tiprankstipranks
Trending News
More News >
Reject Shop Limited (AU:TRS)
:TRS
Advertisement

Reject Shop Limited (TRS) AI Stock Analysis

Compare
12 Followers

Top Page

AU

Reject Shop Limited

(Frankfurt:TRS)

Rating:73Outperform
Price Target:
Reject Shop Limited's overall stock score reflects a robust financial foundation characterized by revenue growth and efficient cash flow management. However, the high P/E ratio points to potential overvaluation, and profitability metrics require improvement. A strong technical position supports confidence in the stock's upward trajectory.

Reject Shop Limited (TRS) vs. iShares MSCI Australia ETF (EWA)

Reject Shop Limited Business Overview & Revenue Model

Company DescriptionReject Shop Limited (TRS) is a retail company based in Australia, primarily operating in the discount variety sector. The company offers a wide range of products including everyday essentials, homewares, furniture, garden items, hardware, pet care, and seasonal merchandise. With a focus on providing value to customers, Reject Shop Limited caters to price-sensitive consumers seeking affordable, quality products.
How the Company Makes MoneyReject Shop Limited generates revenue through the sale of its diverse product offerings in physical stores across Australia. The company's key revenue streams include the sale of household goods, personal care items, and seasonal products at competitive prices. By maintaining a cost-efficient supply chain and negotiating favorable terms with suppliers, Reject Shop Limited can offer lower prices to customers while still ensuring profitability. The company also leverages strategic store locations in high-traffic areas to maximize customer reach and sales volume. Significant factors contributing to its earnings include effective inventory management, promotional activities, and a strong focus on customer service. Additionally, Reject Shop Limited may engage in partnerships with suppliers to obtain exclusive product lines or participate in joint marketing initiatives, further enhancing its revenue potential.

Reject Shop Limited Financial Statement Overview

Summary
Reject Shop Limited displays a solid financial performance with strengths in revenue growth and cash flow generation. While profitability metrics and leverage levels require attention, the company's stable equity ratio and cash conversion efficiency contribute to its resilience.
Income Statement
75
Positive
The Reject Shop Limited has shown a consistent increase in total revenue over recent years with a revenue growth rate of 4.1% from 2023 to 2024. Gross profit margin is healthy at 27.9%, and the net profit margin, though modest at 0.6%, indicates profitability. EBIT and EBITDA margins are 2.0% and 14.7%, respectively, suggesting operational efficiency, but there's room for improvement in net income growth.
Balance Sheet
65
Positive
The company's debt-to-equity ratio stands at 1.39, reflecting moderate leverage that might pose a risk if not managed carefully. The return on equity of 2.8% indicates limited profitability on shareholder investment. However, an equity ratio of 34.7% provides a cushion against liabilities, showing a stable financial structure but highlighting the need for enhanced profitability.
Cash Flow
78
Positive
Reject Shop Limited maintains strong cash flow generation with a free cash flow of AUD 86.4 million in 2024, though it decreased from the previous year. The operating cash flow to net income ratio is robust at 21.7, indicating strong cash conversion efficiency. The free cash flow to net income ratio of 18.3 suggests that the company effectively converts profits into cash, supporting operations and investment activities well.
BreakdownJun 2024Jun 2023Jun 2022Jun 2021Jun 2020
Income Statement
Total Revenue852.74M819.34M788.24M778.69M820.64M
Gross Profit341.07M224.11M218.37M211.14M229.10M
EBITDA125.44M129.64M125.67M128.53M122.69M
Net Income4.71M10.31M7.90M8.32M1.12M
Balance Sheet
Total Assets490.74M502.39M483.73M401.81M424.13M
Cash, Cash Equivalents and Short-Term Investments49.88M77.33M77.47M73.05M92.49M
Total Debt236.22M228.43M217.66M167.13M193.72M
Total Liabilities320.65M320.45M306.92M245.08M281.06M
Stockholders Equity170.08M181.94M176.80M156.73M143.06M
Cash Flow
Free Cash Flow86.37M98.89M99.69M76.32M156.70M
Operating Cash Flow102.11M111.02M116.14M87.09M167.38M
Investing Cash Flow-15.74M-12.13M-16.45M-10.78M-10.68M
Financing Cash Flow-113.82M-99.03M-95.27M-95.76M-90.52M

