back into businesses has increased, which has decreased profits.
Industry Trends
Which industries have driven the changes within the Australian Industrials industry?
| AU Market | 0.085% | |
| Industrials | 1.09% | |
| Trade Distributors | 5.57% | |
| Trade Companies and Distributors | 5.57% | |
Industry PEThere are no additional sub-industries under this industry.
Forecasted GrowthThere are no additional sub-industries under this industry.
Top Stock Gainers and Losers
Which companies have driven the market over the last 7 days?
| Company | Last Price | 7D | 1Y | Valuation | |
|---|---|---|---|---|---|
| SGH SGH | AU$48.20 | 11.3% +AU$2.0b | 22.5% | PE24.7x | |
| REH Reece | AU$16.21 | 9.9% +AU$943.1m | -41.1% | PE27.8x | |
| RDX Redox | AU$2.91 | 8.6% +AU$120.8m | -0.7% | PE16.8x | |
| IPG IPD Group | AU$3.85 | 11.0% +AU$39.4m | -18.4% | PE15.3x | |
| ACF Acrow | AU$1.07 | 7.0% +AU$21.5m | -6.6% | PE14.6x |
