GWA Group Limited (GWA) AI Stock Analysis

• Market Cap: AU$564.89M
• Dividend Yield: 6.2%
• Average Volume (3M): 361.33K
• Price to Earnings (P/E): 6.8
• Beta (1Y): 0.83
• Revenue Growth: 1.21%
• EPS Growth: 12.29%
• Country: AU
• Employees: 629
• Sector: Industrials
• Sector Strength: 72
• Industry: Furnishings, Fixtures & Appliances
• EPS (TTM): 0.10
• Shares Outstanding: 265,205,100
• 10 Day Avg. Volume: 242,686
• 30 Day Avg. Volume: 361,331
• PEG Ratio: 2.22
• Price to Book (P/B): 2.12
• Price to Sales (P/S): 1.54
• P/FCF Ratio: 9.46
• 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: AU$2.65
• Price Target Upside: 5.58% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1
• EPS Forecast (FY): 0.19
• Revenue Forecast (FY): AU$428.89M

• Rating: 74 Outperform
• Price Target: AU$2.50 ▼(-0.40% Downside)
• Action: Reiterated Date: 10/30/25
• Date: Action: Reiterated 10/30/25

GWA Group Limited's strong financial performance, characterized by robust revenue growth and solid cash flow, is the primary driver of its stock score. The valuation is attractive with a reasonable P/E ratio and high dividend yield. However, technical indicators suggest a cautious short-term outlook, which slightly tempers the overall score.

Positive Factors

Revenue Growth

A 25.9% revenue increase signals durable demand and expanding market penetration for branded building products. Sustained top-line growth supports scale economies, funds reinvestment in product development and distribution, and underpins longer-term margin and cash generation resilience.

High Margins

Healthy gross and net margins reflect pricing power from branded products and effective cost control. Margin levels provide a buffer against input cost swings, enable reinvestment in R&D and channel support, and support sustainable profitability across business cycles.

Cash Generation & Balance Sheet

Double-digit FCF growth and near-1 cash conversion show strong ability to convert profits into liquidity. This supports debt servicing and strategic investments; combined with an improved debt/equity stance, it enhances financial flexibility and reduces long-term refinancing risk.

Negative Factors

Cyclicality Exposure

Dependence on new-build and renovation markets makes revenue sensitive to housing starts, commercial construction activity and interest rates. Prolonged downturns in construction can compress volumes and delay projects, putting sustained pressure on sales and investment plans.

Margin & Cash Coverage Pressure

A falling EBITDA margin and softer operating cash flow coverage signal emerging cost or mix pressures. If these trends persist they could erode ability to self-fund growth initiatives and weaken resilience to input cost inflation or competitive pricing dynamics.

Geographic Concentration

Heavy reliance on the Australian market concentrates demand and regulatory risk. Limited international diversification constrains growth optionality and leaves the business more exposed to domestic housing cycles, local policy shifts, and single-country economic shocks.

GWA Group Limited Business Overview & Revenue Model

Company Description

GWA Group Limited researches, designs, manufactures, imports, and markets building fixtures and fittings to residential and commercial premises in Australia, New Zealand, and internationally. It offers vitreous China toilet suites, basins, plastic cisterns, taps and showers, baths, kitchen sinks, laundry tubs, smart products, and bathroom accessories, as well as domestic water control valves under the Caroma, Methven, Dorf, and CLARK brands. The company was incorporated in 1992 and is headquartered in Pinkenba, Australia.

How the Company Makes Money

GWA makes money mainly by selling building products under its owned brands to customers across the construction and renovation value chain. Revenue is generated from (1) wholesale supply to plumbing and bathroom trade merchants and distributors (e.g., products such as toilets, basins, tapware, showers, and bathroom accessories), (2) sales through retail channels (home improvement and specialty retailers) where its branded products are stocked for consumer renovation demand, and (3) commercial/project sales of doors, door hardware, and access solutions into non-residential and institutional construction where specifications and project-based procurement drive volume. The company earns gross margin as the spread between its manufacturing and/or sourced product costs (including import and procurement) and selling prices, supported by brand positioning, product innovation, and distribution reach. Additional earnings drivers typically include mix (higher-margin branded and premium product lines), exposure to new-build and renovation cycles, and operational efficiencies in manufacturing, sourcing, and logistics. Specific material partnerships, customer concentration, or contract terms: null.

