ARB Corporation (ARB) AI Stock Analysis

• Market Cap: $2.56B
• Dividend Yield: 2.28%
• Average Volume (3M): 164.56K
• Price to Earnings (P/E): 24.8
• Beta (1Y): 1.54
• Revenue Growth: 6.17%
• EPS Growth: 10.45%
• Country: AU
• Employees: 1,600
• Sector: Consumer Cyclical
• Sector Strength: 73
• Industry: Auto - Parts
• EPS (TTM): 0.61
• Shares Outstanding: 83,163,155
• 10 Day Avg. Volume: 150,853
• 30 Day Avg. Volume: 164,564
• PEG Ratio: N/A
• Price to Book (P/B): 3.48
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 49.98
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $35.35
• Price Target Upside: 11.51% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 5

• Rating: 69 Neutral
• Price Target: AU$35.00 ▲(10.41%Upside)

ARB Corporation's strong financial performance is the most significant factor driving the score, supported by healthy revenue growth, profitability, and a stable financial position. However, the technical analysis suggests a lack of strong momentum, and the valuation indicates the stock may be moderately overvalued. These factors collectively result in a balanced overall stock score.

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 Limited generates revenue through multiple channels. The primary source of income is the sale of its 4x4 accessories, which are distributed through a network of ARB branded stores, authorized dealers, and online platforms. The company also benefits from export sales to over 100 countries, enhancing its global presence. Additionally, ARB engages in strategic partnerships and collaborations with vehicle manufacturers and other automotive companies to expand its market reach and product offerings. The company's focus on research and development ensures a steady introduction of new and improved products, which helps maintain a competitive edge and drive sales growth.

ARB Corporation Financial Statement Overview

Summary

ARB Corporation Limited presents a strong financial profile with robust revenue growth, effective cost management, and strong profitability. The company maintains a healthy balance sheet with low debt and high equity, and strong cash flow generation supports operational and strategic initiatives. Despite the rise in operating costs and capital expenditures, the financial stability and growth potential are evident.

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
TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement		Total Revenue
718.28M	693.15M	671.24M	694.52M	623.07M	465.38M
	Gross Profit
316.14M	390.00M	180.65M	220.00M	191.59M	112.31M
	EBIT
166.05M	140.68M	119.70M	165.00M	139.42M	70.22M
	EBITDA
174.43M	172.22M	149.64M	192.74M	175.54M	101.55M
	Net Income Common Stockholders
102.37M	102.68M	88.45M	122.01M	112.89M	57.30M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
22.80M	56.50M	44.95M	52.71M	84.77M	41.57M
	Total Assets
880.66M	792.27M	724.79M	704.21M	658.26M	490.93M
	Total Debt
43.86M	40.25M	35.84M	38.03M	45.13M	44.53M
	Net Debt
21.06M	-16.25M	-9.10M	-14.67M	-39.64M	2.96M
	Total Liabilities
144.85M	132.85M	117.67M	148.86M	172.49M	118.67M
	Stockholders Equity
735.81M	659.42M	607.13M	555.35M	485.78M	372.26M
Cash Flow		Free Cash Flow
51.53M	73.33M	44.53M	22.27M	66.57M	69.45M
	Operating Cash Flow
99.61M	125.28M	90.40M	84.61M	103.17M	91.24M
	Investing Cash Flow
-98.43M	-61.81M	-44.98M	-60.62M	-51.01M	-38.63M
	Financing Cash Flow
-30.61M	-51.93M	-52.27M	-56.69M	-9.34M	-19.61M

ARB Corporation Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 31.70
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: 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 31.7 is above the 20-day moving average (MA) of 31.20, above the 50-day MA of 31.10, and below the 200-day MA of 37.88, indicating a neutral trend. The MACD of -0.12 indicates Negative momentum. The RSI at 54.30 is Neutral, neither overbought nor oversold. The STOCH value of 66.99 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ARB	69 Neutral	$2.56B	24.79	15.18%	2.28%	6.17%	10.45%
Sector *	62 Neutral	$6.93B	11.25	2.95%	3.88%	2.69%	-24.71%
GUDHF		$701.02M	13.08	8.97%	5.34%	―	―
PWRHF		$437.19M	29.45	20.90%	2.00%	―	―
RPM	76 Outperform	AU$16.27M	3.82	6.94%	―	12.63%	46.73%
SNL	73 Outperform	AU$1.75B	45.35	36.35%	1.62%	17.97%	24.04%
AMA	60 Neutral	AU$478.26M	525.00	1.53%	―	-1.09%	―

ARB Corporation Corporate Events

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.

ARB Corporation Limited Announces Director’s Change in Securities Interest

ARB Corporation Limited announced a change in the director’s interest in securities, specifically involving Robert Darius Fraser. The change, effective April 17, 2025, resulted from participation in the company’s Dividend Reinvestment Plan, increasing both direct and indirect holdings. This adjustment reflects ongoing engagement with the company’s financial strategies, potentially impacting shareholder perceptions and market dynamics.

ARB Corporation Limited Announces Quotation of New Securities

ARB Corporation Limited has announced the quotation of 161,981 ordinary fully paid securities on the Australian Securities Exchange (ASX), effective from April 17, 2025. This move is part of a dividend or distribution plan, potentially enhancing the company’s capital structure and offering more liquidity to its shareholders.

ARB Corporation Updates Dividend Distribution Details

ARB Corporation Limited has announced an update regarding its dividend distribution, specifically notifying stakeholders about the Dividend Reinvestment Plan (DRP) and Bonus Share Plan (BSP) pricing. This update pertains to the dividend distribution for the six-month period ending December 31, 2024, with relevant dates including the record date of April 3, 2025, and the ex-date of April 2, 2025. This announcement is significant for shareholders as it provides clarity on the financial returns and reinvestment opportunities available, potentially impacting investor decisions and market perception of the company’s financial health.

AFI Acquires Substantial Holding in ARB Corporation

ARB Corporation Limited has announced that Australian Foundation Investment Company Limited (AFI) has become a substantial holder of its shares. AFI now holds a 5.03% voting power in ARB Corporation, which translates to 4,176,818 ordinary shares, potentially impacting the company’s shareholder dynamics and market positioning.

ARB Corporation Limited Announces Director’s Share Acquisition

ARB Corporation Limited announced a change in the director’s interest, specifically involving Roger George Brown. On March 11 and 12, 2025, Brown acquired 30,180 indirect ordinary shares through on-market purchases, increasing his indirect holdings to 4,919,211 shares. This transaction, conducted in collaboration with Andrew Harry Brown, reflects strategic movements in the company’s shareholding structure, potentially impacting stakeholder perceptions and market dynamics.