tiprankstipranks
Trending News
More News >
ARB Corporation Limited (AU:ARB)
ASX:ARB
Advertisement

ARB Corporation (ARB) AI Stock Analysis

Compare
43 Followers

Top Page

AU:ARB

ARB Corporation

(Sydney:ARB)

Rating:73Outperform
Price Target:
AU$38.00
▲(10.30% Upside)
ARB Corporation Limited's strong financial performance and stable cash flow generation are key strengths, contributing significantly to its overall score. The technical analysis shows mixed signals with some positive medium-term indicators, although short-term trends are less favorable. Valuation metrics suggest the stock may be overvalued, which slightly offsets the positive aspects.

ARB Corporation (ARB) vs. iShares MSCI Australia ETF (EWA)

ARB Corporation Business Overview & Revenue Model

Company DescriptionARB Corporation Limited engages in the design, manufacture, distribution, and sale of motor vehicle accessories and light metal engineering works. The company provides bull bars, side rails and steps, canopies, UTE lids and tub accessories, roof racks, cross bars and carriers, suspension systems, driving lights, air compressors and tire accessories, air lockers, winches, recovery equipment and points, under vehicle protection products, fuel tanks and storage, drawers and cargo solutions, slide kitchen, portable fridge freezers, tents, swags and awnings, camping and touring accessories, safari snorkels, dual battery and solar systems, interior protection, and general accessories, as well as rear protection, towing, and wheel carriers. It also offers LINX, a controller that declutters the dashboard and centralizes the command of vehicle accessories by replacing classic switches, gauges, and monitors with one sleek and smart driver interface; and UHF radios, GPS, and reversing cameras. The company serves stockists, vehicle dealers, and various fleet operators. It operates approximately 74 ARB stores, which include 30 company owned stores. The company has operations in Australia, New Zealand, the United States, Thailand, the Middle East, Europe, and the United Kingdom. The company has a strategic partnership with Ford Motor Company to develop a suite of aftermarket products for the Ford Bronco. ARB Corporation Limited was founded in 1975 and is based in Kilsyth, Australia.
How the Company Makes MoneyARB Corporation generates revenue primarily through the sale of its diverse range of 4x4 aftermarket accessories and equipment. The company's key revenue streams include direct sales to consumers via its retail outlets and e-commerce platform, as well as through a network of distributors and dealers worldwide. ARB also benefits from strategic partnerships with automotive manufacturers and alliances with other aftermarket companies, enhancing its market reach and distribution channels. Additionally, the company invests in research and development to innovate and maintain a competitive edge in the industry, thereby driving sales growth and profitability.

ARB Corporation Financial Statement Overview

Summary
ARB Corporation Limited presents a strong financial profile with consistent revenue growth and profitability. The low debt levels and high equity ratio enhance financial stability, while robust cash flow generation supports operational and strategic initiatives. Despite some rise in operating costs and capital expenditures, the company is well-positioned for future growth in the auto parts industry.
Income Statement
85
Very Positive
ARB Corporation Limited has demonstrated robust revenue growth with a 3.3% increase from 2023 to 2024 and a solid gross profit margin of 56.3% in 2024. The net profit margin is strong at 14.8%, reflecting effective cost management. However, the EBIT margin has decreased slightly from previous years, indicating a potential rise in operating costs. Overall, the company shows strong profitability and growth potential.
Balance Sheet
80
Positive
The balance sheet of ARB Corporation is healthy, with a low debt-to-equity ratio of 0.06, indicating low financial leverage and risk. The equity ratio stands at 83.2%, highlighting a strong equity base. The return on equity (ROE) is 15.6%, showcasing effective utilization of shareholders' funds. The company maintains a stable financial position with strong equity backing.
Cash Flow
78
Positive
ARB Corporation's cash flow position is positive, with a significant increase in free cash flow by 64.6% from 2023 to 2024. The operating cash flow to net income ratio is 1.22, suggesting efficient cash generation relative to profits. However, the capital expenditures have increased, which could impact future cash reserves. Overall, the cash flow management remains strong, supporting ongoing operations and growth.
BreakdownJun 2024Jun 2023Jun 2022Jun 2021Jun 2020
Income Statement
Total Revenue693.15M671.24M694.52M623.07M465.38M
Gross Profit208.58M356.67M220.00M337.95M249.25M
EBITDA172.22M149.64M192.74M175.54M101.55M
Net Income102.68M88.45M122.01M112.89M57.30M
Balance Sheet
Total Assets792.27M724.79M704.21M658.26M490.93M
Cash, Cash Equivalents and Short-Term Investments56.50M44.95M52.71M84.77M41.57M
Total Debt40.25M35.84M38.03M45.13M44.53M
Total Liabilities132.85M117.67M148.86M172.49M118.67M
Stockholders Equity659.42M607.13M555.35M485.78M372.26M
Cash Flow
Free Cash Flow73.33M44.53M22.27M66.57M69.45M
Operating Cash Flow125.28M90.40M84.61M103.17M91.24M
Investing Cash Flow-61.81M-44.98M-60.62M-51.01M-38.63M
Financing Cash Flow-51.93M-52.27M-56.69M-9.34M-19.61M

ARB Corporation Technical Analysis

Technical Analysis Sentiment
Positive
Last Price34.45
Price Trends
50DMA
32.83
Positive
100DMA
32.09
Positive
200DMA
35.65
Negative
Market Momentum
MACD
0.32
Positive
RSI
56.43
Neutral
STOCH
50.99
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:ARB, the sentiment is Positive. The current price of 34.45 is above the 20-day moving average (MA) of 34.29, above the 50-day MA of 32.83, and below the 200-day MA of 35.65, indicating a neutral trend. The MACD of 0.32 indicates Positive momentum. The RSI at 56.43 is Neutral, neither overbought nor oversold. The STOCH value of 50.99 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AU:ARB.

