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BXB

Brambles ASX:BXB Stock Report

Last Price

AU$10.88

Market Cap

AU$15.1b

7D

3.7%

1Y

-2.9%

Updated

27 Jun, 2022

Data

Company Financials +
BXB fundamental analysis
Snowflake Score
Valuation3/6
Future Growth4/6
Past Performance3/6
Financial Health3/6
Dividends2/6

BXB Stock Overview

Brambles Limited operates as a supply-chain logistics company.

Brambles Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Brambles
Historical stock prices
Current Share PriceAU$10.88
52 Week HighAU$12.70
52 Week LowAU$9.26
Beta0.62
1 Month Change-0.82%
3 Month Change10.46%
1 Year Change-2.94%
3 Year Change-14.67%
5 Year Change12.51%
Change since IPO137.38%

Recent News & Updates

May 31
We Think Brambles (ASX:BXB) Can Stay On Top Of Its Debt

We Think Brambles (ASX:BXB) Can Stay On Top Of Its Debt

Legendary fund manager Li Lu (who Charlie Munger backed) once said, 'The biggest investment risk is not the volatility...

May 01
Brambles Limited's (ASX:BXB) Intrinsic Value Is Potentially 58% Above Its Share Price

Brambles Limited's (ASX:BXB) Intrinsic Value Is Potentially 58% Above Its Share Price

In this article we are going to estimate the intrinsic value of Brambles Limited ( ASX:BXB ) by projecting its future...

Apr 17
Brambles (ASX:BXB) Knows How To Allocate Capital Effectively

Brambles (ASX:BXB) Knows How To Allocate Capital Effectively

If you're not sure where to start when looking for the next multi-bagger, there are a few key trends you should keep an...

Shareholder Returns

BXBAU Commercial ServicesAU Market
7D3.7%2.8%1.4%
1Y-2.9%-7.6%-11.3%

Return vs Industry: BXB exceeded the Australian Commercial Services industry which returned -7.6% over the past year.

Return vs Market: BXB exceeded the Australian Market which returned -11.3% over the past year.

Price Volatility

Is BXB's price volatile compared to industry and market?
BXB volatility
BXB Average Weekly Movement5.2%
Commercial Services Industry Average Movement8.1%
Market Average Movement9.7%
10% most volatile stocks in AU Market16.3%
10% least volatile stocks in AU Market4.2%

Stable Share Price: BXB is less volatile than 75% of Australian stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: BXB's weekly volatility (5%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
187512,000Graham Chipchasehttps://www.brambles.com

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 and Asia, excluding India segments. It engages in the pooling of unit-load equipment and associated services, focusing on the outsourced management of pallets, crates, and containers.

Brambles Fundamentals Summary

How do Brambles's earnings and revenue compare to its market cap?
BXB fundamental statistics
Market CapUS$10.48b
Earnings (TTM)US$544.10m
Revenue (TTM)US$5.64b

19.3x

P/E Ratio

1.9x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
BXB income statement (TTM)
RevenueUS$5.64b
Cost of RevenueUS$3.70b
Gross ProfitUS$1.94b
Other ExpensesUS$1.39b
EarningsUS$544.10m

Last Reported Earnings

Dec 31, 2021

Next Earnings Date

n/a

Earnings per share (EPS)0.39
Gross Margin34.32%
Net Profit Margin9.65%
Debt/Equity Ratio79.2%

How did BXB perform over the long term?

See historical performance and comparison

Dividends

2.8%

Current Dividend Yield

56%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

Is BXB undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for BXB?

Other financial metrics that can be useful for relative valuation.

BXB key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue2.3x
Enterprise Value/EBITDA7.6x
PEG Ratio3.1x

Price to Earnings Ratio vs Peers

How does BXB's PE Ratio compare to its peers?

BXB PE Ratio vs Peers
The above table shows the PE ratio for BXB vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average17.4x
DOW Downer EDI
18.1x13.4%AU$3.5b
SGF SG Fleet Group
16.2x21.0%AU$745.5m
MAD Mader Group
22.9x18.2%AU$510.0m
SUG Sugar Terminals
13.6xn/aAU$370.8m
BXB Brambles
19.3x6.2%AU$15.1b

Price-To-Earnings vs Peers: BXB is expensive based on its Price-To-Earnings Ratio (19.3x) compared to the peer average (17.4x).


