ASX:BXB

Stock Analysis Report

Executive Summary

Brambles Limited operates as a supply-chain logistics company.

Snowflake

Fundamentals

Excellent balance sheet with moderate growth potential.


Similar Companies

Share Price & News

How has Brambles's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

2.9%

BXB

1.5%

AU Commercial Services

0.4%

AU Market


1 Year Return

12.7%

BXB

10.8%

AU Commercial Services

9.8%

AU Market

Return vs Industry: BXB exceeded the Australian Commercial Services industry which returned 10.8% over the past year.

Return vs Market: BXB exceeded the Australian Market which returned 9.8% over the past year.


Shareholder returns

BXBIndustryMarket
7 Day2.9%1.5%0.4%
30 Day4.3%2.0%-1.1%
90 Day-4.4%-3.9%-0.6%
1 Year18.6%12.7%15.4%10.8%16.1%9.8%
3 Year13.6%1.7%27.2%14.4%36.1%17.9%
5 Year48.7%26.6%74.0%47.5%49.4%15.7%

Price Volatility Vs. Market

How volatile is Brambles's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Brambles undervalued compared to its fair value and its price relative to the market?

28.68x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Undervalued: BXB (A$11.94) is trading above our estimate of fair value (A$7.7)

Significantly Undervalued: BXB is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: BXB is poor value based on its PE Ratio (28.7x) compared to the Commercial Services industry average (19.6x).

PE vs Market: BXB is poor value based on its PE Ratio (28.7x) compared to the Australian market (18.2x).


Price to Earnings Growth Ratio

Low PEG Ratio: BXB is poor value based on its PEG Ratio (3.7x)


Price to Book Ratio

PB vs Industry: BXB is overvalued based on its PB Ratio (3.4x) compared to the AU Commercial Services industry average (2.2x).


Next Steps

Future Growth

How is Brambles forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?

7.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: BXB's forecast earnings growth (7.8% per year) is above the savings rate (2.3%).

Earnings vs Market: BXB's earnings (7.8% per year) are forecast to grow slower than the Australian market (10.3% per year).

High Growth Earnings: BXB's earnings are forecast to grow, but not significantly.

Revenue vs Market: BXB's revenue (3.9% per year) is forecast to grow faster than the Australian market (3.6% per year).

High Growth Revenue: BXB's revenue (3.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: BXB's Return on Equity is forecast to be high in 3 years time (24.3%)


Next Steps

Past Performance

How has Brambles performed over the past 5 years?

0.1%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: BXB's earnings have grown by 0.1% per year over the past 5 years.

Accelerating Growth: BXB's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: BXB had negative earnings growth (-18%) over the past year, making it difficult to compare to the Commercial Services industry average (20.4%).


Return on Equity

High ROE: BXB's Return on Equity (11.9%) is considered low.


Return on Assets

ROA vs Industry: BXB's Return on Assets is below or equal to the Commercial Services industry average last year.


Return on Capital Employed

ROCE Improving: BXB's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Brambles's financial position?


Financial Position Analysis

Short Term Liabilities: BXB's short term assets ($3.0B) exceeds its short term liabilities ($1.9B)

Long Term Liabilities: BXB's short term assets (3.0B) exceeds its long term liabilities (2.0B)


Debt to Equity History and Analysis

Debt Level: BXB's debt to equity ratio (57.2%) is considered high

Reducing Debt: BXB's debt to equity ratio has reduced from 93.6% to 57.2% over the past 5 years.

Debt Coverage: BXB's debt is well covered by operating cash flow (61.4%).

Interest Coverage: BXB's interest payments on its debt are well covered by EBIT (10.5x coverage).


Balance Sheet

Inventory Level: BXB has a high level of physical assets or inventory.

Debt Coverage by Assets: BXB's debt is covered by short term assets (assets are 1.373550x debt).


Next Steps

Dividend

What is Brambles's current dividend yield, its reliability and sustainability?

2.38%

Current Dividend Yield


Dividend Yield vs Market

company2.4%marketbottom25%2.4%markettop25%5.6%industryaverage2.6%forecastin3Years3.1%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: BXB's dividend (2.38%) isn’t notable compared to the bottom 25% of dividend payers in the Australian market (2.44%).

High Dividend: BXB's dividend (2.38%) is low compared to the top 25% of dividend payers in the Australian market (5.59%).

Stable Dividend: BXB's dividend payments have been volatile in the past 10 years.

