# Arb (ARB.AU)

Canonical: https://gigainvestors.com/s/ARB.AU

Analysis as of: 2026-10-16T07:44:11.011Z. Financial observations: FY1997–FY2026.

Listing currency: AUD. Reporting currency: AUD.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: pass; earnings resilience is evidence only). Published buy qualification: no.

Share price: AUD 16.56 per share; close as of 2026-10-15.

Estimated value: low AUD 12.59 per share, central AUD 16.37 per share, high AUD 19.08 per share. Buy at or below the central value AUD 16.37 per share. Valuation as of 2026-10-16T07:44:11.011Z; scenarios are not confidence intervals.

Expected annual return: 9.9% at the stated quote. About 9.9% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; AU 10-year bond 5.2% + 4 points).

## Checklist

### understandable: pass

- 2 revenue declines in the last 10 years (informational)

- Financial history: 10 years

- Years with declining revenue: 2

- Years with a net loss: 0

- Operating margin variation: 0.14×

Chart: Operating margin; fiscal year observations.

- FY2017: 0.18×

- FY2018: 0.17×

- FY2019: 0.17×

- FY2020: 0.15×

- FY2021: 0.22×

- FY2022: 0.24×

- FY2023: 0.18×

- FY2024: 0.20×

- FY2025: 0.18×

- FY2026: 0.16×

### moat: fail

- Recent gross margin fell 26.9pp below the typical margin (limit 4pp)

- ROIC, median of available years: 16.2%

- ROIC, second-lowest year: 13.7%

- Typical minus recent gross margin: 26.9 pp

- Typical gross margin (annual median): 53.9%

- Recent gross margin (lower of latest and 3-year median): 27.0%

- Years with nonpositive capital: 0

- Capital spending / revenue: 6.4%

- ROIC including acquisitions, ten-year median: 12.7%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2017: 21.5%

- FY2018: 18.0%

- FY2019: 15.5%

- FY2020: 14.5%

- FY2021: 26.5%

- FY2022: 24.7%

- FY2023: 15.4%

- FY2024: 16.8%

- FY2025: 13.7%

- FY2026: 12.2%

### economics: fail

- incremental invested capital return below threshold

- working capital as a share of revenue rose more than 10pp and ends positive

- Owner earnings / net income, 5-yr: 0.83×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: AUD 417M

- Net income, five-year total: AUD 503M

- Return on incremental invested capital: 10.3%

- Working capital / revenue, annual change: 1.9 pp

- Working capital / revenue, change between three-year averages: 13.2 pp

- Working capital / revenue, final three-year average: 46.9%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2022: 0.87×

- FY2023: 0.69×

- FY2024: 0.82×

- FY2025: 0.86×

- FY2026: 0.88×

### management: pass

- Historical market-dollar context (not the management verdict): 2017 to 2026 (9 years)

- buybacks unrelated to price (informational)

- ROIC first 3 years vs last 3 years: 18.0% vs 13.7%

- Per-share earnings: 0.62 to 1.17 (three-year endpoint medians)

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: 0.5%

- Ordinary dilution, 5-year annual growth: 0.5%

- Market cap gain: AUD 337M

- Cumulative retained earnings: AUD 330M

- Diluted shares, 10-year annual growth: 0.5%

- Diluted shares, 5-year annual growth: 0.5%

- $1 test, starting fiscal year: FY2017

- $1 test, ending fiscal year: FY2026

- Per-share value growth: 8.2%

- Per-share value change: AUD 0.55

- Per-share value, starting three-year median: AUD 0.62

- Per-share value, ending three-year median: AUD 1.17

- Buyback history: 0 years

- Debt-funded buybacks: No

- Acquisition spending: AUD 109M

- Cumulative net income, 10 years: AUD 831M

- ROIC, first three-year median: 18.0%

- ROIC, last three-year median: 13.7%

Chart: Earnings per share; fiscal year observations.

- FY2017: AUD 0.62

- FY2018: AUD 0.64

- FY2019: AUD 0.72

- FY2020: AUD 0.71

- FY2021: AUD 1.38

- FY2022: AUD 1.49

- FY2023: AUD 1.08

- FY2024: AUD 1.24

- FY2025: AUD 1.17

- FY2026: AUD 1.11

### accounting: pass

- Sloan accruals: -1.3%

- Receivables to sales index (DSRI): 0.96×

- Restructuring years, last five: 0

- Stock compensation / operating cash flow: 0.0%

- Earnings backed by cash: Yes

- Operating cash / earnings: 1.12×

- Accounting red flags: 0

- Goodwill and intangibles / equity: 0.09×

Chart: Sloan accruals; fiscal year observations.