ARB Corporation Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
73
Outperform
$2.81B27.1815.18%2.08%6.17%10.45%
61
Neutral
$16.55B10.17-9.03%3.33%1.46%-22.85%
$772.76M13.348.97%4.79%
$531.46M29.4520.90%1.43%
77
Outperform
AU$16.54M3.896.94%12.63%46.73%
70
Outperform
AU$1.60B40.2136.35%1.76%15.33%16.19%
48
Neutral
AU$449.56M465.001.53%-1.09%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AU:ARB
ARB Corporation
34.45
-3.36
-8.89%
GUDHF
G.U.D. Holdings
5.10
-1.17
-18.66%
PWRHF
PWR Holdings
3.69
-3.49
-48.61%
AU:SNL
Supply Network Limited
36.84
12.39
50.67%
AU:AMA
Ama Group Limited
0.09
0.05
125.00%
AU:RPM
RPM Automotive Group Ltd.
0.06
-0.01
-14.29%

ARB Corporation Corporate Events

ARB Corporation Announces Key Dates for 2025
Aug 1, 2025

ARB Corporation Limited has announced key dates for the second half of 2025, including the release of its full-year financial results on August 19 and the Annual General Meeting on October 16. The announcement highlights the company’s planned final dividend payment on October 17, pending board approval, which could impact shareholder returns and reflect the company’s financial health.

The most recent analyst rating on (AU:ARB) stock is a Buy with a A$45.40 price target. To see the full list of analyst forecasts on ARB Corporation stock, see the AU:ARB Stock Forecast page.

ARB Corporation to Present FY2025 Financial Results
Aug 1, 2025

ARB Corporation Limited has announced that it will present its financial results for the year ending June 30, 2025, on August 19, 2025. The presentation will be led by CEO Lachlan McCann and CFO Damon Page, and will be accessible via a webcast for which participants need to register. This announcement is significant for stakeholders as it provides insights into the company’s financial performance and strategic direction.

The most recent analyst rating on (AU:ARB) stock is a Hold with a A$36.50 price target. To see the full list of analyst forecasts on ARB Corporation stock, see the AU:ARB Stock Forecast page.

Director’s Share Acquisition at ARB Corporation Limited
May 29, 2025

ARB Corporation Limited announced a change in the director’s interest, with Shona Maree Faber acquiring 1,000 ordinary fully paid shares through an on-market purchase at $30.8934 per share. This acquisition reflects a potential increase in confidence or alignment with the company’s strategic direction, potentially impacting shareholder perceptions and market positioning.

The most recent analyst rating on (AU:ARB) stock is a Buy with a A$45.40 price target. To see the full list of analyst forecasts on ARB Corporation stock, see the AU:ARB Stock Forecast page.

Mitsubishi UFJ Financial Group Increases Stake in ARB Corporation
May 28, 2025

ARB Corporation Limited has announced a change in the interests of its substantial holder, Mitsubishi UFJ Financial Group, Inc. The change involves a shift in voting power, with Mitsubishi UFJ Financial Group now holding a 6.08% voting power, up from the previous 5.05%. This adjustment in voting power signifies a strengthened position for Mitsubishi UFJ Financial Group within ARB Corporation, potentially impacting the company’s strategic decisions and stakeholder dynamics.

The most recent analyst rating on (AU:ARB) stock is a Buy with a A$45.40 price target. To see the full list of analyst forecasts on ARB Corporation stock, see the AU:ARB Stock Forecast page.

ARB Corporation Announces Change in Substantial Shareholding
May 27, 2025

ARB Corporation Ltd has announced a change in the substantial holding of its voting shares. First Sentier Investors Holdings Pty Limited and its subsidiaries, along with its ultimate parent Mitsubishi UFJ Financial Group, Inc., have adjusted their voting power in ARB Corporation. This change reflects a shift in the control over voting rights and securities management, impacting the company’s shareholder dynamics.

The most recent analyst rating on (AU:ARB) stock is a Buy with a A$45.40 price target. To see the full list of analyst forecasts on ARB Corporation stock, see the AU:ARB Stock Forecast page.

ARB Corporation Director Increases Shareholding, Signaling Confidence
May 22, 2025

ARB Corporation Limited announced a change in the director’s interest, with Director Karen Phin acquiring 2,000 additional ordinary fully paid shares through an on-market purchase, increasing her total holdings to 8,600 shares. This acquisition reflects confidence in the company’s performance and may positively influence stakeholder perceptions, signaling a strong commitment from the leadership to the company’s future prospects.

The most recent analyst rating on (AU:ARB) stock is a Buy with a A$45.40 price target. To see the full list of analyst forecasts on ARB Corporation stock, see the AU:ARB Stock Forecast page.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Aug 01, 2025