ASX:GUD

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Executive Summary

GUD Holdings Limited, through its subsidiaries, engages in the manufacture and importation, distribution, and sale of automotive products, pumps, pool and spa systems, and water pressure systems in Australia, New Zealand, and France. More Details


Snowflake Analysis

Mediocre balance sheet second-rate dividend payer.


Similar Companies

Share Price & News

How has GUD Holdings's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: GUD has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

2.6%

GUD

2.1%

AU Auto Components

1.2%

AU Market


1 Year Return

8.4%

GUD

23.1%

AU Auto Components

-10.3%

AU Market

Return vs Industry: GUD underperformed the Australian Auto Components industry which returned 22.8% over the past year.

Return vs Market: GUD exceeded the Australian Market which returned -11.1% over the past year.


Shareholder returns

GUDIndustryMarket
7 Day2.6%2.1%1.2%
30 Day-7.5%3.4%-2.3%
90 Day-5.0%26.2%3.0%
1 Year11.7%8.4%25.5%23.1%-7.1%-10.3%
3 Year14.0%0.7%53.0%41.3%18.6%3.4%
5 Year56.3%25.5%94.0%68.6%46.1%15.4%

Price Volatility Vs. Market

How volatile is GUD Holdings's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

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

21.79x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: GUD (A$10.98) is trading above our estimate of fair value (A$9.15)

Significantly Below Fair Value: GUD is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: GUD is good value based on its PE Ratio (21.8x) compared to the AU Auto Components industry average (36x).

PE vs Market: GUD is poor value based on its PE Ratio (21.8x) compared to the Australian market (20.4x).


Price to Earnings Growth Ratio

PEG Ratio: GUD is poor value based on its PEG Ratio (2.1x)


Price to Book Ratio

PB vs Industry: GUD is good value based on its PB Ratio (3.5x) compared to the AU Auto Components industry average (3.9x).


Next Steps

Future Growth

How is GUD Holdings forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?

10.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: GUD's forecast earnings growth (10.6% per year) is above the savings rate (2.3%).

Earnings vs Market: GUD's earnings (10.6% per year) are forecast to grow slower than the Australian market (18% per year).

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

Revenue vs Market: GUD's revenue (4.3% per year) is forecast to grow slower than the Australian market (4.3% per year).

High Growth Revenue: GUD's revenue (4.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: GUD's Return on Equity is forecast to be low in 3 years time (18.8%).


Next Steps

Past Performance

How has GUD Holdings performed over the past 5 years?

12.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: GUD has high quality earnings.

Growing Profit Margin: GUD's current net profit margins (10%) are lower than last year (13.7%).


Past Earnings Growth Analysis

Earnings Trend: GUD's earnings have grown by 12.5% per year over the past 5 years.

Accelerating Growth: GUD's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: GUD had negative earnings growth (-26.6%) over the past year, making it difficult to compare to the Auto Components industry average (-30.1%).


Return on Equity

High ROE: GUD's Return on Equity (15.9%) is considered low.


Next Steps

Financial Health

How is GUD Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: GUD's short term assets (A$260.4M) exceed its short term liabilities (A$96.9M).

Long Term Liabilities: GUD's short term assets (A$260.4M) do not cover its long term liabilities (A$271.9M).


Debt to Equity History and Analysis

Debt Level: GUD's debt to equity ratio (62.9%) is considered high.

Reducing Debt: GUD's debt to equity ratio has increased from 13.4% to 62.9% over the past 5 years.

Debt Coverage: GUD's debt is well covered by operating cash flow (37.9%).

Interest Coverage: GUD's interest payments on its debt are well covered by EBIT (8.4x coverage).


Balance Sheet


Next Steps

Dividend

What is GUD Holdings's current dividend yield, its reliability and sustainability?

3.37%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: GUD's dividend (3.37%) is higher than the bottom 25% of dividend payers in the Australian market (2.38%).

High Dividend: GUD's dividend (3.37%) is low compared to the top 25% of dividend payers in the Australian market (5.67%).


Stability and Growth of Payments

Stable Dividend: GUD's dividend payments have been volatile in the past 10 years.

Growing Dividend: GUD's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (73.4%), GUD's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: GUD's dividends in 3 years are forecast to be covered by earnings (79.5% payout ratio).


Next Steps

Management

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

6.3yrs

Average management tenure


CEO

Graeme Whickman

1.92yrs

Tenure

AU$1,209,740

Compensation

Mr. Graeme Whickman, B. Bus, MAICD., is the Managing Director, Chief Executive Officer and Director at GUD Holdings Limited since October 1, 2018. Mr. Whickman was President and Chief Executive Officer of ...


CEO Compensation Analysis

Compensation vs Market: Graeme's total compensation ($USD848.64K) is about average for companies of similar size in the Australian market ($USD946.54K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Graeme Whickman
CEO, MD & Director1.92yrsAU$1.21m0.031%
A$ 296.4k
Martin Fraser
Chief Financial Officer8.67yrsAU$770.73k0.14%
A$ 1.4m
Malcolm Tyler
Company Secretary & General Counselno dataAU$449.23kno data
Terry Cooper
Managing Director of Wesfil Australia Pty Ltd24.67yrsAU$832.57k0%
A$ 0
David Worley
Chief Executive of Davey Water Products Pty Ltd6.25yrsAU$601.90k0%
A$ 0
George Davies
Chief Executive Officer of Brown & Watson International Pty Ltd3.08yrsAU$597.67k0%
A$ 0

6.3yrs

Average Tenure

Experienced Management: GUD's management team is seasoned and experienced (6.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Graeme Whickman
CEO, MD & Director1.92yrsAU$1.21m0.031%
A$ 296.4k
David Robinson
Independent Non-Executive Director8.75yrsAU$135.40k0.016%
A$ 150.3k
Anne Templeman-Jones
Independent Non-Executive Director5.08yrsAU$153.16k0.0088%
A$ 83.9k
Graeme Billings
Interim Independent Non-Executive Chairmanno dataAU$146.15k0.013%
A$ 126.6k
Jennifer Douglas
Independent Non-Executive Director0.50yrAU$45.82k0.0050%
A$ 47.2k

3.5yrs

Average Tenure

61yo

Average Age

Experienced Board: GUD's board of directors are considered experienced (3.5 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: GUD 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

GUD Holdings Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: GUD Holdings Limited
  • Ticker: GUD
  • Exchange: ASX
  • Founded: 1958
  • Industry: Auto Parts and Equipment
  • Sector: Automobiles
  • Market Cap: AU$954.441m
  • Shares outstanding: 86.93m
  • Website: https://www.gud.com.au

Number of Employees


Location

  • GUD Holdings Limited
  • 29 Taras Avenue
  • Altona North
  • Victoria
  • 3025
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
GUDASX (Australian Securities Exchange)YesOrdinary SharesAUAUDJan 1992
GUDH.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJan 1992
GUDCHIA (Chi-X Australia)YesOrdinary SharesAUAUDJan 1992
GUDD.YOTCPK (Pink Sheets LLC)UNSPONSORD ADRUSUSDOct 2010

Biography

GUD Holdings Limited, through its subsidiaries, engages in the manufacture and importation, distribution, and sale of automotive products, pumps, pool and spa systems, and water pressure systems in Austral ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/09/25 20:02
End of Day Share Price2020/09/25 00:00
Earnings2020/06/30
Annual Earnings2020/06/30


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.