Reece Ltd
ASX:REH

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Reece Ltd Logo
Reece Ltd
ASX:REH
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Price: 22.63 AUD -1.18% Market Closed
Market Cap: 14.6B AUD
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Intrinsic Value

The intrinsic value of one REH stock under the Base Case scenario is 18.13 AUD. Compared to the current market price of 22.63 AUD, Reece Ltd is Overvalued by 20%.

The Intrinsic Value is calculated as the average of DCF and Relative values:

REH Intrinsic Value
18.13 AUD
Overvaluation 20%
Intrinsic Value
Price
Worst Case
Base Case
Best Case

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Reece Ltd

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Backtest Conclusion
Very Attractive
Current Valuation
+45%
Avg Valuation
-12%
Worst Valuation
-49%
Best Valuation
+45%

Stock is trading at its lowest valuation over the past 5 years.

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Fundamental Analysis

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Business Breakdown

Reece Ltd. is a premier Australian distributor of plumbing and bathroom supplies, strategically positioning itself as a vital partner in the construction and renovation sectors. Founded in 1919, the company has transformed from a local plumbing business into a national powerhouse, boasting an extensive network of over 600 branches and a comprehensive online platform. Reece has built a reputation for quality and service excellence, catering not only to trade professionals but also to individual consumers seeking high-quality products. As the market experiences robust growth driven by population increases and infrastructure development, Reece stands out for its strong customer loyalty and inno...

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Financials
Annual
Quarterly
TTM
Annual
Quarterly
TTM

Balance Sheet Decomposition
Reece Ltd

Current Assets 3.2B
Cash & Short-Term Investments 341.4m
Receivables 1.4B
Other Current Assets 1.5B
Non-Current Assets 3.9B
Long-Term Investments 23m
PP&E 1.8B
Intangibles 2B
Other Non-Current Assets 79.9m
Current Liabilities 1.5B
Accounts Payable 1.2B
Other Current Liabilities 238.6m
Non-Current Liabilities 1.7B
Long-Term Debt 1.7B
Other Non-Current Liabilities 35.3m
Efficiency

Earnings Waterfall
Reece Ltd

Revenue
9.1B AUD
Cost of Revenue
-6.5B AUD
Gross Profit
2.6B AUD
Operating Expenses
-1.9B AUD
Operating Income
674.8m AUD
Other Expenses
-255.6m AUD
Net Income
419.2m AUD

Free Cash Flow Analysis
Reece Ltd

Last Value
3-Years Average
FCF Margin
Conversion Rate
Fundamental Scores

REH Profitability Score
Profitability Due Diligence

Reece Ltd's profitability score is 52/100. The higher the profitability score, the more profitable the company is.

Positive Gross Profit
Positive 3-Years Revenue Growth
Positive Free Cash Flow
Positive 3-Year Average ROE
52/100
Profitability
Score

Reece Ltd's profitability score is 52/100. The higher the profitability score, the more profitable the company is.

REH Solvency Score
Solvency Due Diligence

Reece Ltd's solvency score is 53/100. The higher the solvency score, the more solvent the company is.

High Altman Z-Score
Low D/E
Long-Term Solvency
Short-Term Solvency
53/100
Solvency
Score

Reece Ltd's solvency score is 53/100. The higher the solvency score, the more solvent the company is.

Wall St
Price Targets

REH Price Targets Summary
Reece Ltd

Wall Street analysts forecast REH stock price to rise over the next 12 months.

According to Wall Street analysts, the average 1-year price target for REH is 22.85 AUD with a low forecast of 19.19 AUD and a high forecast of 30.61 AUD.

Lowest
Price Target
19.19 AUD
15% Downside
Average
Price Target
22.85 AUD
1% Upside
Highest
Price Target
30.61 AUD
35% Upside
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Dividends

Dividend Yield
Lowest
Average
Highest
Dividend Per Share
N/A
Growth 3Y
Growth 5Y
Growth 10Y
Dividend Safety Score
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Unsafe
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Safe
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Safe
0
25
50
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100
Shareholder Yield

Current shareholder yield for REH is .

Shareholder yield represents the total return a company provides to its shareholders, calculated as the sum of dividend yield, buyback yield, and debt paydown yield. What is shareholder yield?

Shareholder Yield
Dividend Yield
Lowest
Average
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Buyback Yield
Lowest
Average
Highest
Debt Paydown Yield
Lowest
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Ownership

REH Insider Trading
Buy and sell transactions by insiders

Cumulative Transactions Amount
Period Sold Bought Net
3 Months
6 Months
9 Months
12 Months
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Profile

Reece Ltd Logo
Reece Ltd

Country

Australia

Industry

Trading Companies & Distributors

Market Cap

14.6B AUD

Dividend Yield

1.14%

Description

Reece Ltd. engages in supplying plumbing, bathroom, heating, ventilation, air-conditioning, waterworks and refrigeration products to customers in the trade, retail and commercial markets. The company is headquartered in Melbourne, Victoria and currently employs 8,000 full-time employees. The firm offers various products, including tapware and accessories, vanities an mirrors, showers, toilets, basins, baths and spas, pipe and fittings, sinks and troughs, hot water systems, bathroom and kitchen appliances, heating and cooling, irrigation and pools, tools and valves. The company also offers various tools and services, including hot water system selector, delivery, tool servicing department, tool hire, irrigation design, pool water testing and bathroom renovation guide. The company offers products of various brands, including ISSY, Laufen, Roca, Caroma, Methven, Omvivo, Milli, Memo, Posh, Nikles, among others. The firm operates across Australia, New Zealand and the United States.

Contact

VICTORIA
Melbourne
Burwood, 118 Burwood Hwy
+61392740000.0
www.reece.com.au

IPO

1974-01-01

Employees

8 000

Officers

CEO & Deputy Executive Chair
Mr. Peter J. Wilson B.Comm (Melb), FAIM
MD, Group President & Executive Director
Mr. Sasha Nikolic
Chief Financial Officer
Mr. Andrew Young
Executive Director
Mr. Leslie Alan Wilson
Executive Chair of United States
Mr. Claude A. Swanson Hornsby III
Company Secretary
Ms. Chantelle Duffy

See Also

Discover More
What is the Intrinsic Value of one REH stock?

The intrinsic value of one REH stock under the Base Case scenario is 18.13 AUD.

Is REH stock undervalued or overvalued?

Compared to the current market price of 22.63 AUD, Reece Ltd is Overvalued by 20%.

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