ARB
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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 last earnings update was 127 days ago. More info.
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ARB Share Price and Events
7 Day Returns
1 Year Returns
ARB Shareholder Return
| 7 Day | 30 Day | 90 Day | 1 Year | 3 Year | 5 Year | |
|---|---|---|---|---|---|---|
| ARB (ARB) | -2.4% | -0.3% | 7.5% | -19.8% | 11.5% | 52.1% |
| AU Auto Components | -1.2% | -3.3% | 0.8% | -15.5% | 19.9% | 55.8% |
| AU Market | 0.2% | 3.2% | 7.5% | 5.7% | 27.5% | 13.8% |
1 Year Return vs Industry and Market
- ARB underperformed the Auto Components industry which returned -15.5% over the past year.
- ARB underperformed the Market in Australia which returned 5.7% over the past year.
ARB Value
Is ARB undervalued based on future cash flows and its price relative to the stock market?
Value is all about what a company is worth versus what price it is
available for. If you went into a grocery store and all the bananas were on sale
at half price, they could be considered
undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current
share
price of
ARB
to its discounted cash flow analysis.value.The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Below are the data sources, inputs and calculation used to determine the intrinsic value for ARB.
| Data Point | Source | Value |
|---|---|---|
| Valuation Model | 2 Stage Free Cash Flow to Equity | |
| Levered Free Cash Flow | Average of 7 Analyst Estimates (S&P Global) | See below |
| Discount Rate (Cost of Equity) | See below | 9.1% |
| Perpetual Growth Rate | 10-Year AU Government Bond Rate | 2.3% |
An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.
| Data Point | Calculation/ Source | Result |
|---|---|---|
| Risk-Free Rate | 10-Year AU Govt Bond Rate | 2.3% |
| Equity Risk Premium | S&P Global | 6% |
| Auto Components Unlevered Beta | Simply Wall St/ S&P Global | 1.2 |
| Re-levered Beta | = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.205 (1 + (1- 30%) (0.17%)) |
1.138 |
| Levered Beta | Levered Beta limited to 0.8 to 2.0 (practical range for a stable firm) |
1.14 |
| Discount Rate/ Cost of Equity |
= Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.31% + (1.138 * 5.96%) |
9.09% |
Discounted Cash Flow Calculation for ASX:ARB using 2 Stage Free Cash Flow to Equity Model
The calculations below outline how an intrinsic value for ARB is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.
| Levered FCF (AUD, Millions) | Source |
Present Value Discounted (@ 9.09%) |
|
|---|---|---|---|
| 2019 | 47.85 | Analyst x2 | 43.86 |
| 2020 | 47.65 | Analyst x2 | 40.04 |
| 2021 | 47.20 | Analyst x1 | 36.35 |
| 2022 | 47.21 | Est @ 0.03% | 33.33 |
| 2023 | 47.55 | Est @ 0.71% | 30.77 |
| 2024 | 48.12 | Est @ 1.19% | 28.54 |
| 2025 | 48.85 | Est @ 1.53% | 26.56 |
| 2026 | 49.72 | Est @ 1.76% | 24.78 |
| 2027 | 50.67 | Est @ 1.93% | 23.15 |
| 2028 | 51.71 | Est @ 2.04% | 21.65 |
| Present value of next 10 years cash flows | A$309.04 | ||
| Calculation | Result | |
|---|---|---|
| Terminal Value |
= FCF2028
× (1 + g) ÷ (Discount Rate – g)
= A$51.71 × (1 + 2.31%) ÷ (9.09% – 2.31%) |
A$779.98 |
| Present Value of Terminal Value |
= Terminal Value ÷ (1 + r)10
= A$779.98 ÷ (1 + 9.09%)10 |
A$326.61 |
| Calculation | Result | |
|---|---|---|
| Total Equity Value |
= Present value of next 10 years cash flows +
Terminal Value
= A$309.04 + A$326.61 |
A$635.65 |
| Equity Value per Share (AUD) |
= Total value / Shares Outstanding
= A$635.65 / 79.73 |
A$7.97 |
| Calculation | Result | |
|---|---|---|
| Value per share (AUD) | From above. | A$7.97 |
| Current discount | Discount to share price of
A$18.46
= -1 x (A$18.46 - A$7.97) / A$7.97 |
-131.5% |
Learn more about our DCF calculations in Simply Wall St’s analysis model .
- The current share price of ARB is above its future cash flow value.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for
it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing
when they are out of season, or how much your home is worth.The amount the stock market is willing to pay for ARB's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are
ARB's earnings available for a low price, and how does
this compare to other companies in the same industry?
| Data Point | Source | Value |
|---|---|---|
| Earnings Per Share * | Company Filings (2018-12-31) in AUD | A$0.69 |
| ASX:ARB Share Price ** | ASX (2019-06-26) in AUD | A$18.46 |
| Global Auto Components Industry PE Ratio | Median Figure of 196 Publicly-Listed Auto Components Companies | 13.76x |
| Australia Market PE Ratio | Median Figure of 546 Publicly-Listed Companies | 15.8x |
* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.
