Reece Ltd
ASX:REH

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Reece Ltd
ASX:REH
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Price: 22.945 AUD 1.21%
Market Cap: 14.8B AUD
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Gross Margin
Reece Ltd

28.6%
Current
28%
Average
19.1%
Industry

Gross Margin is the amount of money a company retains after incurring the direct costs associated with producing the goods it sells and the services it provides. The higher the gross margin, the more capital a company retains, which it can then use to pay other costs or satisfy debt obligations.

Gross Margin
28.6%
=
Gross Profit
2.6B
/
Revenue
9.1B

Gross Margin Across Competitors

Country AU
Market Cap 14.8B AUD
Gross Margin
29%
Country JP
Market Cap 10.7T JPY
Gross Margin
16%
Country JP
Market Cap 9.9T JPY
Gross Margin
12%
Country JP
Market Cap 9.2T JPY
Gross Margin
9%
Country US
Market Cap 53.2B USD
Gross Margin
39%
Country US
Market Cap 51.1B EUR
Gross Margin
39%
Country US
Market Cap 47.5B USD
Gross Margin
41%
Country US
Market Cap 42.9B USD
Gross Margin
45%
Country UK
Market Cap 35.7B USD
Gross Margin
31%
Country IN
Market Cap 2.7T INR
Gross Margin
52%
Country UK
Market Cap 22B GBP
Gross Margin
75%
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Reece Ltd
Glance View

Market Cap
14.8B AUD
Industry
Trading Companies & Distributors
Economic Moat
None

Reece Ltd, a stalwart in the Australian plumbing and bathroom supplies space, has carved out its niche through an enduring commitment to quality and a vast network of supply channels. Founded in 1920 by Harold Joseph Reece, the company has meticulously grown from a small hardware store in Caulfield, Victoria, into a robust enterprise with a commanding presence across Australia and beyond. This growth story is deeply rooted in its resilient business model that hinges on tapping into the construction and home renovation boom by providing essential plumbing and bathroom products. By elegantly interweaving innovation with tradition, Reece has embraced digital transformation in its operations, offering an enriched online shopping experience that complements its extensive physical footprint. At the heart of Reece's success is its ability to anticipate and adapt to industry trends while maintaining strong relationships with tradespeople, builders, and DIY enthusiasts. It garners revenue by distributing high-quality local and international brands through its various channels, seamlessly integrating product sales with value-added services like expert advice and design consultation. Moreover, strategic acquisitions have bolstered its competitive edge, facilitating geographical expansion and enhancing product diversity. This multifaceted approach not only ensures a steady revenue flow but also cements Reece’s position as a preferred partner in the plumbing and construction industry, thriving amidst fluctuating economic cycles.

REH Intrinsic Value
18.518 AUD
Overvaluation 19%
Intrinsic Value
Price

See Also

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What is Gross Margin?

Gross Margin is the amount of money a company retains after incurring the direct costs associated with producing the goods it sells and the services it provides. The higher the gross margin, the more capital a company retains, which it can then use to pay other costs or satisfy debt obligations.

Gross Margin
28.6%
=
Gross Profit
2.6B
/
Revenue
9.1B
What is the Gross Margin of Reece Ltd?

Based on Reece Ltd's most recent financial statements, the company has Gross Margin of 28.6%.