Executive Summary
The Reject Shop Limited operates in the discount variety retail sector in Australia. More Details
Rewards
Risk Analysis
Snowflake Analysis
Flawless balance sheet and fair value.
Similar Companies
Share Price & News
How has Reject Shop's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: TRS is not significantly more volatile than the rest of Australian stocks over the past 3 months, typically moving +/- 6% a week.
Volatility Over Time: TRS's weekly volatility (6%) has been stable over the past year.
Market Performance
7 Day Return
-2.8%
TRS
-2.4%
AU Multiline Retail
-0.3%
AU Market
1 Year Return
65.3%
TRS
13.4%
AU Multiline Retail
-1.8%
AU Market
Return vs Industry: TRS exceeded the Australian Multiline Retail industry which returned 15.2% over the past year.
Return vs Market: TRS exceeded the Australian Market which returned -1.6% over the past year.
Shareholder returns
| TRS | Industry | Market | |
|---|---|---|---|
| 7 Day | -2.8% | -2.4% | -0.3% |
| 30 Day | -14.3% | -0.3% | 1.6% |
| 90 Day | -6.0% | 5.0% | 9.9% |
| 1 Year | 70.2%65.3% | 17.7%13.4% | 1.5%-1.8% |
| 3 Year | 19.3%5.7% | 81.3%14.8% | 26.2%10.7% |
| 5 Year | -31.8%-43.5% | 104.9%18.1% | 69.0%35.8% |
Long-Term Price Volatility Vs. Market
How volatile is Reject Shop's share price compared to the market and industry in the last 5 years?
Simply Wall St News
3 weeks ago | Simply Wall St
What You Need To Know About The Reject Shop Limited's (ASX:TRS) Investor Composition1 month ago | Simply Wall St
Introducing Reject Shop (ASX:TRS), The Stock That Zoomed 200% In The Last Year2 years ago | Simply Wall St
What Should Investors Know About The Reject Shop Limited's (ASX:TRS) Capital Returns?Valuation
Is Reject Shop undervalued compared to its fair value and its price relative to the market?
>50%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: TRS (A$6.53) is trading below our estimate of fair value (A$440.09)
Significantly Below Fair Value: TRS is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: TRS is poor value based on its PE Ratio (182.4x) compared to the XX Multiline Retail industry average (25.7x).
PE vs Market: TRS is poor value based on its PE Ratio (182.4x) compared to the Australian market (22.4x).
Price to Earnings Growth Ratio
PEG Ratio: TRS is poor value based on its PEG Ratio (3.2x)
Price to Book Ratio
PB vs Industry: TRS is good value based on its PB Ratio (1.7x) compared to the XO Multiline Retail industry average (1.9x).
Next Steps
Future Growth
How is Reject Shop forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?
57.7%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: TRS's forecast earnings growth (57.7% per year) is above the savings rate (2%).
Earnings vs Market: TRS's earnings (57.7% per year) are forecast to grow faster than the Australian market (17.9% per year).
High Growth Earnings: earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: TRS's revenue (1.1% per year) is forecast to grow slower than the Australian market (5% per year).
High Growth Revenue: TRS's revenue (1.1% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: TRS's Return on Equity is forecast to be low in 3 years time (12.5%).
Next Steps
Past Performance
How has Reject Shop performed over the past 5 years?
-46.6%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: TRS has a large one-off loss of A$727.0K impacting its June 28 2020 financial results.
Growing Profit Margin: TRS became profitable in the past.
Past Earnings Growth Analysis
Earnings Trend: TRS's earnings have declined by 46.6% per year over the past 5 years.
Accelerating Growth: TRS has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.
Earnings vs Industry: TRS has become profitable in the last year, making it difficult to compare its past year earnings growth to the Multiline Retail industry (-31%).
Return on Equity
High ROE: TRS's Return on Equity (0.8%) is considered low.
Next Steps
Financial Health
How is Reject Shop's financial position?
Financial Position Analysis
Short Term Liabilities: TRS's short term assets (A$170.0M) exceed its short term liabilities (A$165.5M).
Long Term Liabilities: TRS's short term assets (A$170.0M) exceed its long term liabilities (A$113.6M).