** Primary Listing of ARB.
| Calculation | Outcome | |
|---|---|---|
| PE Ratio | = ASX:ARB Share Price ÷ EPS (both in AUD) = 18.46 ÷ 0.69 |
26.71x |
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- ARB is overvalued based on earnings compared to the Global Auto Components industry average.
- ARB is overvalued based on earnings compared to the Australia market.
Price based on expected Growth
Does
ARB's expected growth come at a high price?
| Data Point | Source | Value |
|---|---|---|
| PE Ratio | See PE Ratio Section | 26.71x |
| Net Income Annual Growth Rate | See Future Growth Section. Line of Best Fit* through Consensus Estimate Earnings of 7 Analysts |
8.7%per year |
| Global Auto Components Industry PEG Ratio | Median Figure of 101 Publicly-Listed Auto Components Companies | 0.93x |
| Australia Market PEG Ratio | Median Figure of 360 Publicly-Listed Companies | 1.42x |
*Line of best fit is calculated by linear regression .
| Calculation | Outcome | |
|---|---|---|
| PEG Ratio | = PE Ratio ÷ Net Income Annual Growth Rate = 26.71x ÷ 8.7% |
3.09x |
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- ARB is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on
ARB's
assets?
| Data Point | Source | Value |
|---|---|---|
| Book Value per Share | Company Filings (2018-12-31) in AUD | A$4.08 |
| ASX:ARB Share Price * | ASX (2019-06-26) in AUD | A$18.46 |
| Australia Auto Components Industry PB Ratio | Median Figure of 6 Publicly-Listed Auto Components Companies | 3.39x |
| Australia Market PB Ratio | Median Figure of 1,690 Publicly-Listed Companies | 1.63x |
| Calculation | Outcome | |
|---|---|---|
| PB Ratio | = ASX:ARB Share Price ÷ Book Value per Share (both in AUD) = 18.46 ÷ 4.08 |
4.53x |
* Primary Listing of ARB.
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- ARB is overvalued based on assets compared to the AU Auto Components industry average.
Value checks
We assess ARB's value by looking at:- Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
- Is the PE ratio less than the market average, and/ or less than the Auto Components industry average (and greater than 0)? (2 checks)
- Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
- Is the PB ratio less than the Auto Components industry average (and greater than 0)? (1 check) ARB has a total score of 0/6, see the detailed checks below.
Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.
Full details on the Value part of the Simply Wall St company analysis model.
ARB Future Performance
How is ARB expected to perform in the next 1 to 3 years based on estimates from 7 analysts?
The future performance of a company is measured in the same way as past
performance, by looking at estimated
growth
and how much profit it is expected to make.Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Earnings growth vs Low Risk Savings
- ARB's earnings growth is expected to exceed the low risk savings rate of 2.3%.
Growth vs Market Checks
- ARB's earnings growth is expected to exceed the Australia market average.
- ARB's revenue growth is expected to exceed the Australia market average.
Annual Growth Rates Comparison
| Data Point | Source | Value (per year) |
|---|---|---|
| ASX:ARB Future Earnings Growth Rate | Line of Best Fit* through Consensus Estimate Earnings of 7 Analysts | 8.7% |
| ASX:ARB Future Revenue Growth Rate | Line of Best Fit* through Consensus Estimate Revenue of 7 Analysts | 7% |
| Global Auto Components Industry Earnings Growth Rate | Market Cap Weighted Average | 11.4% |
| Global Auto Components Industry Revenue Growth Rate | Market Cap Weighted Average | 5.8% |
| Australia Market Earnings Growth Rate | Market Cap Weighted Average | 6.8% |
| Australia Market Revenue Growth Rate | Market Cap Weighted Average | 3.4% |
*Line of best fit is calculated by linear regression .
Industry and Market average data is calculated daily.
Learn more about our growth rate calculations in Simply Wall St’s analysis model.
Analysts growth expectations
| Data Point | Source | Value |
|---|---|---|
| Past Financials | Company Filings (5 months ago) | See Below |
| Future Estimates | Average of up to 7 Analyst Estimates (S&P Global) | See Below |
| Date (Data in AUD Millions) | Revenue | Cash Flow | Net Income * | Avg. No. Analysts |
|---|---|---|---|---|
| 2021-06-30 | 522 | 74 | 68 | 5 |
| 2020-06-30 | 487 | 68 | 63 | 6 |
| 2019-06-30 | 455 | 62 | 58 | 7 |
| Date (Data in AUD Millions) | Revenue | Cash Flow | Net Income * |
|---|---|---|---|
| 2018-12-31 | 437 | 50 | 55 |
| 2018-09-30 | 431 | 47 | 53 |
| 2018-06-30 | 426 | 45 | 51 |
| 2018-03-31 | 413 | 47 | 50 |
| 2017-12-31 | 402 | 50 | 49 |
| 2017-09-30 | 392 | 56 | 49 |
| 2017-06-30 | 381 | 62 | 49 |
| 2017-03-31 | 375 | 61 | 48 |
| 2016-12-31 | 370 | 59 | 47 |
| 2016-09-30 | 364 | 52 | 47 |
| 2016-06-30 | 359 | 45 | 47 |
| 2016-03-31 | 351 | 43 | 47 |
*GAAP earnings excluding extraordinary items.