Reject Shop Limited Technical Analysis

Technical Analysis Sentiment
Positive
Last Price6.68
Price Trends
50DMA
6.64
Positive
100DMA
5.84
Positive
200DMA
4.36
Positive
Market Momentum
MACD
0.02
Positive
RSI
69.66
Neutral
STOCH
50.00
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:TRS, the sentiment is Positive. The current price of 6.68 is above the 20-day moving average (MA) of 6.68, above the 50-day MA of 6.64, and above the 200-day MA of 4.36, indicating a bullish trend. The MACD of 0.02 indicates Positive momentum. The RSI at 69.66 is Neutral, neither overbought nor oversold. The STOCH value of 50.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AU:TRS.

Reject Shop Limited Peers Comparison

Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
AUTRS
73
Outperform
AU$249.60M40.343.33%46.11%3.37%-25.24%
AUDSK
68
Neutral
AU$52.93M9.1913.17%9.41%5.42%-8.87%
AUABY
68
Neutral
AU$70.94M39.124.65%5.51%244.64%
AUSHJ
64
Neutral
AU$108.65M26.781.60%4.69%-10.06%
62
Neutral
AU$2.91B27.664.79%5.12%2.38%-31.70%
AUBBN
62
Neutral
AU$242.86M83.722.78%1.03%-2.62%-70.47%
AUBBT
40
Underperform
AU$317.91M-99.47%76.49%-75.29%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AU:TRS
Reject Shop Limited
6.68
3.60
116.74%
AU:DSK
Dusk Group Ltd.
0.85
0.13
18.06%
AU:ABY
Adore Beauty Group Ltd.
0.76
-0.14
-15.56%
AU:SHJ
Shine Justice Ltd.
0.64
-0.02
-3.03%
AU:BBN
Baby Bunting Group Ltd.
1.80
0.40
28.57%
AU:BBT
BlueBet Holdings Ltd.
0.31
0.09
40.91%

Reject Shop Limited Corporate Events

Reject Shop Limited Announces Change in Substantial Shareholding
Jul 18, 2025

Reject Shop Limited has announced a significant change in its shareholder structure as a substantial holder has ceased to hold a notable portion of the company’s shares. This change, involving the sale of 2,403,431 ordinary shares at $5.91 per share, may impact the company’s market positioning and stakeholder interests.

The most recent analyst rating on (AU:TRS) stock is a Hold with a A$3.80 price target. To see the full list of analyst forecasts on Reject Shop Limited stock, see the AU:TRS Stock Forecast page.

The Reject Shop Limited Faces Suspension Amid Acquisition by Dollarama Inc.
Jul 1, 2025

The Reject Shop Limited’s securities will be suspended from quotation following the approval of a scheme of arrangement by the Federal Court of Australia, allowing Dollarama Inc. to acquire all issued shares in the company. This acquisition marks a significant change in ownership for The Reject Shop Limited, potentially impacting its operations and market positioning as it becomes part of a larger retail entity.

The most recent analyst rating on (AU:TRS) stock is a Hold with a A$3.70 price target. To see the full list of analyst forecasts on Reject Shop Limited stock, see the AU:TRS Stock Forecast page.

The Reject Shop Limited Announces New Securities Quotation
Jul 1, 2025

The Reject Shop Limited announced the issuance of 1,439,400 fully paid ordinary securities to be quoted on the Australian Securities Exchange (ASX) as of July 2, 2025. This move, under an employee incentive scheme, is expected to enhance the company’s market presence and potentially increase shareholder value by aligning employee interests with those of the company.

The most recent analyst rating on (AU:TRS) stock is a Hold with a A$3.70 price target. To see the full list of analyst forecasts on Reject Shop Limited stock, see the AU:TRS Stock Forecast page.

The Reject Shop Announces Special Dividend Following Court Approval
Jul 1, 2025

The Reject Shop Limited has announced that the Federal Court of Australia has approved a Scheme, making it legally effective, which will result in the payment of a Special Dividend on 14 July 2025. This development marks a significant step for the company, potentially impacting its financial operations and providing value to its shareholders.

