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TRA

Turners Automotive GroupNZSE:TRA Stock Report

Market Cap

NZ$378.7m

7D

-0.2%

1Y

66.0%

Updated

24 Oct, 2021

Data

Company Financials +
TRA fundamental analysis
Snowflake Score
Valuation2/6
Future Growth2/6
Past Performance5/6
Financial Health3/6
Dividends3/6

TRA Overview

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

Price History & Performance

Summary of all time highs, changes and price drops for Turners Automotive Group
Historical stock prices
Current Share PriceNZ$4.40
52 Week HighNZ$2.58
52 Week LowNZ$4.56
Beta1.07
1 Month Change-0.23%
3 Month Change2.80%
1 Year Change66.04%
3 Year Change59.42%
5 Year Change43.32%
Change since IPO46.67%

Recent News & Updates

Jun 09
These 4 Measures Indicate That Turners Automotive Group (NZSE:TRA) Is Using Debt Extensively

These 4 Measures Indicate That Turners Automotive Group (NZSE:TRA) Is Using Debt Extensively

Howard Marks put it nicely when he said that, rather than worrying about share price volatility, 'The possibility of...

May 25
Should You Think About Buying Turners Automotive Group Limited (NZSE:TRA) Now?

Should You Think About Buying Turners Automotive Group Limited (NZSE:TRA) Now?

Turners Automotive Group Limited ( NZSE:TRA ), might not be a large cap stock, but it saw a significant share price...

Shareholder Returns

TRANZ Specialty RetailNZ Market
7D-0.2%2.0%0.4%
1Y66.0%42.5%2.1%

Return vs Industry: TRA exceeded the NZ Specialty Retail industry which returned 42.5% over the past year.

Return vs Market: TRA exceeded the NZ Market which returned 2.1% over the past year.

Price Volatility

Is TRA's price volatile compared to industry and market?
TRA volatility
TRA Beta1.07
Industry Beta0.91
Market Beta1

Stable Share Price: TRA is less volatile than 75% of NZ stocks over the past 3 months, typically moving +/- 2% a week.

Volatility Over Time: TRA's weekly volatility (2%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
1984700Todd Hunterhttps://www.turnersautogroup.co.nz

Turners Automotive Group Limited engages in the automotive retail business in New Zealand and Australia. It operates through: Automotive Retail, Finance, Credit Management, and Insurance segments. The Automotive retail segment engages in the purchasing and remarketing of motor vehicles, trucks, heavy machinery, and commercial goods.

Turners Automotive Group Fundamentals Summary

How do Turners Automotive Group's earnings and revenue compare to its market cap?
TRA fundamental statistics
Market CapNZ$378.70m
Earnings (TTM)NZ$26.86m
Revenue (TTM)NZ$296.69m

14.1x

P/E Ratio

1.3x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
TRA income statement (TTM)
RevenueNZ$296.69m
Cost of RevenueNZ$133.09m
Gross ProfitNZ$117.20m
ExpensesNZ$90.34m
EarningsNZ$26.86m

Last Reported Earnings

Mar 31, 2021

Next Earnings Date

n/a

Earnings per share (EPS)0.31
Gross Margin39.50%
Net Profit Margin9.05%
Debt/Equity Ratio145.4%

How did TRA perform over the long term?

See historical performance and comparison

Dividends

4.5%

Current Dividend Yield

64%

Payout Ratio

Valuation

Is Turners Automotive Group undervalued compared to its fair value and its price relative to the market?

14.1x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: TRA (NZ$4.4) is trading above our estimate of fair value (NZ$3.37)

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


Price To Earnings Ratio

PE vs Industry: TRA's PE Ratio (14.1x) is in line with the NZ Specialty Retail industry average.

PE vs Market: TRA is good value based on its PE Ratio (14.1x) compared to the NZ market (22.2x).


Price to Earnings Growth Ratio

PEG Ratio: TRA is poor value based on its PEG Ratio (2.3x)


Price to Book Ratio

PB vs Industry: TRA is good value based on its PB Ratio (1.6x) compared to the NZ Specialty Retail industry average (2.6x).


Future Growth

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

6.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: TRA's forecast earnings growth (6.1% per year) is above the savings rate (2.1%).

Earnings vs Market: TRA's earnings (6.1% per year) are forecast to grow slower than the NZ market (9.2% per year).

High Growth Earnings: TRA's earnings are forecast to grow, but not significantly.

Revenue vs Market: TRA's revenue (7% per year) is forecast to grow faster than the NZ market (5.3% per year).

High Growth Revenue: TRA's revenue (7% 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 (12.5%).


Past Performance

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

8.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: TRA has high quality earnings.

Growing Profit Margin: TRA's current net profit margins (9.1%) are higher than last year (6.3%).


Past Earnings Growth Analysis

Earnings Trend: TRA's earnings have grown by 8% per year over the past 5 years.

Accelerating Growth: TRA's earnings growth over the past year (28.2%) exceeds its 5-year average (8% per year).

Earnings vs Industry: TRA earnings growth over the past year (28.2%) exceeded the Specialty Retail industry 20%.


Return on Equity

High ROE: TRA's Return on Equity (11.5%) is considered low.


Financial Health

How is Turners Automotive Group's financial position?


Financial Position Analysis

Short Term Liabilities: TRA's short term assets (NZ$451.7M) exceed its short term liabilities (NZ$70.9M).

Long Term Liabilities: TRA's short term assets (NZ$451.7M) exceed its long term liabilities (NZ$414.0M).


Debt to Equity History and Analysis

Debt Level: TRA's debt to equity ratio (145.4%) is considered high.

Reducing Debt: TRA's debt to equity ratio has increased from 134.6% to 145.4% over the past 5 years.

Debt Coverage: TRA's debt is not well covered by operating cash flow (3.2%).

Interest Coverage: TRA's interest payments on its debt are well covered by EBIT (7.3x coverage).


Balance Sheet


Dividend

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

4.55%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: TRA's dividend (4.55%) is higher than the bottom 25% of dividend payers in the NZ market (2.38%).

High Dividend: TRA's dividend (4.55%) is low compared to the top 25% of dividend payers in the NZ market (4.9%).


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 7 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (63.7%), 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 (65.5% payout ratio).


Next Steps

Management

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

5.0yrs

Average management tenure


CEO

Todd Hunter

5.33yrs

Tenure

Mr. Todd William Hunter serves as Non-Executive Director of Carly Holdings Limited (formerly known as Collaborate Corporation Limited) since October 1, 2019. Mr. Hunter has been the Chief Executive Officer...


Leadership Team

Experienced Management: TRA's management team is seasoned and experienced (5 years average tenure).


Board Members

Experienced Board: TRA's board of directors are considered experienced (6.8 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 employee growth, exchange listings and data sources


Key Information

  • Name: Turners Automotive Group Limited
  • Ticker: TRA
  • Exchange: NZSE
  • Founded: 1984
  • Industry: Automotive Retail
  • Sector: Retail
  • Market Cap: NZ$378.705m
  • Shares outstanding: 86.07m
  • Website: https://www.turnersautogroup.co.nz

Number of Employees


Location

  • Turners Automotive Group Limited
  • 70 Shortland Street
  • Level 5
  • Auckland
  • 1140
  • New Zealand

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/10/24 06:02
End of Day Share Price2021/10/22 00:00
Earnings2021/03/31
Annual Earnings2021/03/31


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.