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: 0.35
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

$245.57

20 Nov
2024

-3.540

OPEN

$248.74

-1.42%

HIGH

$249.09

86,061

LOW

$245.57

TARGET
$240.857 -1.9% downside
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 FY23
Actual		 FY24
Actual		 FY25
Forecast		 FY26
Forecast
EPS (cps) xxx 229.3 433.5 xxx
DPS (cps) xxx 189.0 239.2 xxx
EPS Growth xxx - 15.0% 89.1% xxx
DPS Growth xxx 19.6% 26.6% xxx
PE Ratio xxx N/A 56.9 xxx
Dividend Yield xxx N/A 1.0% xxx
Div Pay Ratio(%) xxx 82.4% 55.2% xxx

Dividend yield today if purchased 3 years ago: 1.10%

DIVIDEND YIELD CALCULATOR

Dividend Yield Today On Last Actual Payout :

 0.77

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: 29/08 - ex-div 102.00c (franking 100%)

HISTORICAL DATA ARE ALL IN AUD
Copyright © 2024 FactSet UK Limited. All rights reserved
Title 201920202021202220232024
EPS Basic xxxxxxxxxxxxxxx229.3
DPS All xxxxxxxxxxxxxxx189.0
Sales/Revenue xxxxxxxxxxxxxxx1,677.0 M
Book Value Per Share xxxxxxxxxxxxxxx1,165.4
Net Operating Cash Flow xxxxxxxxxxxxxxx589.4 M
Net Profit Margin xxxxxxxxxxxxxxx18.06 %

EPS Basic

DPS All

Sales/Revenue

Book Value Per Share

Net Operating Cash Flow

Net Profit Margin

Title 201920202021202220232024
Return on Capital Employed xxxxxxxxxxxxxxx20.15 %
Return on Invested Capital xxxxxxxxxxxxxxx16.50 %
Return on Assets xxxxxxxxxxxxxxx11.37 %
Return on Equity xxxxxxxxxxxxxxx20.15 %
Return on Total Capital xxxxxxxxxxxxxxx36.41 %
Free Cash Flow ex dividends xxxxxxxxxxxxxxx360.6 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 201920202021202220232024
Short-Term Debt xxxxxxxxxxxxxxx9 M
Long Term Debt xxxxxxxxxxxxxxx272 M
Total Debt xxxxxxxxxxxxxxx281 M
Goodwill - Gross xxxxxxxxxxxxxxx922 M
Cash & Equivalents - Generic xxxxxxxxxxxxxxx204 M
Price To Book Value xxxxxxxxxxxxxxx16.87

Short-Term Debt

Long Term Debt

Total Debt

Goodwill - Gross

Cash & Equivalents - Generic

Price To Book Value

Title 201920202021202220232024
Capex xxxxxxxxxxxxxxx125.0 M
Capex % of Sales xxxxxxxxxxxxxxx7.45 %
Cost of Goods Sold xxxxxxxxxxxxxxx879 M
Selling, General & Admin. Exp & Other xxxxxxxxxxxxxxx110 M
Research & Development xxxxxxxxxxxxxxx-
Investments - Total xxxxxxxxxxxxxxx474 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

0.7

No. Of Recommendations

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

Bell Potter

xx/xx/xxxx

1

xxx

$xx.xx

xx.xx%

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Ord Minnett

xx/xx/xxxx

3

xxxx

$xx.xx

xx.xx%

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Morgans

xx/xx/xxxx

3

xxxx

$xx.xx

xx.xx%

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UBS

11/11/2024

1

Buy

$268.00

9.13%

UBS believes REA Group reported another "solid" quarterly result, with the analyst surprised by the growth in underlying yield, which advanced 6% year-on-year due to ongoing upgrades by agents to Prem-plus packages, increased take-up of Audience Maximiser, and contributions from Luxe.

The analyst notes October volumes are up 14% year-on-year and up 7% when adjusted for two extra working days relative to the previous corresponding period.

UBS raises forecast volume growth for 2Q25 to 7% from 5%, assuming a slight easing in growth rates in November and December, as rate cuts are now expected in May rather than February 2025.

Growth in volumes for 2H25 is expected to be flat, leading to estimated FY25 volumes of 3.5% versus the previous estimate of 3%.

Target price increases to $268 from $263. Buy rating retained.

FORECAST
UBS forecasts a full year FY25 dividend of 235.00 cents and EPS of 427.00 cents.
UBS forecasts a full year FY26 dividend of 279.00 cents and EPS of 508.00 cents.

Citi

xx/xx/xxxx

1

xxx

$xx.xx

xx.xx%

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Morgan Stanley

xx/xx/xxxx

1

xxxxxxxxxx

$xx.xx

xx.xx%

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Macquarie

xx/xx/xxxx

1

xxxxxxxxxx

$xx.xx

xx.xx%

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Access Stockbroker Research History >
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

Goldman Sachs

xx/xx/xxxx

1

xxx

$xx.xx

xx.xx%

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Jarden

13/11/2024

4

Upgrade to Underweight from Sell

$181.00

-26.29%

Domain Holdings Australia and REA Group's quarterly updates showed similar paid volumes growth, Jarden notes, however this is where the similarities ended.

The impact of winbacks diluted Domain's controllable yield growth while REA's Buy yield grew by an impressive 15%.

This indicates REA is growing its share of agent spend, the broker suggests, although agent spend is growing overall, which still benefits Domain.

Jarden has downgraded forecast earnings for Domain and upgraded REA's, cutting Domain's target by-2.9% to $3.35 and lifting REA's target 2.3% to $181. 

Domain's share price underperformance is considered an opportunity and the broker upgrades to Buy from Overweight. Jarden moves REA to Underweight from Sell, ignoring its stronger operating momentum but notes a lack of near-term catalyst.

FORECAST
Jarden forecasts a full year FY25 dividend of 228.00 cents and EPS of 437.00 cents.
Jarden forecasts a full year FY26 dividend of 263.00 cents and EPS of 493.00 cents.
Access Extra Coverage Research History >

REA STOCK CHART

FNArena News on REA

1
Rudi’s View: The Importance Of ‘Quality’ Growth

3:18 PM - Rudi's View
2
FNArena Corporate Results Monitor – 15-11-2024

Nov 15 2024 - Australia
3
In Case You Missed It – BC Extra Upgrades & Downgrades – 15-11-24

Nov 15 2024 - Weekly Reports
4
Rudi’s View: A Rally With No Earnings Support

Nov 14 2024 - Rudi's View
5
Australian Broker Call *Extra* Edition – Nov 14, 2024

Nov 14 2024 - Daily Market Reports

Latest Real Estate News

1
REA Group: A Tale Of Two Cities

Aug 19 2024 - Australia
2
Weak Listings Not Insurmountable For REA Group

Feb 14 2023 - Australia
3
REA Group Heading Higher

Aug 16 2022 - Technicals
4
ESG Focus: Will Your Property Be Uninsurable By 2030?

May 05 2022 - ESG Focus
5
Can REA Group Stay The FY22 Course?

Feb 07 2022 - Australia
6
Is Valuation The Issue Now For REA Group?

Nov 08 2021 - Australia
7
REA: Wait For Lower Entry Point

Aug 17 2021 - Technicals
8
REA Group: Upside Break?

May 04 2021 - Technicals
9
REA Group Instils Confidence, Valuation Not So

Feb 08 2021 - Australia
10
Australian Broker Call *Extra* Edition – Sep 16, 2020

Sep 16 2020 - Daily Market Reports