ASX:GOW

Stock Analysis Report

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Market Cap

AU$147.5m

Last Updated

2021/08/02 15:29 UTC

Data Sources

Company Financials

Executive Summary

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


Snowflake Analysis

Questionable track record unattractive dividend payer.

Share Price & News

How has Gowing Bros's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: GOW is not significantly more volatile than the rest of Australian stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: GOW's weekly volatility (6%) has been stable over the past year.


Market Performance


7 Day Return

-1.8%

GOW

0.3%

AU Diversified Financial

0.7%

AU Market


1 Year Return

111.5%

GOW

-3.3%

AU Diversified Financial

27.2%

AU Market

Return vs Industry: GOW exceeded the Australian Diversified Financial industry which returned -4.8% over the past year.

Return vs Market: GOW exceeded the Australian Market which returned 27.3% over the past year.


Shareholder returns

GOWIndustryMarket
7 Day-1.8%0.3%0.7%
30 Day15.1%-0.8%2.4%
90 Day33.5%7.2%5.2%
1 Year119.8%111.5%0.6%-3.3%31.9%27.2%
3 Year6.6%-6.8%-51.7%-56.3%35.7%19.1%
5 Year-6.1%-23.6%-58.9%-66.3%66.2%33.8%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

24.22x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: GOW (A$2.75) is trading above our estimate of fair value (A$0.16)

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


Price To Earnings Ratio

PE vs Industry: GOW is poor value based on its PE Ratio (24.2x) compared to the Australian Diversified Financial industry average (23.3x).

PE vs Market: GOW is poor value based on its PE Ratio (24.2x) compared to the Australian market (20.5x).


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 (0.8x) compared to the AU Diversified Financial industry average (1.5x).


Future Growth

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

27.1%

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?

-52.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: GOW has high quality earnings.

Growing Profit Margin: GOW became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: GOW's earnings have declined by 52.2% per year over the past 5 years.

Accelerating Growth: GOW has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: GOW has become profitable in the last year, making it difficult to compare its past year earnings growth to the Diversified Financial industry (10.4%).


Return on Equity

High ROE: GOW's Return on Equity (3.2%) is considered low.


Financial Health

How is Gowing Bros's financial position?


Financial Position Analysis

Short Term Liabilities: GOW's short term assets (A$46.0M) exceed its short term liabilities (A$13.5M).

Long Term Liabilities: GOW's short term assets (A$46.0M) do not cover its long term liabilities (A$119.6M).


Debt to Equity History and Analysis

Debt Level: GOW's debt to equity ratio (50.7%) is considered high.

Reducing Debt: GOW's debt to equity ratio has increased from 25.1% to 50.7% over the past 5 years.

Debt Coverage: GOW's debt is not well covered by operating cash flow (12.2%).

Interest Coverage: GOW's interest payments on its debt are not well covered by EBIT (2.5x coverage).


Balance Sheet


Dividend

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

2.18%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: GOW's dividend (2.18%) is higher than the bottom 25% of dividend payers in the Australian market (1.99%).

High Dividend: GOW's dividend (2.18%) is low compared to the top 25% of dividend payers in the Australian market (4.98%).


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 reasonable payout ratio (52.8%), GOW'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

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

2.3yrs

Average management tenure


CEO

John Gowing (60 yo)

34.58yrs

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 ($USD225.26K) is about average for companies of similar size in the Australian market ($USD270.84K).

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 (2.3 years average tenure).


Board Members

Experienced Board: GOW's board of directors are considered experienced (5.3 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 company bio, 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$147.469m
  • Shares outstanding: 53.62m
  • Website: https://www.gowings.com

Location

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

Listings


Biography

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 segmen...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/08/02 15:29
End of Day Share Price2021/08/02 00:00
Earnings2021/01/31
Annual Earnings2020/07/31


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.