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GWA

GWA GroupASX:GWA Stock Report

Market Cap

AU$716.1m

7D

2.3%

1Y

-8.2%

Updated

24 Oct, 2021

Data

Company Financials +
GWA fundamental analysis
Snowflake Score
Valuation2/6
Future Growth2/6
Past Performance1/6
Financial Health3/6
Dividends2/6

GWA Overview

GWA Group Limited researches, designs, manufactures, imports, markets, and distributes building fixtures and fittings to residential and commercial premises in Australia, New Zealand, the United Kingdom, and China.

GWA Group Competitors

Price History & Performance

Summary of all time highs, changes and price drops for GWA Group
Historical stock prices
Current Share PriceAU$2.70
52 Week HighAU$2.55
52 Week LowAU$3.94
Beta0.55
1 Month Change1.50%
3 Month Change-5.26%
1 Year Change-8.16%
3 Year Change3.05%
5 Year Change-3.91%
Change since IPO95.00%

Recent News & Updates

Aug 18
GWA Group (ASX:GWA) Is Paying Out A Larger Dividend Than Last Year

GWA Group (ASX:GWA) Is Paying Out A Larger Dividend Than Last Year

GWA Group Limited ( ASX:GWA ) has announced that it will be increasing its dividend on the 6th of October to AU$0.065...

Jun 07
A Look At The Intrinsic Value Of GWA Group Limited (ASX:GWA)

A Look At The Intrinsic Value Of GWA Group Limited (ASX:GWA)

Today we'll do a simple run through of a valuation method used to estimate the attractiveness of GWA Group Limited...

May 02
Does GWA Group Limited (ASX:GWA) Have A Place In Your Dividend Portfolio?

Does GWA Group Limited (ASX:GWA) Have A Place In Your Dividend Portfolio?

Is GWA Group Limited ( ASX:GWA ) a good dividend stock? How can we tell? Dividend paying companies with growing...

Apr 09
These 4 Measures Indicate That GWA Group (ASX:GWA) Is Using Debt Extensively

These 4 Measures Indicate That GWA Group (ASX:GWA) Is Using Debt Extensively

Warren Buffett famously said, 'Volatility is far from synonymous with risk.' When we think about how risky a company...

Mar 10
Four Days Left Until GWA Group Limited (ASX:GWA) Trades Ex-Dividend

Four Days Left Until GWA Group Limited (ASX:GWA) Trades Ex-Dividend

Readers hoping to buy GWA Group Limited ( ASX:GWA ) for its dividend will need to make their move shortly, as the stock...

Shareholder Returns

GWAAU BuildingAU Market
7D2.3%1.1%0.6%
1Y-8.2%40.6%21.3%

Return vs Industry: GWA underperformed the Australian Building industry which returned 40.6% over the past year.

Return vs Market: GWA underperformed the Australian Market which returned 21.3% over the past year.

Price Volatility

Is GWA's price volatile compared to industry and market?
GWA volatility
GWA Beta0.55
Industry Beta1.09
Market Beta1

Stable Share Price: GWA is less volatile than 75% of Australian stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: GWA's weekly volatility (5%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
1992629Urs Meyerhanshttps://www.gwagroup.com.au

GWA Group Limited researches, designs, manufactures, imports, markets, and distributes building fixtures and fittings to residential and commercial premises in Australia, New Zealand, the United Kingdom, and China. The company offers vitreous China toilet suites, basins, plastic cisterns, taps and showers, baths, kitchen sinks, laundry tubs, smart products, and bathroom accessories, as well as and domestic water control valves under the Caroma, Methven, Dorf, and CLARK brands. GWA Group Limited was incorporated in 1992 and is headquartered in Pinkenba, Australia.

GWA Group Fundamentals Summary

How do GWA Group's earnings and revenue compare to its market cap?
GWA fundamental statistics
Market CapAU$716.05m
Earnings (TTM)AU$35.06m
Revenue (TTM)AU$405.74m

20.4x

P/E Ratio

1.8x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
GWA income statement (TTM)
RevenueAU$405.74m
Cost of RevenueAU$241.66m
Gross ProfitAU$164.08m
ExpensesAU$129.02m
EarningsAU$35.06m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

Feb 15, 2022

Earnings per share (EPS)0.13
Gross Margin40.44%
Net Profit Margin8.64%
Debt/Equity Ratio49.7%

How did GWA perform over the long term?