- FY2017: -4.0%

- FY2018: 1.7%

- FY2019: 1.8%

- FY2020: -6.9%

- FY2021: 1.5%

- FY2022: 5.3%

- FY2023: -0.3%

- FY2024: -2.9%

- FY2025: -3.4%

- FY2026: -1.3%

## Holders

## Price story

Down 69% since Nov 2021 · sales -3.8%

Story as of 2026-10-16T10:00:12.958Z; price observation 2026-10-15.

Price needs cash profits to grow 4.5% a year for ten years

### Sales · FY2025–2026

sales -3.8%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2017: AUD 381M 

- FY2018: AUD 424M 

- FY2019: AUD 446M 

- FY2020: AUD 465M 

- FY2021: AUD 623M 

- FY2022: AUD 695M 

- FY2023: AUD 671M 

- FY2024: AUD 693M 

- FY2025: AUD 730M 

- FY2026: AUD 702M 

### Gross margin · FY2026

gross margin 27%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2017: 55.3% 

- FY2018: 55.6% 

- FY2019: 55.4% 

- FY2020: 53.6% 

- FY2021: 54.2% 

- FY2022: 31.7% 

- FY2023: 53.1% 

- FY2024: 30.1% 

- FY2025: 56.7% 

- FY2026: 27.0% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in auto parts; annual sales are AUD 702 million.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:44:11.011Z); FY2026: revenue 702015000; grossProfit 189206000; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); ARB.AU: ARB Corporation Limited engages in the design, manufacture, distribution, and sale of motor vehicle accessories and light metal engineering works in Australasia, the United States, Thailand, the Middle East, the United Kingdom, rest of Europe, China, and Africa. The company offers bull bars, side steps and rails, rear steps and towbars, under vehicle protection, seat covers, floor mats, and sunshades; and OME suspension kits and parts, GVM upgrades, total vehicle control, ARB air lockers, diff covers and tools, 4x4 snorkels and exhausts, long range fuel tanks, mud flaps, reversing cameras and sensors, and towing mirrors. It also provides ARB canopies, Mits alloy trays and canopies, Ute Lids and Bed Rack Accessories, Roof Rack and BASE rack kits and accessories, drawer systems and slide kitchen, cargo barriers and rack dividers, and portable fuel and water storage; and portable air compressors, on-board compressors, brushless and brushed motor compressors, 12V and 24V compressors, air hoses, tyre gauges, tyre repair kits, and air fittings. In addition, the company offers ARB earth camper; rooftop tents; awnings, ensuites, showers, and accessories; portable showers; skydome swags; swag stretchers; sleeping bags; camping chairs and table; ARB Fire Pit; camping luggage and organisers; tailgate and tyre bins; portable fridge freezers; portable fridge freezers accessories; and camp lighting. Further, it provides vehicle recovery products; driving lights, batteries, and electrical products; and gift cards, apparel, and merchandise products. The company distributes its products through its stockists, vehicle dealers, and fleet operators, as well as owns and license ARB branded store network. ARB Corporation Limited was incorporated in 1975 and is based in Kilsyth, Australia.

