Market Cap
AU$1.4b
Last Updated
2020/02/26 10:32 UTC
Data Sources
Company Financials +
Executive Summary
ARB Corporation Limited designs, manufactures, distributes, and sells motor vehicle accessories and light metal engineering works in Australia, the United States, Thailand, the Middle East, and Europe.
Rewards
Risk Analysis
No risks detected for ARB from our risk checks.
Snowflake Analysis
Flawless balance sheet average dividend payer.
Similar Companies
Share Price & News
How has ARB's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: ARB has not had significant price volatility in the past 3 months.
Market Performance
7 Day Return
-8.0%
ARB
-7.7%
AU Auto Components
-6.2%
AU Market
1 Year Return
5.7%
ARB
0.5%
AU Auto Components
7.9%
AU Market
Return vs Industry: ARB exceeded the Australian Auto Components industry which returned 3.9% over the past year.
Return vs Market: ARB underperformed the Australian Market which returned 10.9% over the past year.
Shareholder returns
| ARB | Industry | Market | |
|---|---|---|---|
| 7 Day | -8.0% | -7.7% | -6.2% |
| 30 Day | -5.3% | -6.5% | -5.9% |
| 90 Day | -5.6% | -4.0% | -2.7% |
| 1 Year | 8.0%5.7% | 4.1%0.5% | 12.6%7.9% |
| 3 Year | 32.5%24.5% | 37.9%25.9% | 31.3%13.8% |
| 5 Year | 67.6%51.2% | -7.1%-17.0% | 42.6%10.6% |
Price Volatility Vs. Market
How volatile is ARB's share price compared to the market and industry in the last 5 years?
Simply Wall St News
1 week ago | Simply Wall St
Did ARB Corporation Limited (ASX:ARB) Insiders Sell Shares?1 month ago | Simply Wall St
ARB Corporation Limited (ASX:ARB) Delivered A Better ROE Than Its Industry1 month ago | Simply Wall St
Should ARB Corporation Limited (ASX:ARB) Be Part Of Your Dividend Portfolio?Valuation
Is ARB undervalued compared to its fair value and its price relative to the market?
25.93x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: ARB (A$17.93) is trading above our estimate of fair value (A$8.8)
Significantly Below Fair Value: ARB is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: ARB is poor value based on its PE Ratio (25.9x) compared to the Auto Components industry average (15.1x).
PE vs Market: ARB is poor value based on its PE Ratio (25.9x) compared to the Australian market (18.2x).
Price to Earnings Growth Ratio
PEG Ratio: ARB is poor value based on its PEG Ratio (2.6x)
Price to Book Ratio
PB vs Industry: ARB is good value based on its PB Ratio (4x) compared to the AU Auto Components industry average (4.5x).
Next Steps
Future Growth
How is ARB forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?
10.1%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: ARB's forecast earnings growth (10.1% per year) is above the savings rate (1.1%).
Earnings vs Market: ARB's earnings (10.1% per year) are forecast to grow faster than the Australian market (9.5% per year).
High Growth Earnings: ARB's earnings are forecast to grow, but not significantly.
Revenue vs Market: ARB's revenue (6.7% per year) is forecast to grow faster than the Australian market (4.1% per year).
High Growth Revenue: ARB's revenue (6.7% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: ARB's Return on Equity is forecast to be low in 3 years time (15.6%).
Next Steps
Past Performance
How has ARB performed over the past 5 years?
5.4%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: ARB has high quality earnings.
Growing Profit Margin: ARB's current net profit margins (12%) are lower than last year (12.6%).
Past Earnings Growth Analysis
Earnings Trend: ARB's earnings have grown by 5.4% per year over the past 5 years.
Accelerating Growth: ARB's earnings growth over the past year (0.5%) is below its 5-year average (5.4% per year).
Earnings vs Industry: ARB earnings growth over the past year (0.5%) exceeded the Auto Components industry -13.2%.
Return on Equity
High ROE: ARB's Return on Equity (15.5%) is considered low.
Next Steps
Financial Health
How is ARB's financial position?
Financial Position Analysis
Short Term Liabilities: ARB's short term assets (A$207.9M) exceed its short term liabilities (A$65.5M).
Long Term Liabilities: ARB's short term assets (A$207.9M) exceed its long term liabilities (A$47.3M).
Debt to Equity History and Analysis
Debt Level: ARB's debt to equity ratio (0.8%) is considered satisfactory.
Reducing Debt: ARB's debt to equity ratio has reduced from 5.2% to 0.8% over the past 5 years.
Debt Coverage: ARB's debt is well covered by operating cash flow (2172.9%).
Interest Coverage: ARB's interest payments on its debt are well covered by EBIT (79.2x coverage).
Balance Sheet
Inventory Level: ARB has a high level of physical assets or inventory.
