ASX:NTD

Stock Analysis Report

National Tyre & Wheel

Executive Summary

National Tyre & Wheel Limited, together with its subsidiaries, distributes and markets motor vehicle tires, wheels, tubes, and related products in Australia, New Zealand, and South Africa.

Snowflake

Fundamentals

Undervalued with solid track record and pays a dividend.

Share Price & News

How has National Tyre & Wheel's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: NTD has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

4.8%

NTD

0.5%

AU Retail Distributors

1.2%

AU Market


1 Year Return

-51.7%

NTD

3.7%

AU Retail Distributors

12.1%

AU Market

Return vs Industry: NTD underperformed the Australian Retail Distributors industry which returned 3.7% over the past year.

Return vs Market: NTD underperformed the Australian Market which returned 12.1% over the past year.


Shareholder returns

NTDIndustryMarket
7 Day4.8%0.5%1.2%
30 Day8.8%1.9%2.0%
90 Day11.5%14.6%3.2%
1 Year-45.6%-51.7%9.2%3.7%18.3%12.1%
3 Yearn/a60.6%42.9%40.6%22.1%
5 Yearn/a209.9%135.2%54.2%19.8%

Price Volatility Vs. Market

How volatile is National Tyre & Wheel's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is National Tyre & Wheel undervalued compared to its fair value and its price relative to the market?

47.8%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: NTD (A$0.44) is trading below our estimate of fair value (A$0.83)

Significantly Below Fair Value: NTD is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: NTD is good value based on its PE Ratio (7x) compared to the Retail Distributors industry average (16.5x).

PE vs Market: NTD is good value based on its PE Ratio (7x) compared to the Australian market (18.6x).


Price to Earnings Growth Ratio

PEG Ratio: NTD's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: NTD is good value based on its PB Ratio (0.7x) compared to the AU Retail Distributors industry average (2.3x).


Next Steps

Future Growth

How is National Tyre & Wheel forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

-2.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: NTD's earnings are forecast to decline over the next 3 years (-2.7% per year).

Earnings vs Market: NTD's earnings are forecast to decline over the next 3 years (-2.7% per year).

High Growth Earnings: NTD's earnings are forecast to decline over the next 3 years.

Revenue vs Market: NTD's revenue (1.6% per year) is forecast to grow slower than the Australian market (3.6% per year).

High Growth Revenue: NTD's revenue (1.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: NTD's Return on Equity is forecast to be low in 3 years time (10.5%).


Next Steps

Past Performance

How has National Tyre & Wheel performed over the past 5 years?

21.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: NTD has high quality earnings.

Growing Profit Margin: NTD's current net profit margins (3.8%) are higher than last year (3.1%).


Past Earnings Growth Analysis

Earnings Trend: NTD's earnings have grown significantly by 21.8% per year over the past 5 years.

Accelerating Growth: NTD's earnings growth over the past year (42.7%) exceeds its 5-year average (21.8% per year).

Earnings vs Industry: NTD earnings growth over the past year (42.7%) exceeded the Retail Distributors industry -0.04%.


Return on Equity

High ROE: NTD's Return on Equity (9.4%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is National Tyre & Wheel's financial position?


Financial Position Analysis

Short Term Liabilities: NTD's short term assets (A$94.3M) exceeds its short term liabilities (A$34.7M)

Long Term Liabilities: NTD's short term assets (94.3M) exceeds its long term liabilities (12.8M)


Debt to Equity History and Analysis

Debt Level: NTD's debt to equity ratio (18.6%) is considered satisfactory

Reducing Debt: Insufficient data to determine if NTD's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: NTD's debt is well covered by operating cash flow (31.1%).

Interest Coverage: NTD's interest payments on its debt are well covered by EBIT (18.8x coverage).


Balance Sheet

Inventory Level: NTD has a high level of physical assets or inventory.

Debt Coverage by Assets: NTD's debt is covered by short term assets (assets are 7.2x debt).


