ASX:BXB

Stock Analysis Report

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Executive Summary

Brambles Limited operates as a supply-chain logistics company. More Details


Snowflake Analysis

Adequate balance sheet with acceptable track record.


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

Stable Share Price: BXB is less volatile than 75% of Australian stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: BXB's weekly volatility (3%) has been stable over the past year.


Market Performance


7 Day Return

0.8%

BXB

0.2%

AU Commercial Services

2.4%

AU Market


1 Year Return

-13.3%

BXB

-13.7%

AU Commercial Services

-0.6%

AU Market

Return vs Industry: BXB matched the Australian Commercial Services industry which returned -13.7% over the past year.

Return vs Market: BXB underperformed the Australian Market which returned -0.6% over the past year.


Shareholder returns

BXBIndustryMarket
7 Day0.8%0.2%2.4%
30 Day9.3%7.3%8.0%
90 Day-1.7%2.2%8.8%
1 Year-11.2%-13.3%-11.5%-13.7%2.7%-0.6%
3 Year19.1%7.4%8.9%-2.3%24.3%9.0%
5 Year16.6%-0.5%36.4%13.7%56.9%25.7%

Long-Term 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?

26.21x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: BXB (A$10.98) is trading above our estimate of fair value (A$9.38)

Significantly Below Fair Value: 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 (26.2x) compared to the AU Commercial Services industry average (19x).

PE vs Market: BXB is poor value based on its PE Ratio (26.2x) compared to the Australian market (22.8x).


Price to Earnings Growth Ratio

PEG Ratio: BXB is poor value based on its PEG Ratio (4x)


Price to Book Ratio

PB vs Industry: BXB is overvalued based on its PB Ratio (4.4x) compared to the AU Commercial Services industry average (2.1x).


Next Steps

Future Growth

How is Brambles forecast to perform in the next 1 to 3 years based on estimates from 11 analysts?

6.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: BXB's forecast earnings growth (6.5% per year) is above the savings rate (2.3%).

Earnings vs Market: BXB's earnings (6.5% per year) are forecast to grow slower than the Australian market (17.8% per year).

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

Revenue vs Market: BXB's revenue (3.4% per year) is forecast to grow slower than the Australian market (5.1% per year).

High Growth Revenue: BXB's revenue (3.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: BXB's Return on Equity is forecast to be high in 3 years time (23.2%)


Next Steps

Past Performance

How has Brambles performed over the past 5 years?

-5.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: BXB has a large one-off loss of $181.4M impacting its June 30 2020 financial results.

Growing Profit Margin: BXB's current net profit margins (9.8%) are higher than last year (9.5%).


Past Earnings Growth Analysis

Earnings Trend: BXB's earnings have declined by 5.4% per year over the past 5 years.

Accelerating Growth: BXB's earnings growth over the past year (5.1%) exceeds its 5-year average (-5.4% per year).

Earnings vs Industry: BXB earnings growth over the past year (5.1%) exceeded the Commercial Services industry 2.6%.


Return on Equity

High ROE: BXB's Return on Equity (17.3%) is considered low.


Next Steps

  • Explore strong past performing companies in the Commercial Services industry.

Financial Health

How is Brambles's financial position?


Financial Position Analysis

Short Term Liabilities: BXB's short term assets ($1.7B) exceed its short term liabilities ($1.5B).

Long Term Liabilities: BXB's short term assets ($1.7B) do not cover its long term liabilities ($2.8B).


Debt to Equity History and Analysis

Debt Level: BXB's debt to equity ratio (65.8%) is considered high.

Reducing Debt: BXB's debt to equity ratio has reduced from 106.8% to 65.8% over the past 5 years.

Debt Coverage: BXB's debt is well covered by operating cash flow (76.5%).

Interest Coverage: BXB's interest payments on its debt are well covered by EBIT (14x coverage).


Balance Sheet


Next Steps

Dividend

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

2.23%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: BXB's dividend (2.23%) is higher than the bottom 25% of dividend payers in the Australian market (2.08%).

High Dividend: BXB's dividend (2.23%) is low compared to the top 25% of dividend payers in the Australian market (5.05%).


Stability and Growth of Payments

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 (58.4%), 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 (64.9% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

3.7yrs

Average management tenure


CEO

Graham Chipchase (57 yo)

3.75yrs

Tenure

US$2,672,000

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 ($USD2.67M) is about average for companies of similar size in the Australian market ($USD3.58M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Graham Chipchase
CEO, Chairman of Executive Leadership Team & Executive Director3.75yrsUS$2.67m0.014%
$ 2.2m
Nessa O'Sullivan
CFO & Executive Director3.58yrsUS$1.59m0.0081%
$ 1.3m
Laura Nador
President of CHEP North America3.67yrsUS$835.00k0.0012%
$ 195.9k
Rodney Hefford
Chief Information Officer3.42yrsno datano data
Sean O'Sullivan
Vice President of Investor Relationsno datano datano data
Robert Gerrard
Group VP of Legal & Secretariat and Company Secretary3.75yrsno datano data
Patrick Bradley
Group Senior Vice President of Human Resources2.17yrsno datano data
Carmelo Alonso-Bernaola
Senior Vice President of Global Supply Chain9.75yrsno datano data
Alasdair Hamblin
Senior Vice President of Strategy & Innovation1.75yrsno datano data
Phillip Austin
President of CHEP Asia Pacific6.08yrsno datano data
David Cuenca
President of CHEP Europe2.83yrsno datano data
Craig Jones
President of CHEP India1.75yrsno datano data

3.7yrs

Average Tenure

55yo

Average Age

Experienced Management: BXB's management team is considered experienced (3.7 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Graham Chipchase
CEO, Chairman of Executive Leadership Team & Executive Director3.75yrsUS$2.67m0.014%
$ 2.2m
Nessa O'Sullivan
CFO & Executive Director3.58yrsUS$1.59m0.0081%
$ 1.3m
Rodney Slater
Member of the USA Advisory Board10.17yrsno datano data
Anthony Froggatt
Independent Non-Executive Director14.42yrsUS$163.00k0.0010%
$ 162.2k
Elizabeth Fagan
Independent Non-Executive Director2.42yrsUS$177.00k0.0014%
$ 216.7k
Nora Scheinkestel
Independent Non-Executive Director0.42yrUS$13.00k0.0012%
$ 195.9k
Tahira Hassan
Independent Non-Executive Director8.92yrsUS$164.00k0.0010%
$ 162.2k
John Mullen
Independent Non-Executive Chairman0.33yrUS$104.00kno data
Scott Perkins
Independent Non-Executive Director5.42yrsUS$172.00k0.0014%
$ 216.7k
James Miller
Independent Non-Executive Director1.67yrsUS$164.00k0.00035%
$ 56.2k
John Claringbould
Member of the USA Advisory Board10.17yrsno datano data
George El-Zoghbi
Independent Non-Executive Director4.83yrsUS$172.00k0.0024%
$ 378.9k

4.3yrs

Average Tenure

60yo

Average Age

Experienced Board: BXB's board of directors are considered experienced (4.3 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

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


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

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$16.056b
  • Shares outstanding: 1.48b
  • 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 Analysis2020/11/26 07:04
End of Day Share Price2020/11/26 00:00
Earnings2020/06/30
Annual Earnings2020/06/30


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.