The most recent analyst rating on (AU:TRS) stock is a Hold with a A$3.70 price target. To see the full list of analyst forecasts on Reject Shop Limited stock, see the AU:TRS Stock Forecast page.

Reject Shop Acquisition by Dollarama Approved, Trading to Cease
Jul 1, 2025

The Reject Shop Limited has announced that its acquisition by Dollarama Inc., via its subsidiary Dollarama International Inc., has been legally approved by the Federal Court of Australia. As a result, trading of Reject Shop shares on the ASX will be suspended. Shareholders will receive a special dividend and a scheme consideration as part of the transaction, marking a significant change in ownership and potentially impacting the company’s market operations and stakeholder interests.

The most recent analyst rating on (AU:TRS) stock is a Hold with a A$3.70 price target. To see the full list of analyst forecasts on Reject Shop Limited stock, see the AU:TRS Stock Forecast page.

Federal Court Approves The Reject Shop’s Acquisition by Dollarama
Jun 30, 2025

The Reject Shop Limited has announced that the Federal Court of Australia has approved its acquisition by Dollarama Inc. through a scheme of arrangement. This approval marks a significant step in the transaction process, with the scheme expected to become legally effective upon lodging the court orders with the Australian Securities and Investments Commission. Consequently, Reject Shop shares will be suspended from trading on the ASX, and shareholders will receive a special dividend and scheme consideration in cash, marking a pivotal change in the company’s ownership and market presence.

The most recent analyst rating on (AU:TRS) stock is a Hold with a A$3.70 price target. To see the full list of analyst forecasts on Reject Shop Limited stock, see the AU:TRS Stock Forecast page.

Reject Shop Shareholders Approve Acquisition by Dollarama
Jun 23, 2025

The Reject Shop Limited announced that its shareholders have overwhelmingly approved a proposed acquisition by Dollarama Inc., a Canadian retail company, through a scheme of arrangement. With 97.30% of shareholders present voting in favor and 99.98% of the votes cast supporting the resolution, the scheme is set to proceed pending court approval. If approved, the Reject Shop’s shares will be suspended from trading on the ASX, and shareholders will receive a special dividend and scheme consideration. This acquisition is expected to significantly impact the company’s operations and market positioning, potentially enhancing its competitive edge in the retail sector.

The most recent analyst rating on (AU:TRS) stock is a Hold with a A$3.70 price target. To see the full list of analyst forecasts on Reject Shop Limited stock, see the AU:TRS Stock Forecast page.

The Reject Shop Faces Acquisition by Dollarama
Jun 23, 2025

The Reject Shop Limited is holding a Scheme Meeting to discuss the proposed acquisition by Dollarama Inc. through its subsidiary, Dollarama International Inc. Shareholders are set to vote on this scheme of arrangement, which, if approved, would result in Dollarama acquiring all shares of The Reject Shop. This acquisition could significantly impact the company’s operations and market positioning, potentially providing new opportunities for growth and expansion under Dollarama’s ownership.

The most recent analyst rating on (AU:TRS) stock is a Hold with a A$3.70 price target. To see the full list of analyst forecasts on Reject Shop Limited stock, see the AU:TRS Stock Forecast page.

The Reject Shop Announces New Dividend Distribution
Jun 12, 2025

The Reject Shop Limited has announced a new dividend distribution of AUD 0.77 per share, with the ex-dividend date set for July 4, 2025, and the payment date on July 14, 2025. This announcement reflects the company’s financial health and commitment to returning value to its shareholders, potentially impacting its market position positively.

The most recent analyst rating on (AU:TRS) stock is a Hold with a A$3.70 price target. To see the full list of analyst forecasts on Reject Shop Limited stock, see the AU:TRS Stock Forecast page.

The Reject Shop Announces Special Dividend Amid Acquisition by Dollarama
Jun 12, 2025

The Reject Shop Limited has announced a special dividend of $0.77 per share, contingent on the approval of its acquisition by Dollarama Inc. through a scheme of arrangement. This acquisition will result in shareholders receiving a total transaction consideration of $6.68 per share, combining the scheme consideration and the special dividend. The board recommends shareholders vote in favor of the scheme, supported by major shareholder Kin Group Pty Ltd, which holds 20.7% of the shares. The Australian Taxation Office has issued a draft class ruling on the special dividend, with a final ruling pending post-implementation.

