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National Tyre & Wheel

ASX:NTD
Snowflake Description

Undervalued with excellent balance sheet and pays a dividend.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
NTD
ASX
A$53M
Market Cap
  1. Home
  2. AU
  3. Retail
Company description

National Tyre & Wheel Limited distributes and markets motor vehicle tires, wheels, tubes, and related products for 4WD, SUV, van, truck, caravan, trailer, and passenger cars in Australia, New Zealand, and South Africa. The last earnings update was 23 days ago. More info.


Add to Portfolio Compare Print
  • National Tyre & Wheel has significant price volatility in the past 3 months.
NTD Share Price and Events
7 Day Returns
10.6%
ASX:NTD
-1.8%
AU Retail Distributors
0.1%
AU Market
1 Year Returns
-58.4%
ASX:NTD
0.5%
AU Retail Distributors
1.6%
AU Market
NTD Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
National Tyre & Wheel (NTD) 10.6% 13% 8.3% -58.4% - -
AU Retail Distributors -1.8% 8.8% 7.2% 0.5% 34.2% 39.2%
AU Market 0.1% 0.7% 11.2% 1.6% 18.7% 5.1%
1 Year Return vs Industry and Market
  • NTD underperformed the Retail Distributors industry which returned 0.5% over the past year.
  • NTD underperformed the Market in Australia which returned 1.6% over the past year.
Price Volatility
Industry
5yr Volatility vs Market

NTD Value

 Is National Tyre & Wheel undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of National Tyre & Wheel to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for National Tyre & Wheel.

ASX:NTD Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 1 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 8.5%
Perpetual Growth Rate 10-Year AU Government Bond Rate 2.3%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for ASX:NTD
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year AU Govt Bond Rate 2.3%
Equity Risk Premium S&P Global 6%
Retail Distributors Unlevered Beta Simply Wall St/ S&P Global 0.89
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.887 (1 + (1- 30%) (26.12%))
1.033
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.03
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.31% + (1.033 * 5.96%)
8.47%

Discounted Cash Flow Calculation for ASX:NTD using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for National Tyre & Wheel is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

ASX:NTD DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (AUD, Millions) Source Present Value
Discounted (@ 8.47%)
2019 6.90 Analyst x1 6.36
2020 7.30 Analyst x1 6.20
2021 7.50 Analyst x1 5.88
2022 7.69 Est @ 2.59% 5.56
2023 7.89 Est @ 2.5% 5.25
2024 8.08 Est @ 2.45% 4.96
2025 8.27 Est @ 2.41% 4.68
2026 8.47 Est @ 2.38% 4.42
2027 8.67 Est @ 2.36% 4.17
2028 8.87 Est @ 2.34% 3.94
Present value of next 10 years cash flows A$51.42
ASX:NTD DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= A$8.87 × (1 + 2.31%) ÷ (8.47% – 2.31%)
A$147.44
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= A$147.44 ÷ (1 + 8.47%)10
A$65.40
ASX:NTD Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= A$51.42 + A$65.40
A$116.82
Equity Value per Share
(AUD)
= Total value / Shares Outstanding
= A$116.82 / 102.65
A$1.14
ASX:NTD Discount to Share Price
Calculation Result
Value per share (AUD) From above. A$1.14
Current discount Discount to share price of A$0.52
= -1 x (A$0.52 - A$1.14) / A$1.14
54.3%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price National Tyre & Wheel is available for.
Intrinsic value
>50%
Share price is A$0.52 vs Future cash flow value of A$1.14
Current Discount Checks
For National Tyre & Wheel to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • National Tyre & Wheel's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • National Tyre & Wheel's share price is below the future cash flow value, and at a substantial discount (> 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for National Tyre & Wheel's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are National Tyre & Wheel's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
ASX:NTD PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-12-31) in AUD A$0.09
ASX:NTD Share Price ** ASX (2019-03-21) in AUD A$0.52
Global Retail Distributors Industry PE Ratio Median Figure of 114 Publicly-Listed Retail Distributors Companies 17.63x
Australia Market PE Ratio Median Figure of 543 Publicly-Listed Companies 16.2x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of National Tyre & Wheel.