Growing Dividend: BXB's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (71.3%), BXB's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: BXB's dividends in 3 years are forecast to be covered by earnings (56.1% payout ratio).


Next Steps

Management

What is the CEO of Brambles's salary, the management and board of directors tenure and is there insider trading?

2.7yrs

Average management tenure


CEO

Graham Chipchase (56yo)

2.7yrs

Tenure

US$2,576,000

Compensation

Mr. Graham Andrew Chipchase has been the Chief Executive Officer and Executive Director at Brambles Limited since February 20, 2017, joined in Brambles at the beginning of January 2017. Mr. Chipchase serve ...


CEO Compensation Analysis

Compensation vs. Market: Graham's total compensation ($USD2.58M) is about average for companies of similar size in the Australian market ($USD3.86M).

Compensation vs Earnings: Graham's compensation has been consistent with company performance over the past year.


Management Age and Tenure

2.7yrs

Average Tenure

53.5yo

Average Age

Experienced Management: BXB's management team is considered experienced (2.7 years average tenure).


Board Age and Tenure

5.2yrs

Average Tenure

64yo

Average Age

Experienced Board: BXB's board of directors are considered experienced (5.2 years average tenure).


Insider Trading

Insider Buying: BXB insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyUS$40802 Sep 19
Graham Chipchase
EntityIndividual
Role
Chief Executive Officer
CEO, Chairman of Executive Leadership Team & Executive Director
Shares36
Max PriceUS$11.32
BuyUS$40802 Sep 19
Nessa O'Sullivan
EntityIndividual
Role
Member of the Board of Directors
CFO & Executive Director
Shares36
Max PriceUS$11.32
BuyUS$40605 Aug 19
Graham Chipchase
EntityIndividual
Role
Chief Executive Officer
CEO, Chairman of Executive Leadership Team & Executive Director
Shares31
Max PriceUS$13.09
BuyUS$40605 Aug 19
Nessa O'Sullivan
EntityIndividual
Role
Member of the Board of Directors
CFO & Executive Director
Shares31
Max PriceUS$13.09
BuyUS$60,777,08905 Aug 19
Colonial First State Asset Management (Australia) Limited
EntityCompany
Shares4,868,243
Max PriceUS$13.05
SellUS$3,606,00705 Aug 19
ASB Group Investments Ltd.
EntityCompany
Shares296,473
Max PriceUS$12.16
BuyUS$422,08105 Aug 19
ASB Group Investments Ltd.
EntityCompany
Shares36,404
Max PriceUS$11.59
BuyUS$80,566,73405 Aug 19
Colonial First State Asset Management (Australia) Limited
EntityCompany
Shares6,534,605
Max PriceUS$12.39
SellUS$63,378,40405 Aug 19
Colonial First State Asset Management (Australia) Limited
EntityCompany
Shares5,076,481
Max PriceUS$12.61
BuyUS$41301 Jul 19
Graham Chipchase
EntityIndividual
Role
Chief Executive Officer
CEO, Chairman of Executive Leadership Team & Executive Director
Shares32
Max PriceUS$12.91
BuyUS$40001 Jul 19
Nessa O'Sullivan
EntityIndividual
Role
Member of the Board of Directors
CFO & Executive Director
Shares31
Max PriceUS$12.91
BuyUS$41104 Jun 19
Graham Chipchase
EntityIndividual
Role
Chief Executive Officer
CEO, Chairman of Executive Leadership Team & Executive Director
Shares34
Max PriceUS$12.09
BuyUS$42304 Jun 19
Nessa O'Sullivan
EntityIndividual
Role
Member of the Board of Directors
CFO & Executive Director
Shares35
Max PriceUS$12.09
BuyUS$46,729,81926 May 19
The Vanguard Group, Inc.
EntityCompany
Shares3,714,612
Max PriceUS$12.58
SellUS$83,970,81226 May 19
The Vanguard Group, Inc.
EntityCompany
Shares6,900,911
Max PriceUS$12.17
BuyUS$41001 May 19
Nessa O'Sullivan
EntityIndividual
Role
Member of the Board of Directors
CFO & Executive Director
Shares34
Max PriceUS$12.06
BuyUS$41001 May 19
Graham Chipchase
EntityIndividual
Role
Chief Executive Officer
CEO, Chairman of Executive Leadership Team & Executive Director
Shares34
Max PriceUS$12.06
BuyUS$41901 Apr 19
Graham Chipchase
EntityIndividual
Role