Past and Future Earnings per Share
| Data Point | Source | Value |
|---|---|---|
| Past Financials | Company Filings (5 months ago) | See Below |
| Future Estimates | Average of up to 7 Analyst Estimates (S&P Global) | See Below |
All data from ARB Company Filings, last reported 5 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.
| Date (Data in AUD Millions) | EPS * | EPS High Estimate | EPS Low Estimate | Avg. No. Analysts |
|---|---|---|---|---|
| 2021-06-30 | 0.86 | 0.87 | 0.84 | 4.00 |
| 2020-06-30 | 0.79 | 0.81 | 0.78 | 5.00 |
| 2019-06-30 | 0.72 | 0.73 | 0.71 | 5.00 |
| Date (Data in AUD Millions) | EPS * |
|---|---|
| 2018-12-31 | 0.69 |
| 2018-09-30 | 0.67 |
| 2018-06-30 | 0.64 |
| 2018-03-31 | 0.63 |
| 2017-12-31 | 0.62 |
| 2017-09-30 | 0.62 |
| 2017-06-30 | 0.62 |
| 2017-03-31 | 0.61 |
| 2016-12-31 | 0.60 |
| 2016-09-30 | 0.60 |
| 2016-06-30 | 0.60 |
| 2016-03-31 | 0.60 |
*GAAP earnings excluding extraordinary items.
Future performance checks
We assess ARB's future performance by looking at:- Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
- Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Global market? (1 check)
- Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Global market? (1 check)
- Is the annual earnings growth rate expected to be above 20%? (1 check)
- Is the annual revenue growth rate expected to be above 20%? (1 check)
- Is the Return on Equity in 3 years expected to be over 20%? (1 check)
ARB has a total score of 3/6, see the detailed checks below.
Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.
Full details on the Future part of the Simply Wall St company analysis model.
ARB Past Performance
How has ARB performed over the past 5 years?
The past performance of a company can be measured by how much
growth
it has experienced and how much profit it makes relative to the funds and assets
it has available.
Past earnings growth
Past Earnings growth analysis
- ARB's year on year earnings growth rate has been positive over the past 5 years.
- ARB's 1-year earnings growth exceeds its 5-year average (11.4% vs 4.9%)
- ARB's earnings growth has exceeded the Global Auto Components industry average in the past year (11.4% vs 3.8%).
Earnings and Revenue History
All data from ARB Company Filings, last reported 5 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.
| Date (Data in AUD Millions) | Revenue | Net Income * | G+A Expenses | R&D Expenses |
|---|---|---|---|---|
| 2018-12-31 | 437.02 | 54.84 | 143.25 | |
| 2018-09-30 | 431.35 | 52.90 | 141.42 | |
| 2018-06-30 | 425.67 | 50.97 | 139.59 | |
| 2018-03-31 | 412.56 | 50.11 | 135.74 | |
| 2017-12-31 | 402.12 | 49.24 | 131.89 | |
| 2017-09-30 | 391.55 | 49.20 | 127.84 | |
| 2017-06-30 | 380.97 | 49.15 | 123.78 | |
| 2017-03-31 | 375.28 | 48.31 | 121.81 | |
| 2016-12-31 | 369.59 | 47.47 | 119.85 | |
| 2016-09-30 | 364.23 | 47.45 | 118.28 | |
| 2016-06-30 | 358.87 | 47.44 | 116.72 | |
| 2016-03-31 | 350.92 | 47.20 | 113.88 | |
| 2015-12-31 | 342.96 | 46.96 | 111.04 | |
| 2015-09-30 | 336.36 | 45.52 | 109.50 | |
| 2015-06-30 | 329.76 | 44.09 | 107.96 | |
| 2015-03-31 | 321.38 | 43.49 | 105.25 | |
| 2014-12-31 | 313.00 | 42.89 | 102.54 | |
| 2014-09-30 | 305.39 | 42.73 | 99.27 | |
| 2014-06-30 | 297.78 | 42.57 | 96.00 | |
| 2014-03-31 | 295.34 | 42.08 | 95.17 | |
| 2013-12-31 | 292.90 | 41.60 | 94.33 | |
| 2013-09-30 | 292.21 | 41.98 | 93.60 | |
| 2013-06-30 | 291.51 | 42.36 | 92.88 | |
| 2013-03-31 | 287.63 | 41.75 | 90.62 | |
| 2012-12-31 | 283.75 | 41.15 | 88.36 | |
| 2012-09-30 | 276.95 | 39.83 | 85.54 | |
| 2012-06-30 | 270.15 | 38.50 | 82.71 |
*GAAP earnings excluding extraordinary items.
