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GWA Group

ASX:GWA
Snowflake Description

Flawless balance sheet with acceptable track record.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
GWA
ASX
A$940M
Market Cap
  1. Home
  2. AU
  3. Capital Goods
Company description

GWA Group Limited researches, designs, manufactures, imports, markets, and distributes building fixtures and fittings to residential and commercial premises in Australia, New Zealand, and international markets. The last earnings update was 153 days ago. More info.


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GWA Share Price and Events
7 Day Returns
1.7%
ASX:GWA
0.2%
Oceania Building
0%
AU Market
1 Year Returns
4.4%
ASX:GWA
-32.2%
Oceania Building
4.8%
AU Market
GWA Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
GWA Group (GWA) 1.7% -3% 6.6% 4.4% 76.2% 19.1%
Oceania Building 0.2% -0.2% 2.3% -32.2% 8.6% 34.6%
AU Market 0% 0.9% 6.8% 4.8% 20.1% 12.2%
1 Year Return vs Industry and Market
  • GWA outperformed the Building industry which returned -32.2% over the past year.
  • GWA matched the Australia Market (4.8%) over the past year.
Price Volatility
GWA
Industry
5yr Volatility vs Market

GWA Value

 Is GWA Group 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 GWA Group 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 GWA Group.

ASX:GWA Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 6 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 8.9%
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:GWA
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year AU Govt Bond Rate 2.3%
Equity Risk Premium S&P Global 6%
Building Unlevered Beta Simply Wall St/ S&P Global 1.13
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.133 (1 + (1- 30%) (2.66%))
1.104
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.1
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.31% + (1.104 * 5.96%)
8.89%

Discounted Cash Flow Calculation for ASX:GWA using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for GWA Group 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:GWA DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (AUD, Millions) Source Present Value
Discounted (@ 8.89%)
2020 43.70 Analyst x3 40.13
2021 56.50 Analyst x2 47.65
2022 53.60 Analyst x1 41.52
2023 51.99 Est @ -3% 36.98
2024 51.26 Est @ -1.4% 33.49
2025 51.12 Est @ -0.29% 30.67
2026 51.37 Est @ 0.49% 28.30
2027 51.90 Est @ 1.04% 26.26
2028 52.64 Est @ 1.42% 24.46
2029 53.52 Est @ 1.69% 22.84
Present value of next 10 years cash flows A$332.30
ASX:GWA DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= A$53.52 × (1 + 2.31%) ÷ (8.89% – 2.31%)
A$832.62
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= A$832.62 ÷ (1 + 8.89%)10
A$355.31
ASX:GWA Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= A$332.30 + A$355.31
A$687.60
Equity Value per Share
(AUD)
= Total value / Shares Outstanding
= A$687.60 / 263.95
A$2.61
ASX:GWA Discount to Share Price
Calculation Result
Value per share (AUD) From above. A$2.61
Current discount Discount to share price of A$3.56
= -1 x (A$3.56 - A$2.61) / A$2.61
-36.7%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of GWA Group 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 GWA Group's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are GWA Group's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
ASX:GWA PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-12-31) in AUD A$0.19
ASX:GWA Share Price ** ASX (2019-07-19) in AUD A$3.56
Oceania Building Industry PE Ratio Median Figure of 5 Publicly-Listed Building Companies 18.6x
Australia Market PE Ratio Median Figure of 546 Publicly-Listed Companies 16.1x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of GWA Group.

ASX:GWA PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= ASX:GWA Share Price ÷ EPS (both in AUD)

= 3.56 ÷ 0.19

18.6x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • GWA Group is good value based on earnings compared to the Oceania Building industry average.
  • GWA Group is overvalued based on earnings compared to the Australia market.
Price based on expected Growth
Does GWA Group's expected growth come at a high price?
Raw Data
ASX:GWA PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 18.6x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 6 Analysts
-3.6%per year
Global Building Industry PEG Ratio Median Figure of 78 Publicly-Listed Building Companies 1.21x
Australia Market PEG Ratio Median Figure of 361 Publicly-Listed Companies 1.38x

*Line of best fit is calculated by linear regression .

