Market Cap
AU$2.9b
Last Updated
2021/04/12 08:19 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, New Zealand, Thailand, the Middle East, and Europe. More Details
Rewards
Risk Analysis
No risks detected for ARB from our risk checks.
Snowflake Analysis
Flawless balance sheet with solid track record.
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 is less volatile than 75% of Australian stocks over the past 3 months, typically moving +/- 6% a week.
Volatility Over Time: ARB's weekly volatility (6%) has been stable over the past year.
Market Performance
7 Day Return
1.4%
ARB
2.6%
AU Auto Components
2.6%
AU Market
1 Year Return
147.6%
ARB
93.4%
AU Auto Components
37.1%
AU Market
Return vs Industry: ARB exceeded the Australian Auto Components industry which returned 93.4% over the past year.
Return vs Market: ARB exceeded the Australian Market which returned 37.1% over the past year.
Shareholder returns
| ARB | Industry | Market | |
|---|---|---|---|
| 7 Day | 1.4% | 2.6% | 2.6% |
| 30 Day | -1.0% | 0.5% | 3.3% |
| 90 Day | 4.8% | 12.4% | 4.6% |
| 1 Year | 153.0%147.6% | 97.8%93.4% | 41.3%37.1% |
| 3 Year | 86.5%76.8% | 70.2%56.7% | 36.2%19.8% |
| 5 Year | 140.6%119.1% | 132.1%103.6% | 67.4%34.6% |
Long-Term 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 day ago | Simply Wall St
Here's Why I Think ARB (ASX:ARB) Is An Interesting Stock2 weeks ago | Simply Wall St
The ARB (ASX:ARB) Share Price Has Gained 167%, So Why Not Pay It Some Attention?1 month ago | Simply Wall St
Here's What ARB Corporation Limited's (ASX:ARB) Shareholder Ownership Structure Looks LikeValuation
Is ARB undervalued compared to its fair value and its price relative to the market?
14.6%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: ARB (A$35.06) is trading below our estimate of fair value (A$41.05)
Significantly Below Fair Value: ARB is trading below fair value, but not by a significant amount.
Price To Earnings Ratio
PE vs Industry: ARB is poor value based on its PE Ratio (32.6x) compared to the AU Auto Components industry average (22.6x).
PE vs Market: ARB is poor value based on its PE Ratio (32.6x) compared to the Australian market (20.5x).
Price to Earnings Growth Ratio
PEG Ratio: ARB is poor value based on its PEG Ratio (43.8x)
Price to Book Ratio
PB vs Industry: ARB is overvalued based on its PB Ratio (6.6x) compared to the AU Auto Components industry average (4x).
Future Growth
How is ARB forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?
0.7%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: ARB's forecast earnings growth (0.7% per year) is below the savings rate (2%).
Earnings vs Market: ARB's earnings (0.7% per year) are forecast to grow slower than the Australian market (15.3% per year).
High Growth Earnings: ARB's earnings are forecast to grow, but not significantly.
Revenue vs Market: ARB's revenue (9.2% per year) is forecast to grow faster than the Australian market (5.7% per year).
High Growth Revenue: ARB's revenue (9.2% 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%).
Past Performance
How has ARB performed over the past 5 years?
8.7%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: ARB has high quality earnings.
Growing Profit Margin: ARB's current net profit margins (16.6%) are higher than last year (12%).
Past Earnings Growth Analysis
Earnings Trend: ARB's earnings have grown by 8.7% per year over the past 5 years.
Accelerating Growth: ARB's earnings growth over the past year (56%) exceeds its 5-year average (8.7% per year).
Earnings vs Industry: ARB earnings growth over the past year (56%) exceeded the Auto Components industry -12.7%.
Return on Equity
High ROE: ARB's Return on Equity (20%) is considered low.
Financial Health
How is ARB's financial position?
Financial Position Analysis
Short Term Liabilities: ARB's short term assets (A$297.3M) exceed its short term liabilities (A$90.1M).
Long Term Liabilities: ARB's short term assets (A$297.3M) exceed its long term liabilities (A$43.5M).
Debt to Equity History and Analysis
Debt Level: ARB is debt free.
Reducing Debt: ARB has no debt compared to 5 years ago when its debt to equity ratio was 2.5%.
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?
1.13%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: ARB's dividend (1.13%) isn’t notable compared to the bottom 25% of dividend payers in the Australian market (1.99%).
High Dividend: ARB's dividend (1.13%) is low compared to the top 25% of dividend payers in the Australian market (5.31%).
Stability and Growth of Payments
Stable Dividend: ARB is not paying a notable dividend for the Australian market, therefore no need to check if payments are stable.
Growing Dividend: ARB is not paying a notable dividend for the Australian market, therefore no need to check if payments are increasing.
Current Payout to Shareholders
Dividend Coverage: ARB is not paying a notable dividend for the Australian market.
Future Payout to Shareholders
Future Dividend Coverage: No need to calculate the sustainability of ARB's dividend in 3 years as they are not forecast to pay a notable one for the Australian market.
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
10.2yrs
Average management tenure
CEO
Andrew Brown (62 yo)
9.25yrs
Tenure
AU$394,583
Compensation
Mr. Andrew H. Brown has been the Managing Director of ARB Corporation Limited since 2012 and serves as its Director. Mr. Brown has Wide range of experience in automotive engineering and marketing. He had b...
CEO Compensation Analysis
Compensation vs Market: Andrew's total compensation ($USD300.80K) is below average for companies of similar size in the Australian market ($USD1.25M).
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 (10.2 years average tenure).
Board Members
Experienced Board: ARB's board of directors are seasoned and experienced ( 17.2 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$2.853b
- Shares outstanding: 80.85m
- Website: https://www.arb.com.au
Number of Employees
Location
- ARB Corporation Limited
- 42-44 Garden Street
- Kilsyth
- Victoria
- 3137
- Australia
Listings
Biography
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, an...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/04/12 08:19 |
| End of Day Share Price | 2021/04/12 00:00 |
| Earnings | 2020/12/31 |
| Annual Earnings | 2020/06/30 |
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.