The most recent analyst rating on (AU:TRS) stock is a Hold with a A$3.70 price target. To see the full list of analyst forecasts on Reject Shop Limited stock, see the AU:TRS Stock Forecast page.

Harvest Lane Increases Stake in Reject Shop Limited
May 28, 2025

Harvest Lane Asset Management and its associated entities have increased their substantial holding in Reject Shop Limited, now owning 6.43% of the company’s ordinary shares. This change in substantial holding reflects a strategic move by Harvest Lane, potentially impacting the company’s market positioning and signaling confidence in Reject Shop’s future performance.

The most recent analyst rating on (AU:TRS) stock is a Hold with a A$3.70 price target. To see the full list of analyst forecasts on Reject Shop Limited stock, see the AU:TRS Stock Forecast page.

Pinnacle Investment Acquires Significant Stake in The Reject Shop
May 21, 2025

Pinnacle Investment Management Group Limited has become a substantial holder in The Reject Shop Limited as of May 16, 2025, with a 7.29% voting power through its acquisition of 2,725,136 ordinary fully paid shares. This development indicates a significant investment interest in The Reject Shop, potentially impacting its market positioning and stakeholder dynamics.

The most recent analyst rating on (AU:TRS) stock is a Hold with a A$3.70 price target. To see the full list of analyst forecasts on Reject Shop Limited stock, see the AU:TRS Stock Forecast page.

Plato Investment Management Acquires Substantial Stake in The Reject Shop
May 20, 2025

Plato Investment Management Limited has become a substantial holder in The Reject Shop Limited, acquiring a 6.5% voting power with 2,428,437 ordinary fully paid shares as of May 16, 2025. This acquisition signifies a notable interest from Plato Investment Management in The Reject Shop, potentially impacting the company’s market positioning and signaling confidence in its future prospects.

The most recent analyst rating on (AU:TRS) stock is a Hold with a A$3.70 price target. To see the full list of analyst forecasts on Reject Shop Limited stock, see the AU:TRS Stock Forecast page.

Bennelong Funds Management Sells Stake in Reject Shop
May 19, 2025

Bennelong Funds Management Group Pty Ltd has ceased to be a substantial holder of The Reject Shop Limited as of May 19, 2025. This change occurred following the sale of 2,760,578 ordinary shares on the market, impacting the voting power and potentially altering the shareholder composition of the company.

The most recent analyst rating on (AU:TRS) stock is a Hold with a A$3.70 price target. To see the full list of analyst forecasts on Reject Shop Limited stock, see the AU:TRS Stock Forecast page.

The Reject Shop Announces Acquisition Proposal by Dollarama
May 16, 2025

The Reject Shop Limited has announced a proposed acquisition by Dollarama Inc. through a scheme of arrangement. The company’s board unanimously recommends shareholders vote in favor of the scheme, which offers $6.68 cash per share, exceeding the assessed value range of $4.80 to $5.24. The Independent Expert has deemed the scheme fair and reasonable, and the largest shareholder, Kin Group Pty Ltd, intends to support the proposal. This acquisition could significantly impact The Reject Shop’s operations and market positioning.

The most recent analyst rating on (AU:TRS) stock is a Hold with a A$3.70 price target. To see the full list of analyst forecasts on Reject Shop Limited stock, see the AU:TRS Stock Forecast page.

Court Approves Scheme Meeting for The Reject Shop’s Acquisition by Dollarama
May 16, 2025

The Reject Shop Limited has received court approval to convene a meeting for its shareholders to vote on a proposed acquisition by Dollarama Inc. through a scheme of arrangement. The board of The Reject Shop recommends shareholders vote in favor of the scheme, with the largest shareholder, Kin Group Pty Ltd, also intending to support the proposal. The scheme meeting will be held virtually, and shareholders are encouraged to participate and vote.

The most recent analyst rating on (AU:TRS) stock is a Hold with a A$3.70 price target. To see the full list of analyst forecasts on Reject Shop Limited stock, see the AU:TRS 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: Apr 08, 2025