Chief Executive Officer
CEO, Chairman of Executive Leadership Team & Executive Director
Shares35
Max PriceUS$11.96
BuyUS$27,083,05825 Mar 19
Realindex Investments Pty Limited
EntityCompany
Shares2,605,714
Max PriceUS$10.39
BuyUS$362,297,13225 Mar 19
Colonial First State Asset Management (Australia) Limited
EntityCompany
Shares33,093,088
Max PriceUS$11.00
SellUS$17,313,43325 Mar 19
Realindex Investments Pty Limited
EntityCompany
Shares1,632,518
Max PriceUS$10.61
SellUS$4,941,17325 Mar 19
ASB Group Investments Ltd.
EntityCompany
Shares448,034
Max PriceUS$11.03
SellUS$16,987,60425 Mar 19
First State Investment Management (UK) Limited
EntityCompany
Shares1,596,170
Max PriceUS$10.64
SellUS$165,994,30125 Mar 19
Colonial First State Asset Management (Australia) Limited
EntityCompany
Shares15,393,163
Max PriceUS$11.03
SellUS$258,209,01713 Mar 19
Schroder Investment Management Limited
EntityCompany
Shares26,135,587
Max PriceUS$10.71
SellUS$25,157,21413 Mar 19
Schroder Investment Management (Hong Kong) Limited
EntityCompany
Shares2,529,878
Max PriceUS$9.94
SellUS$55,148,55113 Mar 19
Schroder Investment Management (Singapore) Ltd
EntityCompany
Shares5,429,967
Max PriceUS$10.16
BuyUS$25,754,32713 Mar 19
Schroder Investment Management (Singapore) Ltd
EntityCompany
Shares2,578,009
Max PriceUS$9.99
BuyUS$128,586,40313 Mar 19
Schroder Investment Management North America Inc.
EntityCompany
Shares13,113,116
Max PriceUS$9.81
BuyUS$228,923,51213 Mar 19
Schroder Investment Management Limited
EntityCompany
Shares22,694,377
Max PriceUS$10.18
BuyUS$10,989,54313 Mar 19
Schroder Investment Management (Hong Kong) Limited
EntityCompany
Shares1,136,597
Max PriceUS$9.67
SellUS$86,864,15413 Mar 19
Schroder Investment Management North America Inc.
EntityCompany
Shares7,944,537
Max PriceUS$10.93
BuyUS$44704 Mar 19
Graham Chipchase
EntityIndividual
Role
Chief Executive Officer
CEO, Chairman of Executive Leadership Team & Executive Director
Shares38
Max PriceUS$11.77
BuyUS$44704 Mar 19
Nessa O'Sullivan
EntityIndividual
Role
Member of the Board of Directors
CFO & Executive Director
Shares38
Max PriceUS$11.77
BuyUS$44931 Jan 19
Graham Chipchase
EntityIndividual
Role
Chief Executive Officer
CEO, Chairman of Executive Leadership Team & Executive Director
Shares42
Max PriceUS$10.70
BuyUS$43931 Jan 19
Nessa O'Sullivan
EntityIndividual
Role
Member of the Board of Directors
CFO & Executive Director
Shares41
Max PriceUS$10.70
BuyUS$44102 Jan 19
Graham Chipchase
EntityIndividual
Role
Chief Executive Officer
CEO, Chairman of Executive Leadership Team & Executive Director
Shares43
Max PriceUS$10.25
BuyUS$44102 Jan 19
Nessa O'Sullivan
EntityIndividual
Role
Member of the Board of Directors
CFO & Executive Director
Shares43
Max PriceUS$10.25
BuyUS$43103 Dec 18
Graham Chipchase
EntityIndividual
Role
Chief Executive Officer
CEO, Chairman of Executive Leadership Team & Executive Director
Shares41
Max PriceUS$10.50
BuyUS$43103 Dec 18
Nessa O'Sullivan
EntityIndividual
Role
Member of the Board of Directors
CFO & Executive Director
Shares41
Max PriceUS$10.50
BuyUS$236,67025 Nov 18
The Vanguard Group, Inc.
EntityCompany
Shares22,540
Max PriceUS$10.50
SellUS$616,88321 Nov 18
The Vanguard Group, Inc.
EntityCompany
Shares60,125
Max PriceUS$10.26
BuyUS$262,20321 Nov 18
The Vanguard Group, Inc.
EntityCompany
Shares25,531
Max PriceUS$10.27
BuyUS$39,272,21420 Nov 18
The Vanguard Group, Inc.
EntityCompany
Shares3,451,481
Max PriceUS$11.50
SellUS$8,260,50420 Nov 18
The Vanguard Group, Inc.
EntityCompany
Shares704,512
Max PriceUS$11.79
BuyUS$44731 Oct 18
Graham Chipchase
EntityIndividual
Role
Chief Executive Officer
CEO, Chairman of Executive Leadership Team & Executive Director
Shares42
Max PriceUS$10.64
BuyUS$44731 Oct 18
Nessa O'Sullivan
EntityIndividual
Role
Member of the Board of Directors
CFO & Executive Director
Shares42
Max PriceUS$10.64

