Obermatt

Reece

ASX:REH · AU000000REH4
Trading Companies & DistributorsLarge

360

6
EV / EBIT11
Price / Owner Earnings7
Owner Earnings Yield22
Dividend Yield53
Price/Sales52
EV / Gross Profit54
Price/Book26
Return on Capital32
Cash Return on Capital28
Return on Equity22
EBIT Margin33
Gross Profitability69
Cash Conversion70
Accruals59
Owner Earnings Margin24
Sales growth29
Profit Growth70
Long-Term EPS Growth48
Owner Earnings Growth19
Reinvestment24
Price momentum17
Debt load46
Refinancing49
Debt Payback13
Liquidity42
Analyst ratings1
Opinion Changes50
Price Target Upside8
Market mood67
Value Creation8/20creating some value
  • Creates more value than its capital costs
  • Owner earnings growing
  • Owner earnings per share growing
  • Reinvests at strong returns
  • Solid earnings base

What this means

Reece clears its cost of capital, but the record is mixed across the five tests. Real value creation, just not yet consistent.

Profile

CountryAustralia
IndustryTrading Companies & Distributors
SizeLarge
TypePublic Company
ExchangeASX
Founded1953
Employees1,627
ISINAU000000REH4
Last UpdateApr 2, 2026
Themes
HVAC ServicesHome ImprovementE-CommerceMarketingRetailSalesSupply Chain Management

Description

Reece Limited engages in the distribution of plumbing, waterworks, and HVAC-R, heating, ventilation, air conditioning, and refrigeration products. The company provides for professional tradespeople and retail customers. Business Strategy The compan…

Analysis

Hope premium

Reece Limited carries what we call a hope premium: an average business trading at an ambitious price.

The price is expensive. You pay 57.6× its owner earnings: the cash an owner could take out each year, which is in the historically expensive zone. At today's price, the market is assuming roughly 20% yearly growth; analysts expect 7%. The market is pricing in far more than analysts expect: heroic expectations.

The trajectory is tepid and the balance sheet is stretched. The company scores 8/20 on our value-creation score: creating some value.

Nothing is flagged here: no red or amber gates, no divergence between profits and cash. That is itself information: the numbers are straightforward. As always: this describes the company's numbers; it is not a recommendation.

360° rank · history

1007550250
17
2023202420252026

All-time high

22

Jan 2023

All-time low

1

Jan 2025

Average rank

12

across all years

Detailed & Historical Ranks

Deep dive into 15 detailed ranks and 3 years of history.

Current202520242023
Price/Sales
52
28
27
19
Price/Earnings
13
5
1
3
Price/Book
26
22
15
12
Dividend Yield
53
8
8
11
Value (overall)
16
3
3
5

Cells are coloured by rank band (red weak → green strong). Sentiment & 360° history begins 2023.

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Make Sense of the Ranks

Every rank runs 1–100 against true peers. Higher is always better.

360° View
1 · Watch OutGood· 100
Value
1 · ExpensiveGood Value· 100
Quality
1 · Weak FundamentalsHigh Quality· 100
Growth
1 · Tough TimesHigh Growth· 100
Safety
1 · High LeverageWell-Financed· 100
Sentiment
1 · SkepticismPositive· 100
Learn More →