Loading...

ARB

ASX:ARB
Snowflake Description

Excellent balance sheet with proven track record and pays a dividend.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
ARB
ASX
A$1B
Market Cap
  1. Home
  2. AU
  3. Automobiles
Company 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 last earnings update was 127 days ago. More info.


Add to Portfolio Compare Print
ARB Share Price and Events
7 Day Returns
-2.4%
ASX:ARB
-1.2%
AU Auto Components
0.2%
AU Market
1 Year Returns
-19.8%
ASX:ARB
-15.5%
AU Auto Components
5.7%
AU Market
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.
Price Volatility
ARB
Industry
5yr Volatility vs Market

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.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for ARB.

ASX:ARB Discounted Cash Flow Data Sources
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.

Calculation of Discount Rate/ Cost of Equity for ASX:ARB
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.

ASX:ARB DCF 1st Stage: Next 10 year cash flow forecast
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
ASX:ARB DCF 2nd Stage: Terminal Value
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
ASX:ARB Total Equity Value
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
ASX:ARB Discount to Share Price
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.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
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?
Raw Data
ASX:ARB PE (Price to Earnings) Ratio Data Sources
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.

ASX:ARB PE (Price to Earnings) Ratio Calculation
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?
Raw Data
ASX:ARB PEG (Price to Earnings to Growth) Ratio Data Sources
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 .

ASX:ARB PEG (Price to Earnings to Growth) Ratio Calculation
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?
Raw Data
ASX:ARB PB (Price to Book) Ratio Data Sources
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
ASX:ARB PB (Price to Book) Ratio Calculation
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.
X
Value checks
We assess ARB's value by looking at:
  1. 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. )
  2. Is the PE ratio less than the market average, and/ or less than the Auto Components industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Auto Components industry average (and greater than 0)? (1 check)
  5. 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!
Annual Growth Rate
8.7%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is ARB expected to grow at an attractive rate?
  • 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
Raw Data
ASX:ARB Future Growth Rates Data Sources
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
Raw Data
ASX:ARB Analysts Growth Expectations Data Sources
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 numbers in AUD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
ASX:ARB Future Estimates Data
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
ASX:ARB Past Financials Data
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.

Super high growth metrics
High Growth Checks
  • ARB's earnings are expected to grow by 8.7% yearly, however this is not considered high growth (20% yearly).
  • ARB's revenue is expected to grow by 7% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
ASX:ARB 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.

ASX:ARB Future Estimates Data
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
ASX:ARB Past Financials Data
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.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • ARB is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess ARB's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Global market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Global market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
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
Below we compare ARB's growth in the last year to its industry (Auto Components).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • 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
ARB's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from ARB Company Filings, last reported 5 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

ASX:ARB Past Revenue, Cash Flow and Net Income Data
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).
X
Past performance checks
We assess ARB's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Auto Components industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
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.
Net Worth
  • 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
This treemap shows a more detailed breakdown of ARB's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • 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.
Raw Data

All data from ARB Company Filings, last reported 5 months ago.

ASX:ARB Past Debt and Equity Data
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).
X
Financial health checks
We assess ARB's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. ARB has a total score of 5/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. 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
Dividend payments
2.06%
Current annual income from ARB dividends. Estimated to be 2.37% next year.
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
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • 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.
Raw Data
ASX:ARB Annualized Past and Future Dividends
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.

ASX:ARB Future Dividends Estimate Data
Date (Data in A$) Dividend per Share (annual) Avg. No. Analysts
2021-06-30 0.47 6.00
2020-06-30 0.44 7.00
2019-06-30 0.41 8.00
ASX:ARB Past Annualized Dividends Data
Date (Data in A$) 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).
Future Payout to shareholders
  • Dividends after 3 years are expected to be covered by earnings (1.8x coverage).
X
Income/ dividend checks
We assess ARB's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.6%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. 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)
  7. 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

 What is the CEO of ARB's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Andrew Brown
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:

9.8
Average Tenure
  • 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

TITLE
MD & Executive Director
COMPENSATION
A$391K
AGE
60
TENURE
7.4 yrs

John Forsyth

TITLE
Company Secretary & Non Executive Director
COMPENSATION
A$225K
AGE
70
TENURE
14.7 yrs

Doug Pettis

TITLE
President of Air Locker

Lachlan Mccann

TITLE
Business Development Manager
COMPENSATION
A$160K
TENURE
10.3 yrs

J. Messemaker

TITLE
General Manager of Thule Car Rack Systems
COMPENSATION
A$52K
TENURE
9.3 yrs
Board of Directors Tenure

Average tenure and age of the ARB board of directors in years:

23.9
Average Tenure
61
Average Age
  • 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

TITLE
Chairman
COMPENSATION
A$225K
AGE
67
TENURE
32.4 yrs

Andrew Brown

TITLE
MD & Executive Director
COMPENSATION
A$391K
AGE
60
TENURE
32.4 yrs

John Forsyth

TITLE
Company Secretary & Non Executive Director
COMPENSATION
A$225K
AGE
70
TENURE
32.4 yrs

Rob Fraser

TITLE
Independent Non-Executive Director
COMPENSATION
A$91K
AGE
52
TENURE
15.3 yrs

Andrew Stott

TITLE
Independent Non-Executive Director
COMPENSATION
A$62K
AGE
61
TENURE
12.9 yrs

Adrian Fitzpatrick

TITLE
Independent Non-Executive Director
COMPENSATION
A$62K
TENURE
2.9 yrs
Who owns this company?
Recent Insider Trading
  • ARB individual insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (A$) 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
X
Management checks
We assess ARB's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. 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 -

Why 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 -

Would 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 -

What 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 -

Should 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 -

Despite 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 -

Is 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 -

ARB (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 -

Have 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 -

Should 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 -

ARB 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
Staff numbers
0
ARB employees.
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.