Market Cap
AU$9.2b
Last Updated
2020/10/29 10:40 UTC
Data Sources
Company Financials +
Executive Summary
Reece Limited supplies plumbing, bathroom, heating, ventilation, air-conditioning, waterworks, and refrigeration products in Australia, the United States, and New Zealand. More Details
Snowflake Analysis
Solid track record with adequate balance sheet.
Similar Companies
Share Price & News
How has Reece's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: REH's share price has been volatile over the past 3 months.
Market Performance
7 Day Return
-3.3%
REH
-2.5%
AU Trade Distributors
-2.4%
AU Market
1 Year Return
35.0%
REH
18.2%
AU Trade Distributors
-8.3%
AU Market
Return vs Industry: REH exceeded the Australian Trade Distributors industry which returned 18.2% over the past year.
Return vs Market: REH exceeded the Australian Market which returned -8.3% over the past year.
Shareholder returns
| REH | Industry | Market | |
|---|---|---|---|
| 7 Day | -3.3% | -2.5% | -2.4% |
| 30 Day | 7.0% | 9.9% | 1.8% |
| 90 Day | 40.1% | 25.3% | 1.7% |
| 1 Year | 37.3%35.0% | 21.7%18.2% | -5.0%-8.3% |
| 3 Year | 79.4%58.4% | 53.4%37.1% | 14.6%-0.08% |
| 5 Year | 136.2%102.8% | 185.0%138.3% | 41.6%12.1% |
Price Volatility Vs. Market
How volatile is Reece's share price compared to the market and industry in the last 5 years?
Simply Wall St News
1 week ago | Simply Wall St
Reece Limited's (ASX:REH) Stock On An Uptrend: Could Fundamentals Be Driving The Momentum?1 month ago | Simply Wall St
Here's Why Reece (ASX:REH) Can Manage Its Debt Responsibly1 month ago | Simply Wall St
Should You Rely On Reece's (ASX:REH) Earnings Growth?Valuation
Is Reece undervalued compared to its fair value and its price relative to the market?
35.1x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: REH (A$14) is trading above our estimate of fair value (A$7.29)
Significantly Below Fair Value: REH is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: REH is good value based on its PE Ratio (35.1x) compared to the AU Trade Distributors industry average (35.8x).
PE vs Market: REH is poor value based on its PE Ratio (35.1x) compared to the Australian market (21x).
Price to Earnings Growth Ratio
PEG Ratio: REH is poor value based on its PEG Ratio (4.3x)
Price to Book Ratio
PB vs Industry: REH is overvalued based on its PB Ratio (3.3x) compared to the AU Trade Distributors industry average (1.5x).
Next Steps
Future Growth
How is Reece forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?
8.1%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: REH's forecast earnings growth (8.1% per year) is above the savings rate (2.3%).
Earnings vs Market: REH's earnings (8.1% per year) are forecast to grow slower than the Australian market (17.6% per year).
High Growth Earnings: REH's earnings are forecast to grow, but not significantly.
Revenue vs Market: REH's revenue (3% per year) is forecast to grow slower than the Australian market (4.6% per year).
High Growth Revenue: REH's revenue (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 (9.2%).
Next Steps
Past Performance
How has Reece performed over the past 5 years?
5.0%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: REH has high quality earnings.
Growing Profit Margin: REH's current net profit margins (3.8%) are higher than last year (3.7%).
Past Earnings Growth Analysis
Earnings Trend: REH's earnings have grown by 5% per year over the past 5 years.
Accelerating Growth: REH's earnings growth over the past year (13.2%) exceeds its 5-year average (5% per year).
Earnings vs Industry: REH earnings growth over the past year (13.2%) exceeded the Trade Distributors industry -38.9%.
Return on Equity
High ROE: REH's Return on Equity (8.3%) is considered low.
Next Steps
Financial Health
How is Reece's financial position?
Financial Position Analysis
Short Term Liabilities: REH's short term assets (A$2.9B) exceed its short term liabilities (A$1.1B).
Long Term Liabilities: REH's short term assets (A$2.9B) exceed its long term liabilities (A$2.5B).
Debt to Equity History and Analysis
Debt Level: REH's debt to equity ratio (66.3%) is considered high.
Reducing Debt: REH's debt to equity ratio has increased from 18.9% to 66.3% over the past 5 years.
Debt Coverage: REH's debt is well covered by operating cash flow (33%).