ASX:NTD PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= ASX:NTD Share Price ÷ EPS (both in AUD)

= 0.52 ÷ 0.09

6.06x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • National Tyre & Wheel is good value based on earnings compared to the Global Retail Distributors industry average.
  • National Tyre & Wheel is good value based on earnings compared to the Australia market.
Price based on expected Growth
Does National Tyre & Wheel's expected growth come at a high price?
Raw Data
ASX:NTD PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 6.06x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 1 Analysts
Not available
Global Retail Distributors Industry PEG Ratio Median Figure of 20 Publicly-Listed Retail Distributors Companies 1.36x
Australia Market PEG Ratio Median Figure of 362 Publicly-Listed Companies 1.37x

*Line of best fit is calculated by linear regression .

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to calculate PEG ratio for National Tyre & Wheel, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on National Tyre & Wheel's assets?
Raw Data
ASX:NTD PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-12-31) in AUD A$0.64
ASX:NTD Share Price * ASX (2019-03-21) in AUD A$0.52
Australia Retail Distributors Industry PB Ratio Median Figure of 9 Publicly-Listed Retail Distributors Companies 2.49x
Australia Market PB Ratio Median Figure of 1,668 Publicly-Listed Companies 1.67x
ASX:NTD PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= ASX:NTD Share Price ÷ Book Value per Share (both in AUD)

= 0.52 ÷ 0.64

0.82x

* Primary Listing of National Tyre & Wheel.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • National Tyre & Wheel is good value based on assets compared to the AU Retail Distributors industry average.
X
Value checks
We assess National Tyre & Wheel's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Retail Distributors industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Retail Distributors industry average (and greater than 0)? (1 check)
  5. National Tyre & Wheel has a total score of 5/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

NTD Future Performance

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

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
-2.6%
Expected annual growth in earnings per share.
Earnings growth vs Low Risk Savings
Is National Tyre & Wheel expected to grow at an attractive rate?
  • National Tyre & Wheel's earnings are expected to decrease over the next 1-3 years, this is below the low risk savings rate of 2.3%.
Growth vs Market Checks
  • National Tyre & Wheel's earnings are expected to decrease over the next 1-3 years, this is below the Australia market average.
  • National Tyre & Wheel's revenue growth is positive but not above the Australia market average.
Annual Growth Rates Comparison
Raw Data
ASX:NTD Future Growth Rates Data Sources
Data Point Source Value (per year)
ASX:NTD Future Earnings per Share Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 1 Analysts -2.6%
ASX:NTD Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 1 Analysts 1.9%
Global Retail Distributors Industry Earnings Growth Rate Market Cap Weighted Average 15.2%
Global Retail Distributors Industry Revenue Growth Rate Market Cap Weighted Average 4.9%
Australia Market Earnings Growth Rate Market Cap Weighted Average 6.4%
Australia Market Revenue Growth Rate Market Cap Weighted Average 3%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
ASX:NTD Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 1 Analyst Estimates (S&P Global) See Below
All numbers in AUD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
ASX:NTD Future Estimates Data
Date (Data in AUD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2023-06-30 182 1
2022-06-30 179 1
2021-06-30 176 9 1
2020-06-30 173 9 1
2019-06-30 171 8 1
ASX:NTD Past Financials Data
Date (Data in AUD Millions) Revenue Cash Flow Net Income *
2018-12-31 165 4 9
2018-09-30 156 6 7
2018-06-30 147 9 4
2018-03-31 139 9 4
2017-12-31 131 10 3
2017-09-30 126 8 4
2017-06-30 120 7 6
2016-06-30 112 7 4

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • National Tyre & Wheel's earnings are expected to decrease over the next 1-3 years, this is not considered high growth.
  • National Tyre & Wheel's revenue is expected to grow by 1.9% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
ASX:NTD Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 1 Analyst Estimates (S&P Global) See Below

All data from National Tyre & Wheel Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