ASX:GWA PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 18.6x ÷ -3.6%

-5.12x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • GWA Group earnings are not expected to grow next year, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on GWA Group's assets?
Raw Data
ASX:GWA PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-12-31) in AUD A$1.45
ASX:GWA Share Price * ASX (2019-07-19) in AUD A$3.56
Oceania Building Industry PB Ratio Median Figure of 5 Publicly-Listed Building Companies 2.06x
Australia Market PB Ratio Median Figure of 1,693 Publicly-Listed Companies 1.7x
ASX:GWA PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= ASX:GWA Share Price ÷ Book Value per Share (both in AUD)

= 3.56 ÷ 1.45

2.46x

* Primary Listing of GWA Group.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • GWA Group is overvalued based on assets compared to the Oceania Building industry average.
X
Value checks
We assess GWA Group'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 Building 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 Building industry average (and greater than 0)? (1 check)
  5. GWA Group has a total score of 1/6, 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.

GWA Future Performance

 How is GWA Group expected to perform in the next 1 to 3 years based on estimates from 6 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
-3.6%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is GWA Group expected to grow at an attractive rate?
  • GWA Group's earnings are expected to decrease over the next 1-3 years, this is below the low risk savings rate of 2.3%.
Growth vs Market Checks
  • GWA Group's earnings are expected to decrease over the next 1-3 years, this is below the Australia market average.
  • GWA Group's revenue growth is expected to exceed the Australia market average.
Annual Growth Rates Comparison
Raw Data
ASX:GWA Future Growth Rates Data Sources
Data Point Source Value (per year)
ASX:GWA Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 6 Analysts -3.6%
ASX:GWA Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 6 Analysts 8%
Oceania Building Industry Earnings Growth Rate Market Cap Weighted Average 10%
Global Building Industry Revenue Growth Rate Market Cap Weighted Average 4.5%
Australia Market Earnings Growth Rate Market Cap Weighted Average 7.4%
Australia Market Revenue Growth Rate Market Cap Weighted Average 3.3%

*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:GWA Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (6 months ago) See Below
Future Estimates Average of up to 6 Analyst Estimates (S&P Global) See Below
All numbers in AUD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
ASX:GWA Future Estimates Data
Date (Data in AUD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2023-06-30 521 1
2022-06-30 492 67 60 2
2021-06-30 476 67 61 5
2020-06-30 466 50 57 6
2019-06-30 385 62 70 6
ASX:GWA Past Financials Data
Date (Data in AUD Millions) Revenue Cash Flow Net Income *
2018-12-31 364 45 50
2018-09-30 362 42 50
2018-06-30 359 39 50
2017-12-31 305 61 48
2017-09-30 328 59 49
2017-06-30 350 57 49
2017-03-31 445 63 54
2016-12-31 443 69 54
2016-09-30 441 62 53
2016-06-30 440 55 52
2016-03-31 437 42 49

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • GWA Group's earnings are expected to decrease over the next 1-3 years, this is not considered high growth.
  • GWA Group's revenue is expected to grow by 8% 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:GWA Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (6 months ago) See Below
Future Estimates Average of up to 6 Analyst Estimates (S&P Global) See Below

All data from GWA Group Company Filings, last reported 6 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

ASX:GWA Future Estimates Data
Date (Data in AUD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2023-06-30
2022-06-30 0.23 0.23 0.23 1.00
2021-06-30 0.23 0.25 0.20 4.00
2020-06-30 0.21 0.23 0.20 5.00
2019-06-30 0.27 0.39 0.17 5.00
ASX:GWA Past Financials Data
Date (Data in AUD Millions) EPS *
2018-12-31 0.19
2018-09-30 0.19
2018-06-30 0.19
2017-12-31 0.18
2017-09-30 0.18
2017-06-30 0.19
2017-03-31 0.20
2016-12-31 0.20
2016-09-30 0.20
2016-06-30 0.19
2016-03-31 0.17

*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.
  • GWA Group is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess GWA Group'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 Oceania 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.
GWA Group has a total score of 1/6, 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.