See historical performance and comparison

Dividends

4.6%

Current Dividend Yield

94%

Payout Ratio

Valuation

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

31.9%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: GWA (A$2.7) is trading below our estimate of fair value (A$3.97)

Significantly Below Fair Value: GWA is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: GWA is poor value based on its PE Ratio (20.4x) compared to the Oceanic Building industry average (19x).

PE vs Market: GWA is poor value based on its PE Ratio (20.4x) compared to the Australian market (19.9x).


Price to Earnings Growth Ratio

PEG Ratio: GWA is poor value based on its PEG Ratio (1.3x)


Price to Book Ratio

PB vs Industry: GWA is overvalued based on its PB Ratio (2.4x) compared to the XO Building industry average (1.5x).


Future Growth

How is GWA Group forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

15.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: GWA's forecast earnings growth (15.2% per year) is above the savings rate (1.9%).

Earnings vs Market: GWA's earnings (15.2% per year) are forecast to grow faster than the Australian market (11.5% per year).

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

Revenue vs Market: GWA's revenue (3.9% per year) is forecast to grow slower than the Australian market (5.5% per year).

High Growth Revenue: GWA's revenue (3.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: GWA's Return on Equity is forecast to be low in 3 years time (16.8%).


Past Performance

How has GWA Group performed over the past 5 years?

-7.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: GWA has high quality earnings.

Growing Profit Margin: GWA's current net profit margins (8.6%) are lower than last year (11%).


Past Earnings Growth Analysis

Earnings Trend: GWA's earnings have declined by 7.2% per year over the past 5 years.

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

Earnings vs Industry: GWA had negative earnings growth (-20.1%) over the past year, making it difficult to compare to the Building industry average (37.6%).


Return on Equity

High ROE: GWA's Return on Equity (11.8%) is considered low.


Financial Health

How is GWA Group's financial position?


Financial Position Analysis

Short Term Liabilities: GWA's short term assets (A$172.7M) exceed its short term liabilities (A$103.7M).

Long Term Liabilities: GWA's short term assets (A$172.7M) do not cover its long term liabilities (A$289.8M).


Debt to Equity History and Analysis

Debt Level: GWA's debt to equity ratio (49.7%) is considered high.

Reducing Debt: GWA's debt to equity ratio has increased from 39.5% to 49.7% over the past 5 years.

Debt Coverage: GWA's debt is well covered by operating cash flow (53.1%).

Interest Coverage: GWA's interest payments on its debt are well covered by EBIT (8.3x coverage).


Balance Sheet


Dividend

What is GWA Group current dividend yield, its reliability and sustainability?

4.63%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: GWA's dividend (4.63%) is higher than the bottom 25% of dividend payers in the Australian market (2.23%).

High Dividend: GWA's dividend (4.63%) is low compared to the top 25% of dividend payers in the Australian market (5.3%).


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (94.2%), GWA's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: GWA's dividends in 3 years are forecast to be covered by earnings (72.6% payout ratio).


Next Steps

Management

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

0.9yrs

Average management tenure


CEO

Urs Meyerhans (61 yo)

0.58

Tenure

AU$1,193,932

Compensation

Mr. Urs B. Meyerhans, CA(CH), CFTP (Snr), MAICD, FCPA, serves as Managing Director, Director and CEO at GWA Group Limited since July 1, 2021. He had been an Acting Chief Executive Officer at GWA Group Limi...


CEO Compensation Analysis

Compensation vs Market: Urs's total compensation ($USD892.06K) is about average for companies of similar size in the Australian market ($USD715.89K).

Compensation vs Earnings: Insufficient data to compare Urs's compensation with company performance.


Leadership Team

Experienced Management: GWA's management team is not considered experienced ( 0.9 years average tenure), which suggests a new team.


Board Members

Experienced Board: GWA's board of directors are considered experienced (6.5 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

GWA Group Limited's employee growth, exchange listings and data sources


Key Information

  • Name: GWA Group Limited
  • Ticker: GWA
  • Exchange: ASX
  • Founded: 1992
  • Industry: Building Products
  • Sector: Capital Goods
  • Market Cap: AU$716.054m
  • Shares outstanding: 265.21m
  • Website: https://www.gwagroup.com.au

Number of Employees


Location

  • GWA Group Limited
  • Building 3B
  • 188 Holt Street
  • Pinkenba
  • Queensland
  • 4008
  • Australia

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/10/24 07:04
End of Day Share Price2021/10/22 00:00
Earnings2021/06/30
Annual Earnings2021/06/30


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.