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REA

REA GroupASX:REA Stock Report

Market Cap

AU$21.6b

7D

0.9%

1Y

31.5%

Updated

26 Oct, 2021

Data

Company Financials +
REA fundamental analysis
Snowflake Score
Valuation0/6
Future Growth4/6
Past Performance6/6
Financial Health5/6
Dividends0/6

REA Overview

REA Group Limited engages in online property advertising business in Australia, Asia, and North America.

Rewards

Earnings are forecast to grow 13.99% per year

Earnings grew by 187.1% over the past year

Risk Analysis

REA passed our risk checks.

REA Group Competitors

Domain Holdings Australia

ASX:DHG

AU$3.4b

Lendlease Group

ASX:LLC

AU$7.3b

Price History & Performance

Summary of all time highs, changes and price drops for REA Group
Historical stock prices
Current Share PriceAU$163.52
52 Week HighAU$117.32
52 Week LowAU$173.11
Beta0.99
1 Month Change-1.90%
3 Month Change0.35%
1 Year Change31.51%
3 Year Change128.32%
5 Year Change231.35%
Change since IPO12,194.74%

Recent News & Updates

Oct 18
REA Group (ASX:REA) Knows How To Allocate Capital

REA Group (ASX:REA) Knows How To Allocate Capital

Did you know there are some financial metrics that can provide clues of a potential multi-bagger? Typically, we'll want...

Oct 01
With EPS Growth And More, REA Group (ASX:REA) Is Interesting

With EPS Growth And More, REA Group (ASX:REA) Is Interesting

It's only natural that many investors, especially those who are new to the game, prefer to buy shares in 'sexy' stocks...

Sep 18
Is REA Group (ASX:REA) A Risky Investment?

Is REA Group (ASX:REA) A Risky Investment?

David Iben put it well when he said, 'Volatility is not a risk we care about. What we care about is avoiding the...

Aug 22
At AU$154, Is REA Group Limited (ASX:REA) Worth Looking At Closely?

At AU$154, Is REA Group Limited (ASX:REA) Worth Looking At Closely?

Today we're going to take a look at the well-established REA Group Limited ( ASX:REA ). The company's stock received a...

Shareholder Returns

REAAU Interactive Media and ServicesAU Market
7D0.9%3.5%0.8%
1Y31.5%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

Is REA's price volatile compared to industry and market?
REA volatility
REA Beta0.99
Industry Beta1.03
Market Beta1

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

FoundedEmployeesCEOWebsite
19952,931Owen Wilsonhttps://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

How do REA Group's earnings and revenue compare to its market cap?
REA fundamental statistics
Market CapAU$21.61b
Earnings (TTM)AU$322.68m
Revenue (TTM)AU$1.01b

67.0x

P/E Ratio

21.5x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
REA income statement (TTM)
RevenueAU$1.01b
Cost of RevenueAU$311.79m
Gross ProfitAU$693.58m
ExpensesAU$370.90m
EarningsAU$322.68m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)2.44
Gross Margin68.99%
Net Profit Margin32.10%
Debt/Equity Ratio36.3%

How did REA perform over the long term?

See historical performance and comparison

Dividends

0.9%

Current Dividend Yield

54%

Payout Ratio

Valuation

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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/10/26 16:14
End of Day Share Price2021/10/26 00:00
Earnings2021/06/30
Annual Earnings2021/06/30


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.