Executive Summary
REA Group Limited engages in online property advertising business in Australia, Asia, and North America. More Details
Rewards
Risk Analysis
Snowflake Analysis
High growth potential with adequate balance sheet.
Similar Companies
Share Price & News
How has REA Group's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: REA is less volatile than 75% of Australian stocks over the past 3 months, typically moving +/- 4% a week.
Volatility Over Time: REA's weekly volatility (4%) has been stable over the past year.
Market Performance
7 Day Return
-4.4%
REA
-3.5%
AU Interactive Media and Services
-0.3%
AU Market
1 Year Return
23.4%
REA
18.3%
AU Interactive Media and Services
-1.8%
AU Market
Return vs Industry: REA exceeded the Australian Interactive Media and Services industry which returned 18.3% over the past year.
Return vs Market: REA exceeded the Australian Market which returned -1.8% over the past year.
Shareholder returns
| REA | Industry | Market | |
|---|---|---|---|
| 7 Day | -4.4% | -3.5% | -0.3% |
| 30 Day | -4.6% | -2.6% | 1.6% |
| 90 Day | 16.7% | 11.3% | 9.9% |
| 1 Year | 24.6%23.4% | 19.8%18.3% | 1.5%-1.8% |
| 3 Year | 99.5%92.5% | 71.8%63.0% | 26.2%10.7% |
| 5 Year | 189.0%170.8% | 137.7%116.6% | 69.0%35.8% |
Long-Term Price Volatility Vs. Market
How volatile is REA Group's share price compared to the market and industry in the last 5 years?
Simply Wall St News
4 days ago | Simply Wall St
How Much Of REA Group Limited (ASX:REA) Do Institutions Own?2 weeks ago | Simply Wall St
Have Insiders Been Selling REA Group Limited (ASX:REA) Shares?1 month ago | Simply Wall St
Here's What To Make Of REA Group's (ASX:REA) Returns On CapitalValuation
Is REA Group undervalued compared to its fair value and its price relative to the market?
166.14x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: REA (A$141.74) is trading above our estimate of fair value (A$76.02)
Significantly Below Fair Value: REA is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: REA is poor value based on its PE Ratio (166.1x) compared to the XX Interactive Media and Services industry average (34.7x).
PE vs Market: REA is poor value based on its PE Ratio (166.1x) compared to the Australian market (22.6x).
Price to Earnings Growth Ratio
PEG Ratio: REA is poor value based on its PEG Ratio (6.7x)
Price to Book Ratio
PB vs Industry: REA is overvalued based on its PB Ratio (21.6x) compared to the AU Interactive Media and Services industry average (8.4x).
Next Steps
Future Growth
How is REA Group forecast to perform in the next 1 to 3 years based on estimates from 12 analysts?
24.8%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: REA's forecast earnings growth (24.8% per year) is above the savings rate (2%).
Earnings vs Market: REA's earnings (24.8% per year) are forecast to grow faster than the Australian market (18% per year).
High Growth Earnings: earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: REA's revenue (10.4% per year) is forecast to grow faster than the Australian market (5% per year).
High Growth Revenue: REA's revenue (10.4% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: REA's Return on Equity is forecast to be high in 3 years time (35.3%)
Next Steps
Past Performance
How has REA Group performed over the past 5 years?
-7.4%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: REA has a large one-off loss of A$148.6M impacting its June 30 2020 financial results.
Growing Profit Margin: REA's current net profit margins (12.7%) are higher than last year (11.2%).
Past Earnings Growth Analysis
Earnings Trend: REA's earnings have declined by 7.4% per year over the past 5 years.
Accelerating Growth: REA's earnings growth over the past year (6.2%) exceeds its 5-year average (-7.4% per year).
Earnings vs Industry: REA earnings growth over the past year (6.2%) exceeded the Interactive Media and Services industry 2%.
Return on Equity
High ROE: REA's Return on Equity (13%) is considered low.
Next Steps
Financial Health
How is REA Group's financial position?
Financial Position Analysis
Short Term Liabilities: REA's short term assets (A$373.1M) exceed its short term liabilities (A$317.8M).
Long Term Liabilities: REA's short term assets (A$373.1M) do not cover its long term liabilities (A$408.3M).
Debt to Equity History and Analysis
Debt Level: REA's debt to equity ratio (27.7%) is considered satisfactory.
Reducing Debt: Insufficient data to determine if REA's debt to equity ratio has reduced over the past 5 years.
Debt Coverage: REA's debt is well covered by operating cash flow (175.2%).
Interest Coverage: REA's interest payments on its debt are well covered by EBIT (85.6x coverage).
Balance Sheet
Next Steps
Dividend
What is REA Group current dividend yield, its reliability and sustainability?
0.78%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: REA's dividend (0.78%) isn’t notable compared to the bottom 25% of dividend payers in the Australian market (2.11%).
