Reece's Sales Demand Tied to Housing Cyclicality in ANZ and US
Reece operates two distinct business segments: Australia and New Zealand, and the US.
Reece Ltd REH
Bulls Say, Bears Say
Bulls
Demand for new houses and aging housing stock in Reece’s key geographies supports demand for plumbing products.
Bears
Reece’s US acquisition strategy has eroded group ROIC. For further acquisitions, a variety of factors may destroy shareholder value, such as unfavorable deal terms, integration issues, and relative underperformance.
Trading Information
- Previous Close Price
- A$17.16
- Day Range
- A$17.12–17.53
- 52-Week Range
- A$10.45–17.63
- Bid/Ask
- A$16.95 / A$17.59
- Shares Outstanding
- 615.09M
- Market Cap
- A$10.71B
- Volume/Avg
- 398,566 / 533,846
Key Statistics
- Price/Earnings (Normalized)
- 34.02
- Price/Sales
- 1.14
- Dividend Yield (Trailing)
- 1.08%
- Dividend Yield (Forward)
- 1.08%
- Dividend Payment Schedule
- Apr, Oct
- Total Yield
- 5.03%
Company Profile
Reece is an Australian distributor of plumbing supplies and bathroom products, with businesses in Australia, New Zealand, and the US. Reece Australia holds Australia’s largest range of individual plumbing stock-keeping units, supporting plumbing needs for general plumbing, bathrooms, kitchens, heating and air conditioning, irrigation, refrigeration, pools, commercial and government projects, and fire services.In the Australian and New Zealand markets, Reece’s trade customers are mostly small to medium-sized plumbing businesses working in the areas of residential repairs, renovations, or new-home builds.The US business principally serves plumbers working on commercial and residential construction projects and has a network of almost 300 stores, mostly in the Sun Belt states.
- Sector
- Industrials
- Industry
- Industrial Distribution
- Stock Style Box
- Mid Core
- Total Number of Employees
- 3,025
- Website
- https://group.reece.com
Competitors
Valuation
|
Metric
|
REH
|
FBU
|
JHX
|
|---|---|---|---|
Price/Earnings (Normalized) | 34.02 | 26.12 | 21.52 |
Price/Book Value | 2.82 | 0.91 | 2.25 |
Price/Sales | 1.14 | 0.60 | 2.69 |
Price/Cash Flow | 16.55 | 5.05 | 17.59 |
Price/Earnings
REH
FBU
JHX
Financial Strength
|
Metric
|
REH
|
FBU
|
JHX
|
|---|---|---|---|
Quick Ratio | 1.00 | 0.58 | 0.71 |
Current Ratio | 1.98 | 1.42 | 1.59 |
Interest Coverage | 4.34 | 2.13 | 2.08 |
Quick Ratio
REH
FBU
JHX
Profitability
|
Metric
|
REH
|
FBU
|
JHX
|
|---|---|---|---|
Return on Assets (Normalized) | 4.14% | 2.94% | 3.36% |
Return on Equity (Normalized) | 8.07% | 6.07% | 7.43% |
Return on Invested Capital (Normalized) | 6.57% | 3.50% | 6.39% |
Return on Assets
REH
FBU
JHX
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1-Day Chart
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United States