ARB Corporation (ARB) AI Stock Analysis

• Market Cap: $3.39B
• Dividend Yield: 1.67%
• Average Volume (3M): 183.04K
• Price to Earnings (P/E): 34.6
• Beta (1Y): 1.60
• Revenue Growth: 5.31%
• EPS Growth: -5.74%
• Country: AU
• Employees: 1,600
• Sector: Consumer Cyclical
• Sector Strength: 80
• Industry: Auto - Parts
• EPS (TTM): 0.55
• Shares Outstanding: 83,163,155
• 10 Day Avg. Volume: 257,203
• 30 Day Avg. Volume: 183,038
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 0.79
• Enterprise Value/Revenue: 3.75
• Enterprise Value/Gross Profit: 8.53
• Enterprise Value/Ebitda: 15.46
• 1Y Price Target: $42.20
• Price Target Upside: 4.28% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 12

• Rating: 73 Outperform
• Price Target: AU$38.00 ▼(-6.10% Downside)

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 Business Overview & Revenue Model

Company Description

ARB 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 Money

ARB 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

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

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

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.

Breakdown	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement
Total Revenue	693.15M	671.24M	694.52M	623.07M	465.38M
Gross Profit	208.58M	356.67M	220.00M	337.95M	249.25M
EBITDA	172.22M	149.64M	192.74M	175.54M	101.55M
Net Income	102.68M	88.45M	122.01M	112.89M	57.30M
Balance Sheet
Total Assets	792.27M	724.79M	704.21M	658.26M	490.93M
Cash, Cash Equivalents and Short-Term Investments	56.50M	44.95M	52.71M	84.77M	41.57M
Total Debt	40.25M	35.84M	38.03M	45.13M	44.53M
Total Liabilities	132.85M	117.67M	148.86M	172.49M	118.67M
Stockholders Equity	659.42M	607.13M	555.35M	485.78M	372.26M
Cash Flow
Free Cash Flow	73.33M	44.53M	22.27M	66.57M	69.45M
Operating Cash Flow	125.28M	90.40M	84.61M	103.17M	91.24M
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 Price: 40.47
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

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 40.47 is above the 20-day moving average (MA) of 36.31, above the 50-day MA of 34.33, and above the 200-day MA of 34.99, indicating a bullish trend. The MACD of 1.90 indicates Negative momentum. The RSI at 82.62 is Negative, neither overbought nor oversold. The STOCH value of 89.94 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AU:ARB.

ARB Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ARB	73 Outperform	$3.39B	34.59	13.51%	1.67%	5.31%	-5.74%
Sector *	61 Neutral	$17.75B	12.56	-5.49%	3.02%	1.43%	-14.12%
GUDHF	―	$874.44M	13.34	-12.12%	5.18%	―	―
PWRHF	―	$494.63M	58.66	9.47%	1.97%	―	―
RPM	77 Outperform	AU$18.98M	4.46	6.94%	―	12.63%	46.73%
SNL	70 Outperform	AU$1.69B	44.26	33.16%	1.67%	15.28%	18.23%
AMA	48 Neutral	AU$478.26M	465.00	-4.58%	―	13.54%	―

ARB Corporation Corporate Events

ARB Corporation Announces Key Dates for 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

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

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

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

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

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.