Australian building fixtures and fittings supplier GWA Group Ltd (ASX: GWA) provides bathroom, kitchen, door and access system products to households and commercial premises Australia-wide.
GWA Group shares opened down today at $3.15 today, perhaps correcting slightly from a 12.9% share price surge in mid-February, after the release of favourable half-year results, including a 7% profit rise and a 13% increase in dividend payments.
GWA Group half-year results showed growth performance on all fronts, with sales revenue up 2%, and EBITDA up 5% with the intent to divest the door and access systems business to reaffirm focus on its bathroom and kitchens business, where significant growth opportunities are more obvious.
GWA Group products are household names – think Caroma and Gainsborough bathroom and kitchen fittings – and the company is coming up to 25-years listed as an S&P/ASX 200 company, with a PE Ratio of around 15 and a comfortable debt level.
Fundamentals look solid and although growth potential is likely to be steady rather than spectacular, in the long term GWA looks to be a good stock for dividends and long-term potential.
Foolish takeaway
Share prices in GWA Group would need to drop further to move back to the mid-point of their 52-week trading range of around $2.80, but I would keep them on the watch list, keep some cash aside and buy selectively at anywhere around this level.