GWA Group Limited Financial Statement Overview

Summary

GWA Group Limited exhibits strong financial performance with impressive revenue growth of 25.9% and healthy profit margins. The balance sheet shows improved leverage with a debt-to-equity ratio of 0.56, and cash flow metrics indicate robust cash generation capabilities.

Income Statement

GWA Group Limited has demonstrated strong revenue growth with a 25.9% increase in the latest year, indicating robust demand for its products. The gross profit margin is healthy at 40.5%, and the net profit margin has improved to 10.4%, reflecting effective cost management. EBIT and EBITDA margins are also solid, suggesting operational efficiency. However, the slight decline in EBITDA margin compared to the previous year warrants attention.

Balance Sheet

The company's debt-to-equity ratio has improved to 0.56, indicating a more balanced capital structure and reduced financial risk. Return on equity is strong at 14.3%, showcasing effective use of shareholder funds. The equity ratio is stable, reflecting a solid asset base. Continued focus on debt reduction could further enhance financial stability.

Cash Flow

GWA Group's free cash flow growth of 14.54% is a positive indicator of financial health, supporting future investments and debt servicing. The operating cash flow to net income ratio is 0.57, suggesting efficient cash generation relative to earnings. The free cash flow to net income ratio is nearly 1, indicating strong cash conversion. However, a slight decrease in operating cash flow coverage ratio compared to previous years should be monitored.

Breakdown	TTM	Jun 2025	Jun 2024	Jun 2023	Jun 2022	Jun 2021
Income Statement
Total Revenue	422.68M	418.48M	413.49M	411.84M	418.72M	405.74M
Gross Profit	171.34M	169.53M	162.35M	158.19M	161.81M	164.08M
EBITDA	90.38M	80.45M	83.42M	86.22M	78.87M	78.15M
Net Income	46.56M	43.38M	38.63M	43.16M	35.18M	35.06M
Balance Sheet
Total Assets	634.00M	648.29M	659.88M	694.53M	729.98M	693.71M
Cash, Cash Equivalents and Short-Term Investments	43.28M	49.30M	42.01M	43.44M	31.44M	42.63M
Total Debt	188.17M	169.78M	182.81M	212.56M	229.30M	212.60M
Total Liabilities	337.11M	345.31M	355.29M	388.99M	426.15M	397.10M
Stockholders Equity	296.89M	302.97M	304.59M	305.54M	303.83M	296.61M
Cash Flow
Free Cash Flow	60.71M	67.91M	69.84M	70.66M	11.58M	73.15M
Operating Cash Flow	62.01M	69.15M	72.81M	72.88M	13.99M	78.30M
Investing Cash Flow	-2.70M	-2.84M	-2.98M	-2.22M	-2.41M	-7.98M
Financing Cash Flow	-61.64M	-58.62M	-71.14M	-58.35M	-22.55M	-59.53M

GWA Group Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2.51
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:GWA, the sentiment is Negative. The current price of 2.51 is above the 20-day moving average (MA) of 2.35, above the 50-day MA of 2.47, and above the 200-day MA of 2.39, indicating a bearish trend. The MACD of -0.08 indicates Positive momentum. The RSI at 26.74 is Positive, neither overbought nor oversold. The STOCH value of 3.62 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AU:GWA.

