National Tyre & Wheel Ltd. (NTD) AI Stock Analysis

• Market Cap: AU$33.54M
• Dividend Yield: N/A
• Average Volume (3M): 20.77K
• Price to Earnings (P/E): 15.9
• Beta (1Y): -0.11
• Revenue Growth: -3.66%
• EPS Growth: -750.00%
• Country: AU
• Employees: 500
• Sector: Consumer Cyclical
• Sector Strength: 75
• Industry: Auto - Parts
• EPS (TTM): -0.28
• Shares Outstanding: 167,707,610
• 10 Day Avg. Volume: 14,415
• 30 Day Avg. Volume: 20,772
• PEG Ratio: <0.01
• Price to Book (P/B): 0.36
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 3.75
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 57 Neutral
• Price Target: ―

National Tyre & Wheel Ltd. scores moderately due to strong cash flow generation and a stable balance sheet. However, weak profitability metrics, declining revenue, and a negative P/E ratio weigh heavily on the stock's attractiveness. The technical indicators suggest limited upward momentum, further impacting the overall score.

National Tyre & Wheel Ltd. Business Overview & Revenue Model

Company Description

National Tyre & Wheel Ltd. (NTD) is a leading supplier and distributor of tyres, wheels, and related products in Australia and New Zealand. The company specializes in offering a comprehensive range of products across several sectors including automotive, mining, transport, and industrial. NTD focuses on delivering high-quality products and services to retailers, wholesalers, and direct consumers, ensuring optimal performance and safety.

How the Company Makes Money

National Tyre & Wheel Ltd. generates revenue primarily through the distribution and sale of tyres and wheels to a diverse customer base, including retailers, wholesalers, and end-consumers. The company sources its products from a variety of manufacturers and brands, providing a wide selection that caters to different market needs. NTD's revenue streams are bolstered by its extensive distribution network and strategic partnerships with manufacturers, which ensure a steady supply of products at competitive prices. The company also offers value-added services such as logistics and supply chain management, enhancing its revenue potential and customer satisfaction.

National Tyre & Wheel Ltd. Financial Statement Overview

Summary

National Tyre & Wheel Ltd. shows stable financials with strong cash flow generation and moderate leverage. However, the company faces challenges in profitability and revenue growth, as seen in declining net profit margins and revenue. A low ROE indicates limited efficiency in using equity, suggesting a need for improved profitability strategies.

Income Statement

The income statement shows mixed performance. The gross profit margin in the latest year is 10.58%, indicating modest profitability. The net profit margin has declined to 0.29%, showing a decrease in net income relative to revenue. Revenue decreased by 8.38% compared to the previous year, indicating a reduction in sales. The EBIT margin improved to 2.40%, while the EBITDA margin remained stable at 6.81%, suggesting moderate operating efficiency despite revenue decline.

Balance Sheet

The balance sheet reflects a stable financial position with a debt-to-equity ratio of 1.55, indicating moderate leverage. The return on equity (ROE) is low at 1.36%, showing limited returns on shareholder investment. The equity ratio is 27.73%, suggesting a balanced capital structure with room for leveraging opportunities.

Cash Flow

The cash flow statement highlights strong operating cash flow with a 45.73% increase in free cash flow year-over-year. The operating cash flow to net income ratio is robust at 22.54, showing strong cash generation relative to earnings. The free cash flow to net income ratio is 19.56, indicating effective cash management and potential for reinvestment.

Breakdown
TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement		Total Revenue
531.05M	533.43M	582.28M	555.55M	461.53M	158.86M
	Gross Profit
103.78M	168.44M	55.37M	59.81M	64.62M	19.04M
	EBIT
20.87M	12.82M	9.93M	18.35M	30.90M	8.36M
	EBITDA
8.85M	36.32M	36.32M	40.56M	46.20M	12.35M
	Net Income Common Stockholders
-42.01M	1.56M	3.33M	9.40M	20.25M	4.55M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
31.20M	38.89M	33.04M	35.83M	29.05M	25.86M
	Total Assets
375.19M	413.10M	376.05M	385.67M	268.44M	125.19M
	Total Debt
169.06M	177.55M	160.15M	163.39M	78.86M	24.69M
	Net Debt
137.86M	138.66M	127.11M	127.56M	49.96M	-1.17M
	Total Liabilities
257.72M	295.80M	260.71M	273.21M	176.63M	56.35M
	Stockholders Equity
114.61M	114.54M	112.27M	108.96M	88.47M	65.79M
Cash Flow		Free Cash Flow
9.16M	30.57M	20.06M	6.71M	20.11M	14.26M
	Operating Cash Flow
15.51M	35.22M	24.17M	11.84M	22.67M	15.52M
	Investing Cash Flow
-4.41M	-6.12M	-6.25M	-52.56M	-39.16M	-1.04M
	Financing Cash Flow
-17.18M	-23.50M	-18.04M	44.86M	19.05M	-7.86M

National Tyre & Wheel Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.20
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:NTD, the sentiment is Negative. The current price of 0.2 is below the 20-day moving average (MA) of 0.20, below the 50-day MA of 0.21, and below the 200-day MA of 0.30, indicating a bearish trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 45.72 is Neutral, neither overbought nor oversold. The STOCH value of 50.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AU:NTD.

