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ARH

ARB HoldingsJSE:ARH Stock Report

Market Cap

R1.5b

7D

-2.5%

1Y

78.6%

Updated

16 Oct, 2021

Data

Company Financials
ARH fundamental analysis
Snowflake Score
Valuation3/6
Future Growth0/6
Past Performance4/6
Financial Health5/6
Dividends3/6

ARH Overview

ARB Holdings Limited, an investment and property holding company, engages in the trading and distribution of electrical, lighting, and related products.

ARB Holdings Competitors

Price History & Performance

Summary of all time highs, changes and price drops for ARB Holdings
Historical stock prices
Current Share PriceR6.50
52 Week HighR3.15
52 Week LowR7.00
Beta-0.078
1 Month Change3.18%
3 Month Change34.02%
1 Year Change78.57%
3 Year Change9.24%
5 Year Change10.54%
Change since IPO30.00%

Recent News & Updates

Shareholder Returns

ARHZA Trade DistributorsZA Market
7D-2.5%0.9%1.6%
1Y78.6%97.8%21.3%

Return vs Industry: ARH underperformed the ZA Trade Distributors industry which returned 97.8% over the past year.

Return vs Market: ARH exceeded the ZA Market which returned 21.3% over the past year.

Price Volatility

Is ARH's price volatile compared to industry and market?
ARH volatility
ARH Beta-0.078
Industry Beta0.79
Market Beta1

Stable Share Price: ARH is more volatile than 75% of ZA stocks over the past 3 months, typically moving +/- 9% a week.

Volatility Over Time: ARH's weekly volatility (9%) has been stable over the past year, but is still higher than 75% of ZA stocks.

About the Company

FoundedEmployeesCEOWebsite
1980n/aBilly Neashamhttps://www.arbhold.co.za

ARB Holdings Limited, an investment and property holding company, engages in the trading and distribution of electrical, lighting, and related products. It operates through three segments: Electrical, Lighting, and Corporate. The company provides power and instrumentation cables, overhead line hardware and conductors, and general low-voltage products to large and heavy industry, government and parastatals, construction, mining, electrical contractor, domestic/do-it-yourself (DIY), and export markets.

ARB Holdings Fundamentals Summary

How do ARB Holdings's earnings and revenue compare to its market cap?
ARH fundamental statistics
Market CapR1.53b
Earnings (TTM)R191.40m
Revenue (TTM)R2.92b

8.0x

P/E Ratio

0.5x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
ARH income statement (TTM)
RevenueR2.92b
Cost of RevenueR2.17b
Gross ProfitR751.35m
ExpensesR559.95m
EarningsR191.40m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)0.81
Gross Margin25.71%
Net Profit Margin6.55%
Debt/Equity Ratio7.7%

How did ARH perform over the long term?

See historical performance and comparison

Dividends

5.0%

Current Dividend Yield

40%

Payout Ratio

Valuation

Is ARB Holdings 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: ARH (ZAR6.5) is trading below our estimate of fair value (ZAR19.75)

Significantly Below Fair Value: ARH is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: ARH's PE Ratio (8x) is in line with the ZA Trade Distributors industry average.

PE vs Market: ARH is good value based on its PE Ratio (8x) compared to the ZA market (11.3x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate ARH's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: ARH is overvalued based on its PB Ratio (1.2x) compared to the ZA Trade Distributors industry average (0.8x).


Future Growth

How is ARB Holdings forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

10.6%

Forecasted Capital Goods industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as ARB Holdings has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Past Performance

How has ARB Holdings performed over the past 5 years?

-2.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ARH has high quality earnings.

Growing Profit Margin: ARH's current net profit margins (6.5%) are higher than last year (3.6%).


Past Earnings Growth Analysis

Earnings Trend: ARH's earnings have declined by 2.6% per year over the past 5 years.

Accelerating Growth: ARH's earnings growth over the past year (128.3%) exceeds its 5-year average (-2.6% per year).

Earnings vs Industry: ARH earnings growth over the past year (128.3%) exceeded the Trade Distributors industry 19.1%.


Return on Equity

High ROE: ARH's Return on Equity (15.5%) is considered low.


Financial Health

How is ARB Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: ARH's short term assets (ZAR1.4B) exceed its short term liabilities (ZAR524.8M).

Long Term Liabilities: ARH's short term assets (ZAR1.4B) exceed its long term liabilities (ZAR163.7M).


Debt to Equity History and Analysis

Debt Level: ARH's debt to equity ratio (7.7%) is considered satisfactory.

Reducing Debt: Insufficient data to determine if ARH's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: ARH's debt is well covered by operating cash flow (276.7%).

Interest Coverage: ARH earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet


Dividend

What is ARB Holdings's current dividend yield, its reliability and sustainability?

5.00%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: ARH's dividend (5%) is higher than the bottom 25% of dividend payers in the ZA market (3.07%).

High Dividend: ARH's dividend (5%) is low compared to the top 25% of dividend payers in the ZA market (8.09%).


Stability and Growth of Payments

Stable Dividend: ARH's dividend payments have been volatile in the past 10 years.

Growing Dividend: ARH's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (39.9%), ARH's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

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

6.7yrs

Average management tenure


CEO

Billy Neasham (64 yo)

6.67yrs

Tenure

R3,916,000

Compensation

Mr. William Roy Neasham, also known as Billy, B.Com, CA (SA), has been the Chief Executive Officer and Acting Financial Director at ARB Electrical Wholesalers (Pty) Ltd. since July 2015. Mr. Neasham has be...


CEO Compensation Analysis

Compensation vs Market: Billy's total compensation ($USD267.81K) is about average for companies of similar size in the ZA market ($USD280.19K).

Compensation vs Earnings: Billy's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: ARH's management team is seasoned and experienced (6.7 years average tenure).


Board Members

Experienced Board: ARH's board of directors are considered experienced (4.1 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: ARH insiders have only sold shares 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

ARB Holdings Limited's employee growth, exchange listings and data sources


Key Information

  • Name: ARB Holdings Limited
  • Ticker: ARH
  • Exchange: JSE
  • Founded: 1980
  • Industry: Trading Companies and Distributors
  • Sector: Capital Goods
  • Market Cap: R1.528b
  • Shares outstanding: 235.00m
  • Website: https://www.arbhold.co.za

Number of Employees


Location

  • ARB Holdings Limited
  • 10 Mack Road
  • Prospecton
  • Durban
  • KwaZulu-Natal
  • 4133
  • South Africa

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/10/16 17:01
End of Day Share Price2021/10/15 00:00
Earnings2021/06/30
Annual Earnings2021/06/30


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.