Debt Coverage by Assets: ARB's debt is covered by short term assets (assets are 69.3x debt).
Next Steps
Dividend
What is ARB's current dividend yield, its reliability and sustainability?
2.20%
Current Dividend Yield
Upcoming Dividend Payment
Dividend Yield vs Market
Notable Dividend: ARB's dividend (2.2%) isn’t notable compared to the bottom 25% of dividend payers in the Australian market (2.44%).
High Dividend: ARB's dividend (2.2%) is low compared to the top 25% of dividend payers in the Australian market (5.53%).
Stability and Growth of Payments
Stable Dividend: ARB's dividends per share have been stable in the past 10 years.
Growing Dividend: ARB's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonable payout ratio (57.1%), ARB's dividend payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: ARB's dividends in 3 years are forecast to be covered by earnings (56.1% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
9.0yrs
Average management tenure
CEO
Andrew Brown (61yo)
8.1yrs
Tenure
AU$407,847
Compensation
Mr. Andrew H. Brown has been the Managing Director of ARB Corporation Limited since 2012 and serves as its Director. Mr. Brown has Wide range of experience in automotive engineering and marketing. He had b ...
CEO Compensation Analysis
Compensation vs Market: Andrew's total compensation ($USD269.29K) is below average for companies of similar size in the Australian market ($USD936.12K).
Compensation vs Earnings: Andrew's compensation has been consistent with company performance over the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| MD & Executive Director | 8.1yrs | AU$407.85k | 0.022% A$320.5k | |
| CFO & Company Secretary | 5.3yrs | no data | no data | |
| President of Air Locker | 0yrs | no data | no data | |
| Business Development Manager | 11yrs | AU$160.23k | no data | |
| General Manager of Thule Car Rack Systems | 9.9yrs | AU$51.67k | no data |
9.0yrs
Average Tenure
Experienced Management: ARB's management team is seasoned and experienced (9 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| MD & Executive Director | 8.1yrs | AU$407.85k | 0.022% A$320.5k | |
| Independent Non-Executive Director | 16yrs | AU$94.68k | 0.036% A$512.0k | |
| Non Executive Director | 33.1yrs | AU$224.67k | 0.013% A$192.2k | |
| Chairman | 33.1yrs | AU$224.67k | 7.39% A$105.8m | |
| Independent Non-Executive Director | 13.6yrs | AU$64.42k | 0.0038% A$53.8k | |
| Independent Non-Executive Director | 3.6yrs | AU$64.42k | 0.0031% A$44.8k | |
| Independent Director | 0.7yrs | no data | no data |
16.0yrs
Average Tenure
62yo
Average Age
Experienced Board: ARB's board of directors are seasoned and experienced ( 16 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Top Shareholders
Company Information
ARB Corporation Limited's company bio, employee growth, exchange listings and data sources
Key Information
- Name: ARB Corporation Limited
- Ticker: ARB
- Exchange: ASX
- Founded: 1975
- Industry: Auto Parts and Equipment
- Sector: Automobiles
- Market Cap: AU$1.431b
- Shares outstanding: 79.83m
- Website: https://www.arb.com.au
Location
- ARB Corporation Limited
- 42-44 Garden Street
- Kilsyth
- Victoria
- 3137
- Australia
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| ARB | ASX (Australian Securities Exchange) | Yes | Ordinary Shares | AU | AUD | Jan 1992 |
| ARBF.F | OTCPK (Pink Sheets LLC) | Yes | Ordinary Shares | US | USD | Jan 1992 |
| ARB | CHIA (Chi-X Australia) | Yes | Ordinary Shares | AU | AUD | Jan 1992 |
Biography
ARB Corporation Limited designs, manufactures, distributes, and sells motor vehicle accessories and light metal engineering works in Australia, the United States, Thailand, the Middle East, and Europe. The company provides bull bars, side rails and side steps, canopies, UTE lids and tub accessories, roof racks and bars, suspension systems, driving lights, air compressors and tire accessories, air lockers, winches, recovery equipment, recovery points, under vehicle protection products, fuel tanks and storage, drawers and cargo solutions, portable fridge freezers, tents, swags and awnings, camping and touring accessories, safari snorkels, dual battery and solar systems,and general accessories, as well as rear protection, towing, and wheel carriers. It also offers LINX, a controller that declutters the dashboard and centralizes the command of vehicle accessories by replacing classic switches, gauges and monitors with one sleek and smart driver interface. The company serves stockists, vehicle dealers, and various fleet operators. It operates approximately 66 ARB stores in Australia. ARB Corporation Limited was founded in 1975 and is based in Kilsyth, Australia.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/02/26 10:32 |
| End of Day Share Price | 2020/02/26 00:00 |
| Earnings | 2019/12/31 |
| Annual Earnings | 2019/06/30 |
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.