More bumper opportunities
ARB Corporation Limited (ASX: ARP) released their FY14 annual result yesterday morning.
I’ve compiled some notes below which may be of use of your own analysis (note that none of this consists financial advice, please see the disclaimer below).
- Flat revenue ($297.7 million in FY14 from $291.5 million in FY13) and NPAT ($42.6 million in FY14 from $42.4 million in FY13). Not a bad result, given they have had to recover revenues lost from the OEM and mining aftermarket revenues. In addition, store numbers have risen from 47 in FY13 to 50 in FY14.
- USA revenues are rising from $27.1 million to $31.4 million in FY14 which shows good growth. ARB has released their new “larger” bull bar for the US market, with models for Chevrolet and Dodge in the pipeline.
- Launch of ARB Ascent Canopy in April of 2014 (one of their long-term development projects) to be followed up over the next 12 months by new versions for all popular utilities. The firm notes that they have another long-term development project which is due to be released in the second quarter of FY15. The result of these developments is higher R&D but of course, it’s a small expense compared to the margins generated by their products (FY14 NPAT margins were 14.3 per cent).
Montgomery Investment Management does not own shares in ARB Corporation Limited.
This post was contributed by a representative of Montgomery Investment Management Pty Limited (AFSL No. 354564). The principal purpose of this post is to provide factual information and not provide financial product advice. Additionally, the information provided is not intended to provide any recommendation or opinion about any financial product. Any commentary and statements of opinion however may contain general advice only that is prepared without taking into account your personal objectives, financial circumstances or needs. Because of this, before acting on any of the information provided, you should always consider its appropriateness in light of your personal objectives, financial circumstances and needs and should consider seeking independent advice from a financial advisor if necessary before making any decisions. This post specifically excludes personal advice.
INVEST WITH MONTGOMERY
rob barnett
:
Dear Scott,
Is there an insight coming any time soon about ARB.? This post wasn’t overly useful (but most usually are).
Rob
zoran arnautovic
:
ARB
I think this post was very, very useful.
Especially the last line; Montgomery Inv.. Mgmt. does not own shares in ARB.
Cheers
zoran arnautovic
:
ARB
To add, that line to me means : Good company, expensive at the moment.
Cheers
Scott Shuttleworth
:
Good pickup Zoran.
If you’re of the opinion that the Australian market is mature, then a key indicator for ARB going forward is the success of the larger bull bars in the United States.
To a degree, whether you think they’ll succeed or fail determines whether the share price is expensive or not.