GWA Past Performance

  How has GWA Group 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 GWA Group's growth in the last year to its industry (Building).
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.
  • GWA Group has delivered over 20% year on year earnings growth in the past 5 years.
  • GWA Group's 1-year earnings growth is less than its 5-year average (5% vs 20.2%)
  • GWA Group's earnings growth has not exceeded the Oceania Building industry average in the past year (5% vs 5%).
Earnings and Revenue History
GWA Group'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 GWA Group Company Filings, last reported 6 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

ASX:GWA Past Revenue, Cash Flow and Net Income Data
Date (Data in AUD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-12-31 363.83 50.50 78.54
2018-09-30 361.55 50.32 78.24
2018-06-30 359.28 50.14 77.95
2017-12-31 305.11 48.08 66.24
2017-09-30 327.77 48.66 70.88
2017-06-30 350.44 49.25 75.51
2017-03-31 444.63 53.71 100.38
2016-12-31 442.94 53.74 98.49
2016-09-30 441.30 52.83 100.36
2016-06-30 439.67 51.92 102.23
2016-03-31 437.05 48.54 103.39
2015-12-31 434.43 45.16 104.55
2015-09-30 430.32 27.76 103.84
2015-06-30 426.22 10.36 103.13
2015-03-31 406.67 15.81 99.54
2014-12-31 387.13 21.26 95.95
2014-09-30 393.26 26.21 96.63
2014-06-30 399.39 31.17 97.31
2014-03-31 449.55 23.57 106.06
2013-12-31 499.72 15.97 114.80
2013-09-30 532.54 24.18 123.77
2013-06-30 565.37 32.39 132.74
2013-03-31 571.19 37.18 138.01
2012-12-31 577.01 41.97 143.27
2012-09-30 589.57 44.07 143.89

*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.
  • GWA Group has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • GWA Group used its assets more efficiently than the Oceania Building industry average last year based on Return on Assets.
  • GWA Group has improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess GWA Group'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 Building 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.
GWA Group has a total score of 3/6, 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.

GWA Health

 How is GWA Group'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 GWA Group's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • GWA Group is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • GWA Group's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of GWA Group'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.
  • Low level of unsold assets.
  • Debt is covered by short term assets, assets are 6.2x 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 GWA Group Company Filings, last reported 6 months ago.

ASX:GWA Past Debt and Equity Data
Date (Data in AUD Millions) Total Equity Total Debt Cash & Short Term Investments
2018-12-31 382.47 25.00 32.88
2018-09-30 382.47 25.00 32.88
2018-06-30 333.40 125.16 27.86
2017-12-31 324.69 115.00 38.16
2017-09-30 324.69 115.00 38.16
2017-06-30 320.60 112.36 36.36
2017-03-31 320.60 112.36 36.36
2016-12-31 313.51 115.00 27.15
2016-09-30 313.51 115.00 27.15
2016-06-30 307.70 121.71 35.70
2016-03-31 307.70 121.71 35.70
2015-12-31 320.28 125.00 38.34
2015-09-30 320.28 125.00 38.34
2015-06-30 305.89 126.87 33.04
2015-03-31 305.89 126.87 33.04
2014-12-31 398.48 172.01 68.44
2014-09-30 398.48 172.01 68.44
2014-06-30 425.99 176.52 29.87
2014-03-31 425.99 176.52 29.87
2013-12-31 410.04 200.00 37.50
2013-09-30 410.04 200.00 37.50
2013-06-30 426.74 196.94 32.76
2013-03-31 426.74 196.94 32.76
2012-12-31 421.12 225.00 32.29
2012-09-30 421.12 225.00 32.29
  • GWA Group's level of debt (6.5%) compared to net worth is satisfactory (less than 40%).
  • The level of debt compared to net worth has been reduced over the past 5 years (48.7% vs 6.5% today).
  • Debt is well covered by operating cash flow (178.2%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 22.6x coverage).
X
Financial health checks
We assess GWA Group'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. GWA Group has a total score of 6/6, 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.

