Temple & Webster Group Ltd (ASX: TPW) shares have been smashed over the past year, falling around 79%.

At approximately $4.70 today, investors are being offered a very different entry point to 12 months ago.

I think the sell-off has gone far enough to create an opportunity for long-term investors.

The market is much bigger than Temple & Webster

Temple & Webster is Australia’s largest pure-play online furniture and homewares retailer, but I think its current scale can disguise how much of the market remains available.

The company puts its addressable Australian furniture, homewares, and home improvement markets at around $40 billion. Earlier this year, management was still targeting $1 billion of annual revenue by FY28.

That gives some perspective on the runway ahead.

There is also a structural shift that could help Temple & Webster take more of that spending.

Only around 20% of Australian furniture and homewares sales were online based on the company’s market analysis, compared with 35% in the US and 29% in the UK. Online penetration in home improvement was even lower at around 5% to 10%.

I do not think Australia needs to completely match either overseas market for Temple & Webster to benefit. Even a gradual shift online could move billions of dollars of spending towards the channel where it is already a leader.

There is more than furniture to pursue

I also like that the opportunity is no longer confined to sofas, dining tables, and homewares.

Home improvement has significantly expanded the market Temple & Webster can target, while the company has started testing its model in New Zealand. Its Australian business also benefits from an asset-light model where much of its range is shipped directly from suppliers.

That gives the ASX share several ways to become larger without needing the overall furniture market itself to suddenly boom.

For me, the long-term question is whether Temple & Webster can keep taking spending away from traditional stores as more people become comfortable furnishing their homes online.

I think it can.

Still not a cheap share

The 79% fall has not turned Temple & Webster into a conventional value stock.

At $4.70, consensus earnings per share forecasts of 13.6 cents in FY27 put it on a PE ratio of roughly 35 times forward earnings.

But analysts expect earnings to rise to 15.3 cents in FY28 and 20.6 cents in FY29. If that final forecast is achieved, today’s price represents less than 23 times FY29 earnings.

That is much easier for me to accept when the business is still pursuing such a large market.

There are risks. Consumer spending can weaken, competition could increase, and the shift towards online furniture shopping may take longer than expected. But I believe this is priced into its shares following their sharp decline.

Foolish takeaway

A 79% decline gets my attention when the growth opportunity remains this substantial.

Temple & Webster still needs to deliver, and I would not call the shares cheap at around $4.70.

But with online penetration still relatively low and a huge market left to capture, I think the current price gives patient investors an attractive chance to back the business for the next several years.

The post This ASX share is down 79%. Is it a buy? appeared first on The Motley Fool Australia.

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Motley Fool contributor Grace Alvino has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Temple & Webster Group. The Motley Fool Australia has recommended Temple & Webster Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

All Ordinaries Index (ASX: XAO) construction services specialist Shape Australia Corporation Ltd (ASX: SHA) counts among my top passive income picks today.

There’s a lot to like about this stock.

First, the share price has been in a strong upward trend for more than three years now.

Second, it pays fully franked dividends. This give you credit for the 30% in corporate taxes the company has already forked out to the ATO on the profits it earns. Meaning you should be able to hold onto more of that passive income when it’s time to pay your own tax bill.

And, importantly, Shape has been steadily increasing its dividend payouts for four years running now. That’s a trend I like to see.

Over the past 12 months (as at Thursday afternoon) the Shape share price has rocketed 74.5%, recently trading for $7.40 a share.

Over this time, the ASX All Ords stock has paid – or shortly will pay – two fully franked dividends totalling 32 cents per share.

Shape shares traded ex-dividend on 28 August. Shareholders who held the stock on 27 August can expect to see the final 18 cents per share hit their bank accounts on 14 September.

At the recent share price, then, Shape trades on a 4.3% fully franked trailing dividend yield.

But some investors are earning a lot more from their Shape shares.

Getting in early for that passive income boost

While trying to time the market is incredibly difficult – and nearly impossible to do consistently – buying the right ASX dividend stocks in their earlier growth days can pay off handsomely over time.

Which relates more to “time in the markets” than timing them.

In Shape’s case, savvy passive income investors could have bought into the company for $1.80 a share in early January 2024. Now, I’m not cherry-picking a particularly low entry point here. Indeed, in January 2024, the Shape share price had gained 19% over the prior 12 months.

Now, if you’d bought Shape shares in January 2024, and held tight, you’d have been eligible to receive the past six fully franked dividends, totalling 71.5 cents a share. This would have already returned 40% of your initial investment to you as passive income alone, not to mention the 311% increase in the Shape share price over this time.

And at your buy-in price of $1.80, the past year’s dividend payout of 32 cents per share equates to a fully franked dividend yield of 17.8%. Or 25.4% grossed-up, if we factor in those franking credits.

The post How these savvy passive income investors are earning a stellar 18% dividend yield from this ASX All Ords stock appeared first on The Motley Fool Australia.

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Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Shape Australia. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Turning 60 has a way of making superannuation feel more immediate.

For much of working life, the balance can sit quietly in the background while mortgages, family costs, and everyday spending take priority.

But at 60, superannuation starts to move to the foreground and retirement planning comes into play.

That makes the average balance at this age particularly interesting for anyone wondering how they compare.

The average superannuation balance at 60

The latest data is reported in five-year age groups rather than for individual birthdays, so there is no precise figure for Australians who are exactly 60.

However, the 60 to 64 age bracket gives us the clearest guide. The average superannuation balance for women in this group is $327,440, while the average for men is $413,700.

Those numbers are noticeably higher than in the 55 to 59 age bracket, where the averages are $260,199 for women and $341,115 for men.

That difference shows how much work super can still do late in a career. Employer contributions are continuing, and a larger balance means investment returns can have a greater dollar impact when markets are favourable.

Is the average balance enough?

The Association of Superannuation Funds of Australia (ASFA) estimates that homeowners need $630,000 in super for a comfortable retirement as a single person at age 67, while a couple needs about $730,000 combined. These figures assume some Age Pension support over time.

Against those targets, the typical balance for someone around 60 may still leave a single person with some ground to cover. The picture can look different for a couple, particularly if both partners have balances around the averages and own their home outright.

Retiring at 60 also creates another consideration because Age Pension eligibility does not begin until 67. Someone leaving work at 60 may therefore need super and other savings to carry more of the load during those early retirement years.

A useful checkpoint

The average superannuation figures should be treated as a comparison rather than a target because retirement needs vary depending on housing, spending, health, other investments, and when someone plans to stop working.

Even so, age 60 is a valuable time to take stock. With average balances of around $327,000 for women and $414,000 for men in the 60 to 64 age group, many Australians have accumulated substantial retirement savings while still having time to improve their position if they keep working.

I think the more useful question is not simply whether your super matches the average, but whether the balance you have built can support the retirement you want.

The post What is the average Australian superannuation balance at age 60? appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.