National Tyre & Wheel Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ARB	75 Outperform	$2.54B	24.59	15.18%	2.31%	6.17%	10.45%
SUL	73 Outperform	AU$3.17B	13.99	17.52%	4.92%	2.56%	-13.62%
Sector *	62 Neutral	$6.84B	11.23	3.09%	3.95%	2.66%	-25.23%
NTD	57 Neutral	AU$33.54M	15.95	-42.37%	―	-3.66%	-750.00%
AMA	55 Neutral	AU$406.52M	425.00	1.53%	―	-1.09%	―
BAP	54 Neutral	€1.76B	―	-16.06%	2.88%	-0.30%	-267.50%

National Tyre & Wheel Ltd. Corporate Events

National Tyre & Wheel Ltd. Announces Cessation of Securities

National Tyre & Wheel Ltd. announced the cessation of 50,000 securities due to the lapse of conditional rights, as the conditions were not met or became incapable of being satisfied. This announcement may impact the company’s issued capital and could have implications for its stakeholders, reflecting a potential shift in its financial strategy or market positioning.

NTAW Restructures Dunlop Tyre Distribution Agreements

National Tyre & Wheel Ltd. (NTAW) has restructured its distribution agreements for Dunlop tyres in Australia and New Zealand. The company will cease importing Dunlop tyres to Australia but will continue distribution in New Zealand under a new agreement. This strategic shift includes mutual termination agreements with Goodyear and Sumitomo, allowing NTAW to focus on expanding its other wholesale and retail business units while introducing new products to increase market share.

National Tyre & Wheel Ltd. Updates Director’s Interest Holdings

National Tyre & Wheel Ltd. has announced a change in the interest holdings of its director, Christopher John Hummer. The company has issued 200,000 new performance rights to Mr. Hummer, increasing his total performance rights to 340,000. This change was approved at the company’s 2024 AGM and reflects the company’s ongoing commitment to aligning director incentives with company performance.

National Tyre & Wheel Ltd. Announces Change in Substantial Shareholding

National Tyre & Wheel Ltd. has announced a change in the interests of a substantial holder, Ryan Young, in the company’s voting securities. The change involves an increase in voting power from 16.1% to 17.1%, achieved through on-market purchases of ordinary shares. This adjustment in shareholding could influence the company’s decision-making processes and potentially impact its strategic direction, reflecting a strengthened position for Ryan Young within the company.

Change in Substantial Holding for National Tyre & Wheel Ltd.

National Tyre & Wheel Ltd. has announced a change in the substantial holding of its voting shares. Tony Young has increased his voting power in the company from 17.9% to 18.95% through market purchases. This change in voting power reflects a strategic move by Tony Young, potentially impacting the company’s governance and decision-making processes.

National Tyre & Wheel Reports Half-Year Loss Amid Strategic Adjustments

National Tyre & Wheel Ltd. reported a net loss of $42.8 million for the half-year ending December 2024, primarily due to a significant impairment charge against intangible assets. The company’s revenue slightly decreased, and operating EBITDA fell to $10.6 million. Challenges included lower-than-expected Dunlop sales, customer attrition in Western Australia, and economic downturns in New Zealand. Despite these setbacks, the company maintains a solid balance sheet and is making strategic acquisitions to improve future performance. A recent change in leadership and ongoing discussions with Goodyear regarding Dunlop distribution indicate efforts to stabilize operations.

NTAW Holdings Reports Significant Financial Decline in Half-Year Results

NTAW Holdings Limited reported a slight decrease in revenue for the half-year ended 31 December 2024, with a significant net loss compared to the previous year. The company’s operating EBITDA also saw a substantial decline, and no dividends were declared for this period, indicating financial challenges that may impact stakeholders.

National Tyre & Wheel Ltd. Renegotiates Financial Covenants and Adjusts Trade Facility

National Tyre & Wheel Ltd. has successfully renegotiated its financial covenants with the Commonwealth Bank of Australia, following discussions about potential breaches due to current trading conditions. The company’s trade finance facility, initially increased to support Dunlop inventory purchases, will be reduced after the termination of the Dunlop Distribution Agreements, reverting to previous levels.