GWA Dividends

 What is GWA Group'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
5.2%
Current annual income from GWA Group dividends. Estimated to be 5.35% next year.
If you bought A$2,000 of GWA Group shares you are expected to receive A$104 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?
  • GWA Group's pays a higher dividend yield than the bottom 25% of dividend payers in Australia (2.53%).
  • GWA Group's dividend is below the markets top 25% of dividend payers in Australia (5.79%).
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:GWA 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 6 Analyst Estimates (S&P Global) See Below
Global Building Industry Average Dividend Yield Market Cap Weighted Average of 100 Stocks 2.1%
Australia Market Average Dividend Yield Market Cap Weighted Average of 415 Stocks 4%
Australia Minimum Threshold Dividend Yield 10th Percentile 1.4%
Australia Bottom 25% Dividend Yield 25th Percentile 2.5%
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:GWA Future Dividends Estimate Data
Date (Data in A$) Dividend per Share (annual) Avg. No. Analysts
2023-06-30 0.22 1.00
2022-06-30 0.20 2.00
2021-06-30 0.19 6.00
2020-06-30 0.18 8.00
2019-06-30 0.18 8.00
ASX:GWA Past Annualized Dividends Data
Date (Data in A$) Dividend per share (annual) Avg. Yield (%)
2019-02-18 0.185 5.496
2018-08-15 0.180 6.269
2017-08-21 0.165 5.369
2016-08-22 0.170 5.846
2016-02-15 0.140 6.325
2015-05-27 0.000 0.000
2014-08-18 0.060 2.047
2014-02-17 0.000 0.000
2013-08-20 0.132 3.957
2013-02-20 0.159 5.937
2012-08-13 0.198 9.218
2012-02-14 0.198 8.714
2011-08-16 0.198 8.033
2011-02-15 0.198 6.073
2010-08-17 0.198 5.808
2010-02-16 0.198 5.728
2009-08-17 0.198 6.210
2009-02-17 0.192 7.348
2008-08-19 0.214 7.336

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been volatile in the past 10 years (annual drop of over 20%).
  • Dividends per share have fallen over the past 10 years.
Current Payout to shareholders
What portion of GWA Group's earnings are paid to the shareholders as a dividend.
  • Dividends paid are not well covered by earnings (1x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be covered by earnings (1.2x coverage).
X
Income/ dividend checks
We assess GWA Group's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.4%) - 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 GWA Group afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. GWA Group has a total score of 2/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

GWA Management

 What is the CEO of GWA Group'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
Tim Salt
COMPENSATION A$1,935,722
TENURE AS CEO 3.5 years
CEO Bio

Mr. Timothy R. Salt, also known as Tim, B.Sc has been the Chief Executive Officer and Managing Director of GWA Group Limited since January 1, 2016 and since July 01, 2016 respectively served as its Executive General Manager of GWA Bathrooms and Kitchens Business since September 7, 2015 until January 1, 2016. He has been Director at Methven Limited since April 10, 2019. After starting at Unilever, Mr. Salt spent much of his career in beverage companies including Tetley Tea in the UK, Pepsi in Australia and USA and brewer Lion Nathan in Australia. He served as Managing Director of Diageo Australia since July 2008. He was responsible for all aspects of Diageo's business in Australia, New Zealand and the South Pacific Islands, including product supply, marketing, sales, innovation and company reputation. Mr. Salt has spent a lot of his career in beverage companies including Tetley Tea in the UK, Pepsi in Australia and USA and brewer Lion Nathan in Australia. He joined Campbell Arnott’s in March 2004 and served as General Manager its Australasia. He serves as a Board Member at DrinkWise Australia Ltd. He served as the Chairman of the Distilled Spirits Industry Council of Australia (DSICA). He has been a Director of GWA Group Limited since July 1, 2016. Mr. Salt serves as a Member of the Board of the Distilled Spirits Industry Council of Australia. He served as a Director of Diageo Australia Limited since July 1, 2008 until June 30, 2015.

CEO Compensation
  • Tim's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Tim's remuneration is higher than average for companies of similar size in Australia.
Management Team Tenure

Average tenure of the GWA Group management team in years:

3.5
Average Tenure
  • The tenure for the GWA Group management team is about average.
Management Team

Tim Salt

TITLE
MD, CEO & Director
COMPENSATION
A$2M
TENURE
3.5 yrs

Patrick Gibson

TITLE
Group Chief Financial Officer
COMPENSATION
A$1M
TENURE
4.3 yrs

Cara Reil

TITLE
Group General Manager People & Performance
COMPENSATION
A$562K
TENURE
1.7 yrs

Richard Thornton

TITLE
Company Secretary & Executive Director
COMPENSATION
A$681K
TENURE
16 yrs

C. Norwell

TITLE
General Manager of Sales - GWA Bathrooms & Kitchens
COMPENSATION
A$707K
TENURE
3.3 yrs
Board of Directors Tenure

