REH share price in focus
Reece Limited has been operating in Australia for more than 100 years, and is today the country’s largest plumbing and bathroom supplies business.
While best known as a plumbing store, the brand has diversified to offer services and products across irrigation and pools, civil construction projects, and HVAC systems for heating, ventilation, and refrigeration.
Reece has grown revenue at a steady clip the past few years and, while the dividend yield has typically been low, the payments have been quite consistent.
HUB shares
Founded in 2007, HUB24 has quickly become a prominent player in the wealth management sector, offering software and platform solutions for financial advice, superannuation, and investment management.
HUB24’s core products include the HUB24 platform, Class, and myprosperity. The HUB24 platform serves financial advisers and their clients, providing access to a wide range of managed funds and investment products. Class is a leading software solution for self-managed super funds (SMSFs), helping manage portfolios, legal documentation, and compliance. Myprosperity offers client portals for accountants and advisers, enhancing service and customer experience.
HUB24’s competitive edge lies in its high-quality service. In 2024, it was recognized as the Overall Best Platform in the Adviser Ratings Financial Advice Landscape Report and ranked first for Overall Satisfaction and Brand Image and Reputation in the 2024 Wealth Insights Platform Service Level Report.
REH & HUB share price valuation
One way to have a ‘quick read’ of where the REH share price is could be to study something like dividend yield over time. This can give us a sense of the stability of the company and whether they can consistently pay out a percentage of profits.
Remember, the dividend yield is basically the ‘cash flow’ to a shareholder, but it can fluctuate year-to-year or between payments. Currently, Reece Ltd shares have a dividend yield of around 1.65%, compared to its 5-year average of 1.06%. In other words, REH shares are trading higher than their historical average dividend yield. Be careful how you interpret this information though – it could mean that dividends are growing, or it could mean the share price is falling, or both. In the case of REH, the annual report shows last year’s dividend was greater than the 3-year average, so the dividend has been growing.
Since HUB is more of a ‘growth’ company than an established blue chip, a price-sales ratio might be a more appropriate assessment. This ratio gives us an idea of how the company has historically been valued relative to its earnings, which can indicate if the company is over or undervalued today. The HUB share price currently trades at a price-sales ratio of 16.27x, which compares to its 5-year long-term average of 13.32x. So, its shares are trading above their historical average. Don’t forget, a simple multiple like this should only be the start of your research. The Rask websites offer free online investing courses, created by analysts explaining things like Discounted Cash Flow (DCF) and Dividend Discount Models (DDM). They even include free valuation spreadsheets! It’s a good idea to use multiple valuation methods to value a share like Hub24 Ltd.
