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TRS

Reject ShopASX:TRS Stock Report

Market Cap

AU$243.0m

7D

-0.6%

1Y

-7.3%

Updated

27 Sep, 2021

Data

Company Financials +
TRS fundamental analysis
Snowflake Score
Valuation2/6
Future Growth3/6
Past Performance4/6
Financial Health6/6
Dividends0/6

TRS Overview

The Reject Shop Limited engages in the retail of discount variety merchandise in Australia.

Reject Shop Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Reject Shop
Historical stock prices
Current Share PriceAU$6.34
52 Week HighAU$4.85
52 Week LowAU$8.06
Beta1.81
1 Month Change4.97%
3 Month Change13.62%
1 Year Change-7.31%
3 Year Change33.19%
5 Year Change-39.04%
Change since IPO226.80%

Recent News & Updates

Shareholder Returns

TRSAU Multiline RetailAU Market
7D-0.6%0.04%-0.8%
1Y-7.3%24.7%25.3%

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.

Price Volatility

Is TRS's price volatile compared to industry and market?
TRS volatility
TRS Beta1.81
Industry Beta0.57
Market Beta1

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

FoundedEmployeesCEOWebsite
19814,000Andre Reichhttps://www.rejectshop.com.au

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

How do Reject Shop's earnings and revenue compare to its market cap?
TRS fundamental statistics
Market CapAU$242.99m
Earnings (TTM)AU$8.32m
Revenue (TTM)AU$778.69m

29.2x

P/E Ratio

0.3x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
TRS income statement (TTM)
RevenueAU$778.69m
Cost of RevenueAU$464.21m
Gross ProfitAU$314.48m
ExpensesAU$306.16m
EarningsAU$8.32m

Last Reported Earnings

Jun 27, 2021

Next Earnings Date

n/a

Earnings per share (EPS)0.22
Gross Margin40.39%
Net Profit Margin1.07%
Debt/Equity Ratio0%

How did TRS perform over the long term?

See historical performance and comparison

Valuation

Is Reject Shop undervalued compared to its fair value and its price relative to the market?

8.7%

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).


Future Growth

How is Reject Shop forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

25.7%

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%).


Past Performance

How has Reject Shop performed over the past 5 years?

-33.2%

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.


Financial Health

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.


Balance Sheet


Dividend

What is Reject Shop current dividend yield, its reliability and sustainability?

2.76%

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?

1.6yrs

Average management tenure


CEO

Andre Reich

1.67yrs

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 ($USD632.52K) is about average for companies of similar size in the Australian market ($USD532.22K).

Compensation vs Earnings: Insufficient data to compare Andre's compensation with company performance.


Leadership Team

Experienced Management: TRS's management team is not considered experienced ( 1.6 years average tenure), which suggests a new team.


Board Members

Experienced Board: TRS's board of directors are not considered experienced ( 1.3 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 not been meaningfully diluted in the past year.


Top Shareholders

Company Information

The Reject Shop Limited's 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$242.991m
  • Shares outstanding: 38.33m
  • Website: https://www.rejectshop.com.au

Number of Employees


Location

  • The Reject Shop Limited
  • 245 Racecourse Road
  • Kensington
  • Melbourne
  • Victoria
  • 3031
  • Australia

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/09/27 15:31
End of Day Share Price2021/09/27 00:00
Earnings2021/06/27
Annual Earnings2021/06/27


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.