Performance last year
We want to ensure a company is making the most of what it has available. This is
done by comparing the return (profit) to a company's available
funds,
assets
and
capital.
- ARB has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
- ARB used its assets more efficiently than the Global Auto Components industry average last year based on Return on Assets.
- ARB's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
Past performance checks
We assess ARB's performance over the past 5 years by checking for:- Has earnings increased in past 5 years? (1 check)
- Has the earnings growth in the last year exceeded that of the Auto Components industry? (1 check)
- Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
- Is the Return on Equity (ROE) higher than 20%? (1 check)
- Is the Return on Assets (ROA) above industry average? (1 check)
- Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
ARB has a total score of 4/6, see the detailed checks below.
Note: We use GAAP Net Income excluding extraordinary items in all our calculations.
Full details on the Past part of the Simply Wall St company analysis model.
ARB Health
How is ARB's financial health and their level of debt?
A company's financial position is much like your own financial position,
it includes everything you own
(assets)
and owe
(liabilities).The boxes below represent the relative size of what makes up ARB's finances.
The net worth of a company is the difference between its assets and liabilities.
- ARB is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
- ARB's cash and other short term assets cover its long term commitments.
Balance sheet
Assets
Liabilities and shares
- High level of physical assets or inventory.
- Debt is covered by short term assets, assets are 74.7x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t
bad,
however if the debt is too high, or the company can’t afford to pay the interest
on its debts this may have impacts in the future.The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.
If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
All data from ARB Company Filings, last reported 5 months ago.
| Date (Data in AUD Millions) | Total Equity | Total Debt | Cash & Short Term Investments |
|---|---|---|---|
| 2018-12-31 | 324.14 | 2.51 | 7.72 |
| 2018-09-30 | 324.14 | 2.51 | 7.72 |
| 2018-06-30 | 303.06 | 4.00 | 9.19 |
| 2018-03-31 | 303.06 | 4.00 | 9.19 |
| 2017-12-31 | 283.50 | 6.25 | 8.06 |
| 2017-09-30 | 283.50 | 6.25 | 8.06 |
| 2017-06-30 | 272.34 | 0.00 | 27.64 |
| 2017-03-31 | 272.34 | 0.00 | 27.64 |
| 2016-12-31 | 260.33 | 0.00 | 11.95 |
| 2016-09-30 | 260.33 | 0.00 | 11.95 |
| 2016-06-30 | 249.61 | 0.00 | 13.78 |
| 2016-03-31 | 249.61 | 0.00 | 13.78 |
| 2015-12-31 | 236.84 | 6.00 | 8.26 |
| 2015-09-30 | 236.84 | 6.00 | 8.26 |
| 2015-06-30 | 226.35 | 2.00 | 10.05 |
| 2015-03-31 | 226.35 | 2.00 | 10.05 |
| 2014-12-31 | 210.84 | 11.00 | 11.84 |
| 2014-09-30 | 210.84 | 11.00 | 11.84 |
| 2014-06-30 | 197.81 | 0.00 | 38.84 |
| 2014-03-31 | 197.81 | 0.00 | 38.84 |
| 2013-12-31 | 186.35 | 0.00 | 36.68 |
| 2013-09-30 | 186.35 | 0.00 | 36.68 |
| 2013-06-30 | 177.54 | 0.00 | 43.76 |
| 2013-03-31 | 177.54 | 0.00 | 43.76 |
| 2012-12-31 | 161.92 | 0.00 | 32.16 |
| 2012-09-30 | 161.92 | 0.00 | 32.16 |
| 2012-06-30 | 151.18 | 0.00 | 33.23 |
- ARB's level of debt (0.8%) compared to net worth is satisfactory (less than 40%).
- The level of debt compared to net worth has increased over the past 5 years (0% vs 0.8% today).
- Debt is well covered by operating cash flow (1996.4%, greater than 20% of total debt).
- Interest payments on debt are well covered by earnings (EBIT is 202.2x coverage).
Financial health checks
We assess ARB's financial health by checking for:- Are short term assets greater than short term liabilities? (1 check)
- Are short term assets greater than long term liabilities? (1 check)
- Has the debt to equity ratio increased in the past 5 years? (1 check)
- Is the debt to equity ratio over 40%? (1 check)
- Is the debt covered by operating cash flow? (1 check)
- Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check) ARB has a total score of 5/6, see the detailed checks below.
- Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
- Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
Full details on the Health part of the Simply Wall St company analysis model.
