| Snowflake Score | |
|---|---|
| Valuation | 0/6 |
| Future Growth | 3/6 |
| Past Performance | 4/6 |
| Financial Health | 4/6 |
| Dividends | 3/6 |
REH Overview
Reece Limited engages in the distribution of plumbing, bathroom, heating, ventilation, air-conditioning, waterworks, and refrigeration products in Australia, the United States, and New Zealand.
Reece Competitors
Price History & Performance
| Historical stock prices | |
|---|---|
| Current Share Price | AU$18.09 |
| 52 Week High | AU$12.54 |
| 52 Week Low | AU$25.97 |
| Beta | 0.34 |
| 1 Month Change | -7.89% |
| 3 Month Change | -21.76% |
| 1 Year Change | 25.36% |
| 3 Year Change | 78.40% |
| 5 Year Change | 109.86% |
| Change since IPO | 6,521.52% |
Recent News & Updates
Reece (ASX:REH) Is Increasing Its Dividend To AU$0.12
Reece Limited ( ASX:REH ) has announced that it will be increasing its dividend on the 27th of October to AU$0.12. This...
Reece (ASX:REH) Is Increasing Its Dividend To AU$0.12
The board of Reece Limited ( ASX:REH ) has announced that it will be increasing its dividend on the 27th of October to...
Is Reece (ASX:REH) A Risky Investment?
Howard Marks put it nicely when he said that, rather than worrying about share price volatility, 'The possibility of...
Shareholder Returns
| REH | AU Trade Distributors | AU Market | |
|---|---|---|---|
| 7D | 2.6% | 0.6% | 0.6% |
| 1Y | 25.4% | 16.4% | 21.3% |
Return vs Industry: REH exceeded the Australian Trade Distributors industry which returned 16.4% over the past year.
Return vs Market: REH exceeded the Australian Market which returned 21.3% over the past year.
Price Volatility
| REH volatility | |
|---|---|
| REH Beta | 0.34 |
| Industry Beta | 0.83 |
| Market Beta | 1 |
Stable Share Price: REH is not significantly more volatile than the rest of Australian stocks over the past 3 months, typically moving +/- 6% a week.
Volatility Over Time: REH's weekly volatility (6%) has been stable over the past year.
About the Company
| Founded | Employees | CEO | Website |
|---|---|---|---|
| 1920 | 8,000 | Peter Wilson | https://group.reece.com |
Reece Limited engages in the distribution of plumbing, bathroom, heating, ventilation, air-conditioning, waterworks, and refrigeration products in Australia, the United States, and New Zealand. It serves customers in the trade, retail, commercial, and infrastructure markets. Reece Limited sells its products under the Reece , Viadux, Actrol, and Metaflex brands.
Reece Fundamentals Summary
| REH fundamental statistics | |
|---|---|
| Market Cap | AU$11.69b |
| Earnings (TTM) | AU$285.60m |
| Revenue (TTM) | AU$6.27b |
40.9x
P/E Ratio1.9x
P/S RatioIs REH overvalued?
See Fair Value and valuation analysisEarnings & Revenue
| REH income statement (TTM) | |
|---|---|
| Revenue | AU$6.27b |
| Cost of Revenue | AU$4.51b |
| Gross Profit | AU$1.76b |
| Expenses | AU$1.48b |
| Earnings | AU$285.60m |
Last Reported Earnings
Jun 30, 2021
Next Earnings Date
n/a
| Earnings per share (EPS) | 0.44 |
| Gross Margin | 28.09% |
| Net Profit Margin | 4.55% |
| Debt/Equity Ratio | 47.0% |
How did REH perform over the long term?
See historical performance and comparisonDividends
1.3%
Current Dividend Yield41%
Payout RatioValuation
Is Reece undervalued compared to its fair value and its price relative to the market?
40.92x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: REH (A$18.09) is trading above our estimate of fair value (A$10.92)
Significantly Below Fair Value: REH is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: REH is poor value based on its PE Ratio (40.9x) compared to the Australian Trade Distributors industry average (27.7x).
PE vs Market: REH is poor value based on its PE Ratio (40.9x) compared to the Australian market (20x).