ASX:NTD Future Estimates Data
Date (Data in AUD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2023-06-30
2022-06-30
2021-06-30 0.08 0.08 0.08 1.00
2020-06-30 0.07 0.07 0.07 1.00
2019-06-30 0.07 0.07 0.07 1.00
ASX:NTD Past Financials Data
Date (Data in AUD Millions) EPS *
2018-12-31 0.09
2018-09-30 0.07
2018-06-30 0.05
2018-03-31 0.05
2017-12-31 0.04
2017-09-30 0.06
2017-06-30 0.08
2016-06-30

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • National Tyre & Wheel is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess National Tyre & Wheel's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Global market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Global market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
National Tyre & Wheel has a total score of 0/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

NTD Past Performance

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

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare National Tyre & Wheel's growth in the last year to its industry (Retail Distributors).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • National Tyre & Wheel has delivered over 20% year on year earnings growth in the past 5 years.
  • National Tyre & Wheel's 1-year earnings growth exceeds its 5-year average (201.2% vs 21.9%)
  • National Tyre & Wheel's earnings growth has exceeded the Global Retail Distributors industry average in the past year (201.2% vs 17.5%).
Earnings and Revenue History
National Tyre & Wheel's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from National Tyre & Wheel Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

ASX:NTD Past Revenue, Cash Flow and Net Income Data
Date (Data in AUD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-12-31 164.53 8.73 28.78
2018-09-30 156.00 6.60 28.48
2018-06-30 147.47 4.48 28.18
2018-03-31 139.06 3.69 26.72
2017-12-31 130.70 2.90 25.25
2017-09-30 125.58 4.21 23.94
2017-06-30 120.45 5.53 22.62
2016-06-30 111.98 3.67 19.44
2015-06-30 108.80 3.07 20.29

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • National Tyre & Wheel has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • National Tyre & Wheel used its assets more efficiently than the Global Retail Distributors industry average last year based on Return on Assets.
  • Unable to establish if National Tyre & Wheel improved its use of capital last year versus 3 years ago (Return on Capital Employed) due to insufficient past data.
X
Past performance checks
We assess National Tyre & Wheel's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Retail Distributors industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
National Tyre & Wheel has a total score of 4/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

NTD Health

 How is National Tyre & Wheel's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up National Tyre & Wheel's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • National Tyre & Wheel is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • National Tyre & Wheel's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of National Tyre & Wheel's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is covered by short term assets, assets are 6.4x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from National Tyre & Wheel Company Filings, last reported 2 months ago.

ASX:NTD Past Debt and Equity Data
Date (Data in AUD Millions) Total Equity Total Debt Cash & Short Term Investments
2018-12-31 68.78 13.95 13.58
2018-09-30 68.78 13.95 13.58
2018-06-30 66.66 14.44 19.61
2018-03-31 66.66 14.44 19.61
2017-12-31 61.01 7.68 16.04
2017-09-30 61.01 7.68 16.04
2017-06-30 43.37 8.17 14.77
2016-06-30 37.47 6.85 15.38
2015-06-30
  • National Tyre & Wheel's level of debt (20.3%) compared to net worth is satisfactory (less than 40%).
  • Unable to establish if National Tyre & Wheel's debt level has increased without past 5-year debt data.
  • Debt is well covered by operating cash flow (29.1%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 23.5x coverage).
X
Financial health checks
We assess National Tyre & Wheel's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. National Tyre & Wheel has a total score of 5/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

NTD Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
6.83%
Current annual income from National Tyre & Wheel dividends. Estimated to be 7.96% next year.
If you bought A$2,000 of National Tyre & Wheel shares you are expected to receive A$137 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • National Tyre & Wheel's pays a higher dividend yield than the bottom 25% of dividend payers in Australia (2.63%).
  • National Tyre & Wheel's dividend is above the markets top 25% of dividend payers in Australia (5.72%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
ASX:NTD Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 1 Analyst Estimates (S&P Global) See Below
Global Retail Distributors Industry Average Dividend Yield Market Cap Weighted Average of 46 Stocks 3.1%
Australia Market Average Dividend Yield Market Cap Weighted Average of 418 Stocks 4.4%
Australia Minimum Threshold Dividend Yield 10th Percentile 1.7%
Australia Bottom 25% Dividend Yield 25th Percentile 2.6%
Australia Top 25% Dividend Yield 75th Percentile 5.7%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