ARB Dividends
What is ARB's current dividend yield, its reliability and sustainability?
Dividends are regular cash payments to you from the company, similar to a
bank paying you interest on a savings account.
Annual Dividend Income
If you bought
A$2,000 of
ARB
shares you are expected to receive
A$41
in your first year as a dividend.
Dividend Amount
- ARB's pays a lower dividend yield than the bottom 25% of dividend payers in Australia (2.59%).
- ARB's dividend is below the markets top 25% of dividend payers in Australia (5.85%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not
wildly increasing/decreasing each year. This graph shows you the historical rate
to count toward your assessment of the stock.We also check to see if the dividend has increased in the past 10 years.
| Data Point | Source | Value |
|---|---|---|
| Past Annualized Dividend Yield | S&P Global Market Data | See Below |
| Past Dividends per Share | Company Filings/ Annualized Dividend Payments | See Below |
| Future Dividends per Share Estimates | Average of up to 7 Analyst Estimates (S&P Global) | See Below |
| Global Auto Components Industry Average Dividend Yield | Market Cap Weighted Average of 151 Stocks | 2.8% |
| Australia Market Average Dividend Yield | Market Cap Weighted Average of 416 Stocks | 4% |
| Australia Minimum Threshold Dividend Yield | 10th Percentile | 1.6% |
| Australia Bottom 25% Dividend Yield | 25th Percentile | 2.6% |
| Australia Top 25% Dividend Yield | 75th Percentile | 5.8% |
Industry and Market average data is calculated daily.
Note all dividend per share amounts are annualized and not quarterly or other period.
| Date (Data in A$) | Dividend per Share (annual) | Avg. No. Analysts |
|---|---|---|
| 2021-06-30 | 0.47 | 6.00 |
| 2020-06-30 | 0.44 | 7.00 |
| 2019-06-30 | 0.41 | 8.00 |
| Date (Data in A$) | Dividend per share (annual) | Avg. Yield (%) |
|---|---|---|
| 2019-02-19 | 0.380 | 2.119 |
| 2018-08-22 | 0.370 | 2.160 |
| 2018-02-20 | 0.355 | 1.693 |
| 2017-08-15 | 0.340 | 1.896 |
| 2017-02-21 | 0.330 | 2.144 |
| 2016-08-16 | 0.315 | 1.838 |
| 2016-02-16 | 0.305 | 1.890 |
| 2015-08-18 | 0.290 | 1.999 |
| 2014-08-19 | 0.290 | 2.319 |
| 2014-02-19 | 0.285 | 2.357 |
| 2013-08-20 | 0.280 | 2.367 |
| 2012-08-15 | 0.250 | 2.183 |
| 2012-08-14 | 0.250 | 2.672 |
| 2011-08-17 | 0.230 | 2.690 |
| 2010-09-09 | 0.195 | 2.578 |
| 2010-08-17 | 0.195 | 2.984 |
| 2009-08-19 | 0.165 | 3.093 |
| 2009-02-18 | 0.155 | 4.710 |
| 2008-08-20 | 0.150 | 4.622 |
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- Dividends per share have been stable in the past 10 years.
- Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of
ARB's earnings are
paid
to the shareholders as a dividend.
- Dividends paid are covered by earnings (1.8x coverage).
- Dividends after 3 years are expected to be covered by earnings (1.8x coverage).
Income/ dividend checks
We assess ARB's dividend by checking for:- Firstly is the company paying a notable dividend (greater than 1.6%) - if not then the rest of the checks are ignored.
- Is current dividend yield above the bottom 25% of dividend payers? (1 check)
- Is current dividend yield above the top 25% of dividend payers? (1 check)
- Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
- If they have paid a dividend for 10 years has it increased in this time? (1 check)
- How sustainable is the dividend, can ARB afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks) ARB has a total score of 4/6, see the detailed checks below.
Full details on the Dividends part of the Simply Wall St company analysis model.
ARB Management
CEO
| COMPENSATION | A$390,707 |
| AGE | 60 |
| TENURE AS CEO | 7.4 years |
CEO Bio
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 been an Executive Director of ARB Corporation Limited since 1987 until 2012.
CEO Compensation
- Andrew's compensation has been consistent with company performance over the past year, both up more than 20%.
- Andrew's remuneration is lower than average for companies of similar size in Australia.
Management Team Tenure
Average tenure of the ARB management team in years:
- The average tenure for the ARB management team is over 5 years, this suggests they are a seasoned and experienced team.
Management Team
Andrew Brown
MD & Executive Director
A$391K
60
7.4 yrs
John Forsyth
Company Secretary & Non Executive Director
A$225K
70
14.7 yrs
Doug Pettis
President of Air Locker
Lachlan Mccann
Business Development Manager
A$160K
10.3 yrs
J. Messemaker
General Manager of Thule Car Rack Systems
A$52K
9.3 yrs
Board of Directors Tenure
Average tenure and age of the ARB board of directors in years:
- The average tenure for the ARB board of directors is over 10 years, this suggests they are a seasoned and experienced board.