GWA Group Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GWA	74 Outperform	AU$564.89M	6.81	15.52%	6.20%	1.21%	12.29%
AX1	72 Outperform	AU$516.85M	5.06	7.94%	7.33%	1.58%	-4.71%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
BLX	63 Neutral	AU$423.14M	9.38	16.86%	2.86%	1.89%	-3.30%
UNI	58 Neutral	AU$659.80M	5.43	22.34%	4.70%	15.51%	-32.98%
ASG	54 Neutral	AU$498.02M	9.11	8.54%	2.04%	8.22%	-46.33%

GWA Group Limited Corporate Events

GWA Group Updates Market on Progress of On-Market Share Buy-Back

GWA Group Limited has provided an updated notification to the ASX regarding its ongoing on-market share buy-back program for its ordinary fully paid shares. As of the latest daily update dated 9 March 2026, the company has repurchased a cumulative total of 5,303,447 shares prior to the previous day, with an additional 163,166 shares bought back on the previous trading day, indicating active execution of its capital management strategy.

The filing, which amends an earlier buy-back notice first lodged in August 2025 and most recently updated on 6 March 2026, confirms that the buy-back remains in progress and is being reported to the market on a daily basis. The continued execution of the on-market buy-back may support earnings per share over time and signals management’s commitment to returning capital to shareholders while potentially influencing the company’s share liquidity and capital structure.

The most recent analyst rating on (AU:GWA) stock is a Buy with a A$3.00 price target. To see the full list of analyst forecasts on GWA Group Limited stock, see the AU:GWA Stock Forecast page.

GWA Group Reports Daily Progress on On-Market Share Buy-Back

GWA Group Limited, an ASX-listed company trading under the code GWA with ordinary fully paid shares, remains focused on actively managing its listed equity base through on-market transactions. The company’s securities are subject to Australian regulatory and disclosure requirements, reflecting its obligations as a public issuer.

GWA has provided an updated notification of its on-market share buy-back program, reporting that a total of 4,741,447 shares had been repurchased prior to the latest reporting date, with an additional 244,000 shares bought back on the previous trading day. The ongoing daily buy-back activity signals continued execution of the company’s capital management strategy, potentially supporting earnings per share and share price dynamics for existing investors.

The most recent analyst rating on (AU:GWA) stock is a Buy with a A$3.00 price target. To see the full list of analyst forecasts on GWA Group Limited stock, see the AU:GWA Stock Forecast page.

GWA Group lifts on-market buy-back to 4.49 million shares

GWA Group Limited, listed on the ASX under the code GWA, issues ordinary fully paid shares and is known for its presence in the building products and fixtures sector serving residential and commercial construction markets. The company’s operations and capital structure are closely watched by investors given its role in supplying key components to the property and construction industry.

The company has provided an updated notification of its on-market share buy-back, confirming that 253,232 shares were repurchased on the previous trading day, bringing the total bought back to 4,488,215 shares since the program’s start. This ongoing buy-back, first announced in August 2025 and now updated as of 4 March 2026, signals continued capital management activity that may support earnings per share and reflects management’s confidence in the company’s valuation for existing shareholders.

The most recent analyst rating on (AU:GWA) stock is a Buy with a A$3.00 price target. To see the full list of analyst forecasts on GWA Group Limited stock, see the AU:GWA Stock Forecast page.

GWA Group Updates ASX on Progress of On-Market Share Buy-Back

GWA Group Limited has provided an updated notification to the ASX on its ongoing on-market share buy-back program for its ordinary fully paid shares. The update, dated 3 March 2026, reports that a total of 4,293,215 shares had been repurchased prior to the previous trading day, with a further 195,000 shares bought back on the previous day.

The latest filing is a routine daily buy-back notification, amending an earlier disclosure first lodged in August 2025 and most recently updated on 2 March 2026. The continued execution of the buy-back indicates management’s active approach to capital management and may signal confidence in the company’s valuation while incrementally reducing the number of shares on issue for existing investors.

The most recent analyst rating on (AU:GWA) stock is a Buy with a A$3.00 price target. To see the full list of analyst forecasts on GWA Group Limited stock, see the AU:GWA Stock Forecast page.