Interest Coverage: REH's interest payments on its debt are well covered by EBIT (3.8x coverage).
Balance Sheet
Next Steps
Dividend
What is Reece current dividend yield, its reliability and sustainability?
0.86%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: REH's dividend (0.86%) isn’t notable compared to the bottom 25% of dividend payers in the Australian market (2.15%).
High Dividend: REH's dividend (0.86%) is low compared to the top 25% of dividend payers in the Australian market (5.48%).
Stability and Growth of Payments
Stable Dividend: REH is not paying a notable dividend for the Australian market, therefore no need to check if payments are stable.
Growing Dividend: REH is not paying a notable dividend for the Australian market, therefore no need to check if payments are increasing.
Current Payout to Shareholders
Dividend Coverage: REH is not paying a notable dividend for the Australian market.
Future Payout to Shareholders
Future Dividend Coverage: No need to calculate the sustainability of REH's dividend in 3 years as they are not forecast to pay a notable one for the Australian market.
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
0.3yrs
Average management tenure
CEO
Peter Wilson (52 yo)
12.75yrs
Tenure
AU$4,505,539
Compensation
Mr. Peter J. Wilson, B.Comm (Melb), FAIM, is Chief Executive Officer and Managing Director of Reece Limited (formerly known as Reece Australia Limited) since January 1, 2008, the start of a significant org ...
CEO Compensation Analysis
Compensation vs Market: Peter's total compensation ($USD3.18M) is about average for companies of similar size in the Australian market ($USD2.51M).
Compensation vs Earnings: Peter's compensation has been consistent with company performance over the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Executive Chairman | 19.75yrs | AU$1.36m | 6.26% A$ 576.6m | |
| CEO, MD & Executive Director | 12.75yrs | AU$4.51m | 0.082% A$ 7.6m | |
| CEO of Australia & New Zealand | 0.25yr | AU$1.05m | 0.0041% A$ 375.2k | |
| Group Chief Financial Officer | 0.25yr | no data | no data | |
| Company Secretary | 0.25yr | no data | no data |
0.3yrs
Average Tenure
52yo
Average Age
Experienced Management: REH's management team is not considered experienced ( 0.3 years average tenure), which suggests a new team.
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Executive Chairman | 19.75yrs | AU$1.36m | 6.26% A$ 576.6m | |
| CEO, MD & Executive Director | 12.75yrs | AU$4.51m | 0.082% A$ 7.6m | |
| Independent Non-Executive Director | 4.25yrs | AU$210.83k | 0.0025% A$ 226.8k | |
| Non-Executive Director | 3.08yrs | AU$119.79k | no data | |
| Non-Executive Director | 4.08yrs | AU$86.25k | 0% A$ 0 | |
| Non-Executive Director | 3.08yrs | AU$119.79k | no data | |
| Independent Non-Executive Director | 2.08yrs | AU$86.25k | no data |
4.1yrs
Average Tenure
51.5yo
Average Age
Experienced Board: REH's board of directors are considered experienced (4.1 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 been diluted in the past year, with total shares outstanding growing by 15.2%.
Top Shareholders
Company Information
Reece Limited's company bio, employee growth, exchange listings and data sources
Key Information
- Name: Reece Limited
- Ticker: REH
- Exchange: ASX
- Founded: 1919
- Industry: Trading Companies and Distributors
- Sector: Capital Goods
- Market Cap: AU$9.218b
- Shares outstanding: 645.98m
- Website: https://www.reecegroup.com.au
Number of Employees
Location
- Reece Limited
- 118 Burwood Highway
- Burwood
- Victoria
- 3125
- Australia
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| REH | ASX (Australian Securities Exchange) | Yes | Ordinary Shares | AU | AUD | Jan 1992 |
| REH | CHIA (Chi-X Australia) | Yes | Ordinary Shares | AU | AUD | Jan 1992 |
| REEC.F | OTCPK (Pink Sheets LLC) | Yes | Ordinary Shares | US | USD | Jan 1992 |
Biography
Reece Limited supplies plumbing, bathroom, heating, ventilation, air-conditioning, waterworks, and refrigeration products in Australia, the United States, and New Zealand. It serves customers in the trade, ...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/10/29 10:40 |
| End of Day Share Price | 2020/10/29 00:00 |
| Earnings | 2020/06/30 |
| Annual Earnings | 2020/06/30 |
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.