ASX:GWA

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Executive Summary

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, China, and internationally. More Details


Snowflake Analysis

Acceptable track record with mediocre balance sheet.


Similar Companies

Share Price & News

How has GWA Group's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

1.5%

GWA

2.4%

AU Building

2.8%

AU Market


1 Year Return

-16.5%

GWA

19.1%

AU Building

-10.6%

AU Market

Return vs Industry: GWA underperformed the Australian Building industry which returned 19.1% over the past year.

Return vs Market: GWA underperformed the Australian Market which returned -10.6% over the past year.


Shareholder returns

GWAIndustryMarket
7 Day1.5%2.4%2.8%
30 Day9.9%1.1%-1.8%
90 Day2.2%17.9%2.5%
1 Year-13.6%-16.5%23.1%19.1%-7.4%-10.6%
3 Year25.7%8.6%21.0%12.7%18.0%2.8%
5 Year40.4%7.8%62.1%43.9%42.1%12.9%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

16.72x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: GWA (A$2.78) is trading above our estimate of fair value (A$2.28)

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


Price To Earnings Ratio

PE vs Industry: GWA is good value based on its PE Ratio (16.7x) compared to the XX Building industry average (17x).

PE vs Market: GWA is good value based on its PE Ratio (16.7x) compared to the Australian market (20.4x).


Price to Earnings Growth Ratio

PEG Ratio: GWA is poor value based on its PEG Ratio (2.3x)


Price to Book Ratio

PB vs Industry: GWA is overvalued based on its PB Ratio (2.6x) compared to the XX Building industry average (1.2x).


Next Steps

Future Growth

How is GWA Group forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?

7.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: GWA's forecast earnings growth (7.4% per year) is above the savings rate (2.3%).

Earnings vs Market: GWA's earnings (7.4% per year) are forecast to grow slower than the Australian market (17.2% per year).

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

Revenue vs Market: GWA's revenue (4.6% per year) is forecast to grow faster than the Australian market (4.4% per year).

High Growth Revenue: GWA's revenue (4.6% 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 (16.5%).


Next Steps

Past Performance

How has GWA Group performed over the past 5 years?

4.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: GWA has high quality earnings.

Growing Profit Margin: GWA's current net profit margins (11%) are lower than last year (11.3%).


Past Earnings Growth Analysis

Earnings Trend: GWA's earnings have grown by 4.4% per year over the past 5 years.

Accelerating Growth: GWA's earnings growth over the past year (1.5%) is below its 5-year average (4.4% per year).

Earnings vs Industry: GWA earnings growth over the past year (1.5%) exceeded the Building industry -0.6%.


Return on Equity

High ROE: GWA's Return on Equity (15.7%) is considered low.


Next Steps

Financial Health

How is GWA Group's financial position?


Financial Position Analysis

Short Term Liabilities: GWA's short term assets (A$171.5M) exceed its short term liabilities (A$98.2M).

Long Term Liabilities: GWA's short term assets (A$171.5M) do not cover its long term liabilities (A$323.5M).


Debt to Equity History and Analysis

Debt Level: GWA's debt to equity ratio (63.8%) is considered high.

Reducing Debt: GWA's debt to equity ratio has increased from 41.4% to 63.8% over the past 5 years.

Debt Coverage: GWA's debt is well covered by operating cash flow (34.2%).

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


Balance Sheet


Next Steps

Dividend

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

4.14%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: GWA's dividend (4.14%) is higher than the bottom 25% of dividend payers in the Australian market (2.32%).

High Dividend: GWA's dividend (4.14%) is low compared to the top 25% of dividend payers in the Australian market (5.58%).


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 reasonable payout ratio (69.2%), GWA's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: GWA's dividends in 3 years are forecast to be covered by earnings (70.9% payout ratio).


Next Steps

Management

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

4.7yrs

Average management tenure


CEO

Tim Salt

4.67yrs

Tenure

AU$1,673,527

Compensation

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 Executi ...


CEO Compensation Analysis

Compensation vs Market: Tim's total compensation ($USD1.19M) is above average for companies of similar size in the Australian market ($USD724.48K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Timothy Salt
MD, CEO & Executive Director4.67yrsAU$1.67m0.27%
A$ 2.0m
Patrick Gibson
Group Chief Financial Officer5.42yrsAU$1.00m0.079%
A$ 578.2k
Cara Reil
Group General Manager of People & Performance2.83yrsAU$515.75kno data
Richard Thornton
Company Secretary & Executive Director11.33yrsAU$511.53k0.10%
A$ 751.6k
C. Norwell
General Manager of Sales - GWA Bathrooms & Kitchens4.42yrsAU$704.53k0%
A$ 0

4.7yrs

Average Tenure

Experienced Management: GWA's management team is considered experienced (4.7 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Timothy Salt
MD, CEO & Executive Director4.67yrsAU$1.67m0.27%
A$ 2.0m
Richard Thornton
Company Secretary & Executive Director11.33yrsAU$511.53k0.10%
A$ 751.6k
John Mulcahy
Independent Non-Executive Deputy Chairman6.83yrsAU$123.50k0.016%
A$ 113.0k
Darryl McDonough
Independent Non-Executive Chairman6.92yrsAU$266.00k0.057%
A$ 414.0k
Stephen Goddard
Independent Non-Executive Director3.92yrsAU$123.50k0.0038%
A$ 27.6k
Alison Barrass
Independent Non-Executive Director1.33yrsAU$114.00kno data
Peter Birtles
Independent Non-Executive Director9.83yrsAU$114.00k0.015%
A$ 106.7k
Jane McKellar
Independent Non-Executive Director3.92yrsAU$114.00k0.0042%
A$ 30.2k

5.5yrs

Average Tenure

65.5yo

Average Age

Experienced Board: GWA's board of directors are considered experienced (5.5 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: GWA 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 company bio, 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$728.495m
  • Shares outstanding: 263.95m
  • Website: https://www.gwagroup.com.au

Number of Employees


Location

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

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
GWAASX (Australian Securities Exchange)YesOrdinary SharesAUAUDMay 1993
GWADB (Deutsche Boerse AG)YesOrdinary SharesDEEURMay 1993
GWACHIA (Chi-X Australia)YesOrdinary SharesAUAUDMay 1993
GWAX.YOTCPK (Pink Sheets LLC)UNSPONSORD ADRUSUSDNov 2010

Biography

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, C ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/09/30 10:37
End of Day Share Price2020/09/30 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.