Board of Directors
Roger Brown
Chairman
A$225K
67
32.4 yrs
Andrew Brown
MD & Executive Director
A$391K
60
32.4 yrs
John Forsyth
Company Secretary & Non Executive Director
A$225K
70
32.4 yrs
Rob Fraser
Independent Non-Executive Director
A$91K
52
15.3 yrs
Andrew Stott
Independent Non-Executive Director
A$62K
61
12.9 yrs
Adrian Fitzpatrick
Independent Non-Executive Director
A$62K
2.9 yrs
Who owns this company?
Recent Insider Transactions
| Announced | Type | Name | Entity | Role | Start | End | Shares | Max Price (A$) | Value (A$) | |
|---|---|---|---|---|---|---|---|---|---|---|
| 21. Jun 19 | Buy | Realindex Investments Pty Limited | Company | 18. Jun 19 | 19. Jun 19 | 3,553 | A$19.00 | A$67,492 | ||
| 21. Jun 19 | Buy | Colonial First State Asset Management (Australia) Limited | Company | 18. Jun 19 | 20. Jun 19 | 53,604 | A$19.07 | A$1,022,108 | ||
| 17. Jun 19 | Sell | ASB Group Investments Ltd. | Company | 31. Jan 19 | 31. May 19 | -13,722 | A$16.89 | A$-231,813 | ||
| 17. Jun 19 | Buy | ASB Group Investments Ltd. | Company | 04. Feb 19 | 04. Feb 19 | 11,286 | A$16.32 | A$184,154 | ||
| 17. Jun 19 | Sell | Colonial First State Asset Management (Australia) Limited | Company | 12. Feb 19 | 14. Jun 19 | -52,847 | A$17.83 | A$-870,837 | ||
| 17. Jun 19 | Buy | Colonial First State Asset Management (Australia) Limited | Company | 14. Jan 19 | 12. Jun 19 | 369,468 | A$17.82 | A$6,377,323 | ||
| 10. May 19 | Sell | Formax Pty Ltd | Company | 08. May 19 | 08. May 19 | -500,000 | A$18.50 | A$-9,250,000 | ||
| 10. May 19 | Sell | Roger Brown | Individual | 08. May 19 | 08. May 19 | -2,000,000 | A$18.50 | A$-37,000,001 | ||
| 11. Apr 19 | Sell | Credit Suisse, Investment Banking and Securities Investments | Company | 05. Apr 19 | 05. Apr 19 | -3,243 | A$17.68 | A$-57,332 | ||
| 11. Apr 19 | Buy | Credit Suisse, Investment Banking and Securities Investments | Company | 05. Apr 19 | 05. Apr 19 | 130 | A$17.33 | A$2,253 | ||
| 10. Apr 19 | Sell | Credit Suisse, Investment Banking and Securities Investments | Company | 05. Dec 18 | 04. Apr 19 | -317,513 | A$16.49 | A$-5,236,931 | ||
| 10. Apr 19 | Buy | Credit Suisse, Investment Banking and Securities Investments | Company | 05. Dec 18 | 04. Apr 19 | 424,040 | A$16.54 | A$7,015,352 | ||
| 04. Apr 19 | Sell | Hyperion Asset Management Limited | Company | 07. Jul 17 | 02. Apr 19 | -945,002 | A$17.06 | A$-16,046,620 | ||
| 04. Apr 19 | Buy | Hyperion Asset Management Limited | Company | 07. Jul 17 | 02. Apr 19 | 168,839 | A$21.55 | A$3,462,118 | ||
| 29. Mar 19 | Sell | Macquarie Investment Management Australia Limited | Company | 20. Dec 18 | 26. Mar 19 | -5,604 | A$18.02 | A$0 | ||
| 29. Mar 19 | Buy | Macquarie Investment Management Australia Limited | Company | 21. Dec 18 | 15. Mar 19 | 52,858 | A$18.02 | A$0 | ||
| 01. Apr 19 | Sell | Macquarie Group, Ltd., Banking & Securities Investments | Company | 27. Mar 19 | 27. Mar 19 | -5 | A$17.00 | A$-85 | ||
| 01. Apr 19 | Sell | Macquarie Group, Ltd., Banking & Securities Investments | Company | 27. Mar 19 | 27. Mar 19 | -590 | A$17.15 | A$-10,117 | ||
| 01. Apr 19 | Buy | Macquarie Group, Ltd., Banking & Securities Investments | Company | 27. Mar 19 | 27. Mar 19 | 949 | A$17.02 | A$16,146 | ||
| 29. Mar 19 | Sell | Macquarie Group, Ltd., Banking & Securities Investments | Company | 27. Nov 18 | 26. Mar 19 | -382,133 | A$18.15 | A$0 | ||
| 29. Mar 19 | Buy | Macquarie Group, Ltd., Banking & Securities Investments | Company | 27. Nov 18 | 26. Mar 19 | 236,842 | A$18.25 | A$0 | ||
| 29. Mar 19 | Sell | Macquarie Investment Management Limited | Company | 03. Dec 18 | 21. Mar 19 | -7,439 | A$18.06 | A$0 | ||
| 29. Mar 19 | Buy | Macquarie Investment Management Limited | Company | 27. Nov 18 | 21. Mar 19 | 7,461 | A$18.11 | A$0 | ||
| 29. Mar 19 | Sell | Macquarie Capital Investment Management LLC | Company | 13. Feb 19 | 19. Mar 19 | -18,748 | A$17.99 | A$0 | ||
