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GOW

Gowing BrosASX:GOW Stock Report

Market Cap

AU$167.6m

7D

0%

1Y

92.0%

Updated

18 Oct, 2021

Data

Company Financials
GOW fundamental analysis
Snowflake Score
Valuation3/6
Future Growth0/6
Past Performance4/6
Financial Health2/6
Dividends1/6

GOW Overview

Gowing Bros. Limited operates as an investment and wealth management company in Australia.

Price History & Performance

Summary of all time highs, changes and price drops for Gowing Bros
Historical stock prices
Current Share PriceAU$3.10
52 Week HighAU$1.54
52 Week LowAU$3.16
Beta0.77
1 Month Change5.09%
3 Month Change14.82%
1 Year Change91.95%
3 Year Change14.82%
5 Year Change-10.15%
Change since IPO59.62%

Recent News & Updates

Shareholder Returns

GOWAU Diversified FinancialAU Market
7D0%2.2%0.9%
1Y92.0%12.9%20.2%

Return vs Industry: GOW exceeded the Australian Diversified Financial industry which returned 12.9% over the past year.

Return vs Market: GOW exceeded the Australian Market which returned 20.2% over the past year.

Price Volatility

Is GOW's price volatile compared to industry and market?
GOW volatility
GOW Beta0.77
Industry Beta0.92
Market Beta1

Stable Share Price: GOW is less volatile than 75% of Australian stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: GOW's weekly volatility (5%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
n/an/aJohn Gowinghttps://www.gowings.com

Gowing Bros. Limited operates as an investment and wealth management company in Australia. It operates through two divisions, Investment Management and Property Management. The Investment Management segment invests in securities listed on the Australian Stock Exchange in private equity vehicles, as well as loans, including mezzanine finance arrangements.

Gowing Bros Fundamentals Summary

How do Gowing Bros's earnings and revenue compare to its market cap?
GOW fundamental statistics
Market CapAU$167.59m
Earnings (TTM)AU$10.38m
Revenue (TTM)AU$76.12m

16.0x

P/E Ratio

2.2x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
GOW income statement (TTM)
RevenueAU$76.12m
Cost of RevenueAU$52.97m
Gross ProfitAU$23.15m
ExpensesAU$12.77m
EarningsAU$10.38m

Last Reported Earnings

Jul 31, 2021

Next Earnings Date

n/a

Earnings per share (EPS)0.19
Gross Margin30.41%
Net Profit Margin13.64%
Debt/Equity Ratio48.9%

How did GOW perform over the long term?

See historical performance and comparison

Dividends

1.9%

Current Dividend Yield

31%

Payout Ratio

Valuation

Is Gowing Bros undervalued compared to its fair value and its price relative to the market?

15.99x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: GOW (A$3.1) is trading above our estimate of fair value (A$0.23)

Significantly Below Fair Value: GOW is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: GOW is good value based on its PE Ratio (16x) compared to the Australian Diversified Financial industry average (17.6x).

PE vs Market: GOW is good value based on its PE Ratio (16x) compared to the Australian market (19.8x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: GOW is good value based on its PB Ratio (0.9x) compared to the AU Diversified Financial industry average (1.2x).


Future Growth

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

-19.0%

Forecasted Diversified Financials 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 Gowing Bros 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.


Past Performance

How has Gowing Bros performed over the past 5 years?

-37.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: GOW has high quality earnings.

Growing Profit Margin: GOW's current net profit margins (13.6%) are higher than last year (7.5%).


Past Earnings Growth Analysis

Earnings Trend: GOW's earnings have declined by 37.3% per year over the past 5 years.

Accelerating Growth: GOW's earnings growth over the past year (118.7%) exceeds its 5-year average (-37.3% per year).

Earnings vs Industry: GOW earnings growth over the past year (118.7%) exceeded the Diversified Financial industry -19%.


Return on Equity

High ROE: GOW's Return on Equity (5.3%) is considered low.


Financial Health

How is Gowing Bros's financial position?


Financial Position Analysis

Short Term Liabilities: GOW's short term assets (A$46.7M) exceed its short term liabilities (A$16.4M).

Long Term Liabilities: GOW's short term assets (A$46.7M) do not cover its long term liabilities (A$120.9M).


Debt to Equity History and Analysis

Debt Level: GOW's debt to equity ratio (48.9%) is considered high.

Reducing Debt: GOW's debt to equity ratio has increased from 25.1% to 48.9% over the past 5 years.

Debt Coverage: GOW's debt is not well covered by operating cash flow (9.9%).

Interest Coverage: GOW's interest payments on its debt are well covered by EBIT (4.8x coverage).


Balance Sheet


Dividend

What is Gowing Bros's current dividend yield, its reliability and sustainability?

1.93%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: GOW's dividend (1.94%) isn’t notable compared to the bottom 25% of dividend payers in the Australian market (2.27%).

High Dividend: GOW's dividend (1.94%) is low compared to the top 25% of dividend payers in the Australian market (5.32%).


Stability and Growth of Payments

Stable Dividend: GOW's dividend payments have been volatile in the past 10 years.

Growing Dividend: GOW's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (31%), GOW's dividend payments are well 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

How experienced are the management team and are they aligned to shareholders interests?

2.5yrs

Average management tenure


CEO

John Gowing (60 yo)

34.75yrs

Tenure

AU$306,619

Compensation

Mr. John Edward Gowing, B.Comm, CA, CPA, has been Managing Director and Executive Director of Gowing Bros. Limited since 1987 and 1983 respectively. Mr. Gowing commenced his employment career with Gowing B...


CEO Compensation Analysis

Compensation vs Market: John's total compensation ($USD227.58K) is about average for companies of similar size in the Australian market ($USD302.72K).

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


Leadership Team

Experienced Management: GOW's management team is considered experienced (2.5 years average tenure).


Board Members

Experienced Board: GOW's board of directors are seasoned and experienced ( 12.6 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.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Gowing Bros. Limited's employee growth, exchange listings and data sources


Key Information

  • Name: Gowing Bros. Limited
  • Ticker: GOW
  • Exchange: ASX
  • Founded: NaN
  • Industry: Multi-Sector Holdings
  • Sector: Diversified Financials
  • Market Cap: AU$167.585m
  • Shares outstanding: 53.54m
  • Website: https://www.gowings.com

Location

  • Gowing Bros. Limited
  • The Gowings Building
  • Suite 3, Level 3
  • Coffs Harbour
  • New South Wales
  • 2450
  • Australia

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/10/18 07:04
End of Day Share Price2021/10/18 00:00
Earnings2021/07/31
Annual Earnings2021/07/31


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.