REA GROUP LIMITED (REA)
Share Price Analysis and Chart

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REA - REA GROUP LIMITED

FNArena Sector : Real Estate
Year End: June
GICS Industry Group : Media
Debt/EBITDA: 0.63
Index: ASX100 | ASX200 | ASX300 | ALL-ORDS | ALL-TECH

REA Group is a global online real estate advertising company. The company was founded in 1995 and listed on the ASX with the help of News Ltd in 1999. The latter is still the largest shareholder with a circa 60% equity stake. REA Group is the domestic number one and runs similar assets in the US and countries in Asia.

LAST PRICE CHANGE +/- CHANGE % VOLUME

$194.33

22 Jul
2024

-2.490

OPEN

$195.00

-1.27%

HIGH

$195.96

125,361

LOW

$193.81

TARGET
$207.514 6.8% upside
Franking for last dividend paid out: 100%
OTHER COMPANIES IN THE SAME SECTOR
APZ . DGH . DHG . HMC . PXA . RMY . UBN .
FNARENA'S MARKET CONSENSUS FORECASTS
REA: 1
Title FY22
Actual		 FY23
Actual		 FY24
Forecast		 FY25
Forecast
EPS (cps) xxx 269.7 345.7 xxx
DPS (cps) xxx 158.0 192.5 xxx
EPS Growth xxx - 7.4% 28.2% xxx
DPS Growth xxx - 3.7% 21.8% xxx
PE Ratio xxx N/A 56.9 xxx
Dividend Yield xxx N/A 1.0% xxx
Div Pay Ratio(%) xxx 58.6% 55.7% xxx

Dividend yield today if purchased 3 years ago: 0.97%

DIVIDEND YIELD CALCULATOR

Dividend Yield Today On Last Actual Payout :

 0.80

Estimated Dividend Growth
(Average Of Past Three Years)

  %

Amount Invested

 $ 

Tell Me The Dividend After This Many Years
Past performance is no guarantee for the future. Investors should take into account that heavy swings in share price or exceptional circumstances (a la 2009) can have a significant impact on short term calculations and averages

Last ex-div: 04/03 - ex-div 87c (franking 100%)

HISTORICAL DATA ARE ALL IN AUD
Copyright © 2024 FactSet UK Limited. All rights reserved
Title 201820192020202120222023
EPS Basic xxxxxxxxxxxxxxx269.7
DPS All xxxxxxxxxxxxxxx158.0
Sales/Revenue xxxxxxxxxxxxxxx1,392.4 M
Book Value Per Share xxxxxxxxxxxxxxx1,110.2
Net Operating Cash Flow xxxxxxxxxxxxxxx472.7 M
Net Profit Margin xxxxxxxxxxxxxxx25.57 %

EPS Basic

DPS All

Sales/Revenue

Book Value Per Share

Net Operating Cash Flow

Net Profit Margin

Title 201820192020202120222023
Return on Capital Employed xxxxxxxxxxxxxxx25.72 %
Return on Invested Capital xxxxxxxxxxxxxxx19.57 %
Return on Assets xxxxxxxxxxxxxxx13.71 %
Return on Equity xxxxxxxxxxxxxxx25.72 %
Return on Total Capital xxxxxxxxxxxxxxx29.08 %
Free Cash Flow ex dividends xxxxxxxxxxxxxxx248.5 M

Return on Capital Employed

Return on Invested Capital

Return on Assets

Return on Equity

Return on Total Capital

Free Cash Flow ex dividends

Title 201820192020202120222023
Short-Term Debt xxxxxxxxxxxxxxx11 M
Long Term Debt xxxxxxxxxxxxxxx393 M
Total Debt xxxxxxxxxxxxxxx403 M
Goodwill - Gross xxxxxxxxxxxxxxx830 M
Cash & Equivalents - Generic xxxxxxxxxxxxxxx260 M
Price To Book Value xxxxxxxxxxxxxxx12.88

Short-Term Debt

Long Term Debt

Total Debt

Goodwill - Gross

Cash & Equivalents - Generic

Price To Book Value

Title 201820192020202120222023
Capex xxxxxxxxxxxxxxx117.6 M
Capex % of Sales xxxxxxxxxxxxxxx8.45 %
Cost of Goods Sold xxxxxxxxxxxxxxx756 M
Selling, General & Admin. Exp & Other xxxxxxxxxxxxxxx88 M
Research & Development xxxxxxxxxxxxxxx-
Investments - Total xxxxxxxxxxxxxxx643 M