High Dividend: REA's dividend (0.78%) is low compared to the top 25% of dividend payers in the Australian market (5.03%).
Stability and Growth of Payments
Stable Dividend: REA is not paying a notable dividend for the Australian market, therefore no need to check if payments are stable.
Growing Dividend: REA is not paying a notable dividend for the Australian market, therefore no need to check if payments are increasing.
Current Payout to Shareholders
Dividend Coverage: REA is not paying a notable dividend for the Australian market.
Future Payout to Shareholders
Future Dividend Coverage: No need to calculate the sustainability of REA'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?
1.8yrs
Average management tenure
CEO
Owen Wilson (56 yo)
2yrs
Tenure
AU$2,163,092
Compensation
Mr. Owen James Wilson, BCom, ACA, GAICD, serves as Chief Executive Officer and Executive Director at REA Group Limited since January 7, 2019. Mr. Wilson had been the Chief Financial Officer of REA Group Li...
CEO Compensation Analysis
Compensation vs Market: Owen's total compensation ($USD1.67M) is below average for companies of similar size in the Australian market ($USD3.56M).
Compensation vs Earnings: Owen's compensation has been consistent with company performance over the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| CEO & Executive Director | 2yrs | AU$2.16m | 0.0091% A$ 1.7m | |
| Chief Financial Officer | 1.58yrs | AU$1.60m | no data | |
| Chief Technology & Data Officer | 1.25yrs | no data | no data | |
| General Counsel & Company Secretary | 0.17yr | no data | no data | |
| Head of Corporate Affairs & Communications | no data | no data | no data | |
| Chief Marketing & Audience Officer | 2.08yrs | no data | no data | |
| Chief Sales Officer | 1yr | no data | no data | |
| Chief People Officer | 2.83yrs | no data | no data | |
| Chief Consumer Product Officer | 1.25yrs | no data | no data | |
| Executive Manager of Financial Reporting | no data | no data | no data | |
| CEO – REA Group Asia and Chief Strategy & Customer Product Officer | 3.83yrs | AU$1.39m | no data | |
| Chief Executive Officer of Greater China | 3.42yrs | no data | no data |
1.8yrs
Average Tenure
Experienced Management: REA's management team is not considered experienced ( 1.8 years average tenure), which suggests a new team.
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| CEO & Executive Director | 2yrs | AU$2.16m | 0.0091% A$ 1.7m | |
| Non-Executive Director | 14.17yrs | AU$221.00k | 0.0011% A$ 207.9k | |
| Independent Non Executive Director | 0.083yr | no data | no data | |
| Independent Non-Executive Director | 13.58yrs | AU$238.01k | 0.0017% A$ 318.3k | |
| Non-Executive Chairman of the Board | 8.75yrs | AU$495.01k | 0.00083% A$ 155.4k | |
| Non-Executive Director | 6.42yrs | AU$1.56m | 0.0056% A$ 1.0m | |
| Non-Executive Director | 5.17yrs | no data | no data | |
| Independent Non-Executive Director | 2.67yrs | AU$200.00k | 0.00033% A$ 61.8k | |
| Alternate Director | 0.67yr | no data | no data |
5.2yrs
Average Tenure
54yo
Average Age
Experienced Board: REA's board of directors are considered experienced (5.2 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.
Top Shareholders
Company Information
REA Group Limited's company bio, employee growth, exchange listings and data sources
Key Information
- Name: REA Group Limited
- Ticker: REA
- Exchange: ASX
- Founded: 1995
- Industry: Interactive Media and Services
- Sector: Media
- Market Cap: AU$18.726b
- Shares outstanding: 132.12m
- Website: https://www.rea-group.com
Number of Employees
Location
- REA Group Limited
- 511 Church Street
- Richmond
- Victoria
- 3121
- Australia
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| REA | ASX (Australian Securities Exchange) | Yes | Ordinary Shares | AU | AUD | Dec 1999 |
| REA | CHIA (Chi-X Australia) | Yes | Ordinary Shares | AU | AUD | Dec 1999 |
| RPGR.F | OTCPK (Pink Sheets LLC) | Yes | Ordinary Shares | US | USD | Dec 1999 |
| R9C | DB (Deutsche Boerse AG) | Yes | Ordinary Shares | DE | EUR | Dec 1999 |
| RPGR.Y | OTCPK (Pink Sheets LLC) | UNSPONSORD ADR | US | USD | Oct 2014 |
Biography
REA Group Limited engages in online property advertising business in Australia, Asia, and North America. It offers property and property-related services on websites and mobile apps. The company operates r...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/01/16 07:01 |
| End of Day Share Price | 2021/01/15 00:00 |
| Earnings | 2020/06/30 |
| Annual Earnings | 2020/06/30 |
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.