Next Steps

  • Explore more healthy companies in the Retail industry.

Dividend

What is National Tyre & Wheel's current dividend yield, its reliability and sustainability?

7.59%

Current Dividend Yield


Dividend Yield vs Market

company7.6%marketbottom25%2.4%markettop25%5.5%industryaverage2.9%forecastin3Years7.3%

Current dividend yield vs market & industry

Notable Dividend: NTD's dividend (7.59%) is higher than the bottom 25% of dividend payers in the Australian market (2.36%).

High Dividend: NTD's dividend (7.59%) is in the top 25% of dividend payers in the Australian market (5.51%)


Stability and Growth of Payments

Stable Dividend: NTD has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: NTD's dividend payments have increased, but the company has only paid a dividend for 2 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (53%), NTD's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: NTD's dividends in 3 years are forecast to be well covered by earnings (45% payout ratio).


Next Steps

Management

What is the CEO of National Tyre & Wheel's salary, the management and board of directors tenure and is there insider trading?

6.3yrs

Average management tenure


CEO

John Ludemann 0

6.3yrs

Tenure

AU$651,602

Compensation

Mr. Peter Ludemann is also known as John, served as Joint Managing Partner of EC. Pohl & Co. Private Equity Limited (Pinnacle Private Equity Limited). Mr. Ludemann served as a Managing Director at Sequence ...


CEO Compensation Analysis

Compensation vs Market: John's total compensation ($USD446.30K) is above average for companies of similar size in the Australian market ($USD258.78K).

Compensation vs Earnings: John's compensation has been consistent with company performance over the past year.


Management Age and Tenure

6.3yrs

Average Tenure

Experienced Management: NTD's management team is seasoned and experienced (6.3 years average tenure).


Board Age and Tenure

5.0yrs

Average Tenure

Experienced Board: NTD's board of directors are considered experienced (5 years average tenure).


Insider Trading

Insider Buying: NTD insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyAU$800,91316 Oct 19
Forager Funds Management Pty Ltd.
EntityCompany
Shares1,985,843
Max PriceAU$0.41
SellAU$504 Sep 19
Terence Smith
EntityIndividual
Role
Member of the Board of Directors
Co-Founder & Executive Director
Shares5,884
Max PriceAU$0.00085
BuyAU$40,00004 Sep 19
William Cook
EntityIndividual
Role
Member of the Board of Directors
Independent Non-Executive Director
Shares100,000
Max PriceAU$0.40
SellAU$229,60430 Aug 19
Pendal Group Limited
EntityCompany
Shares564,775
Max PriceAU$0.43
SellAU$723,63615 Mar 19
Perpetual Limited
EntityCompany
Shares1,478,626
Max PriceAU$0.49
BuyAU$2,096,53512 Mar 19
Forager Funds Management Pty Ltd.
EntityCompany
Shares4,360,000
Max PriceAU$0.52
SellAU$509,37201 Mar 19
Perpetual Limited
EntityCompany
Shares1,000,000
Max PriceAU$0.51
BuyAU$118,68201 Mar 19
Perpetual Limited
EntityCompany
Shares300,000
Max PriceAU$0.40
SellAU$423,85624 Jan 19
Perpetual Limited
EntityCompany
Shares789,930
Max PriceAU$0.54
BuyAU$50,61224 Jan 19
Perpetual Limited
EntityCompany
Shares93,582
Max PriceAU$0.54
BuyAU$354,15011 Jan 19
Pendal Group Limited
EntityCompany
Shares787,000
Max PriceAU$0.45
SellAU$776,82211 Dec 18
Pendal Group Limited
EntityCompany
Shares1,639,215
Max PriceAU$0.55
BuyAU$295,08321 Nov 18
Terence Smith
EntityIndividual
Role
Member of the Board of Directors
Co-Founder & Executive Director
Shares505,000
Max PriceAU$0.58
BuyAU$29,25020 Nov 18
Murray Boyte
EntityIndividual
Role
Chairman of the Board
Independent Non-Executive Chairman
Shares50,000
Max PriceAU$0.58
BuyAU$55,35520 Nov 18
William Cook
EntityIndividual
Role
Member of the Board of Directors
Independent Non-Executive Director
Shares100,000
Max PriceAU$0.55
BuyAU$59,00020 Nov 18
Robert Kent
EntityIndividual
Role
Member of the Board of Directors
Independent Non-Executive Director
Shares100,000
Max PriceAU$0.59
BuyAU$100,30020 Nov 18
Peter Ludemann
EntityIndividual
Role
Chief Executive Officer
CEO, MD & Director
Shares170,000
Max PriceAU$0.59
BuyAU$939,43519 Nov 18
Pendal Group Limited
EntityCompany
Shares1,336,612
Max PriceAU$1.25
SellAU$815,88216 Nov 18
Perpetual Limited
EntityCompany
Shares1,577,185
Max PriceAU$0.52

