ASX:GAP

Stock Analysis Report

Executive Summary

Gale Pacific Limited, together with its subsidiaries, manufactures, markets, and distributes screening and shading products for domestic, commercial, and industrial applications.

Snowflake

Fundamentals

Good value with adequate balance sheet.

Share Price & News

How has Gale Pacific's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

-0.8%

GAP

-2.5%

AU Consumer Durables

0.4%

AU Market


1 Year Return

-14.5%

GAP

19.4%

AU Consumer Durables

9.8%

AU Market

Return vs Industry: GAP underperformed the Australian Consumer Durables industry which returned 19.4% over the past year.

Return vs Market: GAP underperformed the Australian Market which returned 9.8% over the past year.


Shareholder returns

GAPIndustryMarket
7 Day-0.8%-2.5%0.4%
30 Day-1.7%-3.8%-1.3%
90 Day-13.2%-4.7%-0.5%
1 Year-8.8%-14.5%22.9%19.4%16.1%9.8%
3 Year-17.9%-30.6%35.1%23.9%36.1%17.9%
5 Year48.3%9.3%105.1%76.9%49.4%15.7%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Gale Pacific undervalued compared to its fair value and its price relative to the market?

3.1%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: GAP (A$0.3) is trading below our estimate of fair value (A$0.3)

Significantly Below Fair Value: GAP is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: GAP is good value based on its PE Ratio (9.2x) compared to the Consumer Durables industry average (15.3x).

PE vs Market: GAP is good value based on its PE Ratio (9.2x) compared to the Australian market (18.2x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate GAP's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: GAP is good value based on its PB Ratio (0.9x) compared to the AU Consumer Durables industry average (3.4x).


Next Steps

Future Growth

How is Gale Pacific forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

10.0%

Forecasted Consumer Durables industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Gale Pacific has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has Gale Pacific performed over the past 5 years?

-4.7%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: GAP's earnings have declined by -4.7% per year over the past 5 years.

Accelerating Growth: GAP's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: GAP had negative earnings growth (-6.2%) over the past year, making it difficult to compare to the Consumer Durables industry average (4.3%).


Return on Equity

High ROE: GAP's Return on Equity (10.2%) is considered low.


Return on Assets

ROA vs Industry: GAP's Return on Assets is below or equal to the Consumer Durables industry average last year.


Return on Capital Employed

ROCE Improving: GAP has significantly improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is Gale Pacific's financial position?


Financial Position Analysis

Short Term Liabilities: GAP's short term assets (A$106.3M) exceeds its short term liabilities (A$47.7M)

Long Term Liabilities: GAP's short term assets (106.3M) exceeds its long term liabilities (16.6M)


Debt to Equity History and Analysis

Debt Level: GAP's debt to equity ratio (45.2%) is considered high

Reducing Debt: GAP's debt to equity ratio has increased from 29.2% to 45.2% over the past 5 years.

Debt Coverage: GAP's debt is well covered by operating cash flow (37.6%).

Interest Coverage: GAP's interest payments on its debt are well covered by EBIT (7.1x coverage).


Balance Sheet

Inventory Level: GAP has a high level of physical assets or inventory.

Debt Coverage by Assets: GAP's debt is covered by short term assets (assets are 2.609090x debt).


Next Steps

Dividend

What is Gale Pacific's current dividend yield, its reliability and sustainability?

6.78%

Current Dividend Yield


Dividend Yield vs Market

company6.8%marketbottom25%2.4%markettop25%5.6%industryaverage3.2%forecastin3Yearsn/a

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: GAP's dividend (6.78%) is higher than the bottom 25% of dividend payers in the Australian market (2.44%).

High Dividend: GAP's dividend (6.78%) is in the top 25% of dividend payers in the Australian market (5.59%)

Stable Dividend: GAP has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: GAP's dividend payments have increased, but the company has only paid a dividend for 9 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (62.4%), GAP's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

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

5.0yrs

Average management tenure


CEO

Nick Pritchard 0

5.2yrs

Tenure

AU$553,818

Compensation

Mr. Nicholas Mark Reginald Pritchard, also known as Nick, B.Bus (Marketing) has been the Group Managing Director of Gale Pacific Ltd. since August 22, 2014. Mr. Pritchard served as Managing Director of Aus ...


CEO Compensation Analysis

Compensation vs. Market: Nick's total compensation ($USD379.15K) is about average for companies of similar size in the Australian market ($USD257.37K).

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


Management Age and Tenure

5.0yrs

Average Tenure

Experienced Management: GAP's management team is seasoned and experienced (5 years average tenure).


Board Age and Tenure

5.2yrs

Average Tenure

Experienced Board: GAP's board of directors are considered experienced (5.2 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyAU$220,25913 Oct 19
Castle Point Funds Management Ltd.
EntityCompany
Shares14,107,716
Max PriceAU$0.32
BuyAU$201,00021 Mar 19
David Allman
EntityIndividual
Role
Chairman of the Board
Chairman
Shares600,000
Max PriceAU$0.34
BuyAU$33,99504 Mar 19
Thomas Stianos
EntityIndividual
Role
Member of the Board of Directors
Non-Executive Director
Shares100,000
Max PriceAU$0.34

Ownership Breakdown


Management Team

  • Sophie Karzis

    Company Secretary

    • Tenure: 15.3yrs
  • John Marcantonio

    President & GM of Americas

    • Tenure: 0yrs
    • Compensation: AU$431.36k
  • Nick Pritchard

    Group MD & Director

    • Tenure: 5.2yrs
    • Compensation: AU$553.82k
  • Bruno Marotta

    Senior Manager of Global Procurement & Logistics

    • Tenure: 5yrs
    • Compensation: AU$217.90k
  • Ali Haidar

    General Manager of Middle East & North Africa

    • Tenure: 0yrs
    • Compensation: AU$258.14k
  • Cliff Zhang

    General Manager of China Manufacturing

    • Tenure: 3.3yrs
    • Compensation: AU$253.40k
  • Domenic Romanelli

    Chief Financial Officer

    • Tenure: 0.08yrs

Board Members

  • Tom Stianos (66yo)

    Non-Executive Director

    • Tenure: 2yrs
    • Compensation: AU$96.45k
  • David Allman

    Chairman

    • Tenure: 9.9yrs
    • Compensation: AU$140.80k
  • Peter D. Landos

    Non-Executive Director

    • Tenure: 5.4yrs
    • Compensation: AU$92.43k
  • Nick Pritchard

    Group MD & Director

    • Tenure: 5.2yrs
    • Compensation: AU$553.82k
  • Donna McMaster

    Non-Executive Director

    • Tenure: 1.6yrs
    • Compensation: AU$84.50k

Company Information

Gale Pacific Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Gale Pacific Limited
  • Ticker: GAP
  • Exchange: ASX
  • Founded: 1951
  • Industry: Home Furnishings
  • Sector: Consumer Durables
  • Market Cap: AU$82.459m
  • Shares outstanding: 279.52m
  • Website: https://www.galepacific.com

Number of Employees


Location

  • Gale Pacific Limited
  • 145 Woodlands Drive
  • Braeside
  • Victoria
  • 3195
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
GAPASX (Australian Securities Exchange)YesOrdinary SharesAUAUDDec 2000
GAPCHIA (Chi-X Australia)YesOrdinary SharesAUAUDDec 2000

Biography

Gale Pacific Limited, together with its subsidiaries, manufactures, markets, and distributes screening and shading products for domestic, commercial, and industrial applications. The company offers fabrics ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/21 10:31
End of Day Share Price2019/10/21 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.