Ownership Breakdown


Management Team

  • Graham Chipchase (56yo)

    CEO, Chairman of Executive Leadership Team & Executive Director

    • Tenure: 2.7yrs
    • Compensation: US$2.58m
  • Robert Gerrard (57yo)

    Group VP of Legal & Secretariat and Company Secretary

    • Tenure: 2.7yrs
  • Nessa O'Sullivan (54yo)

    CFO & Executive Director

    • Tenure: 2.5yrs
    • Compensation: US$1.49m
  • Rod Hefford (55yo)

    Chief Information Officer

    • Tenure: 2.3yrs
  • Mike Pooley (51yo)

    President of CHEP Europe

    • Tenure: 2.7yrs
    • Compensation: US$813.00k
  • Patrick Bradley

    Group Senior Vice President of Human Resources

    • Tenure: 1.1yrs
  • Prasad Srinivasamurthy (48yo)

    President of BXB Digital

    • Tenure: 3.6yrs
  • Raluca Chiriacescu

    Director of Investor Relations

    • Tenure: 0yrs
  • Carmelo Alonso-Bernaola (53yo)

    Senior Vice President of Global Supply Chain

    • Tenure: 8.7yrs
  • Laura Nador (47yo)

    President of CHEP North America

    • Tenure: 2.6yrs
    • Compensation: US$744.00k

Board Members

  • Rodney Slater (64yo)

    Member of the USA Advisory Board

    • Tenure: 9.1yrs
  • Graham Chipchase (56yo)

    CEO, Chairman of Executive Leadership Team & Executive Director

    • Tenure: 2.7yrs
    • Compensation: US$2.58m
  • Tony Froggatt (71yo)

    Independent Non-Executive Director

    • Tenure: 13.3yrs
    • Compensation: US$188.00k
  • Stephen Johns (72yo)

    Independent Non-Executive Chairman

    • Tenure: 5.1yrs
    • Compensation: US$469.00k
  • Brian Long (73yo)

    Independent Non-Executive Director

    • Tenure: 5.3yrs
    • Compensation: US$203.00k
  • Tahira Hassan (66yo)

    Independent Non-Executive Director

    • Tenure: 7.8yrs
    • Compensation: US$165.00k
  • Scott Perkins (54yo)

    Independent Non-Executive Director

    • Tenure: 4.3yrs
    • Compensation: US$171.00k
  • Nessa O'Sullivan (54yo)

    CFO & Executive Director

    • Tenure: 2.5yrs
    • Compensation: US$1.49m
  • John Claringbould

    Member of the USA Advisory Board

    • Tenure: 9.1yrs
  • George El-Zoghbi (52yo)

    Independent Non-Executive Director

    • Tenure: 3.8yrs
    • Compensation: US$173.00k

Company Information

Brambles Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Brambles Limited
  • Ticker: BXB
  • Exchange: ASX
  • Founded: 1875
  • Industry: Diversified Support Services
  • Sector: Commercial Services
  • Market Cap: AU$18.663b
  • Shares outstanding: 1.56b
  • Website: https://www.brambles.com

Number of Employees


Location

  • Brambles Limited
  • Angel Place
  • Level 10
  • Sydney
  • New South Wales
  • 2000
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
BXBASX (Australian Securities Exchange)YesOrdinary SharesAUAUDJan 1992
R1HDB (Deutsche Boerse AG)YesOrdinary SharesDEEURJan 1992
BMBL.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJan 1992
BXBCHIA (Chi-X Australia)YesOrdinary SharesAUAUDJan 1992
BXBL.YOTCPK (Pink Sheets LLC)SPONSORED ADRUSUSDOct 2008

Biography

Brambles Limited operates as a supply-chain logistics company. The company operates through CHEP North America and Latin America; CHEP Europe, Middle East, Africa and India; and CHEP Australia, New Zealand ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/19 10:35
End of Day Share Price2019/10/18 00:00
Earnings2019/06/30
Annual Earnings2019/06/30


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.