OTCPK:GWAX.Y

Stock Analysis Report

Executive Summary

GWA Group Limited researches, designs, manufactures, imports, markets, and distributes building fixtures and fittings to residential and commercial premises in Australia, New Zealand, and international markets.

Snowflake

Fundamentals

Flawless balance sheet with acceptable track record.


Similar Companies

Share Price & News

How has GWA Group's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

0%

OTCPK:GWAX.Y

-3.2%

US Building

-0.9%

US Market


1 Year Return

n/a

OTCPK:GWAX.Y

1.0%

US Building

3.8%

US Market

No trading data on GWAX.Y.

No trading data on GWAX.Y.


Share holder returns

GWAX.YIndustryMarket
7 Day0%-3.2%-0.9%
30 Day0%0.2%1.1%
90 Dayn/a2.6%1.1%
1 Yearn/a2.6%1.0%6.1%3.8%
3 Yearn/a15.1%5.5%45.2%35.5%
5 Yearn/a44.0%25.7%59.9%42.1%

Price Volatility Vs. Market

How volatile is GWA Group's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is GWA Group undervalued based on future cash flows and its price relative to the stock market?

18.49x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

GWA Group's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).

GWA Group's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).


Price Based on Earnings

GWA Group is good value based on earnings compared to the US Building industry average.

GWA Group is overvalued based on earnings compared to the United States of America market.


Price Based on Expected Growth

GWA Group earnings are not expected to grow next year, we can't assess if its growth is good value.


Price Based on Value of Assets

GWA Group is overvalued based on assets compared to the US Building industry average.


Next Steps

Future Growth

How is GWA Group expected to perform in the next 1 to 3 years based on estimates from 6 analysts?

-3.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

GWA Group's revenue is expected to grow by 8% yearly, however this is not considered high growth (20% yearly).

GWA Group's earnings are expected to decrease over the next 1-3 years, this is not considered high growth.

GWA Group's revenue growth is expected to exceed the United States of America market average.

GWA Group's earnings are expected to decrease over the next 1-3 years, this is below the United States of America market average.

GWA Group's earnings are expected to decrease over the next 1-3 years, this is below the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

GWA Group is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


Next Steps

Past Performance

How has GWA Group performed over the past 5 years?

20.2%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

GWA Group has delivered over 20% year on year earnings growth in the past 5 years.

GWA Group's 1-year earnings growth is less than its 5-year average (5% vs 20.2%)

GWA Group's earnings growth has not exceeded the US Building industry average in the past year (5% vs 24.3%).


Return on Equity

GWA Group has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

GWA Group used its assets more efficiently than the US Building industry average last year based on Return on Assets.


Return on Capital Employed

GWA Group has improved its use of capital last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is GWA Group's financial position?


Financial Position Analysis

GWA Group is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

GWA Group's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

GWA Group's level of debt (6.5%) compared to net worth is satisfactory (less than 40%).

The level of debt compared to net worth has been reduced over the past 5 years (48.7% vs 6.5% today).

Debt is well covered by operating cash flow (178.2%, greater than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 22.6x coverage).


Balance Sheet

Low level of unsold assets.

Debt is covered by short term assets, assets are 6.2x debt.


Next Steps

Dividend

What is GWA Group's current dividend yield, its reliability and sustainability?

5.38%

Expected Dividend Yield


Dividend Yield and Payments Analysis

GWA Group's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.44%).

GWA Group's dividend is above the markets top 25% of dividend payers in United States of America (3.78%).

Dividends per share have been volatile in the past 10 years (annual drop of over 20%).

Dividends per share have fallen over the past 10 years.


Current Payout to Shareholders

Dividends paid are not well covered by earnings (1x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be covered by earnings (1.2x coverage).


Next Steps

Management

What is the CEO of GWA Group's salary, the management and board of directors tenure and is there insider trading?

3.5yrs

Average management tenure


CEO

Tim Salt

3.5yrs

Tenure

AU$1,935,722

Compensation

Mr. Timothy R. Salt, also known as Tim, B.Sc has been the Chief Executive Officer and Managing Director of GWA Group Limited since January 1, 2016 and since July 01, 2016 respectively served as its Executi ...


CEO Compensation Analysis

Tim's remuneration is lower than average for companies of similar size in United States of America.

Tim's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

3.5yrs

Average Tenure

The tenure for the GWA Group management team is about average.


Board Age and Tenure

4.3yrs

Average Tenure

64.5yo

Average Age

The tenure for the GWA Group board of directors is about average.


Insider Trading

No 3 month individual insider trading information.


Ownership Breakdown


Management Team

  • Richard Thornton

    Company Secretary & Executive Director

    • Tenure: 16.0yrs
    • Compensation: A$680.87k
  • Tim Salt

    MD, CEO & Director

    • Tenure: 3.5yrs
    • Compensation: A$1.94m
  • Patrick Gibson

    Group Chief Financial Officer

    • Tenure: 4.3yrs
    • Compensation: A$1.31m
  • C. Norwell

    General Manager of Sales - GWA Bathrooms & Kitchens

    • Tenure: 3.3yrs
    • Compensation: A$706.81k
  • Cara Reil

    Group General Manager People & Performance

    • Tenure: 1.7yrs
    • Compensation: A$562.43k

Board Members

  • John Mulcahy (69yo)

    Independent Deputy Chairman

    • Tenure: 5.7yrs
    • Compensation: A$130.00k
  • Darryl McDonough (68yo)

    Independent Chairman

    • Tenure: 5.8yrs
    • Compensation: A$280.00k
  • Stephen Goddard (61yo)

    Independent Non-Executive Director

    • Tenure: 2.8yrs
    • Compensation: A$126.67k
  • Richard Thornton

    Company Secretary & Executive Director

    • Tenure: 10.2yrs
    • Compensation: A$680.87k
  • Alison Barrass

    Independent Non-Executive Director

    • Tenure: 0.2yrs
  • Peter Birtles (55yo)

    Independent Non-Executive Director

    • Tenure: 8.7yrs
    • Compensation: A$120.00k
  • Tim Salt

    MD, CEO & Director

    • Tenure: 3.0yrs
    • Compensation: A$1.94m
  • Jane McKellar

    Independent Non-Executive Director

    • Tenure: 2.8yrs
    • Compensation: A$120.00k

Company Information

GWA Group Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: GWA Group Limited
  • Ticker: GWAX.Y
  • Exchange: OTCPK
  • Founded: 1992
  • Industry: building products
  • Sector: capital goods
  • Market Cap: AU$934.375m
  • Listing Market Cap: AU$658.242m
  • Shares outstanding: 263.95m
  • Website: Click here

Number of Employees


Location

  • GWA Group Limited
  • 7 Eagleview Place
  • Eagle Farm
  • Queensland
  • 4009
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
GWAASX (Australian Securities Exchange)YesOrdinary SharesAUAUDMay 1993
GWADB (Deutsche Boerse AG)YesOrdinary SharesDEEURMay 1993
GWACHIA (Chi-X Australia)YesOrdinary SharesAUAUDMay 1993
GWAX.YOTCPK (Pink Sheets LLC)UNSPONSORD ADRUSUSDNov 2010

Biography

GWA Group Limited researches, designs, manufactures, imports, markets, and distributes building fixtures and fittings to residential and commercial premises in Australia, New Zealand, and international mar ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/07/23 00:29
End of Day Share Price2019/06/10 00:00
Earnings2018/12/31
Annual Earnings2018/06/30


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.