Outlook Intact on Management Transition Update
Reece operates two distinctly different business segments: Australia and New Zealand, or ANZ, and United States, or 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$26.61
- Day Range
- A$26.87–27.18
- 52-Week Range
- A$17.10–29.33
- Bid/Ask
- A$26.65 / A$27.04
- Market Cap
- A$17.43 Bil
- Volume/Avg
- 217,933 / 416,913
Key Statistics
- Price/Earnings (Normalized)
- 40.43
- Price/Sales
- 1.95
- Dividend Yield (Trailing)
- 0.93%
- Dividend Yield (Forward)
- 0.93%
- Total Yield
- 0.93%
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 US business principally serves plumbers working on commercial and residential construction projects and has a network of almost 250 stores in the southern Sunbelt states.
- Sector
- Industrials
- Industry
- Industrial Distribution
- Stock Style Box
- Large Core
- Total Number of Employees
- 3,025
- Website
- https://www.reecegroup.com.au
Competitors
Valuation
|
Metric
|
REH
|
FBU
|
FERG
|
|---|---|---|---|
Price/Earnings (Normalized) | 40.43 | 15.57 | 23.05 |
Price/Book Value | 4.75 | 0.76 | 8.00 |
Price/Sales | 1.95 | 0.32 | 1.51 |
Price/Cash Flow | 18.22 | 5.73 | 19.85 |
Price/Earnings
REH
FBU
FERG
Financial Strength
|
Metric
|
REH
|
FBU
|
FERG
|
|---|---|---|---|
Quick Ratio | 1.22 | 0.64 | 0.76 |
Current Ratio | 2.34 | 1.69 | 1.68 |
Interest Coverage | 7.33 | 0.39 | 14.53 |
Quick Ratio
REH
FBU
FERG
Profitability
|
Metric
|
REH
|
FBU
|
FERG
|
|---|---|---|---|
Return on Assets (Normalized) | 6.72% | 0.40% | 12.12% |
Return on Equity (Normalized) | 12.62% | 1.02% | 37.05% |
Return on Invested Capital (Normalized) | 9.46% | 0.46% | 19.85% |
Return on Assets
REH
FBU
FERG
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