Average tenure and age of the GWA Group board of directors in years:

4.3
Average Tenure
64.5
Average Age
  • The tenure for the GWA Group board of directors is about average.
Board of Directors

Darryl McDonough

TITLE
Independent Chairman
COMPENSATION
A$280K
AGE
68
TENURE
5.8 yrs

Tim Salt

TITLE
MD, CEO & Director
COMPENSATION
A$2M
TENURE
3 yrs

John Mulcahy

TITLE
Independent Deputy Chairman
COMPENSATION
A$130K
AGE
69
TENURE
5.7 yrs

Richard Thornton

TITLE
Company Secretary & Executive Director
COMPENSATION
A$681K
TENURE
10.2 yrs

Stephen Goddard

TITLE
Independent Non-Executive Director
COMPENSATION
A$127K
AGE
61
TENURE
2.8 yrs

Peter Birtles

TITLE
Independent Non-Executive Director
COMPENSATION
A$120K
AGE
55
TENURE
8.7 yrs

Jane McKellar

TITLE
Independent Non-Executive Director
COMPENSATION
A$120K
TENURE
2.8 yrs

Alison Barrass

TITLE
Independent Non-Executive Director
TENURE
0.2 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month individual insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (A$) Value (A$)
21. Jun 19 Sell Credit Suisse, Investment Banking and Securities Investments Company 17. Jun 19 17. Jun 19 -36,459 A$3.66 A$-133,550
21. Jun 19 Buy Credit Suisse, Investment Banking and Securities Investments Company 17. Jun 19 17. Jun 19 27,563 A$3.69 A$101,719
19. Jun 19 Sell Credit Suisse, Investment Banking and Securities Investments Company 06. Jun 19 14. Jun 19 -356,069 A$3.49 A$-1,243,007
19. Jun 19 Buy Credit Suisse, Investment Banking and Securities Investments Company 06. Jun 19 14. Jun 19 113,461 A$3.25 A$368,232
11. Jun 19 Sell Credit Suisse, Investment Banking and Securities Investments Company 05. Jun 19 05. Jun 19 -13,007 A$3.54 A$-45,701
11. Jun 19 Buy Credit Suisse, Investment Banking and Securities Investments Company 05. Jun 19 05. Jun 19 12,858 A$3.48 A$44,737
07. Jun 19 Sell Credit Suisse, Investment Banking and Securities Investments Company 03. Jun 19 03. Jun 19 -30,500 A$3.55 A$-107,305
07. Jun 19 Buy Credit Suisse, Investment Banking and Securities Investments Company 03. Jun 19 04. Jun 19 45,247 A$3.48 A$156,270
06. Jun 19 Sell Credit Suisse, Investment Banking and Securities Investments Company 01. Feb 19 31. May 19 -2,468,445 A$3.31 A$-8,176,093
06. Jun 19 Buy Credit Suisse, Investment Banking and Securities Investments Company 01. Feb 19 31. May 19 2,376,519 A$3.25 A$7,732,235
28. May 19 Sell Realindex Investments Pty Limited Company 07. Dec 18 27. May 19 -1,609,049 A$2.98 A$-4,789,791
28. May 19 Buy Realindex Investments Pty Limited Company 28. Nov 18 10. May 19 251,474 A$2.95 A$741,270
28. May 19 Sell Colonial First State Asset Management (Australia) Limited Company 04. Dec 18 03. May 19 -1,302,766 A$3.44 A$-3,721,813
28. May 19 Buy Colonial First State Asset Management (Australia) Limited Company 22. Nov 18 15. May 19 1,724,877 A$2.96 A$5,058,991
16. Apr 19 Sell Realindex Investments Pty Limited Company 25. Jun 18 20. Nov 18 -1,158,304 A$2.96 A$-3,429,142
16. Apr 19 Buy Realindex Investments Pty Limited Company 13. Jun 18 16. Nov 18 905,563 A$2.83 A$2,563,317
16. Apr 19 Sell Colonial First State Asset Management (Australia) Limited Company 01. Jun 18 16. Nov 18 -1,306,709 A$3.31 A$-3,814,488
16. Apr 19 Buy Colonial First State Asset Management (Australia) Limited Company 30. May 18 21. Nov 18 4,495,930 A$3.15 A$13,972,888
11. Apr 19 Sell The Vanguard Group, Inc. Company 18. Dec 18 27. Mar 19 -550,748 A$3.23 A$-1,747,982
11. Apr 19 Buy The Vanguard Group, Inc. Company 18. Dec 18 09. Apr 19 679,512 A$3.30 A$2,223,395
27. Feb 19 Buy Jane McKellar Individual 26. Feb 19 26. Feb 19 2,054 A$3.01 A$6,183
03. Jan 19 Buy Marathon Asset Management, LP Company 19. Sep 18 02. Jan 19 13,265,084 A$3.04 A$40,365,658
19. Dec 18 Sell The Vanguard Group, Inc. Company 14. Dec 18 17. Dec 18 -181,612 A$2.91 A$-528,476
19. Dec 18 Buy The Vanguard Group, Inc. Company 14. Dec 18 14. Dec 18 34,452 A$2.83 A$97,499
17. Dec 18 Sell The Vanguard Group, Inc. Company 20. Aug 18 28. Sep 18 -56,932 A$3.59 A$-5,900
17. Dec 18 Buy The Vanguard Group, Inc. Company 13. Aug 18 13. Dec 18 889,439 A$3.59 A$0
22. Nov 18 Sell Realindex Investments Pty Limited Company 25. Jun 18 20. Nov 18 -1,158,304 A$2.97 A$-3,443,359
22. Nov 18 Buy Realindex Investments Pty Limited Company 13. Jun 18 16. Nov 18 905,563 A$2.84 A$2,573,944
22. Nov 18 Sell Colonial First State Asset Management (Australia) Limited Company 01. Jun 18 16. Nov 18 -1,306,709 A$3.33 A$-3,830,277
22. Nov 18 Buy Colonial First State Asset Management (Australia) Limited Company 30. May 18 21. Nov 18 4,495,930 A$3.16 A$14,030,306
19. Oct 18 Sell Investors Mutual Limited Company 07. May 18 17. Aug 18 -417,051 A$3.58 A$-1,492,744
19. Oct 18 Buy Investors Mutual Limited Company 21. Jun 18 17. Oct 18 3,069,500 A$4.59 A$14,093,824
X
Management checks
We assess GWA Group'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. GWA Group 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.