Debt to Equity History and Analysis
Debt Level: TRS is debt free.
Reducing Debt: TRS has no debt compared to 5 years ago when its debt to equity ratio was 8.7%.
Debt Coverage: TRS has no debt, therefore it does not need to be covered by operating cash flow.
Interest Coverage: TRS has no debt, therefore coverage of interest payments is not a concern.
Balance Sheet
Next Steps
Dividend
What is Reject Shop current dividend yield, its reliability and sustainability?
1.40%
Forecast Dividend Yield
Dividend Yield vs Market
Notable Dividend: Unable to evaluate TRS's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.
High Dividend: Unable to evaluate TRS'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 TRS's dividends per share have been stable in the past.
Growing Dividend: Insufficient data to determine if TRS's dividend payments have been increasing.
Current Payout to Shareholders
Dividend Coverage: TRS is not paying a notable dividend for the Australian market.
Future Payout to Shareholders
Future Dividend Coverage: No need to calculate the sustainability of TRS'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?
1.0yrs
Average management tenure
CEO
Andre Reich
1
Tenure
AU$872,817
Compensation
Mr. Andre Reich serves as Chief Executive Officer of The Reject Shop Limited since January 13, 2020. Mr. Andre Reich is an experienced retailer with expertise in defining and delivering turnaround and grow...
CEO Compensation Analysis
Compensation vs Market: Andre's total compensation ($USD679.45K) is above average for companies of similar size in the Australian market ($USD508.35K).
Compensation vs Earnings: Insufficient data to compare Andre's compensation with company performance.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Chief Executive Officer | 1yr | AU$872.82k | 1.4% A$ 3.5m | |
| Chief Operating Officer | 1yr | AU$849.78k | 0.024% A$ 58.1k | |
| Chief Financial Officer | 0.67yr | no data | no data | |
| General Manager of Operations | 1.83yrs | AU$357.39k | no data | |
| General Counsel & Company Secretary | 4.42yrs | no data | no data | |
| General Manager of Human Resources | 0.92yr | no data | no data | |
| Head of Finance | no data | no data | no data | |
| General Manager of Property | 6yrs | AU$338.20k | no data |
1.0yrs
Average Tenure
Experienced Management: TRS's management team is not considered experienced ( 1 years average tenure), which suggests a new team.
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Independent Non-Executive Director | 0.67yr | AU$20.52k | 0.018% A$ 45.2k | |
| Independent Non-Executive Chairman | 1.25yrs | AU$184.60k | 0.26% A$ 639.8k | |
| Independent Non-Executive Director | 2.42yrs | AU$126.09k | 0.049% A$ 121.9k | |
| Non-Executive Director | 0.67yr | AU$19.96k | 0.074% A$ 181.9k |
1.0yrs
Average Tenure
Experienced Board: TRS's board of directors are not considered experienced ( 1 years average tenure), which suggests a new board.
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: TRS 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 32.4%.
Top Shareholders
Company Information
The Reject Shop Limited's company bio, employee growth, exchange listings and data sources
Key Information
- Name: The Reject Shop Limited
- Ticker: TRS
- Exchange: ASX
- Founded: 1981
- Industry: General Merchandise Stores
- Sector: Retail
- Market Cap: AU$247.267m
- Shares outstanding: 38.28m
- Website: https://www.rejectshop.com.au
Number of Employees
Location
- The Reject Shop Limited
- 245 Racecourse Road
- Kensington
- Melbourne
- Victoria
- 3031
- Australia
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| TRS | ASX (Australian Securities Exchange) | Yes | Ordinary Shares | AU | AUD | Jun 2004 |
| TRS | CHIA (Chi-X Australia) | Yes | Ordinary Shares | AU | AUD | Jun 2004 |
| RFD | DB (Deutsche Boerse AG) | Yes | Ordinary Shares | DE | EUR | Jun 2004 |
Biography
The Reject Shop Limited operates in the discount variety retail sector in Australia. The company retails various general consumer merchandise, including toiletries, cosmetics, homewares, personal care prod...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/01/15 07:02 |
| End of Day Share Price | 2021/01/15 00:00 |
| Earnings | 2020/06/28 |
| Annual Earnings | 2020/06/28 |
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.