Price to Earnings Ratio vs Industry

How does BXB's PE Ratio compare vs other companies in the Global Commercial Services Industry?

Price-To-Earnings vs Industry: BXB is expensive based on its Price-To-Earnings Ratio (19.3x) compared to the Global Commercial Services industry average (16x)


Price to Earnings Ratio vs Fair Ratio

What is BXB's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

BXB PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio19.3x
Fair PE Ratio28.9x

Price-To-Earnings vs Fair Ratio: BXB is good value based on its Price-To-Earnings Ratio (19.3x) compared to the estimated Fair Price-To-Earnings Ratio (28.9x).


Share Price vs Fair Value

What is the Fair Price of BXB when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: BXB (A$10.88) is trading below our estimate of fair value (A$18.28)

Significantly Below Fair Value: BXB is trading below fair value by more than 20%.


Price to Earnings Growth Ratio

PEG Ratio: BXB is poor value based on its PEG Ratio (3.1x)


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Future Growth

How is Brambles forecast to perform in the next 1 to 3 years based on estimates from 16 analysts?

Future Growth Score

4/6

Future Growth Score 4/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


6.2%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: BXB's forecast earnings growth (6.2% per year) is above the savings rate (1.8%).

Earnings vs Market: BXB's earnings (6.2% per year) are forecast to grow faster than the Australian market (6% per year).

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

Revenue vs Market: BXB's revenue (5.2% per year) is forecast to grow faster than the Australian market (5.2% per year).

High Growth Revenue: BXB's revenue (5.2% 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 (20.9%)


Discover growth companies

Past Performance

How has Brambles performed over the past 5 years?

Past Performance Score

3/6

Past Performance Score 3/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


0.1%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: BXB has a large one-off loss of $242.4M impacting its December 31 2021 financial results.

Growing Profit Margin: BXB's current net profit margins (9.7%) are lower than last year (10.4%).


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 earnings growth over the past year (3.7%) exceeds its 5-year average (0.1% per year).

Earnings vs Industry: BXB earnings growth over the past year (3.7%) underperformed the Commercial Services industry 3.7%.


Return on Equity

High ROE: BXB's Return on Equity (21.7%) is considered high.


Discover strong past performing companies

Financial Health

How is Brambles's financial position?

Financial Health Score

3/6

Financial Health Score 3/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: BXB's short term assets ($1.3B) do not cover its short term liabilities ($2.0B).

Long Term Liabilities: BXB's short term assets ($1.3B) do not cover its long term liabilities ($3.0B).


Debt to Equity History and Analysis

Debt Level: BXB's net debt to equity ratio (71.5%) is considered high.

Reducing Debt: BXB's debt to equity ratio has reduced from 93.3% to 79.2% over the past 5 years.

Debt Coverage: BXB's debt is well covered by operating cash flow (79%).

Interest Coverage: BXB's interest payments on its debt are well covered by EBIT (14.7x coverage).


Balance Sheet


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Dividend

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

Dividend Score

3/6

Dividend Score 3/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Future Dividend Coverage


2.84%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: BXB's dividend (2.84%) is higher than the bottom 25% of dividend payers in the Australian market (2.75%).

High Dividend: BXB's dividend (2.84%) is low compared to the top 25% of dividend payers in the Australian market (6.85%).


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.


Earnings Payout to Shareholders

Earnings Coverage: With its reasonable payout ratio (56.4%), BXB's dividend payments are covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: With its high cash payout ratio (171%), BXB's dividend payments are not well covered by cash flows.


Discover strong dividend paying companies

Management

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

5.0yrs

Average management tenure


CEO

Graham Chipchase (58 yo)

5.33yrs

Tenure

US$5,396,000

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 ($USD5.40M) is above average for companies of similar size in the Australian market ($USD4.11M).

Compensation vs Earnings: Graham's compensation has increased by more than 20% in the past year.


Leadership Team

Experienced Management: BXB's management team is seasoned and experienced (5 years average tenure).


Board Members

Experienced Board: BXB's board of directors are considered experienced (4.6 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 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
  • Implied Market Cap: AU$15.085b
  • Shares outstanding: 1.39b
  • Website: https://www.brambles.com

Number of Employees


Location

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

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/06/27 00:00
End of Day Share Price2022/06/27 00:00
Earnings2021/12/31
Annual Earnings2021/06/30


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.