ASX:BRG

Stock Analysis Report

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Executive Summary

Breville Group Limited designs, develops, markets, and distributes small electrical kitchen appliances in Australia, New Zealand, North America, Europe, and internationally. More Details


Snowflake Analysis

Flawless balance sheet average dividend payer.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: BRG is less volatile than 75% of Australian stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: BRG's weekly volatility (6%) has been stable over the past year.


Market Performance


7 Day Return

-1.9%

BRG

-0.5%

AU Consumer Durables

2.4%

AU Market


1 Year Return

41.4%

BRG

32.8%

AU Consumer Durables

-0.6%

AU Market

Return vs Industry: BRG exceeded the Australian Consumer Durables industry which returned 32.8% over the past year.

Return vs Market: BRG exceeded the Australian Market which returned -0.6% over the past year.


Shareholder returns

BRGIndustryMarket
7 Day-1.9%-0.5%2.4%
30 Day-4.3%-4.4%8.0%
90 Day-10.5%-4.7%8.8%
1 Year43.9%41.4%35.2%32.8%2.7%-0.6%
3 Year97.9%85.2%26.2%19.4%24.3%9.0%
5 Year295.4%246.2%207.1%169.7%56.9%25.7%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

48.4x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: BRG (A$24.44) is trading above our estimate of fair value (A$8.71)

Significantly Below Fair Value: BRG is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: BRG is poor value based on its PE Ratio (48.4x) compared to the AU Consumer Durables industry average (21x).

PE vs Market: BRG is poor value based on its PE Ratio (48.4x) compared to the Australian market (22.8x).


Price to Earnings Growth Ratio

PEG Ratio: BRG is poor value based on its PEG Ratio (2.9x)


Price to Book Ratio

PB vs Industry: BRG is overvalued based on its PB Ratio (7.8x) compared to the AU Consumer Durables industry average (3.3x).


Next Steps

Future Growth

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

16.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: BRG's forecast earnings growth (16.9% per year) is above the savings rate (2.3%).

Earnings vs Market: BRG's earnings (16.9% per year) are forecast to grow slower than the Australian market (17.8% per year).

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

Revenue vs Market: BRG's revenue (12.5% per year) is forecast to grow faster than the Australian market (5.1% per year).

High Growth Revenue: BRG's revenue (12.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: BRG's Return on Equity is forecast to be high in 3 years time (21.6%)


Next Steps

Past Performance

How has Breville Group performed over the past 5 years?

9.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: BRG has high quality earnings.

Growing Profit Margin: BRG's current net profit margins (7%) are lower than last year (8.9%).


Past Earnings Growth Analysis

Earnings Trend: BRG's earnings have grown by 9.1% per year over the past 5 years.

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

Earnings vs Industry: BRG had negative earnings growth (-1.8%) over the past year, making it difficult to compare to the Consumer Durables industry average (-1.8%).


Return on Equity

High ROE: BRG's Return on Equity (15.5%) is considered low.


Next Steps

Financial Health

How is Breville Group's financial position?


Financial Position Analysis

Short Term Liabilities: BRG's short term assets (A$443.3M) exceed its short term liabilities (A$181.5M).

Long Term Liabilities: BRG's short term assets (A$443.3M) exceed its long term liabilities (A$36.2M).


Debt to Equity History and Analysis

Debt Level: BRG is debt free.

Reducing Debt: BRG has no debt compared to 5 years ago when its debt to equity ratio was 9.6%.

Debt Coverage: BRG has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: BRG has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet


Next Steps

Dividend

What is Breville Group current dividend yield, its reliability and sustainability?

1.68%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: BRG's dividend (1.68%) isn’t notable compared to the bottom 25% of dividend payers in the Australian market (2.08%).

High Dividend: BRG's dividend (1.68%) is low compared to the top 25% of dividend payers in the Australian market (5.05%).


Stability and Growth of Payments

Stable Dividend: BRG's dividends per share have been stable in the past 10 years.

Growing Dividend: BRG's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: At its current payout ratio (81.2%), BRG's payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: BRG's dividends in 3 years are forecast to be covered by earnings (67% payout ratio).


Next Steps

  • Explore strong dividend paying companies in the Consumer Durables industry.

Management

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

5.0yrs

Average management tenure


CEO

Jim Clayton

5.33yrs

Tenure

AU$2,308,210

Compensation

Mr. James Dennis Clayton, also known as Jim, has been the Group Chief Executive Officer at Breville Group Limited since July 1, 2015. Mr. Clayton serves as an Adviser at zAgile Inc. He has extensive experi...


CEO Compensation Analysis

Compensation vs Market: Jim's total compensation ($USD1.70M) is about average for companies of similar size in the Australian market ($USD1.88M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Jim Clayton
Group Chief Executive Officer5.33yrsAU$2.31m0.24%
A$ 8.4m
Martin Nicholas
Group Chief Financial Officer2.17yrsAU$666.77k0.024%
A$ 817.8k
Mark Payne
Chief Operating Officer5yrsAU$773.64k0.036%
A$ 1.2m
Sasha Kitto
Company Secretary6.42yrsno datano data
Craig Robinson
Company Secretary1.42yrsno datano data

5.0yrs

Average Tenure

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


Board Members

NamePositionTenureCompensationOwnership
Peter Cowan
Independent Non-Executive Director2.17yrsAU$114.00k0.0079%
A$ 273.1k
Steven Fisher
Non-Executive Chairperson7.5yrsAU$276.92k0.093%
A$ 3.2m
Sally Herman
Non-Executive Director7.67yrsAU$114.00k0.031%
A$ 1.1m
Dean Howell
Independent Non-Executive Director12.67yrsAU$114.00k0.10%
A$ 3.5m
Timothy Antonie
Non-Executive Director6.92yrsAU$114.00k0.032%
A$ 1.1m
Lawrence Myers
Lead Independent Director6.25yrsAU$141.40k0.072%
A$ 2.5m
Catherine Wright
Independent Non-Executive Director4.17yrsAU$141.40k0.016%
A$ 542.0k

6.9yrs

Average Tenure

62yo

Average Age

Experienced Board: BRG's board of directors are considered experienced (6.9 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 6.6%.


Top Shareholders

Company Information

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


Key Information

  • Name: Breville Group Limited
  • Ticker: BRG
  • Exchange: ASX
  • Founded: 1957
  • Industry: Household Appliances
  • Sector: Consumer Durables
  • Market Cap: AU$3.461b
  • Shares outstanding: 138.94m
  • Website: https://brevillegroup.com

Number of Employees


Location

  • Breville Group Limited
  • 170-180 Bourke Road
  • Suite 2
  • Alexandria
  • New South Wales
  • 2015
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
BRGASX (Australian Securities Exchange)YesOrdinary SharesAUAUDJun 1999
BVIL.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJun 1999
HDEDB (Deutsche Boerse AG)YesOrdinary SharesDEEURJun 1999
BRGCHIA (Chi-X Australia)YesOrdinary SharesAUAUDJun 1999
BVIL.YOTCPK (Pink Sheets LLC)UNSPONSORD ADRUSUSDApr 2012

Biography

Breville Group Limited designs, develops, markets, and distributes small electrical kitchen appliances in Australia, New Zealand, North America, Europe, and internationally. The company offers kitchen appl...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/11/26 07:05
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.