### Why customers stay

Margins ranged from 27% to 56.7% during 2024–26; it earns 16.2% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:44:11.011Z); FY2024: grossProfit / revenue = 30.1%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:44:11.011Z); FY2025: grossProfit / revenue = 56.7%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:44:11.011Z); FY2026: grossProfit / revenue = 27%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:44:11.011Z); 10-year return on capital observations [[2017,0.2150238800606304],[2018,0.1803113574620285],[2019,0.15512584203478966],[2020,0.1449266529728392],[2021,0.26474821335761467],[2022,0.24699453017180423],[2023,0.1541556417940089],[2024,0.16806764549230616],[2025,0.13703342761919124],[2026,0.12246522969757921]]; median 0.1615967437635479. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Paid dividends in 10 of 10 years.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:44:11.011Z); FY2017: growth capex 6515256.3582611345; upkeep 13876743.641738866; owner earnings 46827256.35826114. Growth capex / owner earnings = 0.13913384778332696.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:44:11.011Z); FY2018: growth capex 13977032.877912715; upkeep 25176967.122087285; owner earnings 38687032.877912715. Growth capex / owner earnings = 0.3612846951075567.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:44:11.011Z); FY2019: growth capex 7473810.856943354; upkeep 16096189.143056646; owner earnings 54919810.856943354. Growth capex / owner earnings = 0.13608588122073734.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:44:11.011Z); FY2020: growth capex 57000; upkeep 21733000; owner earnings 48389000. Growth capex / owner earnings = 0.0011779536671557586.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:44:11.011Z); FY2021: growth capex 13090000; upkeep 23513000; owner earnings 103869600. Growth capex / owner earnings = 0.12602339856897496.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:44:11.011Z); FY2022: growth capex 28556104.201477423; upkeep 33785895.79852258; owner earnings 105605304.20147742. Growth capex / owner earnings = 0.2704040712481364.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:44:11.011Z); FY2023: growth capex 0; upkeep 45873000; owner earnings 61297200. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:44:11.011Z); FY2024: growth capex 9512184.643908933; upkeep 38537815.35609107; owner earnings 84528984.64390893. Growth capex / owner earnings = 0.11253163259892973.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:44:11.011Z); FY2025: growth capex 16186972.205284365; upkeep 36740027.794715635; owner earnings 83967572.20528436. Growth capex / owner earnings = 0.1927764704892309.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:44:11.011Z); FY2026: growth capex 0; upkeep 36641000; owner earnings 81562400. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:44:11.011Z); Dividend observations: [[2017,26129000],[2018,25419000],[2019,23783000],[2020,15035000],[2021,50302000],[2022,50302000],[2023,45284000],[2024,44719000],[2025,23545000],[2026,83574000]]. Zero only counted when supported by a complete cash-flow statement.

### Are managers owners

Insiders own 10.7% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); ARB.AU SharesStats.PercentInsiders = 10.678 percentage points; cache date 2026-10-16.

### What the price says

The price assumes cash profits grow 4.5% yearly over ten years; actual growth was 5%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:44:11.011Z); Ten-year compound average after fade. Initial solved rate 0.0513260416842688. Price 16.56; FX 1; discount 0.1; same standard ten-year fade to terminal 0.03. FY2016 owner earnings/share 0.5991664035364699 → FY2026 0.9758439078550969. Closing-price date 2026-10-15.

