Gowing Bros (ASX:GOW) - Share price, News & Analysis

GOW fundamental analysis
Snowflake Score
Valuation	1/6
Future Growth	0/6
Past Performance	4/6
Financial Health	3/6
Dividends	1/6

GOW Stock Overview

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

Rewards

PE ratio (12.6x) is below the Australian market (16.1x)

Earnings grew by 105% over the past year

Risk Analysis

Earnings have declined by 19.1% per year over past 5 years

Gowing Bros Peers

London City Equities

ASX:LCE

AU$15.3m

Earlypay

ASX:EPY

AU$159.1m

Pengana Capital Group

ASX:PCG

AU$146.8m

Cash Converters International

ASX:CCV

AU$150.6m

Price History & Performance

Summary of all time highs, changes and price drops for Gowing Bros
Historical stock prices
Current Share Price	AU$2.95
52 Week High	AU$3.26
52 Week Low	AU$2.09
Beta	0.70
1 Month Change	-1.34%
3 Month Change	-4.84%
1 Year Change	36.57%
3 Year Change	18.00%
5 Year Change	-13.24%
Change since IPO	51.89%

Recent News & Updates

Mar 30

Gowing Bros (ASX:GOW) Is Due To Pay A Dividend Of AU$0.04

Gowing Bros. Limited's ( ASX:GOW ) investors are due to receive a payment of AU$0.04 per share on 22nd of April. This...

Shareholder Returns

	GOW	AU Diversified Financial	AU Market
7D	1.4%	1.3%	0.7%
1Y	36.6%	27.0%	2.1%

Return vs Industry: GOW exceeded the Australian Diversified Financial industry which returned 22.7% over the past year.

Return vs Market: GOW exceeded the Australian Market which returned -0.2% over the past year.

Price Volatility

Is GOW's price volatile compared to industry and market?
GOW volatility
GOW Average Weekly Movement	3.1%
Diversified Financial Industry Average Movement	6.2%
Market Average Movement	9.4%
10% most volatile stocks in AU Market	16.7%
10% least volatile stocks in AU Market	4.3%

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

Volatility Over Time: GOW's weekly volatility (3%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
n/a	n/a	John Gowing	https://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 Cap	AU$157.76m
Earnings (TTM)	AU$12.51m
Revenue (TTM)	AU$83.43m

12.6x

P/E Ratio

1.9x

P/S Ratio

Is GOW overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
GOW income statement (TTM)
Revenue	AU$83.43m
Cost of Revenue	AU$58.09m
Gross Profit	AU$25.34m
Other Expenses	AU$12.83m
Earnings	AU$12.51m

Last Reported Earnings

Jan 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	0.23
Gross Margin	30.37%
Net Profit Margin	15.00%
Debt/Equity Ratio	46.3%

How did GOW perform over the long term?

See historical performance and comparison

Dividends

2.4%

Current Dividend Yield

26%

Payout Ratio

New valuation analysis is now available for all ASX stocks. This is in beta.

Future Growth

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

Future Growth Score

0/6

Future Growth Score 0/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

26.8%

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?

Past Performance Score

4/6

Past Performance Score 4/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

-19.1%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: GOW has high quality earnings.

Growing Profit Margin: GOW's current net profit margins (15%) are higher than last year (9.7%).

Past Earnings Growth Analysis

Earnings Trend: GOW's earnings have declined by 19.1% per year over the past 5 years.

Accelerating Growth: GOW's earnings growth over the past year (105%) exceeds its 5-year average (-19.1% per year).

Earnings vs Industry: GOW earnings growth over the past year (105%) exceeded the Diversified Financial industry 40.1%.

Return on Equity

High ROE: GOW's Return on Equity (6.1%) is considered low.

Financial Health

How is Gowing Bros's financial position?

Financial Health Score

3/6

Financial Health Score 3/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: GOW's short term assets (A$45.6M) exceed its short term liabilities (A$11.9M).

Long Term Liabilities: GOW's short term assets (A$45.6M) do not cover its long term liabilities (A$122.2M).

Debt to Equity History and Analysis

Debt Level: GOW's net debt to equity ratio (32.7%) is considered satisfactory.

Reducing Debt: GOW's debt to equity ratio has increased from 23.9% to 46.3% over the past 5 years.

Debt Coverage: GOW's debt is not well covered by operating cash flow (3.7%).

Interest Coverage: GOW's interest payments on its debt are well covered by EBIT (6.8x coverage).

Balance Sheet

Dividend

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

Dividend Score

1/6

Dividend Score 1/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

2.37%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: GOW's dividend (2.37%) isn’t notable compared to the bottom 25% of dividend payers in the Australian market (2.56%).

High Dividend: GOW's dividend (2.37%) is low compared to the top 25% of dividend payers in the Australian market (6.12%).

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.

Earnings Payout to Shareholders

Earnings Coverage: With its reasonably low payout ratio (25.7%), GOW's dividend payments are well covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: With its high cash payout ratio (128.9%), GOW's dividend payments are not well covered by cash flows.

Next Steps

Explore strong dividend paying companies in the Diversified Financials industry.

Management

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

3.1yrs

Average management tenure

CEO

John Gowing (60 yo)

35.33yrs

Tenure

AU$113,762

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 ($USD78.74K) is below average for companies of similar size in the Australian market ($USD283.77K).

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 (3.1 years average tenure).

Board Members

Experienced Board: GOW's board of directors are seasoned and experienced ( 13.2 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 not been meaningfully diluted in the past year.

Data	Last Updated (UTC time)
Company Analysis	2022/05/17 00:00
End of Day Share Price	2022/05/17 00:00
Earnings	2022/01/31
Annual Earnings	2021/07/31