ASX:TRA

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Turners Automotive Group

Executive Summary

Turners Automotive Group Limited engages in the automotive retail business in New Zealand and Australia.


Snowflake Analysis

Fair value second-rate dividend payer.

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

Stable Share Price: TRA's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

7.5%

TRA

0.3%

AU Specialty Retail

2.5%

AU Market


1 Year Return

-1.4%

TRA

4.7%

AU Specialty Retail

-10.8%

AU Market

Return vs Industry: TRA underperformed the Australian Specialty Retail industry which returned 4.7% over the past year.

Return vs Market: TRA exceeded the Australian Market which returned -10.8% over the past year.


Shareholder returns

TRAIndustryMarket
7 Day7.5%0.3%2.5%
30 Day34.4%1.1%0.8%
90 Day53.6%53.0%16.7%
1 Year2.7%-1.4%8.6%4.7%-7.2%-10.8%
3 Yearn/a37.4%20.0%19.2%3.4%
5 Yearn/a50.4%21.3%35.9%6.6%

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 compared to its fair value and its price relative to the market?

9.03x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: TRA (A$2.15) is trading above our estimate of fair value (A$1.91)

Significantly Below Fair Value: TRA is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: TRA is good value based on its PE Ratio (9x) compared to the Specialty Retail industry average (13.9x).

PE vs Market: TRA is good value based on its PE Ratio (9x) compared to the Australian market (16x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: TRA is good value based on its PB Ratio (0.8x) compared to the AU Specialty Retail industry average (2x).


Next Steps

Future Growth

How is Turners Automotive Group forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

-0.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: TRA's earnings are forecast to decline over the next 3 years (-0.4% per year).

Earnings vs Market: TRA's earnings are forecast to decline over the next 3 years (-0.4% per year).

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

Revenue vs Market: TRA's revenue (0.5% per year) is forecast to grow slower than the Australian market (4.2% per year).

High Growth Revenue: TRA's revenue (0.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: TRA's Return on Equity is forecast to be low in 3 years time (8.3%).


Next Steps

Past Performance

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

6.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: TRA has high quality earnings.

Growing Profit Margin: TRA's current net profit margins (6.3%) are lower than last year (6.9%).


Past Earnings Growth Analysis

Earnings Trend: TRA's earnings have grown by 6% per year over the past 5 years.

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

Earnings vs Industry: TRA had negative earnings growth (-7.7%) over the past year, making it difficult to compare to the Specialty Retail industry average (-2.2%).


Return on Equity

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


Next Steps

Financial Health

How is Turners Automotive Group's financial position?


Financial Position Analysis

Short Term Liabilities: TRA's short term assets (NZ$452.3M) exceed its short term liabilities (NZ$2.8M).

Long Term Liabilities: TRA's short term assets (NZ$452.3M) do not cover its long term liabilities (NZ$482.6M).


Debt to Equity History and Analysis

Debt Level: TRA's debt to equity ratio (157.1%) is considered high.

Reducing Debt: TRA's debt to equity ratio has increased from 129.8% to 157.1% over the past 5 years.

Debt Coverage: TRA's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: TRA's interest payments on its debt are well covered by EBIT (4.6x coverage).


Balance Sheet


Next Steps

Dividend

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

6.36%

Current Dividend Yield


Upcoming Dividend Payment


Dividend Yield vs Market

Notable Dividend: TRA's dividend (6.36%) is higher than the bottom 25% of dividend payers in the Australian market (2.47%).

High Dividend: TRA's dividend (6.36%) is low compared to the top 25% of dividend payers in the Australian market (6.44%).


Stability and Growth of Payments

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

Growing Dividend: TRA's dividend payments have increased, but the company has only paid a dividend for 6 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (57.5%), TRA's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: TRA's dividends in 3 years are forecast to be covered by earnings (65% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

3.8yrs

Average management tenure


CEO

Todd Hunter

4.08yrs

Tenure

Mr. Todd William Hunter serves as Non-Executive Director of Collaborate Corporation Limited since October 1, 2019. Mr. Hunter has been the Chief Executive Officer at Turners Automotive Group Limited (forme ...


Leadership Team

NamePositionTenureCompensationOwnership
Todd Hunter
Chief Executive Officer4.08yrsno data0.28% NZ$498.2k
Aaron Saunders
Group Chief Financial Officer3.25yrsno datano data
Simon Gould-Thorpe
Group Chief Information Officerno datano datano data
Sonya Rose
Group General Manager of Human Resourcesno datano datano data
Greg Hedgepeth
Chief Executive Officer of Automotive Retail Division3.5yrsno datano data
Barbara Badish
Company Secretaryno datano datano data
David Wilson
Chief Executive Officer of EC Credit Control5.25yrsno datano data

3.8yrs

Average Tenure

Experienced Management: TRA's management team is considered experienced (3.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Paul Byrnes
Independent Deputy Chairman16.42yrsNZ$75.00k2.9% NZ$5.1m
Grant Baker
Non-Executive Chairman10.83yrsNZ$150.00kno data
John Roberts
Independent Director5yrsNZ$75.00k0.077% NZ$136.0k
Antony Vriens
Independent Director5.5yrsNZ$75.00kno data
Matthew Harrison
Non-Executive Director7.58yrsNZ$75.00k6.05% NZ$10.7m
Alistair Petrie
Non Executive Director4.42yrsNZ$75.00k0.029% NZ$51.5k
Martin Berry
Independent Director1.92yrsNZ$46.88k0.58% NZ$1.0m

5.5yrs

Average Tenure

Experienced Board: TRA's board of directors are considered experienced (5.5 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 not been meaningfully diluted in the past year.


Top Shareholders

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$187.365m
  • Listing Market Cap: NZ$176.256m
  • Shares outstanding: 85.55m
  • Website: https://www.turnersautogroup.co.nz

Number of Employees


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 engages in the automotive retail business in New Zealand and Australia. The company operates through five segments: Automotive Retail, Finance, Credit Management, Insurance, and Corporate & Other. It buys and sells second hand cars, trucks, and machinery under the Turners and Buy Right Cars brand names. The company also provides financial solutions for personal, vehicle, and small to medium business customers under the Oxford Finance brand; and underwrites and distributes a range of life and non-life consumer insurance products under the Autosure, Mainstream Insurance, Greenwich Life Insurance, and Dorchester Life brands. In addition, it offers automotive-owner protection insurance policies for the retail motor vehicle industry through various dealers under the Autosure brand; and debt collection, credit management and reporting, and terms of trade documentation services to the SME market under the EC Credit Control brand. Further, Turners Automotive Group Limited is involved in trustee and auction businesses. The company was formerly known as Turners Limited and changed its name to Turners Automotive Group Limited in May 2017. Turners Automotive Group Limited was incorporated in 1984 and is based in Auckland, New Zealand. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/07/06 10:38
End of Day Share Price2020/07/06 00:00
Earnings2020/03/31
Annual Earnings2020/03/31


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.