ASX:TRA

Stock Analysis Report

Turners Automotive Group

Executive Summary

Turners Automotive Group Limited operates as an automotive and financial services company in New Zealand and Australia.

Snowflake

Fundamentals

Average dividend payer and fair value.

Risks

  • Turners Automotive Group is covered by less than 3 analysts.

Share Price & News

How has Turners Automotive Group's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

0%

ASX:TRA

-3.4%

AU Specialty Retail

0.2%

AU Market


1 Year Return

n/a

ASX:TRA

-3.2%

AU Specialty Retail

5.7%

AU Market

No trading data on TRA.

No trading data on TRA.


Share holder returns

TRAIndustryMarket
7 Day0%-3.4%0.2%
30 Day0%-6.7%3.2%
90 Dayn/a7.3%7.5%
1 Yearn/a1.5%-3.2%11.9%5.7%
3 Yearn/a12.9%-1.7%46.4%27.5%
5 Yearn/a49.0%20.5%46.3%13.8%

Price Volatility Vs. Market

How volatile is Turners Automotive Group's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Turners Automotive Group undervalued based on future cash flows and its price relative to the stock market?

8.86x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

Turners Automotive Group's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).

Turners Automotive Group's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).


Price Based on Earnings

Turners Automotive Group is good value based on earnings compared to the AU Specialty Retail industry average.

Turners Automotive Group is good value based on earnings compared to the Australia market.


Price Based on Expected Growth

Turners Automotive Group is poor value based on expected growth next year.


Price Based on Value of Assets

Turners Automotive Group is good value based on assets compared to the AU Specialty Retail industry average.


Next Steps

Future Growth

How is Turners Automotive Group expected to perform in the next 1 to 3 years based on estimates from 2 analysts?

3.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Turners Automotive Group's revenue is expected to grow by 3.4% yearly, however this is not considered high growth (20% yearly).

Turners Automotive Group's earnings are expected to grow by 3.6% yearly, however this is not considered high growth (20% yearly).

Turners Automotive Group's revenue growth is expected to exceed the Australia market average.

Turners Automotive Group's earnings growth is positive but not above the Australia market average.

Turners Automotive Group's earnings growth is expected to exceed the low risk savings rate of 2.3%.


Earnings per Share Growth Estimates


Future Return on Equity

Turners Automotive Group is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


Next Steps

Past Performance

How has Turners Automotive Group performed over the past 5 years?

14.6%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Turners Automotive Group's year on year earnings growth rate has been positive over the past 5 years.

Turners Automotive Group's 1-year earnings growth is negative, it can't be compared to the 5-year average.

Turners Automotive Group's 1-year earnings growth is negative, it can't be compared to the AU Specialty Retail industry average.


Return on Equity

Turners Automotive Group has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Turners Automotive Group used its assets less efficiently than the AU Specialty Retail industry average last year based on Return on Assets.


Return on Capital Employed

Turners Automotive Group's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Turners Automotive Group's financial position?


Financial Position Analysis

Turners Automotive Group is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Turners Automotive Group's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

Turners Automotive Group's level of debt (138.2%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has increased over the past 5 years (24.6% vs 138.2% today).

Operating cash flow is negative therefore debt is not well covered.

Interest payments on debt are well covered by earnings (EBIT is 4x coverage).


Balance Sheet

Low level of unsold assets.

Debt is covered by short term assets, assets are 1.4x debt.


Next Steps

Dividend

What is Turners Automotive Group's current dividend yield, its reliability and sustainability?

7.78%

Expected Dividend Yield


Upcoming Dividend Payment

Purchase Turners Automotive Group before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield and Payments Analysis

Turners Automotive Group's pays a higher dividend yield than the bottom 25% of dividend payers in Australia (2.59%).

Turners Automotive Group's dividend is above the markets top 25% of dividend payers in Australia (5.85%).

Turners Automotive Group has been paying a dividend for less than 10 years and during this time payments have been volatile (annual drop of over 20%).

Dividend payments have increased, but Turners Automotive Group only paid a dividend in the past 5 years.


Current Payout to Shareholders

Dividends paid are covered by earnings (1.5x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be covered by earnings (1.5x coverage).


Next Steps

Management

What is the CEO of Turners Automotive Group's salary, the management and board of directors tenure and is there insider trading?

2.7yrs

Average management tenure


CEO

Todd Hunter

3.0yrs

Tenure

Mr. Todd Hunter has been the Chief Executive Officer at Turners Limited since June 01, 2016 and served as the Chief Executive Officer of Turners Group NZ Limited at Turners Limited since July 31, 2013. Mr. ...


Management Age and Tenure

2.7yrs

Average Tenure

The tenure for the Turners Automotive Group management team is about average.


Board Age and Tenure

4.4yrs

Average Tenure

The tenure for the Turners Automotive Group board of directors is about average.


Insider Trading

Turners Automotive Group individual insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellAU$176,62312 Jun 19
Paul Byrnes
EntityIndividual
Role
Vice Chairman
Shares76,951
Max PriceAU$2.30

Ownership Breakdown


Management Team

  • Aaron Saunders

    Group Chief Financial Officer

    • Tenure: 2.2yrs
  • Todd Hunter

    Chief Executive Officer

    • Tenure: 3.0yrs
  • Barbara Badish

    Company Secretary

  • Simon Gould-Thorpe

    Group Chief Information Officer

  • Sonya Rose

    Group General Manager of Human Resources

  • David Wilson

    Chief Executive Officer of EC Credit Control

    • Tenure: 4.2yrs
  • Greg Hedgepeth

    Chief Executive Officer of Automotive Retail Division

    • Tenure: 2.4yrs

Board Members

  • Paul Byrnes (65yo)

    Deputy Chairman

    • Tenure: 15.3yrs
    • Compensation: NZ$451.93k
  • Grant Baker (59yo)

    Non-Executive Chairman

    • Tenure: 9.8yrs
    • Compensation: NZ$110.00k
  • John Roberts

    Independent Director

    • Tenure: 3.9yrs
    • Compensation: NZ$55.00k
  • Antony Vriens

    Independent Director

    • Tenure: 4.4yrs
    • Compensation: NZ$20.00k
  • Matthew Harrison

    Non-Executive Director

    • Tenure: 6.5yrs
    • Compensation: NZ$55.00k
  • Alistair Petrie

    Non Executive Director

    • Tenure: 3.3yrs
    • Compensation: NZ$55.00k
  • Martin Berry

    Independent Director

    • Tenure: 0.8yrs

Company Information

Turners Automotive Group Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Turners Automotive Group Limited
  • Ticker: TRA
  • Exchange: ASX
  • Founded: 1984
  • Industry: automotive retail
  • Sector: retail
  • Market Cap: NZ$202.449m
  • Listing Market Cap: NZ$193.145m
  • Shares outstanding: 86.89m
  • Website: Click here

Location

  • Turners Automotive Group Limited
  • 34 Shortland Street
  • Level 8
  • Auckland
  • 1140
  • New Zealand

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
TRANZSE (New Zealand Stock Exchange)YesOrdinary SharesNZNZDJan 1992
TRAASX (Australian Securities Exchange)YesOrdinary SharesAUAUDJan 1992

Biography

Turners Automotive Group Limited operates as an automotive and financial services company in New Zealand and Australia. The company operates through Automotive Retail, Collection Services, Finance, and Ins ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/06/26 10:48
End of Day Share Price2019/04/05 00:00
Earnings2019/03/31
Annual Earnings2019/03/31


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.