REA Stock Overview
REA Group Limited engages in online property advertising business in Australia, Asia, and North America.
No risks detected for REA from our risk checks.
REA Group Competitors
Price History & Performance
|Historical stock prices|
|Current Share Price||AU$124.54|
|52 Week High||AU$180.67|
|52 Week Low||AU$93.77|
|1 Month Change||1.67%|
|3 Month Change||16.09%|
|1 Year Change||-21.88%|
|3 Year Change||28.87%|
|5 Year Change||93.54%|
|Change since IPO||9,263.91%|
Recent News & Updates
Calculating The Intrinsic Value Of REA Group Limited (ASX:REA)
Today we'll do a simple run through of a valuation method used to estimate the attractiveness of REA Group Limited...
Is Now The Time To Look At Buying REA Group Limited (ASX:REA)?
Today we're going to take a look at the well-established REA Group Limited ( ASX:REA ). The company's stock saw a...
Is REA Group (ASX:REA) Using Too Much Debt?
Warren Buffett famously said, 'Volatility is far from synonymous with risk.' When we think about how risky a company...
|REA||AU Interactive Media and Services||AU Market|
Return vs Industry: REA underperformed the Australian Interactive Media and Services industry which returned -19.8% over the past year.
Return vs Market: REA underperformed the Australian Market which returned -7.9% over the past year.
|REA Average Weekly Movement||6.5%|
|Interactive Media and Services Industry Average Movement||9.0%|
|Market Average Movement||10.6%|
|10% most volatile stocks in AU Market||17.5%|
|10% least volatile stocks in AU Market||4.7%|
Stable Share Price: REA is less volatile than 75% of Australian stocks over the past 3 months, typically moving +/- 7% a week.
Volatility Over Time: REA's weekly volatility (7%) has been stable over the past year.
About the Company
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|
Is REA overvalued?See Fair Value and valuation analysis
Earnings & Revenue
|REA income statement (TTM)|
|Cost of Revenue||AU$469.09m|
Last Reported Earnings
Dec 31, 2021
Next Earnings Date
Aug 08, 2022
|Earnings per share (EPS)||2.80|
|Net Profit Margin||29.16%|
How did REA perform over the long term?See historical performance and comparison
1.2%Current Dividend Yield
Is REA undervalued compared to its fair value, analyst forecasts and its price relative to the market?
Valuation Score 1/6
Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
Key Valuation Metric
Which metric is best to use when looking at relative valuation for REA?
Other financial metrics that can be useful for relative valuation.
|What is REA's n/a Ratio?|
Price to Earnings Ratio vs Peers
How does REA's PE Ratio compare to its peers?
|REA PE Ratio vs Peers|
|Company||PE||Estimated Growth||Market Cap|
DHG Domain Holdings Australia
NEC Nine Entertainment Holdings
REA REA Group
Price-To-Earnings vs Peers: REA is expensive based on its Price-To-Earnings Ratio (44.4x) compared to the peer average (43.1x).
Price to Earnings Ratio vs Industry
How does REA's PE Ratio compare vs other companies in the Global Interactive Media and Services Industry?
Price-To-Earnings vs Industry: REA is expensive based on its Price-To-Earnings Ratio (44.4x) compared to the Global Interactive Media and Services industry average (25.1x)
Price to Earnings Ratio vs Fair Ratio
What is REA's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.
|Current PE Ratio||44.4x|
|Fair PE Ratio||31.8x|
Price-To-Earnings vs Fair Ratio: REA is expensive based on its Price-To-Earnings Ratio (44.4x) compared to the estimated Fair Price-To-Earnings Ratio (31.8x).
Share Price vs Fair Value
What is the Fair Price of REA when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.
Below Fair Value: REA (A$124.54) is trading below our estimate of fair value (A$131.58)
Significantly Below Fair Value: REA is trading below fair value, but not by a significant amount.
Analyst Price Targets
What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?
Analyst Forecast: Target price is less than 20% higher than the current share price.
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How is REA Group forecast to perform in the next 1 to 3 years based on estimates from 16 analysts?