| 08. Mar 19 | Sell | Standard Life Aberdeen plc | Company | 01. Mar 19 | 06. Mar 19 | -89,330 | A$17.76 | A$-1,585,436 | ||
| 08. Mar 19 | Buy | Standard Life Aberdeen plc | Company | 11. Jan 19 | 04. Mar 19 | 26,800 | A$18.18 | A$442,068 | ||
| 11. Feb 19 | Sell | Bennelong Australian Equity Partners Pty Ltd | Company | 08. Feb 19 | 08. Feb 19 | -1,124,179 | A$16.26 | A$-18,279,151 | ||
| 14. Jan 19 | Buy | Realindex Investments Pty Limited | Company | 13. Sep 18 | 08. Jan 19 | 205,142 | A$17.81 | A$3,653,006 | ||
| 14. Jan 19 | Buy | Colonial First State Asset Management (Australia) Limited | Company | 10. Sep 18 | 11. Jan 19 | 1,046,024 | A$18.14 | A$17,973,865 | ||
| 17. Dec 18 | Buy | Standard Life Aberdeen plc | Company | 13. Dec 18 | 13. Dec 18 | 108,600 | A$16.18 | A$1,757,148 | ||
| 29. Nov 18 | Sell | Standard Life Aberdeen plc | Company | 28. Nov 18 | 28. Nov 18 | -84,923 | A$17.08 | A$-1,450,485 | ||
| 09. Nov 18 | Buy | Andrew Stott | Individual | 05. Nov 18 | 05. Nov 18 | 3,000 | A$17.05 | A$51,150 | ||
Management checks
We assess ARB's management by checking for:- Is the CEO's compensation unreasonable compared to market cap? (1 check)
- Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
- Is the average tenure of the management team less than 2 years? (1 check)
- Is the average tenure of the board of directors team less than 3 years? (1 check) ARB has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.
Note: We use the top 6 management executives and board members in our calculations.
Note 2: Insider trading include any internal stakeholders and these transactions .
Full details on the Management part of the Simply Wall St company analysis model.
ARB News
Simply Wall St News
Is ARB Corporation Limited (ASX:ARB) Potentially Underrated?
ASX:ARB Historical Dividend Yield, June 24th 2019 Next Steps: For ARB, there are three relevant factors you should further research: Future Outlook: What are well-informed industry analysts predicting for ARB’s future growth? … Take a look at our free research report of analyst consensus for ARB’s outlook. … The intrinsic value infographic in our free research report helps visualize whether ARB is currently mispriced by the market.
Simply Wall St - – Full articleWhy ARB Corporation Limited (ASX:ARB) Looks Like A Quality Company
The formula for return on equity is: Return on Equity = Net Profit ÷ Shareholders' Equity Or for ARB: 17% = AU$55m ÷ AU$324m (Based on the trailing twelve months to December 2018.) Most know that net profit is the total earnings after all expenses, but the concept of shareholders' equity is a little more complicated. … A company that can achieve a high return on equity without debt could be considered a high quality business. … If you would prefer check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity and low debt.
Simply Wall St - – Full articleWould ARB Corporation Limited (ASX:ARB) Be Valuable To Income Investors?
While ARB's dividends were covered by the company's reported profits, free cash flow is somewhat more important, so it's not great to see that the company didn't generate enough cash to pay its dividend. … Conclusion To summarise, shareholders should always check that ARB's dividends are affordable, that its dividend payments are relatively stable, and that it has decent prospects for growing its earnings and dividend. … Earnings growth generally bodes well for the future value of company dividend payments.
Simply Wall St - – Full articleWhat Percentage Of ARB Corporation Limited (ASX:ARB) Shares Do Insiders Own?
Our analysis of the ownership of the company, below, shows that institutions are noticeable on the share registry. … View our latest analysis for ARB ASX:ARB Ownership Summary, May 13th 2019 What Does The Institutional Ownership Tell Us About ARB? … Insider ownership is positive when it signals leadership are thinking like the true owners of the company.
