ASX:GWA

Stock Analysis Report

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.

Snowflake

Fundamentals

Adequate balance sheet with limited growth.


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


Market Performance


7 Day Return

0.9%

ASX:GWA

2.8%

AU Building

0.5%

AU Market


1 Year Return

15.5%

ASX:GWA

-21.6%

AU Building

6.3%

AU Market

GWA outperformed the Building industry which returned -21.7% over the past year.

GWA outperformed the Market in Australia which returned 6.3% over the past year.


Share holder returns

GWAIndustryMarket
7 Day0.9%2.8%0.5%
30 Day0.9%13.3%4.4%
90 Day-7.3%3.5%2.1%
1 Year22.4%15.5%-19.5%-21.6%12.4%6.3%
3 Year37.3%15.9%30.2%16.4%41.3%22.3%
5 Year63.9%15.7%41.9%25.3%47.8%14.7%

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 based on future cash flows and its price relative to the stock market?

20.44x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

GWA Group's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).

GWA Group's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).


Price Based on Earnings

GWA Group is overvalued 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

GWA Group is poor value based on expected growth next year.


Price Based on Value of Assets

GWA Group is overvalued based on assets compared to the Oceania Building industry average.


Next Steps

Future Growth

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

8.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

GWA Group's revenue is expected to grow by 5.5% yearly, however this is not considered high growth (20% yearly).

GWA Group's earnings are expected to grow by 8.4% yearly, however this is not considered high growth (20% yearly).

GWA Group's revenue growth is expected to exceed the Australia market average.

GWA Group's earnings growth is positive but not above the Australia market average.

GWA Group's earnings growth is expected to exceed the low risk savings rate of 2.3%.


Earnings per Share Growth Estimates


Future Return on Equity

GWA Group is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


Next Steps

Past Performance

How has GWA Group performed over the past 5 years?

15.7%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

GWA Group's year on year earnings growth rate has been positive over the past 5 years.

GWA Group's 1-year earnings growth is negative, it can't be compared to the 5-year average.

GWA Group's 1-year earnings growth is negative, it can't be compared to the Oceania Building industry average.


Return on Equity

GWA Group has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

GWA Group used its assets more efficiently than the Oceania Building industry average last year based on Return on Assets.


Return on Capital Employed

GWA Group's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is GWA Group's financial position?


Financial Position Analysis

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.


Debt to Equity History and Analysis

GWA Group's level of debt (47.9%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has increased over the past 5 years (41.5% vs 47.9% today).

Debt is well covered by operating cash flow (31.3%, greater than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 22.1x coverage).


Balance Sheet

Low level of unsold assets.

Debt is covered by short term assets, assets are 1.1x debt.


Next Steps

Dividend

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

5.39%

Expected Dividend Yield


Dividend Yield and Payments Analysis

GWA Group's pays a higher dividend yield than the bottom 25% of dividend payers in Australia (2.44%).

GWA Group's dividend is below the markets top 25% of dividend payers in Australia (5.5%).

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

Dividends paid are not well covered by earnings (0.9x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be covered by earnings (1.2x coverage).


Next Steps

Management

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

4.0yrs

Average management tenure


CEO

Tim Salt 0

3.7yrs

Tenure

AU$1,846,531

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

Tim's remuneration is higher than average for companies of similar size in Australia.

Tim's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

4.0yrs

Average Tenure

The tenure for the GWA Group management team is about average.


Board Age and Tenure

4.5yrs

Average Tenure

64.5yo

Average Age

The tenure for the GWA Group board of directors is about average.


Insider Trading

No 3 month open market individual insider trading information.


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Ownership Breakdown


Management Team

  • Richard Thornton

    Company Secretary & Executive Director

    • Tenure: 10.3yrs
    • Compensation: AU$680.46k
  • Tim Salt

    MD, CEO & Director

    • Tenure: 3.7yrs
    • Compensation: AU$1.85m
  • Patrick Gibson

    Group Chief Financial Officer

    • Tenure: 4.4yrs
    • Compensation: AU$1.24m
  • Cara Reil

    Group General Manager People & Performance

    • Tenure: 1.8yrs
    • Compensation: AU$650.92k

Board Members

  • John Mulcahy (69yo)

    Independent Deputy Chairman

    • Tenure: 5.8yrs
    • Compensation: AU$130.00k
  • Darryl McDonough (68yo)

    Independent Chairman

    • Tenure: 5.9yrs
    • Compensation: AU$280.00k
  • Stephen Goddard (61yo)

    Independent Non-Executive Director

    • Tenure: 2.9yrs
    • Compensation: AU$130.00k
  • Richard Thornton

    Company Secretary & Executive Director

    • Tenure: 10.3yrs
    • Compensation: AU$680.46k
  • Alison Barrass

    Independent Non-Executive Director

    • Tenure: 0.3yrs
    • Compensation: AU$13.98k
  • Peter Birtles (55yo)

    Independent Non-Executive Director

    • Tenure: 8.8yrs
    • Compensation: AU$120.00k
  • Tim Salt

    MD, CEO & Director

    • Tenure: 3.7yrs
    • Compensation: AU$1.85m
  • Jane McKellar

    Independent Non-Executive Director

    • Tenure: 2.9yrs
    • Compensation: AU$120.00k

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$902.701m
  • Shares outstanding: 263.95m
  • Website: https://www.gwagroup.com.au

Number of Employees


Location

  • GWA Group Limited
  • 7 Eagleview Place
  • Eagle Farm
  • Queensland
  • 4009
  • 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 Analysis2019/09/14 10:32
End of Day Share Price2019/09/13 00:00
Earnings2019/06/30
Annual Earnings2019/06/30


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.