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Fairly valued
Morningstar Quantitative Rating as of 28 OCT 2026.
Quantitative Equity Rating Methodology – view here
Five-star price 12.23 Fair value 14.96 One-star price 18.30
Morningstar Quantitative Rating as of 28 OCT 2026.
Morningstar Quantitative Rating as of 28 OCT 2026. The slider runs from the five-star price (12.23) to the one-star price (18.30).
| Ratios |
|---|
| Currency (Price/reporting): AUD/AUD |
| Exchange Rate: 1.0000 |
| Price - closing or last bid | 15.76 |
| Price - 12 month high | 17.63 |
| Price - 12 month low | 10.45 |
| Pricing date | 28 OCT 2026 |
| Volume - avg. trading volume for the last ten days | 0.53 |
| Market capitalization | 9,693.85 |
| 12 Month High price date | 20 OCT 2026 |
| 12 Month Low price date | 21 NOV 2025 |
| Volume - avg. trading volume for the last 3 months | 0.54 |
| Price - 1 Day % Change | 0.90% |
| Price - 13 week price percent change | -3.19% |
| Price - 26 week price percent change | 15.54% |
| Price - 5 Day % Change | -7.57% |
| Price - 52 week price percent change | 29.71% |
| Price - YTD price percent change | 17.61% |
| Price % Change Month To Date | -5.00% |
| EPS excluding extraordinary items - most recent fiscal year | 0.495 |
| EPS excluding extraordinary items - trailing 12 month | 0.495 |
| EPS Normalized - most recent fiscal year | 0.495 |
| Revenue/share - most recent fiscal year | 15.074 |
| Revenue/share - trailing 12 month | 15.074 |
| Book value per share - most recent fiscal year | 6.094 |
| Book value per share - most recent half-year | 6.094 |
| Book value (tangible) per share - most recent fiscal year | 3.058 |
| Book value (tangible) per share - most recent half-year | 3.058 |
| Cash per share - most recent fiscal year | 0.533 |
| Cash per share - most recent half-year | 0.533 |
| Cash Flow per share - most recent fiscal year | 1.037 |
| Cash Flow per share - trailing 12 month | 1.037 |
| Dividend per share - most recent fiscal year | — |
| Dividends per share - trailing 12 month | 0.188 |
| EBITD per share - trailing 12 month | 1.448 |
| EPS Basic excluding extraordinary items - most recent fiscal year | 0.495 |
| EPS Basic excluding extraordinary items - trailing 12 month | 0.495 |
| EPS including extraordinary items - most recent fiscal year | 0.495 |
| EPS including extraordinary items - trailing 12 month | 0.495 |
| Free Cash Flow per share - trailing 12 month | 0.757 |
| P/E excluding extraordinary items, most recent fiscal year | 31.84 |
| P/E Normalized, most recent fiscal year | 31.84 |
| Price to sales - most recent fiscal year | 1.05 |
| Price to Tangible Book - most fiscal year | 5.15 |
| Price to Free Cash Flow per Share - most recent fiscal year | 20.83 |
| Price to Cash Flow per share - trailing 12 month | 15.20 |
| Price to Book - most recent fiscal year | 2.59 |
| P/E excluding extraordinary items high, trailing 12 months | 39.75 |
| P/E excluding extraordinary items low, trailing 12 months | 21.67 |
| Net Debt, LFI | 2,164.25 |
| Net Debt, LFY | 1,925.52 |
| Dividend Yield - 5 Year Average | 1.18% |
| Dividend Yield - indicated annual dividend divided by closing price | 1.10% |
| Current Dividend Yield - Common Stock Primary Issue, LTM | 1.20% |
| Free Cash Flow - most recent fiscal year | 470.81 |
| LT debt/equity - most recent fiscal year | 55.49% |
| Payout ratio - most recent fiscal year | — |
| Total debt/total equity - most recent fiscal year | 60.11% |
| LT debt/equity - most recent half-year | 60.01% |
| Total debt/total equity - most recent half-year | 64.17% |
| Free Cash Flow - trailing 12 month | 470.81 |
| Payout ratio - trailing 12 month | — |
| Revenue - most recent fiscal year | 9,378.43 |
| Revenue - trailing 12 month | 9,378.43 |
| EBITD - most recent fiscal year | 900.93 |
| EBITD - trailing 12 month | 900.93 |
| Earnings before taxes - most recent fiscal year | 416.43 |
| Earnings before taxes - trailing 12 month | 416.43 |
| Net Income available to common - most recent fiscal year | 308.16 |
| Net Income available to common - trailing 12 months | 308.16 |
| Earnings before taxes Normalized - most recent fiscal year | 416.43 |
| Net Income Available to Common, Normalized - most recent fiscal year | — |
| Earnings per Share, Normalized, Excluding Extraordinary Items, Avg. Diluted Shares Outstanding, TTM | 0.50 |
| Net Profit Margin % - 1st historical fiscal year | 3.29% |
| Net Profit Margin % - trailing 12 month | 3.29% |
| Operating margin - 1st historical fiscal year | 5.63% |
| Operating margin - trailing 12 month | 5.63% |
| Pretax margin - trailing 12 month | 4.44% |
| Pretax margin - 1st historical fiscal year | 4.44% |
| Operating Margin - 5 year average | 6.74% |
| Pretax Margin - 5 year average | 5.80% |
| Free Operating Cash Flow/Revenue, 5 Year Average | 4.14% |
| Free Operating Cash Flow/Revenue, TTM | 5.02% |
| Net Profit Margin - 5 year average | 4.19% |
| Return on average assets - most recent fiscal year | 4.14% |
| Return on average assets - trailing 12 month | 4.14% |
| Return on average equity - most recent fiscal year | 8.07% |
| Return on average equity - trailing 12 month | 8.07% |
| Return on average assets - 5 year average | 5.41% |