Future Growth Score4/6
Future Growth Score 4/6
Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: REA's forecast earnings growth (13.5% per year) is above the savings rate (1.8%).
Earnings vs Market: REA's earnings (13.5% per year) are forecast to grow faster than the Australian market (6.2% per year).
High Growth Earnings: REA's earnings are forecast to grow, but not significantly.
Revenue vs Market: REA's revenue (9% per year) is forecast to grow faster than the Australian market (5.7% per year).
High Growth Revenue: REA's revenue (9% 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 (31.1%)
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How has REA Group performed over the past 5 years?
Past Performance Score6/6
Past Performance Score 6/6
Growing Profit Margin
Earnings vs Industry
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: REA has high quality earnings.
Growing Profit Margin: REA's current net profit margins (29.2%) are higher than last year (15.7%).
Past Earnings Growth Analysis
Earnings Trend: REA's earnings have grown significantly by 20% per year over the past 5 years.
Accelerating Growth: REA's earnings growth over the past year (168.2%) exceeds its 5-year average (20% per year).
Earnings vs Industry: REA earnings growth over the past year (168.2%) exceeded the Interactive Media and Services industry 22.2%.
Return on Equity
High ROE: REA's Return on Equity (27.7%) is considered high.
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How is REA Group's financial position?
Financial Health Score5/6
Financial Health Score 5/6
Short Term Liabilities
Long Term Liabilities
Financial Position Analysis
Short Term Liabilities: REA's short term assets (A$505.7M) exceed its short term liabilities (A$289.9M).
Long Term Liabilities: REA's short term assets (A$505.7M) do not cover its long term liabilities (A$860.7M).
Debt to Equity History and Analysis
Debt Level: REA's net debt to equity ratio (16.9%) is considered satisfactory.
Reducing Debt: REA's debt to equity ratio has reduced from 51.4% to 32.1% over the past 5 years.
Debt Coverage: REA's debt is well covered by operating cash flow (99.5%).
Interest Coverage: REA's interest payments on its debt are well covered by EBIT (87.9x coverage).
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What is REA Group current dividend yield, its reliability and sustainability?
Dividend Score 0/6
Cash Flow Coverage
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: REA's dividend (1.2%) isn’t notable compared to the bottom 25% of dividend payers in the Australian market (2.62%).
High Dividend: REA's dividend (1.2%) is low compared to the top 25% of dividend payers in the Australian market (6.24%).
Stability and Growth of Payments
Stable Dividend: REA is not paying a notable dividend for the Australian market, therefore no need to check if payments are stable.
Growing Dividend: REA is not paying a notable dividend for the Australian market, therefore no need to check if payments are increasing.
Earnings Payout to Shareholders
Earnings Coverage: REA is not paying a notable dividend for the Australian market.
Cash Payout to Shareholders
Cash Flow Coverage: REA is not paying a notable dividend for the Australian market.
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How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Owen Wilson (58 yo)
Mr. Owen James Wilson, BCom, ACA, GAICD, serves as Director at PropertyGuru Group Limited since 2022. He serves as Chief Executive Officer and Executive Director at REA Group Limited since January 7, 2019....
CEO Compensation Analysis
Compensation vs Market: Owen's total compensation ($USD3.01M) is about average for companies of similar size in the Australian market ($USD3.99M).
Compensation vs Earnings: Owen's compensation has increased by more than 20% in the past year.
Experienced Management: REA's management team is considered experienced (2.3 years average tenure).
Experienced Board: REA's board of directors are considered experienced (4.3 years average tenure).
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
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
REA Group Limited's employee growth, exchange listings and data sources
- Name: REA Group Limited
- Ticker: REA
- Exchange: ASX
- Founded: 1995
- Industry: Interactive Media and Services
- Sector: Media
- Implied Market Cap: AU$16.458b
- Shares outstanding: 132.15m
- Website: https://www.rea-group.com
Number of Employees
- REA Group Limited
- 511 Church Street
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2022/08/07 00:00|
|End of Day Share Price||2022/08/05 00:00|
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.