The Reject Shop Limited engages in the retail of discount variety merchandise in Australia.
TRS passed our risk checks.
Reject Shop Competitors
Price History & Performance
|Historical stock prices|
|Current Share Price||AU$6.34|
|52 Week High||AU$4.85|
|52 Week Low||AU$8.06|
|1 Month Change||4.97%|
|3 Month Change||13.62%|
|1 Year Change||-7.31%|
|3 Year Change||33.19%|
|5 Year Change||-39.04%|
|Change since IPO||226.80%|
Recent News & Updates
|TRS||AU Multiline Retail||AU Market|
Return vs Industry: TRS underperformed the Australian Multiline Retail industry which returned 24.7% over the past year.
Return vs Market: TRS underperformed the Australian Market which returned 25.3% over the past year.
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.
About the Company
The Reject Shop Limited engages in the retail of discount variety merchandise in Australia. The company offers grocery and confectionery products; home and garden products, such as cleaning, kitchen and dining, garden, hardware, home storage and organization, bedding, and home décor products; health and wellbeing products comprising toiletries, fashion accessories, and clothing; pet care products; craft and stationery products; gifts, toys, and party products, such as cards and wraps, and partyware; and electrical accessories. As of June 27, 2021, it operated approximately 361 stores.
Reject Shop Fundamentals Summary
|TRS fundamental statistics|
Is TRS overvalued?See Fair Value and valuation analysis
Earnings & Revenue
|TRS income statement (TTM)|
|Cost of Revenue||AU$464.21m|
Last Reported Earnings
Jun 27, 2021
Next Earnings Date
|Earnings per share (EPS)||0.22|
|Net Profit Margin||1.07%|
How did TRS perform over the long term?See historical performance and comparison
Is Reject Shop undervalued compared to its fair value and its price relative to the market?
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: TRS (A$6.34) is trading below our estimate of fair value (A$6.94)
Significantly Below Fair Value: TRS is trading below fair value, but not by a significant amount.
Price To Earnings Ratio
PE vs Industry: TRS is poor value based on its PE Ratio (29.2x) compared to the Oceanic Multiline Retail industry average (19x).
PE vs Market: TRS is poor value based on its PE Ratio (29.2x) compared to the Australian market (19.1x).
Price to Earnings Growth Ratio
PEG Ratio: TRS is poor value based on its PEG Ratio (1.1x)
Price to Book Ratio
PB vs Industry: TRS is good value based on its PB Ratio (1.6x) compared to the XO Multiline Retail industry average (2.3x).
How is Reject Shop forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: TRS's forecast earnings growth (25.7% per year) is above the savings rate (1.9%).
Earnings vs Market: TRS's earnings (25.7% per year) are forecast to grow faster than the Australian market (11.9% per year).
High Growth Earnings: earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: TRS's revenue (4.1% per year) is forecast to grow slower than the Australian market (5.7% per year).
High Growth Revenue: TRS's revenue (4.1% 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 (10.2%).
How has Reject Shop performed over the past 5 years?
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: TRS has high quality earnings.
Growing Profit Margin: TRS's current net profit margins (1.1%) are higher than last year (0.1%).
Past Earnings Growth Analysis
Earnings Trend: TRS's earnings have declined by 33.2% per year over the past 5 years.
Accelerating Growth: TRS's earnings growth over the past year (718.5%) exceeds its 5-year average (-33.2% per year).
Earnings vs Industry: TRS earnings growth over the past year (718.5%) exceeded the Multiline Retail industry 32.6%.
Return on Equity
High ROE: TRS's Return on Equity (5.3%) is considered low.
How is Reject Shop's financial position?
Financial Position Analysis
Short Term Liabilities: TRS's short term assets (A$177.4M) exceed its short term liabilities (A$150.6M).
Long Term Liabilities: TRS's short term assets (A$177.4M) exceed its long term liabilities (A$93.7M).
Debt to Equity History and Analysis
Debt Level: TRS is debt free.
Reducing Debt: TRS has no debt compared to 5 years ago when its debt to equity ratio was 8.9%.
Debt Coverage: TRS has no debt, therefore it does not need to be covered by operating cash flow.
Interest Coverage: TRS has no debt, therefore coverage of interest payments is not a concern.
What is Reject Shop current dividend yield, its reliability and sustainability?
Forecast Dividend Yield
Dividend Yield vs Market
Notable Dividend: Unable to evaluate TRS's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.
High Dividend: Unable to evaluate TRS's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.
Stability and Growth of Payments
Stable Dividend: Insufficient data to determine if TRS's dividends per share have been stable in the past.
Growing Dividend: Insufficient data to determine if TRS's dividend payments have been increasing.
Current Payout to Shareholders
Dividend Coverage: TRS is not paying a notable dividend for the Australian market.
Future Payout to Shareholders
Future Dividend Coverage: No need to calculate the sustainability of TRS's dividend in 3 years as they are not forecast to pay a notable one for the Australian market.
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Mr. Andre Reich serves as Chief Executive Officer of The Reject Shop Limited since January 13, 2020. Mr. Andre Reich is an experienced retailer with expertise in defining and delivering turnaround and grow...
CEO Compensation Analysis
Compensation vs Market: Andre's total compensation ($USD632.52K) is about average for companies of similar size in the Australian market ($USD532.22K).
Compensation vs Earnings: Insufficient data to compare Andre's compensation with company performance.
Experienced Management: TRS's management team is not considered experienced ( 1.6 years average tenure), which suggests a new team.
Experienced Board: TRS's board of directors are not considered experienced ( 1.3 years average tenure), which suggests a new board.
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
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
The Reject Shop Limited's employee growth, exchange listings and data sources
- Name: The Reject Shop Limited
- Ticker: TRS
- Exchange: ASX
- Founded: 1981
- Industry: General Merchandise Stores
- Sector: Retail
- Market Cap: AU$242.991m
- Shares outstanding: 38.33m
- Website: https://www.rejectshop.com.au
Number of Employees
- The Reject Shop Limited
- 245 Racecourse Road
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2021/09/27 15:31|
|End of Day Share Price||2021/09/27 00:00|
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.