ASX:GAP

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Executive Summary

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


Snowflake Analysis

Undervalued 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

Stable Share Price: GAP's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

3.0%

GAP

-2.3%

AU Consumer Durables

-0.5%

AU Market


1 Year Return

-46.9%

GAP

12.1%

AU Consumer Durables

-10.7%

AU Market

Return vs Industry: GAP underperformed the Australian Consumer Durables industry which returned 15.8% over the past year.

Return vs Market: GAP underperformed the Australian Market which returned -12% over the past year.


Shareholder returns

GAPIndustryMarket
7 Day3.0%-2.3%-0.5%
30 Day-5.6%5.6%2.4%
90 Day36.0%29.5%10.8%
1 Year-45.0%-46.9%13.9%12.1%-7.0%-10.7%
3 Year-50.9%-57.5%61.6%50.3%16.5%1.1%
5 Year18.5%-8.1%173.8%139.9%29.8%1.8%

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?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: GAP (A$0.17) is trading below our estimate of fair value (A$0.5)

Significantly Below Fair Value: GAP is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: GAP is good value based on its PE Ratio (9.4x) compared to the AU Consumer Durables industry average (14x).

PE vs Market: GAP is good value based on its PE Ratio (9.4x) compared to the Australian market (15.5x).


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 (0.6x) compared to the AU Consumer Durables industry average (1.3x).


Next Steps

Future Growth

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

14.8%

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?

-0.04%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: GAP has high quality earnings.

Growing Profit Margin: GAP's current net profit margins (3.5%) are lower than last year (6%).


Past Earnings Growth Analysis

Earnings Trend: GAP's earnings have declined by -0.04% 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 (-44.6%) over the past year, making it difficult to compare to the Consumer Durables industry average (-24.2%).


Return on Equity

High ROE: GAP's Return on Equity (6.2%) is considered low.


Next Steps

Financial Health

How is Gale Pacific's financial position?


Financial Position Analysis

Short Term Liabilities: GAP's short term assets (A$100.4M) exceed its short term liabilities (A$47.6M).

Long Term Liabilities: GAP's short term assets (A$100.4M) exceed its long term liabilities (A$40.5M).


Debt to Equity History and Analysis

Debt Level: GAP's debt to equity ratio (49.6%) is considered high.

Reducing Debt: GAP's debt to equity ratio has increased from 49.1% to 49.6% over the past 5 years.

Debt Coverage: GAP's debt is well covered by operating cash flow (46.5%).

Interest Coverage: GAP's interest payments on its debt are well covered by EBIT (4.1x coverage).


Balance Sheet


Next Steps

Dividend

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


Dividend Yield vs Market

Notable Dividend: Unable to evaluate GAP's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate GAP's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if GAP's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if GAP's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: GAP is not paying a notable dividend for the Australian market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of GAP'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?

4.1yrs

Average management tenure


CEO

John Marcantonio

0.58

Tenure

AU$431,356

Compensation

Mr. John Paul Marcantonio serves as Chief Executive Officer of Gale Pacific Limited since December 20, 2019. He serves as the President and General Manager of Gale’s U.S. business. Mr. Marcantonio serves a ...


CEO Compensation Analysis

Compensation vs Market: John's total compensation ($USD299.91K) is about average for companies of similar size in the Australian market ($USD262.46K).

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


Leadership Team

NamePositionTenureCompensationOwnership
John Marcantonio
Chief Executive Officer0.58yrAU$431.36kno data
Bruno Marotta
Senior Manager of Global Procurement & Logistics5.75yrsAU$217.90k0.40% A$187.8k
Ali Haidar
General Manager of Middle East & North Africano dataAU$258.14kno data
XinHua Zhang
General Manager of China Manufacturing4.08yrsAU$253.40kno data
Domenic Romanelli
Chief Financial Officer0.83yrno datano data
Sophie Karzis
Company Secretary16.08yrsno datano data

4.1yrs

Average Tenure

Experienced Management: GAP's management team is considered experienced (4.1 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Thomas Stianos
Non-Executive Director2.75yrsAU$96.45k0.22% A$102.0k
David Allman
Chairman10.67yrsAU$140.80k1.63% A$765.0k
Peter D. Landos
Non-Executive Director6.17yrsAU$92.43kno data
Donna McMaster
Non-Executive Director2.33yrsAU$84.50k0.018% A$8.5k

4.5yrs

Average Tenure

Experienced Board: GAP's board of directors are considered experienced (4.5 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: GAP 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

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$46.817m
  • Shares outstanding: 275.39m
  • 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 for agricultural, architectural, industrial, horticultural, mining, and construction applications under the GALE Pacific brand; and a range of outdoor leisure and garden products for home and garden, including gazebos, sun umbrellas, shade sails, synthetic grass, weed mat, bird nets, and screenings for architectural shade, crop protection, water containment, and screening under the Coolaroo brand. It also provides window furnishings, such as a range of venetian and roller blinds, as well as curtain accessories for hanging curtains under the Zone Interiors brand. The company markets its products in commercial and retail sectors, as well as home improvement, club, and e-commerce channels in Australia, New Zealand, China, Australasia, the Americas, the Middle East, North Africa, and internationally. Gale Pacific Limited was founded in 1951 and is based in Braeside, Australia. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/07/13 10:37
End of Day Share Price2020/07/13 00:00
Earnings2019/12/31
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.