ASX:NTD Future Dividends Estimate Data
Date (Data in A$) Dividend per Share (annual) Avg. No. Analysts
2023-06-30 0.04 1.00
2022-06-30 0.04 1.00
2021-06-30 0.04 1.00
2020-06-30 0.04 1.00
2019-06-30 0.04 1.00
ASX:NTD Past Annualized Dividends Data
Date (Data in A$) Dividend per share (annual) Avg. Yield (%)
2019-02-26 0.036 7.501
2018-08-29 0.046 7.585
2018-02-27 0.020 1.649
2017-12-15 0.000 0.000

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • It is too early to tell whether National Tyre & Wheel has stable dividend payments.
  • National Tyre & Wheel only just started paying a dividend, it is too early to tell if payments are increasing.
Current Payout to shareholders
What portion of National Tyre & Wheel's earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by earnings (2.4x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (2.2x coverage).
X
Income/ dividend checks
We assess National Tyre & Wheel's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.7%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can National Tyre & Wheel afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. National Tyre & Wheel has a total score of 4/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

NTD Management

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

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
John Ludemann
COMPENSATION A$1,971,251
TENURE AS CEO 5.7 years
CEO Bio

Mr. Peter Ludemann, also knwon as John, has been Chief Executive Officer at National Tyre & Wheel Limited since July 2013 and serves as its Managing Director. Mr. Ludemann joined the Group as a Director in 2012. He has degrees in Law and Commerce (Marketing) from UNSW. He has worked as a commercial lawyer, a director of numerous private companies, the Managing Director of a Life Science Investment firm and as a Private Equity Investment Manager at AMP Capital. He has been the driving force behind the evolution of NTAW from a closely held family trust carrying on a niche 4WD tyre wholesale business to a more widely held entity operating in the car, SUV and 4WD tyre segments. He has managed the acquisition and integration of Dynamic, MPC, National Tyre Wholesalers and Top Draw. Mr. Peter has been responsible for the execution of a succession plan for NTAW founders that has included the distribution of retained earnings, the creation of a large private company corporate structure and generational change within the main operating entities.

CEO Compensation
  • Insufficient data for John to compare compensation growth.
  • John's remuneration is higher than average for companies of similar size in Australia.
Management Team

John Ludemann

TITLE
CEO, MD & Director
COMPENSATION
A$2M
TENURE
5.7 yrs

Jason Lamb

TITLE
CFO & Joint Company Secretary
COMPENSATION
A$573K

Terry Smith

TITLE
Executive Director
COMPENSATION
A$114K

Chris Hummer

TITLE
Managing Director of Dynamic
COMPENSATION
A$192K

Roshan Chelvaratnam

TITLE
Managing Director of MPC
COMPENSATION
A$259K

Georg Schramm

TITLE
Managing Director of Top Draw (South Africa)
COMPENSATION
A$200K

Laura Fanning

TITLE
Joint Company Secretary
TENURE
1.1 yrs
Board of Directors Tenure

Average tenure of the National Tyre & Wheel board of directors in years:

1.5
Average Tenure
  • The average tenure for the National Tyre & Wheel board of directors is less than 3 years, this suggests a new board.
Board of Directors