GWA News

Simply Wall St News

GWA Group Limited (ASX:GWA) Has A ROE Of 13%

With that in mind, this article will work through how we can use Return On Equity (ROE) to better understand a business. … The formula for return on equity is: Return on Equity = Net Profit ÷ Shareholders' Equity Or for GWA Group: 13% = AU$50m ÷ AU$382m (Based on the trailing twelve months to December 2018.) Most readers would understand what net profit is, but it’s worth explaining the concept of shareholders’ equity. … Combining GWA Group's Debt And Its 13% Return On Equity GWA Group has a debt to equity ratio of just 0.065, which is very low.

Simply Wall St -

What Do Analysts Think About The Future Of GWA Group Limited's (ASX:GWA)?

Generally, analysts seem fairly confident, with earnings expected to grow by 31% in the upcoming year compared with the past 5-year average growth rate of 20%. … To understand the overall trajectory of GWA's earnings growth over these next fews years, I've fitted a line through these analyst earnings forecast to determine an annual growth rate from the slope. … ASX:GWA Past and Future Earnings, June 26th 2019 This results in an annual growth rate of -7.8% based on the most recent earnings level of AU$50m to the final forecast of AU$59m by 2022.

Simply Wall St -

GWA Group Limited (ASX:GWA): What We Can Expect From This Growth Stock

Overall, the consensus outlook from analysts appear fairly confident, with earnings expected to grow by 31% in the upcoming year against the past 5-year average growth rate of 20%. … To get an idea of the overall earnings growth trend for GWA, I’ve plotted out each year’s earnings expectations and inserted a line of best fit to determine an annual rate of growth from the slope of this line. … ASX:GWA Past and Future Earnings, June 26th 2019 This results in an annual growth rate of -7.8% based on the most recent earnings level of AU$50m to the final forecast of AU$59m by 2022.