| Return on average equity - 5 year average | 10.39% |
| Net Income/employee - most recent fiscal year | — |
| Revenue/employee - most recent fiscal year | — |
| Revenue growth rate, 5 year | 8.38% |
| EPS growth rate, 5 year | 2.38% |
| Growth rate% - dividend, 3 year | -9.06% |
| Revenue/share (5 yr growth) | 9.20% |
| Growth rate% - Revenue, 3 year | 1.99% |
| Growth rate% - EPS, 3 year | -6.21% |
| Book value per share growth rate, 5 year | 6.39% |
| Capital Spending growth rate, 5 year | 19.14% |
| Earnings Before Interest, Taxes, Depreciation & Amortization, 5 Year CAGR | 4.66% |
Financial forecast (AUD, millions except per share)
| Actuals | Estimates | |||||||
| 2026 | 2027 | 2028 | ||||||
| Estimate breakdown | ||||||||
Financials (AUD, millions)
| Period end: | JUN 22 | JUN 23 | JUN 24 | JUN 25 | JUN 26 |
| Fiscal year: | 2022 | 2023 | 2024 | 2025 | 2026 |
| Period length: | 12 months | 12 months | 12 months | 12 months | 12 months |
Announcements
| DATE | TIME | HEADING | PAGES |
| Price sensitive |
REH +5.97%: traded higher today after delivering a first-quarter result that was better than the market had been braced for. That is important given both Citi and Jarden downgraded the stock last week on expectations REH would underwhelm, which has not happened.
After testing 18-month highs earlier this week REH was smacked almost 9% yesterday making it the worst performer on the main board. The stock, like so many have of late, suffered at the hands of broker downgrades: Citi cut it to a Sell, from Neutral, with a $16.10 target, while Jeffries tweaked its price target down almost 2% to $16.60 - both PT’s above yesterday's close.
Reece (REH) +2.18%: delivered a mixed FY26 result, with a solid recovery in Australia and New Zealand offset by ongoing weakness in the US housing market. The volatility in the share price intra-day, showed some indecision, but overall, we think the evidence over the cautious rhetoric from management is what we should really take on board;
We are making a switch within the Active Growth Portfolio today.
Yesterday, the building stocks caught our attention with Reliance Worldwide (ASX:RWC) and Reece (ASX: REH) rising in a falling market, while James Hardie (ASX: JHX), which we own, slipped 2.4% after announcing it would defend a Class Action in Victoria on 2025 forecasts. The news was no great surprise, but prompted us to consider whether JHX was the best vehicle for exposure to a construction recovery when at least part of their attention may be focused elsewhere.
Reece (REH) is a leading Australian plumbing and bathroom supplies company with a growing international presence, supplying trade professionals and consumers across Australia, New Zealand and the United States, where it now generates ~57% of its revenue. The company beat the market's low expectations last month while delivering a cautious/prudent message moving forward – covered Here.
Reece +13.9%: Reece rallied sharply after a cost-driven beat, despite ongoing pressure in the US. They also guided ahead of market for the FY.
Plumbing business REH has struggled over the last few years as a mature ANZ market faces increasing competition and the US market remains challenging - at least for now. The US has been a tough backdrop for REH, where it generated over 55% of its revenue in FY25.
REH has fallen -44% so far in 2025 as the US construction industry struggles due to cost pressures from tariffs, elevated material prices, and a reluctance by homeowners to move, giving up lower interest rates that were locked in during the pandemic - not a great backdrop for REH, which generates well over half of its revenue from the US.
This week saw plumbing business REH deliver a 1Q26 trading update, which showed ‘less bad’ US sales than expected, important for a business that generated 57% of its FY25 revenue from the region. The sales beat should ease concerns about the company's rollout strategy.
MM remains long & bullish REH ~$18
MM is long and cautiously bullish towards REH
MM remains long & bullish REH
MM is buying REH in the Active Growth Portfolio, targeting a 4% weighting around $15.70
MM is bullish towards REH around $14
MM is bullish towards REH around $14.60
MM is bullish towards REH around $15
MM is bullish REH ~$16
MM is bullish towards REH around $14.75
MM is bullish towards REH
Reece is an Australian distributor of plumbing supplies and bathroom products, with businesses in Australia, New Zealand, and the US. Reece Australia holds Australia's largest range of individual plumbing stock-keeping units, supporting plumbing needs for general plumbing, bathrooms, kitchens, heating and air conditioning, irrigation, refrigeration, pools, commercial and government projects, and fire services.In the Australian and New Zealand markets, Reece's trade customersare mostly small to medium-sized plumbing businesses working in the areas of residential repairs, renovations, or new-home builds.The US business principally serves plumbers working on commercial and residential construction projects and has a network of almost 300 stores, mostly in the Sun Belt states.
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