## Monthly share-price history (AUD per share)

- 2016-10: AUD 17.06 per share

- 2016-11: AUD 17.21 per share

- 2016-12: AUD 17.65 per share

- 2017-01: AUD 16.21 per share

- 2017-02: AUD 14.44 per share

- 2017-03: AUD 14.72 per share

- 2017-04: AUD 15.49 per share

- 2017-05: AUD 15.67 per share

- 2017-06: AUD 15.71 per share

- 2017-07: AUD 15.33 per share

- 2017-08: AUD 16.98 per share

- 2017-09: AUD 17.30 per share

- 2017-10: AUD 18.21 per share

- 2017-11: AUD 19.89 per share

- 2017-12: AUD 18.73 per share

- 2018-01: AUD 18.36 per share

- 2018-02: AUD 19.89 per share

- 2018-03: AUD 19.82 per share

- 2018-04: AUD 20.78 per share

- 2018-05: AUD 21.48 per share

- 2018-06: AUD 22.83 per share

- 2018-07: AUD 21.03 per share

- 2018-08: AUD 19.84 per share

- 2018-09: AUD 19.16 per share

- 2018-10: AUD 17.31 per share

- 2018-11: AUD 16.87 per share

- 2018-12: AUD 15.00 per share

- 2019-01: AUD 15.66 per share

- 2019-02: AUD 16.92 per share

- 2019-03: AUD 17.20 per share

- 2019-04: AUD 18.13 per share

- 2019-05: AUD 18.63 per share

- 2019-06: AUD 18.20 per share

- 2019-07: AUD 18.55 per share

- 2019-08: AUD 18.82 per share

- 2019-09: AUD 19.05 per share

- 2019-10: AUD 18.11 per share

- 2019-11: AUD 19.00 per share

- 2019-12: AUD 18.77 per share

- 2020-01: AUD 18.60 per share

- 2020-02: AUD 17.15 per share

- 2020-03: AUD 14.29 per share

- 2020-04: AUD 15.23 per share

- 2020-05: AUD 17.04 per share

- 2020-06: AUD 17.95 per share

- 2020-07: AUD 19.20 per share

- 2020-08: AUD 26.32 per share

- 2020-09: AUD 27.65 per share

- 2020-10: AUD 30.77 per share

- 2020-11: AUD 27.74 per share

- 2020-12: AUD 30.80 per share

- 2021-01: AUD 35.15 per share

- 2021-02: AUD 33.52 per share

- 2021-03: AUD 34.45 per share

- 2021-04: AUD 39.13 per share

- 2021-05: AUD 42.55 per share

- 2021-06: AUD 43.19 per share

- 2021-07: AUD 46.70 per share

- 2021-08: AUD 51.81 per share

- 2021-09: AUD 48.94 per share

- 2021-10: AUD 48.59 per share

- 2021-11: AUD 53.43 per share

- 2021-12: AUD 52.51 per share

- 2022-01: AUD 46.15 per share

- 2022-02: AUD 41.49 per share

- 2022-03: AUD 41.54 per share

- 2022-04: AUD 40.10 per share

- 2022-05: AUD 32.03 per share

- 2022-06: AUD 28.24 per share

- 2022-07: AUD 33.12 per share

- 2022-08: AUD 30.32 per share

- 2022-09: AUD 27.77 per share

- 2022-10: AUD 29.01 per share

- 2022-11: AUD 28.31 per share

- 2022-12: AUD 25.67 per share

- 2023-01: AUD 31.83 per share

- 2023-02: AUD 31.97 per share

- 2023-03: AUD 31.63 per share

- 2023-04: AUD 31.95 per share

- 2023-05: AUD 28.60 per share

- 2023-06: AUD 28.60 per share

- 2023-07: AUD 31.17 per share

- 2023-08: AUD 33.80 per share

- 2023-09: AUD 31.28 per share

- 2023-10: AUD 29.17 per share

- 2023-11: AUD 31.50 per share

- 2023-12: AUD 35.96 per share

- 2024-01: AUD 33.90 per share

- 2024-02: AUD 41.44 per share

- 2024-03: AUD 41.35 per share

- 2024-04: AUD 38.62 per share

- 2024-05: AUD 38.40 per share

- 2024-06: AUD 37.63 per share

- 2024-07: AUD 42.09 per share

- 2024-08: AUD 42.57 per share

- 2024-09: AUD 47.50 per share

- 2024-10: AUD 41.50 per share

- 2024-11: AUD 42.46 per share

- 2024-12: AUD 40.61 per share

- 2025-01: AUD 39.39 per share

- 2025-02: AUD 38.54 per share

- 2025-03: AUD 32.05 per share

- 2025-04: AUD 31.50 per share

- 2025-05: AUD 30.96 per share

- 2025-06: AUD 32.70 per share

- 2025-07: AUD 33.64 per share

- 2025-08: AUD 40.00 per share

- 2025-09: AUD 38.56 per share

- 2025-10: AUD 36.10 per share

- 2025-11: AUD 34.30 per share

- 2025-12: AUD 31.45 per share

- 2026-01: AUD 25.81 per share

- 2026-02: AUD 25.70 per share

- 2026-03: AUD 20.87 per share

- 2026-04: AUD 18.60 per share

- 2026-05: AUD 19.26 per share

- 2026-06: AUD 18.92 per share

- 2026-07: AUD 19.80 per share

- 2026-08: AUD 19.24 per share

- 2026-09: AUD 18.34 per share

- 2026-10: AUD 17.34 per share

## Annual estimated value (AUD per share)

- FY2017: low AUD 8.07 per share, central AUD 11.16 per share, high AUD 13.05 per share

- FY2018: low AUD 7.67 per share, central AUD 10.11 per share, high AUD 11.83 per share

- FY2019: low AUD 9.06 per share, central AUD 12.55 per share, high AUD 14.72 per share

- FY2020: low AUD 8.85 per share, central AUD 10.88 per share, high AUD 12.62 per share

- FY2021: low AUD 13.04 per share, central AUD 17.39 per share, high AUD 20.23 per share

- FY2022: low AUD 14.18 per share, central AUD 19.36 per share, high AUD 22.62 per share

- FY2023: low AUD 12.74 per share, central AUD 16.27 per share, high AUD 18.95 per share

- FY2024: low AUD 13.76 per share, central AUD 18.50 per share, high AUD 21.59 per share

- FY2025: low AUD 14.54 per share, central AUD 19.59 per share, high AUD 22.85 per share

- FY2026: low AUD 12.60 per share, central AUD 16.39 per share, high AUD 19.10 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

Prior published observations retained from 2026-10-15T06:49:49.933Z where newer inputs omit a numeric field or fiscal period.

## Sources

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.