Simply Wall St -

Here's What GWA Group Limited's (ASX:GWA) P/E Is Telling Us

The formula for price to earnings is: Price to Earnings Ratio = Share Price ÷ Earnings per Share (EPS) Or for GWA Group: P/E of 18.86 = A$3.61 ÷ A$0.19 (Based on the trailing twelve months to December 2018.) Is A High P/E Ratio Good? … The higher the P/E ratio, the higher the price tag of a business, relative to its trailing earnings. … ASX:GWA Price Estimation Relative to Market, June 13th 2019 Its P/E ratio suggests that GWA Group shareholders think that in the future it will perform about the same as other companies in its industry classification.

Simply Wall St -

Should You Worry About GWA Group Limited's (ASX:GWA) CEO Pay Cheque?

We looked at a group of companies with market capitalizations from AU$574m to AU$2.3b, and the median CEO total compensation was AU$1.3m. … It would therefore appear that GWA Group Limited pays Tim Salt more than the median CEO remuneration at companies of a similar size, in the same market. … We compared the total CEO remuneration paid by GWA Group Limited, and compared it to remuneration at a group of similar sized companies.

Simply Wall St -

Calculating The Intrinsic Value Of GWA Group Limited (ASX:GWA)

by estimating the company's future cash flows and discounting them to their present value. … This is done using the Discounted Cash Flow (DCF) model. … If you want to learn more about discounted cash flow, the rationale behind this calculation can be read in detail in the Simply Wall St analysis model.

Simply Wall St -

How Did GWA Group Limited's (ASX:GWA) 13% ROE Fare Against The Industry?

This article is for those who would like to learn about Return On Equity (ROE). … One way to conceptualize this, is that for each A$1 of shareholders' equity it has, the company made A$0.13 in profit. … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St -

Did GWA Group's (ASX:GWA) Share Price Deserve to Gain 50%?

For example, the GWA Group Limited (ASX:GWA) share price is up 50% in the last three years, clearly besting than the market return of around 23% (not including dividends). … One imperfect but simple way to consider how the market perception of a company has shifted is to compare the change in the earnings per share (EPS) with the share price movement. … GWA Group was able to grow its EPS at 9.0% per year over three years, sending the share price higher.

Simply Wall St -

Here's What We Think About GWA Group Limited's (ASX:GWA) CEO Pay

First, this article will compare CEO compensation with compensation at similar sized companies. … How Does Tim Salt's Compensation Compare With Similar Sized Companies. … Our data indicates that GWA Group Limited is worth AU$860m, and total annual CEO compensation is AU$1.9m.

Simply Wall St -

Should GWA Group Limited (ASX:GWA) Be Your Next Stock Pick?

In the case of GWA Group Limited (ASX:GWA), there's. … Below is a brief commentary on these key aspects … For those interested in digger a bit deeper into my commentary,

Simply Wall St -

GWA Company Info

Description

GWA Group Limited researches, designs, manufactures, imports, markets, and distributes building fixtures and fittings to residential and commercial premises in Australia, New Zealand, and international markets. It offers vitreous China toilet suites, basins, plastic cisterns, tapware, baths, kitchen sinks, laundry tubs, and bathroom accessories under the Caroma, Dorf, Clark, Fowler, Stylus, Emco, Schell, Virtu, and Sanitron brands. The company was incorporated in 1992 and is headquartered in Eagle Farm, Australia.

Details
Name: GWA Group Limited
GWA
Exchange: ASX
Founded: 1992
A$939,653,562
263,947,630
Website: http://www.gwagroup.com.au
Address: GWA Group Limited
7 Eagleview Place,
Eagle Farm,
Queensland, 4009,
Australia
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
ASX GWA Ordinary Shares Australian Securities Exchange AU AUD 24. May 1993
DB GWA Ordinary Shares Deutsche Boerse AG DE EUR 24. May 1993
CHIA GWA Ordinary Shares Chi-X Australia AU AUD 24. May 1993
OTCPK GWAX.Y UNSPONSORD ADR Pink Sheets LLC US USD 01. Nov 2010
Number of employees
Current staff
Staff numbers
0
GWA Group employees.
Industry
Building Products
Capital Goods
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/07/20 10:36
End of day share price update: 2019/07/19 00:00
Last estimates confirmation: 2019/07/19
Last earnings filing: 2019/02/17
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.