Capex

Capex % of Sales

Cost of Goods Sold

Selling, General & Admin. Exp & Other

Research & Development

Investments - Total

EXPERT VIEWS
Display All Commentary

Sentiment Indicator

0.6

No. Of Recommendations

7
BROKER DATE RATING RECOMMENDATION TARGET PRICE % TO REACH TARGET COMMENTARY

Ord Minnett

xx/xx/xxxx

3

xxxx

$xx.xx

xx.xx%

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UBS

xx/xx/xxxx

1

xxx

$xx.xx

xx.xx%

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Morgans

xx/xx/xxxx

3

xxxx

$xx.xx

xx.xx%

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Macquarie

08/07/2024

1

Upgrade to Outperform from Neutral

$212.00

9.09%

After assuming a higher valuation multiple and raising earnings forecasts, Macquarie raises its target for REA Group to $212 from $196 and upgrades to Outperform from Neutral.

The broker is anticipating solid FY24 result due to the benefit of Premiere-plus (the top-tier depth product for property listings on realestate.com.au) penetration and geographic mix.

The analyst forecasts a buy yield of 21% compared to management's guidance of between 18-19%. The pathway to breakeven for REA India may also come earlier than expected by the market, suggests Macquarie.

FORECAST
Macquarie forecasts a full year FY24 dividend of 197.00 cents and EPS of 348.00 cents.
Macquarie forecasts a full year FY25 dividend of 248.00 cents and EPS of 438.00 cents.

Citi

xx/xx/xxxx

1

xxxxxxx xx xxx xxxx xxxxxxx

$xx.xx

xx.xx%

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Morgan Stanley

xx/xx/xxxx

1

xxxxxxxxxx

$xx.xx

xx.xx%

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Bell Potter

xx/xx/xxxx

3

xxxx

$xx.xx

xx.xx%

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EXTRA COVERAGE
Display All Commentary

No. Of Recommendations

2

Please note: unlike Broker Call Report, BC Extra is not updated daily. The info you see might not be the latest. FNArena does its best to update ASAP.

BROKER DATE RATING RECOMMENDATION TARGET PRICE % TO REACH TARGET COMMENTARY

Jarden

xx/xx/xxxx

4

xxxxxxxxxxx

$xx.xx

xx.xx%

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Goldman Sachs

20/05/2024

1

Buy

$202.00

3.95%

Goldman Sachs analysts note REA Group delivered strong 3Q results with revenue and EBITDA up 3% and 5% respectively, beating their own estimates.

Despite a 3% benefit from deferral unwind in Residential revenues, the analysts expect FY24 EBITDA to be in line with prior expectations.

REA continues to outperform Domain Holdings Australia ((DHG)), the broker believes, though differing deferrals affect comparisons.

India's revenue growth accelerated to 31% in the quarter, boosting confidence in that country's outlook.

FY24-26 EBITDA forecasts have been revised by +1% to -1% due to higher Australian residential revenue, offset by increased costs. The 12-month price target remains unchanged, at $202, Buy rating retained.

FORECAST
Goldman Sachs forecasts a full year FY24 dividend of 186.00 cents and EPS of 344.00 cents.
Goldman Sachs forecasts a full year FY25 dividend of 223.00 cents and EPS of 405.00 cents.
Access Stockbroker Research History >

REA STOCK CHART

FNArena News on REA

1
Rudi’s View: Rate Cuts, Growth & Small Caps

Jul 18 2024 - Rudi's View
2
Weekly Ratings, Targets, Forecast Changes – 12-07-24

Jul 15 2024 - Weekly Reports
3
In Brief: Airlines, Pathology & Seek

Jul 12 2024 - Weekly Reports
4
Rudi’s View: Gold, Healthcare, Staples & Copper

Jul 11 2024 - Rudi's View
5
ESG Focus: The Little Big Things – 10-07-2024

Jul 10 2024 - ESG Focus

Latest Real Estate News

1
Weak Listings Not Insurmountable For REA Group

Feb 14 2023 - Australia
2
REA Group Heading Higher

Aug 16 2022 - Technicals
3
ESG Focus: Will Your Property Be Uninsurable By 2030?

May 05 2022 - ESG Focus
4
Can REA Group Stay The FY22 Course?

Feb 07 2022 - Australia
5
Is Valuation The Issue Now For REA Group?

Nov 08 2021 - Australia
6
REA: Wait For Lower Entry Point

Aug 17 2021 - Technicals
7
REA Group: Upside Break?

May 04 2021 - Technicals
8
REA Group Instils Confidence, Valuation Not So

Feb 08 2021 - Australia
9
Australian Broker Call *Extra* Edition – Sep 16, 2020

Sep 16 2020 - Daily Market Reports
10
Tailwinds Strengthening For REA Group

Aug 10 2020 - Australia