Thorn Group Limited (TGA)

Welcome to InvestSMART

You are currently viewing our site as a guest, which gives you limited access to our site features. By signing up for a free membership, you will receive our Investment Opportunity newsletters and have access to additional features for finding and comparing managed funds and shares. Registration is fast and simple, so please:

Sign Up Today it's FREE! Already a member? Login now!

General Information
Company Name: Thorn Group Limited
Stock Code: TGA
GICS Sub-Industry: General Merchandise Stores
Market Cap ($M): 444
Equiv. Shares (M): 151

Current Price Data+
Current Price Open High Low Last Close Volume Price Movement
 $ 2.950 $ 2.900 $ 2.960 $ 2.880 $ 2.930 244,771 $ 0.020  0.683 %

Current Broker Consensus Recommendation more
Recommendation: Sell (3.5)
Recommendation Date: 27th Nov 2014
Brokers Surveyed: 2

Company Overview

Business Description:
Thorn Group Limited (TGA) is an operator in the household goods rental market in Australia. TGA provide a range of audio/visual products, kitchen and laundry appliances, computers, furniture and fitness equipment through its Radio Rentals and Rentlo national store network. TGA also provides other services through its Cashfirst, Thorn Business Services, Thorn Equipment Finance and National Credit Management Limited.

Strategy Analysis:
TGA's broad strategy is to become Australia's leading provider of retail and financial services to the sub-prime consumer and commercial markets. They aim to continue to grow revenue in the core Radio Rentals and Rentlo (RR&R) businesses through continuation of their effective marketing campaign and the re-design of a number of their stores. Since 2011, TGA has focused on growth in financial services with the acquisition of NCML, the start-up of Thorn Equipment Finance (TEF) and Cashfirst. Thorn Group reported NPAT down 2.1% to $14.01m for the half-year ended 30 September 2012. Revenues from ordinary activities were $100.46m, up 4.1% from the same period last year. Diluted EPS was 9.55 cents compared to 9.77 cents last year. Net operating cash flow was $48.75m compared to $34.82m last year. No dividend was declared.

Financial Summary
Year to Mar NPAT EPS EPS chg (%) PER DPS Yield (%) Franking (%)
2016  F 36.2 24.2 14.8 12.2 14.0 4.7 100.0
2015  F 31.6 21.1 11.3 14.0 12.0 4.1 100.0
2014  A 28.4 19.0 -6.7 11.5 11.0 5.1 100.0
Source: Morningstar analyst estimates.

Peer Comparison
EPS Growth (%) P/E (%) Dividend Yield (%)
Company Mkt Cap 2014 A 2015 F 2016 F 2014 A 2015 F 2016 F 2014 A 2015 F 2016 F
Harvey Norman (HVN) $3,931 M 0.0803 0.1237 0.0236 17.8744 15.9071 15.5397 3.78 4.32 4.40
Thorn Group (TGA) $441 M -0.0094 0.1021 0.1324 15.4944 14.0595 12.4153 3.75 3.91 4.47

Market Comparison
Earnings P/E Ratio P/B Ratio P/E Growth P/S Ratio
TGA 0.94 14.6 2.57 1.25 1.90
Market 0.91 15.2 1.18 1.87 1.52
Sector 0.91 14.5 1.87 1.67 0.90

Name Position Start Date
Mr James Marshall Chief Executive Officer,Managing Director 05 May 2014
Mr Paul Alan Lahiff Non-Executive Director 22 May 2007
Mr Peter William Henley Non-Executive Director 21 May 2007
Mr Stephen (Steve) Kulmar Non-Executive Director 15 April 2014
Ms Joycelyn Morton Non-Executive Director,Non-Executive Chairman 01 October 2011

Name Position
Peter Eaton Chief Financial Officer,Company Secretary

Substantial Shareholders
Holding Name
9,167,286 (6.13%) IOOF Holdings Limited
8,289,380 (5.54%) Investors Mutual Limited
9,517,105 (6.36%) Kinetic Investment Partners Limited
9,677,638 (6.47%) Vinva Investment Management

Calendar of Events
Date Event
17 November 2015 Report (Interim)
27 July 2015 Report (Annual)
19 May 2015 Report (Prelim)
22 January 2015 Div Pay Date
08 January 2015 Books Close
06 January 2015 Div Ex Date
© 2011 Morningstar, Inc. All rights reserved. The data and content contained herein are not guaranteed to be accurate, complete or timely. Neither Morningstar, nor its affiliates nor their content providers will have any liability for use or distribution of any of this information. To the extent that any of the content above constitutes advice, it is general advice that has been prepared by Morningstar Australasia Pty Ltd ABN: 95 090 665 544, AFSL: 240892 (a subsidiary of Morningstar, Inc.), without reference to your objectives, financial situation or needs. Before acting on any advice, you should consider the appropriateness of the advice and we recommend you obtain financial, legal and taxation advice before making any financial investment decision. If applicable investors should obtain the relevant product disclosure statement and consider it before making any decision to invest. Some material is copyright and published under licence from ASX Operations Pty Limited ACN 004 523 782 ("ASXO"). DISCLOSURE: Employees may have an interest in the securities discussed in this report. Please refer to our Financial Services Guide (FSG) for more information at


Trade Shares Online from $19.95^
Free Guides

The SMH Guide to Investing in Unlisted Property Trusts

A property trust allows you to buy 'units' in an investment operated by a professional investment manager. This Guide will help you understand the risks and decide whether to invest your money.

More details...


Australian Share Market - Close Up

CMC Markets 11/11/2014 | The Australian share market is in a decision zone - and trading from here may set the direction for the rest of the year.

Prices slashed - everything must go!

Nick Swales, Regional Director, Newcastle Office, Rathbones 27/10/2014 | “If you want to have a better performance than the crowd, you must do things differently from the crowd.” Sir John Templeton.

Aussie share market bulls now have company

Ric Spooner (Chief Market Analyst, CMC Markets) 20/10/2014 | Today, Australian investors will not have to go it alone buying stocks as they did for much of last week. Bargain hunters this morning will be supported by the morale boosting encouragement of a 3% turnaround in the German Dax and a 264 point rally in the Dow Jones.

The Importance of Ignoring the Noise of the Market

Carl Richards, director of investor education at the BAM Alliance 17/10/2014 | “As odd as it may sound, the sooner you start treating your investments like you treat life, the happier you’ll be with the outcome.”

You only dance twice

William H. Gross, Janus Capital Group 16/10/2014 | “Financial markets are artificially priced. In the bond market, there is nothing normal about a three year German Bund yielding “minus” 10 basis points.”

The Big Picture - Australia 200 Index

CMC Markets 8/10/2014 | Share market indices around the globe are breaking down. While analysts cast around for reasons, it’s clear that a time factor is in play. Simply put, many investors “feel” a correction is overdue. How low could it go?


Sponsored Links