| Snowflake Score | |
|---|---|
| Valuation | 0/6 |
| Future Growth | 4/6 |
| Past Performance | 6/6 |
| Financial Health | 5/6 |
| Dividends | 0/6 |
REA Overview
REA Group Limited engages in online property advertising business in Australia, Asia, and North America.
Rewards
Risk Analysis
REA passed our risk checks.
REA Group Competitors
Price History & Performance
| Historical stock prices | |
|---|---|
| Current Share Price | AU$163.52 |
| 52 Week High | AU$117.32 |
| 52 Week Low | AU$173.11 |
| Beta | 0.99 |
| 1 Month Change | -1.90% |
| 3 Month Change | 0.35% |
| 1 Year Change | 31.51% |
| 3 Year Change | 128.32% |
| 5 Year Change | 231.35% |
| Change since IPO | 12,194.74% |
Recent News & Updates
REA Group (ASX:REA) Knows How To Allocate Capital
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At AU$154, Is REA Group Limited (ASX:REA) Worth Looking At Closely?
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Shareholder Returns
| REA | AU Interactive Media and Services | AU Market | |
|---|---|---|---|
| 7D | 0.9% | 3.5% | 0.8% |
| 1Y | 31.5% | 31.9% | 24.4% |
Return vs Industry: REA matched the Australian Interactive Media and Services industry which returned 31.9% over the past year.
Return vs Market: REA exceeded the Australian Market which returned 24.4% over the past year.
Price Volatility
| REA volatility | |
|---|---|
| REA Beta | 0.99 |
| Industry Beta | 1.03 |
| Market Beta | 1 |
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.
About the Company
| Founded | Employees | CEO | Website |
|---|---|---|---|
| 1995 | 2,931 | Owen Wilson | https://www.rea-group.com |
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 residential, commercial, share, and co-working property sites, such as realestate.com.au, realcommercial.com.au, spacely.com.au, Flatmates.com.au, iproperty.com.my, smartline.com.au, rumah123.com, iproperty.com.sg, squarefoot.com.hk, ThinkgOfLiving.com, myfun.com, smartexpos.com, makaan.com, housing.com, PropTiger.com, move.com, realtor.com, and 99.co.
REA Group Fundamentals Summary
| REA fundamental statistics | |
|---|---|
| Market Cap | AU$21.61b |
| Earnings (TTM) | AU$322.68m |
| Revenue (TTM) | AU$1.01b |
67.0x
P/E Ratio21.5x
P/S RatioIs REA overvalued?
See Fair Value and valuation analysisEarnings & Revenue
| REA income statement (TTM) | |
|---|---|
| Revenue | AU$1.01b |
| Cost of Revenue | AU$311.79m |
| Gross Profit | AU$693.58m |
| Expenses | AU$370.90m |
| Earnings | AU$322.68m |
Last Reported Earnings
Jun 30, 2021
Next Earnings Date
n/a
| Earnings per share (EPS) | 2.44 |
| Gross Margin | 68.99% |
| Net Profit Margin | 32.10% |
| Debt/Equity Ratio | 36.3% |
How did REA perform over the long term?
See historical performance and comparisonDividends
0.9%
Current Dividend Yield54%
Payout RatioValuation
Is REA Group undervalued compared to its fair value and its price relative to the market?
66.97x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: REA (A$163.52) is trading above our estimate of fair value (A$96.43)
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 (67x) compared to the Australian Interactive Media and Services industry average (60.1x).
PE vs Market: REA is poor value based on its PE Ratio (67x) compared to the Australian market (20x).
Price to Earnings Growth Ratio
PEG Ratio: REA is poor value based on its PEG Ratio (4.8x)
Price to Book Ratio
PB vs Industry: REA is overvalued based on its PB Ratio (20.2x) compared to the AU Interactive Media and Services industry average (7.5x).
Future Growth
How is REA Group forecast to perform in the next 1 to 3 years based on estimates from 13 analysts?
14.0%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: REA's forecast earnings growth (14% per year) is above the savings rate (1.9%).
Earnings vs Market: REA's earnings (14% per year) are forecast to grow faster than the Australian market (12.4% per year).
High Growth Earnings: REA's earnings are forecast to grow, but not significantly.
Revenue vs Market: REA's revenue (9.2% per year) is forecast to grow faster than the Australian market (5.3% per year).
High Growth Revenue: REA's revenue (9.2% 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 (33%)
Past Performance
How has REA Group performed over the past 5 years?
1.8%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: REA has high quality earnings.
Growing Profit Margin: REA's current net profit margins (32.1%) are higher than last year (12.7%).
Past Earnings Growth Analysis
Earnings Trend: REA's earnings have grown by 1.8% per year over the past 5 years.
Accelerating Growth: REA's earnings growth over the past year (187.1%) exceeds its 5-year average (1.8% per year).
Earnings vs Industry: REA earnings growth over the past year (187.1%) exceeded the Interactive Media and Services industry 10.8%.
Return on Equity
High ROE: REA's Return on Equity (27.5%) is considered high.
Financial Health
How is REA Group's financial position?
Financial Position Analysis
Short Term Liabilities: REA's short term assets (A$687.0M) exceed its short term liabilities (A$351.6M).
Long Term Liabilities: REA's short term assets (A$687.0M) do not cover its long term liabilities (A$881.5M).
Debt to Equity History and Analysis
Debt Level: REA's debt to equity ratio (36.3%) is considered satisfactory.
Reducing Debt: REA's debt to equity ratio has reduced from 69.1% to 36.3% over the past 5 years.
Debt Coverage: REA's debt is well covered by operating cash flow (77.8%).
Interest Coverage: REA's interest payments on its debt are well covered by EBIT (104x coverage).
Balance Sheet
Dividend
What is REA Group current dividend yield, its reliability and sustainability?
0.88%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: REA's dividend (0.88%) isn’t notable compared to the bottom 25% of dividend payers in the Australian market (2.23%).
High Dividend: REA's dividend (0.88%) is low compared to the top 25% of dividend payers in the Australian market (5.32%).
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?
2.8yrs
Average management tenure
CEO
Owen Wilson (57 yo)
2.75yrs
Tenure
AU$4,363,108
Compensation
Mr. Owen James Wilson, BCom, ACA, GAICD, serves as Chief Executive Officer and Executive Director at REA Group Limited since January 7, 2019. He serves as Non-Independent Director at PropertyGuru Limited s...
CEO Compensation Analysis
Compensation vs Market: Owen's total compensation ($USD3.27M) is about average for companies of similar size in the Australian market ($USD3.64M).
Compensation vs Earnings: Owen's compensation has increased by more than 20% in the past year.
Leadership Team
Experienced Management: REA's management team is considered experienced (2.8 years average tenure).
Board Members
Experienced Board: REA's board of directors are considered experienced (5.9 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: REA 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 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$21.609b
- Shares outstanding: 132.15m
- Website: https://www.rea-group.com
Number of Employees
Location
- REA Group Limited
- 511 Church Street
- Richmond
- Victoria
- 3121
- Australia
Listings
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/10/26 16:14 |
| End of Day Share Price | 2021/10/26 00:00 |
| Earnings | 2021/06/30 |
| Annual Earnings | 2021/06/30 |
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.