Reece Ltd
ASX:REH

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Reece Ltd
ASX:REH
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Price: 13.23 AUD -0.15% Market Closed
Market Cap: 8.5B AUD

Intrinsic Value

The intrinsic value of one REH stock under the Base Case scenario is 16.04 AUD. Compared to the current market price of 13.23 AUD, Reece Ltd is Undervalued by 18%.

The Intrinsic Value is calculated as the average of DCF and Relative values:

REH Intrinsic Value
16.04 AUD
Undervaluation 18%
Intrinsic Value
Price
Worst Case
Base Case
Best Case

Valuation History
Reece Ltd

What is Valuation History?
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Fundamental Analysis

Company Overview
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Business Segments
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Management
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Contacts
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Bear Theses

With over 600 branches across Australia and an extensive U.S. footprint, Reece is heavily tied to the cyclical construction and renovation markets; a prolonged housing downturn or stagnation in commercial projects could significantly reduce demand for its plumbing and bathroom supplies.

Bull Theses

Reece’s entrenched relationships with professional builders and plumbers, along with its expansive distribution network, position the company to benefit quickly as residential construction rebounds or stimulus programs drive commercial developments across its core markets.

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Financials
Annual
Quarterly
TTM

Balance Sheet Decomposition
Reece Ltd

Current Assets 3.2B
Cash & Short-Term Investments 273.3m
Receivables 1.3B
Other Current Assets 1.6B
Non-Current Assets 4.1B
Long-Term Investments 22.2m
PP&E 1.9B
Intangibles 2.1B
Other Non-Current Assets 86.5m
Efficiency

Free Cash Flow Analysis
Reece Ltd

Last Value
3-Years Average
FCF Margin
Conversion Rate

Earnings Waterfall
Reece Ltd

Revenue
9B AUD
Cost of Revenue
-6.4B AUD
Gross Profit
2.6B AUD
Operating Expenses
-2B AUD
Operating Income
618.8m AUD
Other Expenses
-242.4m AUD
Net Income
376.4m AUD
Fundamental Scores

REH Profitability Score
Profitability Due Diligence

Reece Ltd's profitability score is 49/100. The higher the profitability score, the more profitable the company is.

Healthy Gross Margin
Sustainable 3Y Average Gross Margin
Positive 3Y Average ROE
Gross Margin is Increasing
49/100
Profitability
Score

Reece Ltd's profitability score is 49/100. The higher the profitability score, the more profitable the company is.

REH Solvency Score
Solvency Due Diligence

Reece Ltd's solvency score is 53/100. The higher the solvency score, the more solvent the company is.

High Altman Z-Score
Low D/E
Short-Term Solvency
Long-Term Solvency
53/100
Solvency
Score

Reece Ltd's solvency score is 53/100. The higher the solvency score, the more solvent the company is.

Wall St
Price Targets

REH Price Targets Summary
Reece Ltd

Wall Street analysts forecast REH stock price to rise over the next 12 months.

According to Wall Street analysts, the average 1-year price target for REH is 18.99 AUD with a low forecast of 16.56 AUD and a high forecast of 22.68 AUD.

Lowest
Price Target
16.56 AUD
25% Upside
Average
Price Target
18.99 AUD
44% Upside
Highest
Price Target
22.68 AUD
71% Upside
View Analyst Estimates
View Analyst Estimates

Dividends

Dividend Yield
Lowest
Average
Highest
Dividend Per Share
N/A
Growth 3Y
Growth 5Y
Growth 10Y
Dividend Safety Score
Very
Unsafe
Unsafe
Safe
Very
Safe
0
25
50
75
100
Shareholder Yield

Current shareholder yield for REH is .

Shareholder yield represents the total return a company provides to its shareholders, calculated as the sum of dividend yield, buyback yield, and debt paydown yield. What is shareholder yield?

Shareholder Yield
Dividend Yield
Lowest
Average
Highest
Buyback Yield
Lowest
Average
Highest
Debt Paydown Yield
Lowest
Average
Highest

Competitive Landscape

Company Market Cap Intrinsic Valuation Profitability Solvency Price Change
1Y 3Y 5Y

Ownership

REH Insider Trading
Buy and sell transactions by insiders

What is the Intrinsic Value of one REH stock?

The intrinsic value of one REH stock under the Base Case scenario is 16.04 AUD.

Is REH stock undervalued or overvalued?

Compared to the current market price of 13.23 AUD, Reece Ltd is Undervalued by 18%.

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