ASX: ARB: Consumer Discretionary, Automobiles & Components.
29/06/26
ARB Corporation Limited (ARB) engages in the design, manufacture, distribution, and sale of motor vehicle accessories and light metal engineering works. The Group's reportable segments are organized by geographical location, covering operations in Australasia, USA, Thailand, and the Middle East, Europe, and the United Kingdom.
The company was founded by Anthony Ronald Brown in 1975 and is headquartered in Kilsyth, Australia.
Fundamentals
Earnings vs ROE
Earnings have been dropping since 2022
As have ROE revenue, Operating margin, Net profit.
ARB Corporation Limited (ASX:ARB) is currently recording a trailing twelve-month (TTM) Return on Equity (ROE) of approximately 11.91%. The company's future ROE is forecast by analysts to stabilize around 13% to 14% over the next three years.
Revenues are going up , but OM & profit has been declining over the years.
Operating margin is the percentage of revenue left as operating income, after subtracting cost of revenue and all operating expenses from the revenue.
Operating Margin = (Operating Income / Revenue) * 100%
EPS has been declining
from 1.40 in 2021 to
1.07 in 2026
Debt / Equity
The higher the D/E ratio, the more a company relies on debt to sustain itself
Of note, there is no “ideal” D/E ratio, though investors generally like it to be below about 2.
ARB Corporation's (ASX:ARB) debt-to-equity (D/E) ratio is exceptionally healthy.
2026- 0.06
2025- 0.06
2024- 0.06
2023- 0.06
2022- 0.07
2021- 0.09
The Ratio: ARB operates with virtually no long-term debt, resulting in a D/E ratio hovering between 0% and ~5.8%.
The Industry Benchmark: While a healthy D/E ratio for most Australian businesses is generally around 1.0 to 1.5, ARB’s near-zero leverage means it has virtually no debt burden.
Financial Strength: This fortress balance sheet—coupled with a strong interest coverage ratio—provides excellent protection for dividend payouts and gives the company immense flexibility to invest or weather cyclical downturns in discretionary spending.
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Dividends
ARB maintains a high, stable dividend payout ratio (usually around 55%), which means most profits are distributed to shareholders rather than heavily reinvested for massive expansion. This steady approach anchors the forecasted ROE in the 13.05% to 14% range
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PE Ratios
The trailing twelve months (TTM) P/E ratio for ARB Corporation Limited (ASX: ARB) sits at 17.04. [1]
Over the last 10 years, ARB's price-to-earnings multiple has historically averaged around 25x to 30x, experiencing a substantial premium spike during the post-pandemic outdoor boom before compressing back down in 2026 due to cyclical margin pressures and share price retracement. [1, 2, 3]
Historical P/E Ratio Data (Calendar Year-End)
| Year [1, 2, 3, 5] | P/E Ratio | Valuation Context / Market Drivers |
|---|---|---|
| 2026 (Current TTM) | 17.04 | Significant share price drop and margin compression from rising expenses. |
| 2025 | 30.10 | Shares traded near record highs before later softening; earnings starting to flatten. |
| 2024 | 30.60 | Elevated premium multiple sustained by solid brand equity and global export growth. |
| 2023 | 26.80 | Market correction stabilized after a post-COVID normalization period. |
| 2022 | 18.50 | Multiple compressed sharply as pandemic-driven discretionary spend slowed. |
| 2021 | 31.19 | Peak premium valuation fueled by the global 4WD accessory demand boom. |
| 2020 | 18.95 | Brief multiple drop followed by an aggressive rebound in mid-to-late 2020. |
| 2019 | 26.55 | Standard trading multiple inline with historic premium industrial averages. |
| 2018 | 27.89 | Robust domestic retail demand kept multiple at a historical high. |
| 2017 | 28.14 | Steady institutional support for high-quality return on equity (ROE). |
| 2016 | 29.77 | Multiples remained elevated due to low interest rates and consistent market expansion. |
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Analyst Consensus: Wall Street analysts generally rate the stock a "Buy" with an average 1-year price target around $24.26 AUD, well above recent trading values. [1]
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