Murray Boyte

TITLE
Independent Non-Executive Chairman
COMPENSATION
A$61K
TENURE
1.4 yrs

John Ludemann

TITLE
CEO, MD & Director
COMPENSATION
A$2M
TENURE
7.2 yrs

Terry Smith

TITLE
Executive Director
COMPENSATION
A$114K

Bill Cook

TITLE
Independent Non-Executive Director
COMPENSATION
A$173K

Rob Kent

TITLE
Independent Non-Executive Director
COMPENSATION
A$51K
TENURE
1.5 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (A$) Value (A$)
15. Mar 19 Sell Perpetual Limited Company 13. Mar 19 13. Mar 19 -1,478,626 A$0.49 A$-723,636
12. Mar 19 Buy Forager Funds Management Pty Ltd. Company 10. Dec 18 06. Mar 19 4,360,000 A$0.52 A$2,096,535
01. Mar 19 Sell Perpetual Limited Company 27. Feb 19 27. Feb 19 -1,000,000 A$0.51 A$-509,372
01. Mar 19 Buy Perpetual Limited Company 15. Feb 19 15. Feb 19 300,000 A$0.40 A$118,682
24. Jan 19 Sell Perpetual Limited Company 15. Nov 18 15. Nov 18 -789,930 A$0.54 A$-423,856
24. Jan 19 Buy Perpetual Limited Company 20. Nov 18 20. Nov 18 93,582 A$0.54 A$50,612
11. Jan 19 Buy Pendal Group Limited Company 09. Jan 19 09. Jan 19 787,000 A$0.45 A$354,150
11. Dec 18 Sell Pendal Group Limited Company 04. Dec 18 07. Dec 18 -1,639,215 A$0.55 A$-776,822
21. Nov 18 Buy Terence Smith Individual 15. Nov 18 19. Nov 18 505,000 A$0.58 A$295,083
20. Nov 18 Buy Murray Boyte Individual 16. Nov 18 16. Nov 18 50,000 A$0.58 A$29,250
20. Nov 18 Buy William Cook Individual 15. Nov 18 15. Nov 18 100,000 A$0.55 A$55,355
20. Nov 18 Buy Peter Ludemann Individual 15. Nov 18 15. Nov 18 170,000 A$0.59 A$100,300
20. Nov 18 Buy Robert Kent Individual 15. Nov 18 15. Nov 18 100,000 A$0.59 A$59,000
19. Nov 18 Buy Pendal Group Limited Company 04. May 18 15. Nov 18 1,336,612 A$1.25 A$939,435
16. Nov 18 Sell Perpetual Limited Company 14. Nov 18 14. Nov 18 -1,577,185 A$0.52 A$-815,882
16. Nov 18 Buy Perpetual Limited Company 17. Aug 18 08. Oct 18 754,713 A$1.27 A$911,603
16. Aug 18 Buy Perpetual Limited Company 01. Jun 08 14. Aug 18 3,022,142 A$1.57 A$3,695,431
07. May 18 Buy Pendal Group Limited Company 08. Jan 18 30. Apr 18 2,301,835 A$1.24 A$2,852,773
18. Apr 18 Buy Pie Funds Management Ltd Company 14. Dec 17 16. Apr 18 5,070,748 A$1.33 A$6,744,097
X
Management checks
We assess National Tyre & Wheel's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. National Tyre & Wheel has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

NTD News

Simply Wall St News

National Tyre & Wheel Limited (ASX:NTD): 4 Days To Buy Before The Ex-Dividend Date

Important news for shareholders and potential investors in National Tyre & Wheel Limited (ASX:NTD): The dividend payment of AU$0.013 per share will be distributed to shareholders on 04 April 2019, and the stock will begin trading ex-dividend at an earlier date, 14 March 2019. … Below, I will explain how holding National Tyre & Wheel can impact your portfolio income stream, by analysing the stock's most recent financial data and dividend attributes. … Check out our latest analysis for National Tyre & Wheel?

Simply Wall St -

Did Changing Sentiment Drive National Tyre & Wheel's Share Price Down A Worrying 61%?

National Tyre & Wheel Limited (ASX:NTD) shareholders should be happy to see the share price up 11% in the last month. … By comparing earnings per share (EPS) and and share price changes over time, we can get a feel for how investor attitudes to a company have morphed over time. … This reduction in EPS is not as bad as the 61% share price fall.

Simply Wall St -

A Close Look At National Tyre & Wheel Limited’s (ASX:NTD) 14% ROCE

To be precise, we'll consider its Return On Capital Employed (ROCE), as that will inform our view of the quality of the business. … What is Return On Capital Employed (ROCE)? … How Do You Calculate Return On Capital Employed?