Price to Earnings Growth Ratio
PEG Ratio: REH is poor value based on its PEG Ratio (3.5x)
Price to Book Ratio
PB vs Industry: REH is overvalued based on its PB Ratio (4x) compared to the AU Trade Distributors industry average (1.6x).
Future Growth
How is Reece forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?
11.8%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: REH's forecast earnings growth (11.8% per year) is above the savings rate (1.9%).
Earnings vs Market: REH's earnings (11.8% per year) are forecast to grow faster than the Australian market (11.6% per year).
High Growth Earnings: REH's earnings are forecast to grow, but not significantly.
Revenue vs Market: REH's revenue (6.3% per year) is forecast to grow faster than the Australian market (5.5% per year).
High Growth Revenue: REH's revenue (6.3% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: REH's Return on Equity is forecast to be low in 3 years time (12.2%).
Past Performance
How has Reece performed over the past 5 years?
5.5%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: REH has high quality earnings.
Growing Profit Margin: REH's current net profit margins (4.6%) are higher than last year (3.8%).
Past Earnings Growth Analysis
Earnings Trend: REH's earnings have grown by 5.5% per year over the past 5 years.
Accelerating Growth: REH's earnings growth over the past year (24.7%) exceeds its 5-year average (5.5% per year).
Earnings vs Industry: REH earnings growth over the past year (24.7%) underperformed the Trade Distributors industry 28.1%.
Return on Equity
High ROE: REH's Return on Equity (9.9%) is considered low.
Financial Health
How is Reece's financial position?
Financial Position Analysis
Short Term Liabilities: REH's short term assets (A$3.0B) exceed its short term liabilities (A$1.3B).
Long Term Liabilities: REH's short term assets (A$3.0B) exceed its long term liabilities (A$2.0B).
Debt to Equity History and Analysis
Debt Level: REH's debt to equity ratio (47%) is considered high.
Reducing Debt: REH's debt to equity ratio has increased from 13.9% to 47% over the past 5 years.
Debt Coverage: REH's debt is well covered by operating cash flow (27.4%).
Interest Coverage: REH's interest payments on its debt are well covered by EBIT (5.5x coverage).
Balance Sheet
Dividend
What is Reece current dividend yield, its reliability and sustainability?
1.33%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: REH's dividend (1.33%) isn’t notable compared to the bottom 25% of dividend payers in the Australian market (2.23%).
High Dividend: REH's dividend (1.33%) is low compared to the top 25% of dividend payers in the Australian market (5.3%).
Stability and Growth of Payments
Stable Dividend: REH's dividend payments have been volatile in the past 10 years.
Growing Dividend: REH's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonably low payout ratio (40.7%), REH's dividend payments are well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: REH's dividends in 3 years are forecast to be well covered by earnings (41.3% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
1.3yrs
Average management tenure
CEO
Peter Wilson (53 yo)
13.75yrs
Tenure
AU$4,861,000
Compensation
Mr. Peter J. Wilson, B.Comm (Melb), FAIM, is Chief Executive Officer and Managing Director of Reece Limited (formerly known as Reece Australia Limited) since January 1, 2008, the start of a significant org...
CEO Compensation Analysis
Compensation vs Market: Peter's total compensation ($USD3.63M) is above average for companies of similar size in the Australian market ($USD2.36M).
Compensation vs Earnings: Peter's compensation has been consistent with company performance over the past year.
Leadership Team
Experienced Management: REH's management team is not considered experienced ( 1.3 years average tenure), which suggests a new team.
Board Members
Experienced Board: REH's board of directors are considered experienced (5.1 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
Reece Limited's employee growth, exchange listings and data sources
Key Information
- Name: Reece Limited
- Ticker: REH
- Exchange: ASX
- Founded: 1920
- Industry: Trading Companies and Distributors
- Sector: Capital Goods
- Market Cap: AU$11.686b
- Shares outstanding: 645.98m
- Website: https://group.reece.com
Number of Employees
Location
- Reece Limited
- 118 Burwood Highway
- Burwood
- Victoria
- 3125
- Australia
Listings
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/10/23 07:05 |
| End of Day Share Price | 2021/10/22 00:00 |
| Earnings | 2021/06/30 |
| Annual Earnings | 2021/06/30 |
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.