REA Group reported 1H FY22 revenue growth of 25% or $109mn with EBITDA of $84mn. Full-year EPS is forecast to be up 20%+ on the prior year and the stock now trades on a forward yield of 1.2%.
Buying support is likely to rebuild within the $115 to $135 price range.
REA Group is among the best-performing stocks in our ASX 100 model portfolio, with the share price up 67% since being added in September last year.
REA Group has acquired 100 percent of the shares in Mortgage Choice for $1.95 a share, valuing the company at $244 million. REA is now focused on accelerating its financial services strategy to become a leading player in the home loan market.
REA is a high quality business with terrific growth potential, however, the 65x PE multiple is a little rich and we recommend waiting for the next Algo Engine buy signal.
5/11 update: REA Group delivered 22% revenue growth for Q1 FY22.
REA Group is under Aglo Engine buy conditions and among the best-performing stocks in our ASX model portfolio. REA was added to the ASX 100 model in September last year at $107.80 and is up 48.40%, (including dividends), to $159.42.
FY21 Revenue increased 13% to $927m and EBITDA increased 19% to $564m. Net Profit After Tax (NPAT) saw a similar lift of 18% to $318m.
The div increases to $0.72 per share and the ex-dividend date is 26 August.
We recommend buying the dip in REA, so please watch for the next Algo Engine buy signal. Long-term earnings growth will be underpinned by the recent acquisition of mortgage broker, Mortgage Choice.
REA Group is among the best-performing stocks in our ASX 100 model portfolio, with the share price up 57% since being added in September last year.
REA Group has acquired 100 percent of the shares in Mortgage Choice for $1.95 a share, valuing the company at $244 million. REA is now focused on accelerating its financial services strategy to become a leading player in the home loan market.
REA is a high quality business with terrific growth potential, however, the 65x PE multiple is a little rich and we recommend waiting for the next Algo Engine buy signal.
REA Group is under Algo Engine buy conditions and is a current holding in our ASX 100 model portfolio.
The share price has corrected over 40% due to the impact of COVID-19. Earnings will decline over the coming months as restrictions impacting open homes and slower vendor listings bite in the short-term.
In the medium term, we see scope for a full recovery in the business and therefore, the current share price at 20x forward earnings looks attractive.
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