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 has ROE
revenue, Operating margin, Net profit
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.
Dividends
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