REECE LIMITED (REH)
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REH - REECE LIMITED

FNArena Sector : Furniture & Renovation
Year End: June
GICS Industry Group : Capital Goods
Debt/EBITDA: 1.83
Index: ASX100 | ASX200 | ASX300 | ALL-ORDS

LAST PRICE CHANGE +/- CHANGE % VOLUME

$24.22

20 Nov
2024

-0.620

OPEN

$24.39

-2.50%

HIGH

$24.68

242,902

LOW

$24.22

TARGET
$21.933 -9.4% downside
Franking for last dividend paid out: 100%
OTHER COMPANIES IN THE SAME SECTOR
ADH . BLX . GWA . HVN . JBH . JYC . NCK . TPW .
FNARENA'S MARKET CONSENSUS FORECASTS
REH: 1
Title FY23
Actual		 FY24
Actual		 FY25
Forecast		 FY26
Forecast
EPS (cps) xxx 64.9 59.7 xxx
DPS (cps) xxx 25.8 24.6 xxx
EPS Growth xxx 8.1% - 8.1% xxx
DPS Growth xxx 3.0% - 4.5% xxx
PE Ratio xxx N/A 39.8 xxx
Dividend Yield xxx N/A 1.0% xxx
Div Pay Ratio(%) xxx 39.7% 41.2% xxx

Dividend yield today if purchased 3 years ago: 1.14%

DIVIDEND YIELD CALCULATOR

Dividend Yield Today On Last Actual Payout :

 1.09

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: 08/10 - ex-div 17.75c (franking 100%)

HISTORICAL DATA ARE ALL IN AUD
Copyright © 2024 FactSet UK Limited. All rights reserved
Title 201920202021202220232024
EPS Basic xxxxxxxxxxxxxxx64.9
DPS All xxxxxxxxxxxxxxx25.8
Sales/Revenue xxxxxxxxxxxxxxx9,104.8 M
Book Value Per Share xxxxxxxxxxxxxxx601.3
Net Operating Cash Flow xxxxxxxxxxxxxxx750.9 M
Net Profit Margin xxxxxxxxxxxxxxx4.60 %

EPS Basic

DPS All

Sales/Revenue

Book Value Per Share

Net Operating Cash Flow

Net Profit Margin

Title 201920202021202220232024
Return on Capital Employed xxxxxxxxxxxxxxx11.16 %
Return on Invested Capital xxxxxxxxxxxxxxx7.60 %
Return on Assets xxxxxxxxxxxxxxx5.98 %
Return on Equity xxxxxxxxxxxxxxx11.16 %
Return on Total Capital xxxxxxxxxxxxxxx11.93 %
Free Cash Flow ex dividends xxxxxxxxxxxxxxx353.1 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 xxxxxxxxxxxxxxx136 M
Long Term Debt xxxxxxxxxxxxxxx1,696 M
Total Debt xxxxxxxxxxxxxxx1,832 M
Goodwill - Gross xxxxxxxxxxxxxxx-
Cash & Equivalents - Generic xxxxxxxxxxxxxxx341 M
Price To Book Value xxxxxxxxxxxxxxx4.19

Short-Term Debt

Long Term Debt

Total Debt

Goodwill - Gross

Cash & Equivalents - Generic

Price To Book Value

Title 201920202021202220232024
Capex xxxxxxxxxxxxxxx258.0 M
Capex % of Sales xxxxxxxxxxxxxxx2.83 %
Cost of Goods Sold xxxxxxxxxxxxxxx6,499 M
Selling, General & Admin. Exp & Other xxxxxxxxxxxxxxx1,931 M
Research & Development xxxxxxxxxxxxxxx0 M
Investments - Total xxxxxxxxxxxxxxx23 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

6
BROKER DATE RATING RECOMMENDATION TARGET PRICE % TO REACH TARGET COMMENTARY

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Morgan Stanley

25/10/2024

5

Underweight

$18.00

-25.68%

Reece reported a soft trading updated and 1H25 guidance below expectations, Morgan Stanley notes with weakness in key housing construction as well as repair & remodeling markets.

Sales in A&NZ were flat and supported by recent M&A activity. US sales revenue declined -6.5% due to lower volumes and deflation continuing in certain areas.

Morgan Stanley sees a "bearish" outlook for the company particularly in A&NZ. The downgrade in management's 1H25 guidance results in a fall in the analyst's EPS estimates by -7% for FY25/FY26.

Underweight rating reiterated. Target price $18. Industry view: In-Line.

FORECAST
Morgan Stanley forecasts a full year FY25 dividend of 25.00 cents and EPS of 64.00 cents.
Morgan Stanley forecasts a full year FY26 dividend of 27.00 cents and EPS of 72.00 cents.

Ord Minnett

xx/xx/xxxx

4

xxxxxxx

$xx.xx

xx.xx%

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UBS

xx/xx/xxxx

5

xxxx

$xx.xx

xx.xx%

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Access Stockbroker Research History >
EXTRA COVERAGE
Display All Commentary

No. Of Recommendations

1

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

31/10/2024

5

Sell

$23.10

-4.62%

Goldman Sachs notes Reece's 1Q25 update showed a decline in revenues of  -5% year-on-year, with Australian sales flat while the US experienced a -6.5% drop, impacted by lower product prices and weather conditions.

Cost management in Australia partially offsets these challenges

in the US, the company is experiencing volume and price deflation, with Goldman Sachs lowering EBITDA forecastsby -6% in FY25.

The broker retains a Sell rating on lowering the target price to $23.10 from $23.70.

FORECAST
Goldman Sachs forecasts a full year FY25 dividend of 24.00 cents and EPS of 59.00 cents.
Goldman Sachs forecasts a full year FY26 dividend of 28.00 cents and EPS of 69.00 cents.
Access Extra Coverage Research History >

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