ReeceASX:REH +7.28%89 FCF Margin % is 2.44% as of Dec. 2025, which is 50% below its 10-year median of 4.85. GuruFocus rates ASX:REH with a GF Score™ of 89/100 and a GF Value™ of A$21.08 (Modestly Undervalued). The stock has 8 warning signs investors should review. Among 156 Industrial Distribution companies, Reece ranks worse than 58.33% on this metric.
FCF Margin % is calculated as Free Cash Flow divided by its Revenue. Reece's Free Cash Flow for the
six
months ended in Dec. 2025 was A$113 Mil. Reece's Revenue for the
six
months ended in Dec. 2025 was A$4,648 Mil. Therefore, Reece's FCF Margin % for the quarter that ended in Dec. 2025 was 2.44%.
The historical rank and industry rank for Reece's FCF Margin % or its related term are showing as below:
ASX:REH'
s FCF Margin % Range Over the Past 10 Years
Min: 0.28 Med: 4.85 Max: 8.16
Current: 3.55
During the past 13 years, the highest FCF Margin % of Reece was 8.16%. The lowest was 0.28%. And the median was 4.85%.
ASX:REH's FCF Margin % is ranked worse than 58.33% of 156
companies
in the Industrial Distribution industry
Industry Median: 4.17
vs ASX:REH: 3.55
Reece FCF Margin % Related Terms
Reece FCF Margin % Historical Data
* Premium members only.
The historical data trend for Reece's FCF Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
ASX:REH vs GWW, FAST, FERG: FCF Margin % Comparison
For the Industrial Distribution subindustry, Reece's FCF Margin %, along with its competitors' market caps and FCF Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Reece FCF Margin % vs Industrial Distribution Industry
For the Industrial Distribution industry and Industrials sector, Reece's FCF Margin % distribution charts can be found below:
* The bar in red indicates where Reece's FCF Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Reece (ASX:REH) has a FCF Margin % of 2.44% as of Dec. 2025. Free cash flow margin is the ratio of total free cash flow to net sales. View historical data on Reece and its competitors. This is 50% below median its historical median of 4.85. Over the past decade, Reece's FCF Margin % has ranged from 0.28 to 8.16. According to the industry distribution chart, Reece ranks #91 out of 156 companies in the Industrial Distribution industry, placing it in the top 58.3%.
Is Reece's FCF Margin % too high?
Reece's current FCF Margin % of 2.44% is 50% below median its 10-year median of 4.85. Over the past 10 years, this metric has ranged from a low of 0.28 to a high of 8.16. The Industrial Distribution industry median FCF Margin % is 4.17. Reece's value of 2.44% is 41.5% below this industry median. Based on the distribution chart, Reece ranks #91 out of 156 companies in the Industrial Distribution industry, which is below the industry midpoint. Overall, Reece has a GF Score™ of 89/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Reece's FCF Margin % compare to GWW and FAST?
According to the Industrial Distribution industry distribution chart, Reece ranks #91 out of 156 companies for FCF Margin %. This places Reece in the lower half of its industry. The industry median FCF Margin % is 4.17. Reece's value of 2.44% is 41.5% below this benchmark. Historically, Reece's own FCF Margin % has ranged from 0.28 to 8.16 over the past decade. While the company's 10-year median is 4.85 vs. the industry median of 4.17, Reece has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good FCF Margin % for an Industrial Distribution company?
The median FCF Margin % among Industrial Distribution companies is 4.17, based on 156 companies in the industry. Companies in the top quartile (top 25%) have a FCF Margin % significantly above this median, while those in the bottom quartile fall well below. However, FCF Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Reece's current FCF Margin % of 2.44% is 41.5% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high FCF Margin % mean?
A high FCF Margin % can signal that a stock is expensive relative to its fundamentals. Free cash flow margin is the ratio of total free cash flow to net sales. View historical data on Reece and its competitors. For the Industrial Distribution industry, the median FCF Margin % is 4.17 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Reece's current FCF Margin % is 2.44%, which is 50% below median its own 10-year median of 4.85. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Reece stock overvalued right now?
Based on GuruFocus' analysis, Reece (ASX:REH) is currently considered Modestly Undervalued. The stock's GF Value™ is A$21.08, compared to a current price of A$16.80 — trading 20.3% below its estimated fair value. The current FCF Margin % is 2.44%, which is 50% below median its 10-year median of 4.85 and 41.5% below the Industrial Distribution industry median of 4.17. Reece's overall GF Score™ is 89/100 with 8 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is FCF Margin % calculated?
FCF Margin % is calculated from a company's financial statements. For Reece (ASX:REH), the current FCF Margin % is 2.44% as of Dec. 2025. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Reece (ASX:REH) Overvalued in 2026?
Based on GuruFocus' analysis, Reece stock appears to be undervalued.
The current stock price of A$16.80 is trading 20.3% below its estimated GF Value™ of A$21.08.
GuruFocus considers Reece to be Modestly Undervalued.
Key valuation signals for ASX:REH:
FCF Margin %: 2.44% (50% below median its 10-year median of 4.85)
GF Value™: A$21.08 vs. price of A$16.80 (20.3% below fair value)
Industry Position: 41.5% below the Industrial Distribution median (#91 of 156)
No single metric tells the full story. See the ASX:REH stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Reece is an Australian distributor of plumbing supplies and bathroom products, with businesses in Australia, New Zealand, and the United States. Reece Australia holds Australia's largest range of individual plumbing stock-keeping units, supporting plumbing needs for general plumbing, bathrooms, kitchens, heating and air conditioning, irrigation, refrigeration, pools, commercial and government projects, and fire services.In the Australia and New Zealand markets, Reece's trade, customers are mostly small to medium plumbing businesses working in the areas of residential repairs, renovations, or new home builds.The US business principally serves plumbers working on commercial and residential construction projects and has a network of almost 300 stores in the southern Sunbelt states.
89GF Score
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