Simply Wall St - – Full articleShould You Be Adding ARB (ASX:ARB) To Your Watchlist Today?
That might not be particularly high growth, but it does show that per-share earnings are moving steadily in the right direction. … I like to see top-line growth as an indication that growth is sustainable, and I look for a high earnings before interest and taxation (EBIT) margin to point to a competitive moat (though some companies with low margins also have moats). … You can take a look at the company's revenue and earnings growth trend, in the chart below
Simply Wall St - – Full articleDespite Its High P/E Ratio, Is ARB Corporation Limited (ASX:ARB) Still Undervalued?
This article is for investors who would like to improve their understanding of price to earnings ratios (P/E ratios). … To keep it practical, we'll show how ARB Corporation Limited's (ASX:ARB) P/E ratio could help you assess the value on offer. … Price to Earnings Ratio = Share Price ÷ Earnings per Share (EPS)
Simply Wall St - – Full articleIs ARB Corporation Limited's (ASX:ARB) CEO Pay Fair?
This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. … How Does Andrew Brown's Compensation Compare With Similar Sized Companies. … Our data indicates that ARB Corporation Limited is worth AU$1.4b, and total annual CEO compensation is AU$391k.
Simply Wall St - – Full articleARB (ASX:ARB) Shareholders Booked A 46% Gain In The Last Five Years
For example, the ARB Corporation Limited (ASX:ARB) share price is up 46% in the last 5 years, clearly besting than the market return of around 5.8% (ignoring dividends). … During five years of share price growth, ARB achieved compound earnings per share (EPS) growth of 3.8% per year. … This EPS growth is slower than the share price growth of 7.9% per year, over the same period.
Simply Wall St - – Full articleHave Insiders Been Buying ARB Corporation Limited (ASX:ARB) Shares?
We've lost count of how many times insiders have accumulated shares in a company that goes on to improve markedly. … So shareholders might well want to know whether insiders have been buying or selling shares in ARB Corporation Limited (ASX:ARB). … But logic dictates you should pay some attention to whether insiders are buying or selling shares.
Simply Wall St - – Full articleShould ARB Corporation Limited (ASX:ARB) Be Your Next Stock Pick?
ARB Corporation Limited (ASX:ARB) is a stock with outstanding fundamental characteristics. … When we build an investment case, we need to look at the stock with a holistic perspective. … that has been able to sustain great financial health over the past
Simply Wall St - – Full articleARB Company Info
Description
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 and protection equipment, including summit, alloy, deluxe, and commercial bull bars, as well as summit and deluxe sahara bars; and nudge and smart bars. It also offers drawers and cargo barriers, such as cargo barriers and rack dividers, drawer systems, and cargo bags and organizers; air lockers; ute lids and tub accessories; safari snorkels; air compressors comprising portable and vehicle mounted compressors, and tyre accessories; and general accessories consisting of fuel and water tanks, storage products, seating systems, clothing products, camp lights, battery management systems, communication equipment, navigation devices, and tyre repair accessories. In addition, the company provides roof racks and bars, suspension systems, rooftop tents, portable fridge freezers, canopies, vehicle lighting products, dual batteries and solar systems, and recovery equipment, including straps and accessories, jacks and accessories, recovery kits and bags, and recovery boards and other essentials. ARB Corporation Limited serves stockists, vehicle dealers, and various fleet operators. The company operates approximately 63 ARB stores in Australia. ARB Corporation Limited was founded in 1975 and is based in Kilsyth, Australia.
Details
| Name: | ARB Corporation Limited |
| ARB | |
| Exchange: | ASX |
| Founded: | 1975 |
| A$1,470,131,415 | |
| 79,725,131 | |
| Website: | http://www.arb.com.au |
| Address: |
ARB Corporation Limited 42-44 Garden Street, Kilsyth, Victoria, 3137, Australia |
Listings
| Exchange Symbol | Ticker Symbol | Security | Exchange | Country | Currency | Listed on | |
|---|---|---|---|---|---|---|---|
| ASX | ARB | Ordinary Shares | Australian Securities Exchange | AU | AUD | 02. Jan 1992 | |
| OTCPK | ARBF.F | Ordinary Shares | Pink Sheets LLC | US | USD | 02. Jan 1992 | |
| CHIA | ARB | Ordinary Shares | Chi-X Australia | AU | AUD | 02. Jan 1992 |
Number of employees
Current staff
Industry
| Auto Parts and Equipment | |
| Automobiles |
Company Analysis and Financial Data Status
| Area | Date (UTC time) |
|---|---|
| Company Analysis updated: | 2019/06/26 10:33 |
| End of day share price update: | 2019/06/26 00:00 |
| Last estimates confirmation: | 2019/06/24 |
| Last earnings filing: | 2019/02/19 |
| Last earnings reported: | 2018/12/31 |
| Last annual earnings reported: | 2018/06/30 |
All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.
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.
