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ARB

ARBASX:ARB Stock Report

Market Cap

AU$3.9b

7D

2.3%

1Y

72.4%

Updated

27 Sep, 2021

Data

Company Financials +
ARB fundamental analysis
Snowflake Score
Valuation0/6
Future Growth2/6
Past Performance6/6
Financial Health6/6
Dividends4/6

ARB Overview

ARB Corporation Limited designs, manufactures, distributes, and sells motor vehicle accessories and light metal engineering works in Australia, the United States, New Zealand, Thailand, the Middle East, the United Kingdom, and rest of Europe.

ARB Competitors

Price History & Performance

Summary of all time highs, changes and price drops for ARB
Historical stock prices
Current Share PriceAU$48.44
52 Week HighAU$27.35
52 Week LowAU$54.46
Beta0.49
1 Month Change-6.70%
3 Month Change12.16%
1 Year Change72.45%
3 Year Change158.21%
5 Year Change164.27%
Change since IPO43,936.36%

Recent News & Updates

Shareholder Returns

ARBAU Auto ComponentsAU Market
7D2.3%1.6%1.5%
1Y72.4%38.9%24.8%

Return vs Industry: ARB exceeded the Australian Auto Components industry which returned 41.7% over the past year.

Return vs Market: ARB exceeded the Australian Market which returned 25.3% over the past year.

Price Volatility

Is ARB's price volatile compared to industry and market?
ARB volatility
ARB Beta0.49
Industry Beta0.49
Market Beta1

Stable Share Price: ARB is less volatile than 75% of Australian stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: ARB's weekly volatility (4%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
19751,600Andrew Brownhttps://www.arb.com.au

ARB Corporation Limited designs, manufactures, distributes, and sells motor vehicle accessories and light metal engineering works in Australia, the United States, New Zealand, Thailand, the Middle East, the United Kingdom, and rest of 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; and UHF radios, GPS map navigators, and reversing cameras.

ARB Fundamentals Summary

How do ARB's earnings and revenue compare to its market cap?
ARB fundamental statistics
Market CapAU$3.95b
Earnings (TTM)AU$112.90m
Revenue (TTM)AU$625.53m

35.0x

P/E Ratio

6.3x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
ARB income statement (TTM)
RevenueAU$625.53m
Cost of RevenueAU$287.57m
Gross ProfitAU$337.96m
ExpensesAU$225.06m
EarningsAU$112.90m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)1.38
Gross Margin54.03%
Net Profit Margin18.05%
Debt/Equity Ratio0%

How did ARB perform over the long term?

See historical performance and comparison

Dividends

1.6%

Current Dividend Yield

49%

Payout Ratio

Does ARB pay a reliable dividends?

See ARB dividend history and benchmarks
When do you need to buy ARB by to receive an upcoming dividend?
ARB dividend dates
Ex Dividend DateOct 07 2021
Dividend Pay DateOct 22 2021
Days until Ex dividend9 days
Days until Dividend pay date24 days

Does ARB pay a reliable dividends?

See ARB dividend history and benchmarks

Valuation

Is ARB undervalued compared to its fair value and its price relative to the market?

34.98x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: ARB (A$48.44) is trading above our estimate of fair value (A$14.09)

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 (35x) compared to the Australian Auto Components industry average (19x).

PE vs Market: ARB is poor value based on its PE Ratio (35x) compared to the Australian market (19.1x).


Price to Earnings Growth Ratio

PEG Ratio: ARB is poor value based on its PEG Ratio (16.4x)


Price to Book Ratio

PB vs Industry: ARB is overvalued based on its PB Ratio (8.1x) compared to the AU Auto Components industry average (2.9x).


Future Growth

How is ARB forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?

2.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ARB's forecast earnings growth (2.1% per year) is above the savings rate (1.9%).

Earnings vs Market: ARB's earnings (2.1% per year) are forecast to grow slower than the Australian market (11.9% per year).

High Growth Earnings: ARB's earnings are forecast to grow, but not significantly.

Revenue vs Market: ARB's revenue (7.8% per year) is forecast to grow faster than the Australian market (5.7% per year).

High Growth Revenue: ARB's revenue (7.8% 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 (18.5%).


Past Performance

How has ARB performed over the past 5 years?

15.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ARB has high quality earnings.

Growing Profit Margin: ARB's current net profit margins (18%) are higher than last year (12.3%).


Past Earnings Growth Analysis

Earnings Trend: ARB's earnings have grown by 15.1% per year over the past 5 years.

Accelerating Growth: ARB's earnings growth over the past year (97%) exceeds its 5-year average (15.1% per year).

Earnings vs Industry: ARB earnings growth over the past year (97%) exceeded the Auto Components industry 81%.


Return on Equity

High ROE: ARB's Return on Equity (23.2%) is considered high.


Financial Health

How is ARB's financial position?


Financial Position Analysis

Short Term Liabilities: ARB's short term assets (A$344.1M) exceed its short term liabilities (A$112.8M).

Long Term Liabilities: ARB's short term assets (A$344.1M) exceed its long term liabilities (A$59.7M).


Debt to Equity History and Analysis

Debt Level: ARB is debt free.

Reducing Debt: ARB had no debt 5 years ago.

Debt Coverage: ARB has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: ARB has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet


Dividend

What is ARB current dividend yield, its reliability and sustainability?

1.61%

Current Dividend Yield


Upcoming Dividend Payment

TodaySep 28 2021Ex Dividend DateOct 07 2021Dividend Pay DateOct 22 202115 days from Ex DividendBuy in the next 9 days to receive the upcoming dividend

Dividend Yield vs Market

Notable Dividend: ARB's dividend (1.61%) isn’t notable compared to the bottom 25% of dividend payers in the Australian market (2.31%).

High Dividend: ARB's dividend (1.61%) is low compared to the top 25% of dividend payers in the Australian market (5.45%).


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 reasonably low payout ratio (48.6%), ARB's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: ARB's dividends in 3 years are forecast to be covered by earnings (50.3% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

10.6yrs

Average management tenure


CEO

Andrew Brown (63 yo)

9.67yrs

Tenure

AU$460,327

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 ($USD333.59K) is below average for companies of similar size in the Australian market ($USD1.73M).

Compensation vs Earnings: Andrew's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: ARB's management team is seasoned and experienced (10.6 years average tenure).


Board Members

Experienced Board: ARB's board of directors are seasoned and experienced ( 17.6 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: ARB insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 2.1%.


Top Shareholders

Company Information

ARB Corporation Limited's 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$3.950b
  • Shares outstanding: 81.53m
  • Website: https://www.arb.com.au

Number of Employees


Location

  • ARB Corporation Limited
  • 42-44 Garden Street
  • Kilsyth
  • Victoria
  • 3137
  • Australia

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/09/27 15:32
End of Day Share Price2021/09/27 00:00
Earnings2021/06/30
Annual Earnings2021/06/30


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.