Water PurificationHome ImprovementConstructionIndustrialManufacturing
Description
GWA Group Limited engages in providing innovative water solutions, primarily focusing on the manufacturing and sale of a diverse range of bathroom and kitchen products. The company has developed a significant presence in the plumbing and sanitary war…
Analysis
Quality compounder
GWA Group Limited earns the quality_compounder label: good underlying economics priced fairly, with no obvious bargain or excess. Worth noting: the cash the business generates has lagged behind what the income statement shows.
On valuation, the picture is attractive. The owner-earnings multiple stands at 11.7×; owner earnings: the cash an owner could take out each year. The implied growth embedded in that price is around -1% a year, against analyst forecasts of 11%. The price, in other words, assumes less than the experts do.
Growth is solid; the safety picture is adequate. The company scores 16/20 on our value-creation score: strong value creator.
Flags to be aware of: The financial cushion is thinner than comfortable. Reported profits have run ahead of actual cash for several periods. As always: this describes the company's numbers; it is not a recommendation.
360° rank · history
1007550250
Jan 202310
25
2023202420252026
All-time high
66
Sep 2023
All-time low
10
Jan 2023
Average rank
37
across all years
Detailed & Historical Ranks
Deep dive into 15 detailed ranks and 3 years of history.
Current202520242023
Price/Sales
53
34
43
31
Price/Earnings
80
53
57
49
Price/Book
49
30
34
37
Dividend Yield
99
98
100
100
Value (overall)
76
47
51
55
Cells are coloured by rank band (red weak → green strong). Sentiment & 360° history begins 2023.