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Reece Ltd REH

Morningstar Rating
A$26.54 +0.02 (0.08%)
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Company Report

Price vs Fair Value

REH is trading at a 97% premium.
Price
A$26.54
Fair Value
A$56.10
Uncertainty
High
1-Star Price
A$39.95
5-Star Price
A$7.90
Economic Moat
Zlf
Capital Allocation
Lhsf

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 U.S. 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.

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Trading Information

Previous Close Price
A$26.52
Day Range
A$26.3626.95
52-Week Range
A$17.1029.33
Bid/Ask
A$28.69 / A$27.25
Market Cap
A$17.14 Bil
Volume/Avg
814,561 / 521,616

Key Statistics

Price/Earnings (Normalized)
41.96
Price/Sales
2.02
Dividend Yield (Trailing)
0.89%
Dividend Yield (Forward)
0.89%
Total Yield
0.89%

Company Profile

Reece is an Australian distributor of plumbing supplies and bathroom products, with businesses in Australia, New Zealand, and the United States. 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, pools, commercial and government projects, and fire services.In the Australia and New Zealand markets, Reece’s professional, or trade, customers are mostly small to medium plumbing businesses working in the areas of residential repairs, renovations, or new home builds.The U.S. business principally serves plumbers working on commercial and residential construction projects and has a network of almost 250 stores in the southern Sun Belt states.
Sector
Industrials
Industry
Industrial Distribution
Stock Style Box
Large Growth
Total Number of Employees
3,025

Competitors

Valuation

Metric
REH
FERG
FBU
Price/Earnings (Normalized)
41.9622.5518.76
Price/Book Value
4.928.070.92
Price/Sales
2.021.500.38
Price/Cash Flow
18.9119.556.91
Price/Earnings
REH
FERG
FBU

Financial Strength

Metric
REH
FERG
FBU
Quick Ratio
1.220.780.64
Current Ratio
2.341.801.69
Interest Coverage
7.3313.440.39
Quick Ratio
REH
FERG
FBU

Profitability

Metric
REH
FERG
FBU
Return on Assets (Normalized)
6.72%12.20%0.40%
Return on Equity (Normalized)
12.62%37.79%1.02%
Return on Invested Capital (Normalized)
9.46%19.98%0.46%
Return on Assets
REH
FERG
FBU
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