Simply Wall St -

Here's What National Tyre & Wheel Limited's (ASX:NTD) P/E Ratio Is Telling Us

To keep it practical, we'll show how National Tyre & Wheel Limited's (ASX:NTD) P/E ratio could help you assess the value on offer. … National Tyre & Wheel has a P/E ratio of 8.57, based on the last twelve months. … Price to Earnings Ratio = Price per Share ÷ Earnings per Share (EPS)

Simply Wall St -

Have Insiders Been Buying National Tyre & Wheel Limited (ASX:NTD) Shares?

We've lost count of how many times insiders have accumulated shares in a company that goes on to improve markedly. … So we'll take a look at whether insiders have been buying or selling shares in National Tyre & Wheel Limited (ASX:NTD). … In the last twelve months there was more buying than selling by National Tyre & Wheel insiders

Simply Wall St -

Should National Tyre & Wheel Limited (ASX:NTD) Be Your Next Stock Pick?

Building up an investment case requires looking at a stock holistically. … Today I've chosen to put the spotlight on National Tyre & Wheel Limited (ASX:NTD) due to its excellent fundamentals in more than one area.

Simply Wall St -

National Tyre & Wheel Limited (ASX:NTD): What’s In It For The Shareholders?

I’ve analysed below, the health and outlook of National Tyre & Wheel’s cash flow, which will help you understand the stock from a cash standpoint. … Free cash flow (FCF) is the amount of cash National Tyre & Wheel has left after it pays off its expenses, including its net capital expenditures, which is what the company needs to spend each year to maintain or grow its business operations. … The two ways to assess whether National Tyre & Wheel’s FCF is sufficient, is to compare the FCF yield to the market index yield, as well as determine whether the top-line operating cash flows will continue to grow

Simply Wall St -

Should You Buy National Tyre & Wheel Limited (ASX:NTD) When Insiders Do?

some insider buying over the past three months, with insiders investing in. … Generally, insiders buying more shares in their own firm sends a bullish signal. … A two-decade research published in The MIT Press (1998) showed that stocks following insider buying outperformed the market by 4.5%

Simply Wall St -

Is National Tyre & Wheel Limited (ASX:NTD) Attractive At Its Current PE Ratio?

National Tyre & Wheel Limited (ASX:NTD) is trading with a trailing P/E of 41.2x, which is higher than the industry average of 22.8x. … Although some investors may jump to the conclusion that you should avoid the stock or sell if you own it, understanding the assumptions behind the P/E ratio might change your mind. … View our latest analysis for National Tyre & Wheel

Simply Wall St -

What You Must Know About National Tyre & Wheel Limited's (ASX:NTD) Financial Strength

While small-cap stocks, such as National Tyre & Wheel Limited (ASX:NTD) with its market cap of AU$123.30m, are popular for their explosive growth, investors should also be aware of their balance sheet to judge whether the company can survive a downturn.

Simply Wall St -

NTD Company Info

Description

National Tyre & Wheel Limited distributes and markets motor vehicle tires, wheels, tubes, and related products for 4WD, SUV, van, truck, caravan, trailer, and passenger cars in Australia, New Zealand, and South Africa. The company was incorporated in 2001 and is based in Moorooka, Australia.

Details
Name: National Tyre & Wheel Limited
NTD
Exchange: ASX
Founded: 2001
A$53,380,055
102,653,952
Website: http://www.ntaw.com.au
Address: National Tyre & Wheel Limited
30 Gow Street,
Moorooka,
Queensland, 4105,
Australia
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
ASX NTD Ordinary Shares Australian Securities Exchange AU AUD 15. Dec 2017
Number of employees
Current staff
Staff numbers
0
National Tyre & Wheel employees.
Industry
Distributors
Retail
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/03/21 10:36
End of day share price update: 2019/03/21 00:00
Last estimates confirmation: 2019/02/27
Last earnings filing: 2019/02/26
Last earnings reported: 2018/12/31
Last annual earnings reported: 2018/06/30


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.