GWA Group Limited (GWA) AI Stock Analysis

• Market Cap: AU$620.58M
• Dividend Yield: 6.41%
• Average Volume (3M): 267.66K
• Price to Earnings (P/E): 16.8
• Beta (1Y): 0.91
• Revenue Growth: 1.63%
• EPS Growth: -18.01%
• Country: AU
• Employees: 629
• Sector: Consumer Cyclical
• Sector Strength: 59
• Industry: Furnishings, Fixtures & Appliances
• EPS (TTM): 0.08
• Shares Outstanding: 265,205,100
• 10 Day Avg. Volume: 441,880
• 30 Day Avg. Volume: 267,659
• PEG Ratio: -0.88
• Price to Book (P/B): 3.18
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 14.12
• 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$2.75
• Price Target Upside: 17.52% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 68 Neutral
• Price Target: AU$2.50 ▲(6.84%Upside)

GWA Group Limited receives a solid overall score driven by strong financial performance and attractive valuation highlighted by a high dividend yield. Technical indicators suggest caution due to neutral to slightly bearish momentum, but the stock may be approaching an oversold condition. The absence of earnings call data or significant corporate events does not impact the score.

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 Group Limited generates revenue primarily through the sale of its bathroom and kitchen products. The company's key revenue streams come from the wholesale distribution of its products to retailers, builders, and other developers. GWA leverages its strong brand portfolio and extensive distribution network to reach a wide customer base across Australia and New Zealand. Additionally, the company may engage in strategic partnerships and collaborations to enhance its market presence and product offerings. GWA's earnings are significantly influenced by the construction and renovation activities in the housing and commercial sectors, as well as consumer trends towards home improvement and sustainability.

GWA Group Limited Financial Statement Overview

Summary

GWA Group Limited demonstrates solid financial performance with stable revenue growth, healthy margins, and robust cash flow generation. The balance sheet reflects moderate leverage and adequate equity ratios, though asset growth remains limited. The company is well-positioned in terms of liquidity and profitability, but should focus on enhancing revenue growth and asset accumulation to improve financial standing.

Income Statement

The company shows stable revenue figures with a slight revenue growth of 0.4% from 2023 to 2024. Gross profit margin stands at approximately 39.3%, indicating decent cost management. However, the net profit margin has decreased to 9.3% from 10.5% in the previous year, suggesting a slight decline in profitability. EBIT and EBITDA margins are healthy, at 15.6% and 20.2% respectively, but have shown slight declines compared to the previous year.

Balance Sheet

The debt-to-equity ratio is 0.6, indicating moderate leverage. Return on equity is stable at 12.7%, reflecting reasonable profitability for shareholders. The equity ratio is 46.1%, demonstrating a balanced capital structure. However, total assets have decreased slightly, and stockholders' equity has remained relatively flat over the years, suggesting limited growth in asset accumulation.

Cash Flow

Operating cash flow to net income ratio is strong at 1.88, indicating efficient conversion of income to cash. Free cash flow to net income ratio is high at 1.81, illustrating strong cash generation relative to earnings. Despite a slight decline in free cash flow from the previous year, the company maintains healthy cash flow metrics, ensuring liquidity and operational flexibility.

Breakdown	TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement
Total Revenue	417.39M	413.49M	411.84M	418.72M	405.74M	398.70M
Gross Profit	164.49M	162.35M	158.19M	161.81M	164.08M	161.27M
EBITDA	70.14M	83.42M	86.22M	77.30M	76.64M	88.14M
Net Income	36.95M	38.63M	43.16M	35.18M	35.06M	43.89M
Balance Sheet
Total Assets	641.53M	659.88M	694.53M	729.98M	693.71M	703.90M
Cash, Cash Equivalents and Short-Term Investments	45.78M	42.01M	43.44M	31.44M	42.63M	32.36M
Total Debt	176.35M	182.81M	212.56M	229.30M	212.60M	250.00M
Total Liabilities	335.96M	355.29M	388.99M	426.15M	397.10M	424.17M
Stockholders Equity	305.57M	304.59M	305.54M	303.83M	296.61M	279.73M
Cash Flow
Free Cash Flow	59.29M	69.84M	70.66M	11.58M	73.15M	48.60M
Operating Cash Flow	60.28M	72.81M	72.88M	13.99M	78.30M	60.95M
Investing Cash Flow	-3.13M	-2.98M	-2.22M	-2.41M	-7.98M	-12.32M
Financing Cash Flow	-53.68M	-71.14M	-58.35M	-22.55M	-59.53M	-55.26M

GWA Group Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2.34
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:GWA, the sentiment is Positive. The current price of 2.34 is above the 20-day moving average (MA) of 2.31, below the 50-day MA of 2.34, and above the 200-day MA of 2.33, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 51.78 is Neutral, neither overbought nor oversold. The STOCH value of 74.47 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AU:GWA.

GWA Group Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JHX	74 Outperform	$16.74B	26.07	21.09%	―	-0.65%	-15.10%
BXB	69 Neutral	$31.96B	25.70	26.45%	2.59%	3.86%	―
GWA	68 Neutral	AU$620.58M	16.80	12.07%	6.41%	1.63%	-18.01%
Sector *	62 Neutral	$16.72B	10.85	-7.48%	3.11%	1.66%	-24.52%
SXL	44 Neutral	€129.55M	―	-71.41%	1.66%	-7.85%	-3088.82%

GWA Group Limited Corporate Events

Vanguard Group Reduces Stake in GWA Group Limited

GWA Group Limited has announced that Vanguard Group, including its controlled entities such as Vanguard Investments Australia Ltd., has ceased to be a substantial holder in the company as of June 20, 2025. This change in shareholding reduces Vanguard Group’s voting power to 4.552%, potentially impacting the company’s shareholder dynamics and influencing its market position.

The most recent analyst rating on (AU:GWA) stock is a Hold with a A$2.85 price target. To see the full list of analyst forecasts on GWA Group Limited stock, see the AU:GWA Stock Forecast page.

GWA Group Announces Retirement of Non-Executive Director Stephen Roche

GWA Group Limited announced the retirement of Stephen Roche as a Non-Executive Director, effective 31 August 2025. Roche, who joined the board in 2022 and served on the Audit & Risk Committee, is stepping down to explore other director opportunities. His departure will reduce the board to six members, including five Non-Executive Directors. The company expressed gratitude for Roche’s contributions, highlighting his dedication and leadership.

The most recent analyst rating on (AU:GWA) stock is a Hold with a A$2.85 price target. To see the full list of analyst forecasts on GWA Group Limited stock, see the AU:GWA Stock Forecast page.

Spheria Asset Management Reduces Stake in GWA Group

Spheria Asset Management Pty Ltd has reduced its voting power in GWA Group Limited from 7.87% to 6.82%, indicating a decrease in its substantial holding of the company’s shares. This change in shareholding may influence GWA Group’s market dynamics and stakeholder perceptions, potentially affecting its strategic decisions and investor relations.