ASX:NTD

Stock Analysis Report

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National Tyre & Wheel

Executive Summary

National Tyre & Wheel Limited distributes and markets tires, wheels, tubes, and related products in Australia, New Zealand, and South Africa. More Details


Snowflake Analysis

Excellent balance sheet and good value.

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 is not significantly more volatile than the rest of Australian stocks over the past 3 months, typically moving +/- 8% a week.

Volatility Over Time: NTD's weekly volatility (8%) has been stable over the past year.


Market Performance


7 Day Return

-5.2%

NTD

0.7%

AU Retail Distributors

1.7%

AU Market


1 Year Return

97.6%

NTD

5.8%

AU Retail Distributors

-1.6%

AU Market

Return vs Industry: NTD exceeded the Australian Retail Distributors industry which returned 5.1% over the past year.

Return vs Market: NTD exceeded the Australian Market which returned -0.6% over the past year.


Shareholder returns

NTDIndustryMarket
7 Day-5.2%0.7%1.7%
30 Day10.8%-8.6%9.5%
90 Day41.4%6.9%9.2%
1 Year104.9%97.6%8.6%5.8%1.8%-1.6%
3 Yearn/a31.9%22.4%24.8%9.2%
5 Yearn/a102.4%79.1%56.1%25.0%

Long-Term 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?

44.5%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: NTD (A$0.82) is trading below our estimate of fair value (A$1.48)

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


Price To Earnings Ratio

PE vs Industry: NTD is poor value based on its PE Ratio (18.5x) compared to the XX Retail Distributors industry average (17.1x).

PE vs Market: NTD is good value based on its PE Ratio (18.5x) compared to the Australian market (22.8x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate NTD's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: NTD is good value based on its PB Ratio (1.3x) compared to the AU Retail Distributors industry average (2.5x).


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?

24.6%

Forecasted annual revenue growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if NTD's forecast earnings growth is above the savings rate (2.3%).

Earnings vs Market: Insufficient data to determine if NTD's earnings are forecast to grow faster than the Australian market

High Growth Earnings: Insufficient data to determine if earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: NTD's revenue (24.6% per year) is forecast to grow faster than the Australian market (5.1% per year).

High Growth Revenue: NTD's revenue (24.6% per year) is forecast to grow faster 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 (15.3%).


Next Steps

Past Performance

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

11.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: NTD has a large one-off loss of A$2.2M impacting its June 30 2020 financial results.

Growing Profit Margin: NTD's current net profit margins (2.9%) are lower than last year (3.8%).


Past Earnings Growth Analysis

Earnings Trend: NTD's earnings have grown by 11% per year over the past 5 years.

Accelerating Growth: NTD's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: NTD had negative earnings growth (-28.7%) over the past year, making it difficult to compare to the Retail Distributors industry average (-0.6%).


Return on Equity

High ROE: NTD's Return on Equity (6.1%) is considered low.


Next Steps

Financial Health

How is National Tyre & Wheel's financial position?


Financial Position Analysis

Short Term Liabilities: NTD's short term assets (A$92.1M) exceed its short term liabilities (A$33.7M).

Long Term Liabilities: NTD's short term assets (A$92.1M) exceed its long term liabilities (A$22.6M).


Debt to Equity History and Analysis

Debt Level: NTD's debt to equity ratio (17.8%) 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 (127%).

Interest Coverage: NTD's interest payments on its debt are well covered by EBIT (11.2x coverage).


Balance Sheet


Next Steps

Dividend

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

7.43%

Forecast Dividend Yield


Dividend Yield vs Market

Notable Dividend: Unable to evaluate NTD's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate NTD's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if NTD's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if NTD's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: NTD is not paying a notable dividend for the Australian market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of NTD'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

John Ludemann

7.33yrs

Tenure

AU$679,482

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 ($USD499.80K) is above average for companies of similar size in the Australian market ($USD280.63K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Peter Ludemann
CEO, MD & Director7.33yrsAU$679.48k2.42%
A$ 2.3m
Terence Smith
Co-Founder & Executive Director19.75yrsAU$94.42k23.86%
A$ 23.2m
Jason Lamb
CFO & Joint Company Secretaryno dataAU$399.48k0.32%
A$ 309.2k
Christopher Hummer
Managing Director of Dynamic Wheel Co. & MPCno dataAU$280.92k3.64%
A$ 3.5m
Georg Schramm
Managing Director of TyreLife Solutions - South Africano dataAU$326.89kno data
Trevor Wren
Managing Director of Statewide Tyre Distributionno dataAU$342.78k0.19%
A$ 185.8k
Colin Skead
Chief Executive Officer of ETD Australia0.83yrAU$315.05k0.0031%
A$ 3.0k
Les DeCelis
Managing Director of Tyres4U0.25yrno datano data
Laura Fanning
Joint Company Secretary2.75yrsno datano data

2.8yrs

Average Tenure

Experienced Management: NTD's management team is considered experienced (2.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Peter Ludemann
CEO, MD & Director7.33yrsAU$679.48k2.42%
A$ 2.3m
Terence Smith
Co-Founder & Executive Director19.75yrsAU$94.42k23.86%
A$ 23.2m
Murray Boyte
Independent Non-Executive Chairman3.08yrsAU$90.00k0.14%
A$ 132.8k
William Cook
Independent Non-Executive Director7.83yrsAU$80.04k0.35%
A$ 342.7k
Robert Kent
Independent Non-Executive Director3.17yrsAU$80.00k0.18%
A$ 174.2k

7.8yrs

Average Tenure

Experienced Board: NTD's board of directors are considered experienced (7.8 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 been diluted in the past year, with total shares outstanding growing by 11%.


Top Shareholders

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$97.076m
  • Shares outstanding: 114.21m
  • 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 distributes and markets tires, wheels, tubes, and related products in Australia, New Zealand, and South Africa. The company offers its products for cars, buses, trucks, commer...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/11/26 07:06
End of Day Share Price2020/11/26 00:00
Earnings2020/06/30
Annual Earnings2020/06/30


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.