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 20.4%.


Management Team

  • John Ludemann

    CEO, MD & Director

    • Tenure: 6.3yrs
    • Compensation: AU$651.60k
  • Laura Fanning

    Joint Company Secretary

    • Tenure: 1.8yrs
  • Terry Smith

    Co-Founder & Executive Director

    • Tenure: 18.8yrs
    • Compensation: AU$91.21k
  • Chris Hummer

    Managing Director of Dynamic

    • Tenure: 0yrs
    • Compensation: AU$177.62k
  • Jason Lamb

    CFO & Joint Company Secretary

    • Tenure: 0yrs
    • Compensation: AU$382.81k
  • Roshan Chelvaratnam

    Managing Director of MPC

    • Tenure: 0yrs
    • Compensation: AU$178.40k
  • Georg Schramm

    Managing Director of Top Draw Tyres (South Africa)

    • Tenure: 0yrs
    • Compensation: AU$404.66k
  • Trevor Wren

    Managing Director of Statewide Tyre Distribution

    • Tenure: 0yrs
    • Compensation: AU$218.66k

Board Members

  • Murray Boyte

    Independent Non-Executive Chairman

    • Tenure: 2.1yrs
    • Compensation: AU$90.00k
  • John Ludemann

    CEO, MD & Director

    • Tenure: 6.3yrs
    • Compensation: AU$651.60k
  • Terry Smith

    Co-Founder & Executive Director

    • Tenure: 18.8yrs
    • Compensation: AU$91.21k
  • Bill Cook

    Independent Non-Executive Director

    • Tenure: 0yrs
    • Compensation: AU$80.00k
  • Rob Kent

    Independent Non-Executive Director

    • Tenure: 2.2yrs
    • Compensation: AU$80.00k

Company Information

National Tyre & Wheel Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: National Tyre & Wheel Limited
  • Ticker: NTD
  • Exchange: ASX
  • Founded: 1989
  • Industry: Distributors
  • Sector: Retail
  • Market Cap: AU$44.758m
  • Shares outstanding: 102.89m
  • Website: https://www.ntaw.com.au

Location

  • National Tyre & Wheel Limited
  • 30 Gow Street
  • Moorooka
  • Queensland
  • 4105
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
NTDASX (Australian Securities Exchange)YesOrdinary SharesAUAUDDec 2017
NTDCHIA (Chi-X Australia)YesOrdinary SharesAUAUDDec 2017
N37DB (Deutsche Boerse AG)YesOrdinary SharesDEEURDec 2017

Biography

National Tyre & Wheel Limited, together with its subsidiaries, distributes and markets motor vehicle tires, wheels, tubes, and related products in Australia, New Zealand, and South Africa. It offers its pr ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/11/12 10:43
End of Day Share Price2019/11/12 00:00
Earnings2019/06/30
Annual Earnings2019/06/30


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.