GWA Group Continues On-Market Share Buy-Back With Daily Update

GWA Group Limited has updated the market on its ongoing on-market share buy-back program, confirming that it is repurchasing ordinary fully paid shares under an arrangement first notified in August 2025. The latest daily notification shows that the company has bought back a cumulative 4,144,090 shares prior to the previous trading day, with an additional 149,125 shares repurchased on the previous day, indicating continued execution of its capital management strategy.

The filing, lodged as an Appendix 3C update, underscores that this activity forms part of a previously announced buy-back rather than a new program, with the most recent update dated 26 February 2026 and this notice dated 2 March 2026. The ongoing on-market buy-back signals management’s focus on adjusting the company’s capital structure, which may have implications for share supply, earnings per share, and investor perception of the company’s valuation and financial position.

The most recent analyst rating on (AU:GWA) stock is a Buy with a A$3.00 price target. To see the full list of analyst forecasts on GWA Group Limited stock, see the AU:GWA Stock Forecast page.

GWA Group Updates Market on Progress of On-Market Share Buy-Back

GWA Group Limited has provided an updated notification to the ASX regarding its on-market share buy-back of ordinary fully paid shares. The company first announced this buy-back program in August 2025 and continues to report its progress as part of ongoing disclosure obligations.

As of the latest update dated 26 February 2026, GWA has repurchased a total of 3,919,446 shares before the previous trading day and a further 224,644 shares on the previous day. The continued execution of the buy-back suggests an active capital management strategy that may enhance earnings per share and potentially support the company’s share price over time.

The most recent analyst rating on (AU:GWA) stock is a Buy with a A$3.00 price target. To see the full list of analyst forecasts on GWA Group Limited stock, see the AU:GWA Stock Forecast page.

GWA Group Sets Date for FY26 Half-Year Results and Analyst Briefing

GWA Group Limited has announced it will release its half-year financial results for the period ending 31 December 2025 on 16 February 2026, with an analyst briefing scheduled the same morning at 10:00 a.m. AEDT and accessible via webcast on the company’s website. The timing and format of the announcement signal GWA’s commitment to transparent communication with investors and analysts, providing stakeholders with an opportunity to assess the company’s mid-year performance and outlook in the context of broader conditions in the building and home improvement markets.

The most recent analyst rating on (AU:GWA) stock is a Buy with a A$3.00 price target. To see the full list of analyst forecasts on GWA Group Limited stock, see the AU:GWA Stock Forecast page.

GWA Group Extends Syndicated Bank Facility to 2028 and Trims Commitments

GWA Group Limited has extended the maturity of its syndicated banking facilities to October 2028 and reduced the total commitments under the facilities from A$180 million to A$165 million, with Citisecurities Limited remaining as facility agent and a lender group including HSBC, Commonwealth Bank of Australia and Citibank. The refinancing and downsizing of the facility strengthen GWA’s funding certainty over the medium term while reflecting a recalibrated borrowing need, underscoring continued confidence and support from its core banking partners and providing stakeholders with greater visibility on the company’s capital structure and liquidity profile.

The most recent analyst rating on (AU:GWA) stock is a Buy with a A$3.00 price target. To see the full list of analyst forecasts on GWA Group Limited stock, see the AU:GWA Stock Forecast page.

GWA Group Updates on Share Buy-Back Program

GWA Group Limited announced an update regarding its ongoing on-market share buy-back program, highlighting the purchase of 201,445 fully paid ordinary shares on the previous trading day and a cumulative total of 3,718,001 shares repurchased to date. This buy-back initiative reflects the company’s effort to optimize its capital management strategy and potentially enhance shareholder value through reduced share dilution.

The most recent analyst rating on (AU:GWA) stock is a Buy with a A$3.00 price target. To see the full list of analyst forecasts on GWA Group Limited stock, see the AU:GWA Stock Forecast page.