REECE LIMITED (REH)
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REH

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

$15.69

25 Mar
2025

0.200

OPEN

$15.99

1.29%

HIGH

$16.10

709,245

LOW

$15.66

TARGET
$19.342 23.3% upside
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 54.0 xxx
DPS (cps) xxx 25.8 23.8 xxx
EPS Growth xxx 8.1% - 16.8% xxx
DPS Growth xxx 3.0% - 7.4% xxx
PE Ratio xxx N/A 29.3 xxx
Dividend Yield xxx N/A 1.5% xxx
Div Pay Ratio(%) xxx 39.7% 44.1% xxx

Dividend yield today if purchased 3 years ago: 1.33%

DIVIDEND YIELD CALCULATOR

Dividend Yield Today On Last Actual Payout :

 1.63

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 © 2025 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

-0.3

No. Of Recommendations

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

Macquarie

xx/xx/xxxx

3

xxxxxxx

$xx.xx

xx.xx%

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Citi

xx/xx/xxxx

3

xxxxxxx

$xx.xx

xx.xx%

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UBS

xx/xx/xxxx

5

xxxx

$xx.xx

xx.xx%

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Morgan Stanley

25/02/2025

5

Underweight

$18.00

14.72%

Reece’s first-half earnings (EBITDA) declined by -10% to $475m, with revenue down -3% to $4,402m due to softening housing markets in the A&NZ region and the US, explains Morgan Stanley .

Earnings (EBIT) fell by -17% to $304m, missing the broker’s estimate by -5%, while net profit declined -19% to $181m.

Cash flow weakened, down -32% year-on-year, note the analysts, reflecting challenging trading conditions and lower volumes.

Underweight rating. Target $18. Industry view: In-Line. Morgan Stanley anticipates the share price will rebase to reflect lower earnings and a more realistic multiple.

FORECAST
Morgan Stanley forecasts a full year FY25 EPS of 57.00 cents.
Morgan Stanley forecasts a full year FY26 EPS of 61.00 cents.

Ord Minnett

xx/xx/xxxx

3

xxxxxxx xx xxxx xxxx xxxxxxx

$xx.xx

xx.xx%

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Morgans

xx/xx/xxxx

3

xxxxxxx xx xxxx xxxx xxxxxx

$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

03/03/2025

5

Sell

$19.50

24.28%

Reece's 1H25 EBITDA of $475m was slightly ahead of Goldman Sachs' forecast but the result highlighted margin pressure in Australia/NZ while US margins beat the forecast despite a subdued macro backdrop.

The broker notes the 13.7% margin in Australia/NZ vs its 14.3% forecast mainly reflects investments for the medium/long term, with benefits not visible in the near term. 

A positive in the US was the company re-iterating its long-term target of 10-15 store roll-outs per annum.

The broker cut FY25 EBIT forecast by -5% and lowered FY25 net profit forecast by -10% to reflect lower earnings and higher costs. Target price declines to $19.50 from $22.80.

Sell rating retained.

FORECAST
Goldman Sachs forecasts a full year FY25 dividend of 16.00 cents and EPS of 54.00 cents.
Goldman Sachs forecasts a full year FY26 dividend of 24.00 cents and EPS of 60.00 cents.
Access Extra Coverage Research History >

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