Reece's first-quarter trading update revealed 9% growth in sales revenue to AUD 2.5 billion, on a constant currency basis, versus a year ago. Australia and New Zealand sales rose 13%, the US 6% including new stores, or 2% without. Shares shot up 9%.
Demand for new houses and aging housing stock in Reece’s key geographies supports demand for plumbing products.
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.
Metric | REH | JHX | FBU |
|---|---|---|---|
Price/Earnings (Normalized) | 37.95 | 24.19 | 29.08 |
Price/Book Value | 3.14 | 2.50 | 1.01 |
Price/Sales | 1.27 | 3.11 | 0.67 |
Price/Cash Flow | 18.46 | 15.81 | 5.62 |
Metric | REH | JHX | FBU |
|---|---|---|---|
Quick Ratio | 1.00 | 0.63 | 0.58 |
Current Ratio | 1.98 | 2.11 | 1.42 |
Interest Coverage | 4.34 | 3.14 | 2.13 |
Metric | REH | JHX | FBU |
|---|---|---|---|
Return on Assets (Normalized) | 4.14% | 3.40% | 2.94% |
Return on Equity (Normalized) | 8.07% | 7.19% | 6.07% |
Return on Invested Capital (Normalized) | 6.57% | 5.56% | 3.50% |
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United States