| Snowflake Score | |
|---|---|
| Valuation | 3/6 |
| Future Growth | 2/6 |
| Past Performance | 3/6 |
| Financial Health | 4/6 |
| Dividends | 2/6 |
ABC Stock Overview
Adbri Limited manufactures, imports, distributes, and markets construction materials in Australia.
Adbri Competitors
Price History & Performance
| Historical stock prices | |
|---|---|
| Current Share Price | AU$2.48 |
| 52 Week High | AU$3.87 |
| 52 Week Low | AU$2.27 |
| Beta | 1.13 |
| 1 Month Change | -11.74% |
| 3 Month Change | -19.48% |
| 1 Year Change | -29.35% |
| 3 Year Change | -42.19% |
| 5 Year Change | -55.87% |
| Change since IPO | 45.88% |
Recent News & Updates
Adbri (ASX:ABC) Might Be Having Difficulty Using Its Capital Effectively
To find a multi-bagger stock, what are the underlying trends we should look for in a business? Amongst other things...
Shareholder Returns
| ABC | AU Basic Materials | AU Market | |
|---|---|---|---|
| 7D | 6.9% | 7.1% | 1.4% |
| 1Y | -29.3% | -36.7% | -11.3% |
Return vs Industry: ABC exceeded the Australian Basic Materials industry which returned -36.7% over the past year.
Return vs Market: ABC underperformed the Australian Market which returned -11.3% over the past year.
Price Volatility
| ABC volatility | |
|---|---|
| ABC Average Weekly Movement | 4.4% |
| Basic Materials Industry Average Movement | 6.1% |
| Market Average Movement | 9.7% |
| 10% most volatile stocks in AU Market | 16.3% |
| 10% least volatile stocks in AU Market | 4.2% |
Stable Share Price: ABC is less volatile than 75% of Australian stocks over the past 3 months, typically moving +/- 4% a week.
Volatility Over Time: ABC's weekly volatility (4%) has been stable over the past year.
About the Company
| Founded | Employees | CEO | Website |
|---|---|---|---|
| 1882 | 1,500 | Nick Miller | https://www.adbri.com.au |
Adbri Limited manufactures, imports, distributes, and markets construction materials in Australia. The company operates in two segments: Cement, Lime, Concrete and Aggregates; and Masonry. It provides cement, lime, premixed concrete, aggregates, and sand; various concrete bricks, besser blocks, pavers, and retaining wall blocks; and industrial minerals comprising agricultural lime products, stockfield minerals and fillers for glass manufacturing, and quick and hydrated lime for industrial processing and water treatment applications.
Adbri Fundamentals Summary
| ABC fundamental statistics | |
|---|---|
| Market Cap | AU$1.62b |
| Earnings (TTM) | AU$116.70m |
| Revenue (TTM) | AU$1.57b |
13.9x
P/E Ratio1.0x
P/S RatioIs ABC overvalued?
See Fair Value and valuation analysisEarnings & Revenue
| ABC income statement (TTM) | |
|---|---|
| Revenue | AU$1.57b |
| Cost of Revenue | AU$1.34b |
| Gross Profit | AU$233.30m |
| Other Expenses | AU$116.60m |
| Earnings | AU$116.70m |
Last Reported Earnings
Dec 31, 2021
Next Earnings Date
Aug 22, 2022
| Earnings per share (EPS) | 0.18 |
| Gross Margin | 14.87% |
| Net Profit Margin | 7.44% |
| Debt/Equity Ratio | 44.3% |
How did ABC perform over the long term?
See historical performance and comparisonDividends
5.0%
Current Dividend Yield70%
Payout RatioValuation
Is ABC undervalued compared to its fair value, analyst forecasts and its price relative to the market?
Valuation Score
3/6Valuation 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 ABC?
Other financial metrics that can be useful for relative valuation.
| What is ABC's n/a Ratio? | |
|---|---|
| n/a Ratio | 0x |
| n/a | n/a |
| Market Cap | AU$1.62b |
| Key Statistics | |
|---|---|
| Enterprise Value/Revenue | 1.4x |
| Enterprise Value/EBITDA | 9.9x |
| PEG Ratio | 1.9x |
Price to Earnings Ratio vs Peers
How does ABC's PE Ratio compare to its peers?
| ABC PE Ratio vs Peers |
|---|
| Company | PE | Estimated Growth | Market Cap |
|---|---|---|---|
| Peer Average | 12.5x | ||
CSR CSR | 7.6x | -3.5% | AU$2.1b |
BKW Brickworks | 3.8x | -49.0% | AU$2.9b |
WGN Wagners Holding | 16.4x | 25.6% | AU$218.7m |
JHX James Hardie Industries | 22.1x | 13.9% | AU$14.6b |
ABC Adbri | 13.9x | 7.3% | AU$1.6b |
Price-To-Earnings vs Peers: ABC is expensive based on its Price-To-Earnings Ratio (13.9x) compared to the peer average (12.5x).
Price to Earnings Ratio vs Industry
How does ABC's PE Ratio compare vs other companies in the Global Basic Materials Industry?
Price-To-Earnings vs Industry: ABC is expensive based on its Price-To-Earnings Ratio (13.9x) compared to the Global Basic Materials industry average (13.2x)
Price to Earnings Ratio vs Fair Ratio
What is ABC'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.
| Fair Ratio | |
|---|---|
| Current PE Ratio | 13.9x |
| Fair PE Ratio | 16.4x |
Price-To-Earnings vs Fair Ratio: ABC is good value based on its Price-To-Earnings Ratio (13.9x) compared to the estimated Fair Price-To-Earnings Ratio (16.4x).
Share Price vs Fair Value
What is the Fair Price of ABC when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.
Below Fair Value: ABC (A$2.48) is trading below our estimate of fair value (A$9.23)
Significantly Below Fair Value: ABC is trading below fair value by more than 20%.
Price to Earnings Growth Ratio
PEG Ratio: ABC is poor value based on its PEG Ratio (1.9x)
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Future Growth
How is Adbri forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?
Future Growth Score
2/6Future Growth Score 2/6
Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE
7.3%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: ABC's forecast earnings growth (7.3% per year) is above the savings rate (1.8%).
Earnings vs Market: ABC's earnings (7.3% per year) are forecast to grow faster than the Australian market (6% per year).
High Growth Earnings: ABC's earnings are forecast to grow, but not significantly.
Revenue vs Market: ABC's revenue (3.4% per year) is forecast to grow slower than the Australian market (5.2% per year).
High Growth Revenue: ABC'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: ABC's Return on Equity is forecast to be low in 3 years time (10.8%).
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Past Performance
How has Adbri performed over the past 5 years?
Past Performance Score
3/6Past Performance Score 3/6
Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE
-17.0%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: ABC has high quality earnings.
Growing Profit Margin: ABC's current net profit margins (7.4%) are higher than last year (6.4%).
Past Earnings Growth Analysis
Earnings Trend: ABC's earnings have declined by 17% per year over the past 5 years.
Accelerating Growth: ABC's earnings growth over the past year (24.5%) exceeds its 5-year average (-17% per year).
Earnings vs Industry: ABC earnings growth over the past year (24.5%) underperformed the Basic Materials industry 85.2%.
Return on Equity
High ROE: ABC's Return on Equity (9.2%) is considered low.
Discover strong past performing companies
Financial Health
How is Adbri's financial position?
Financial Health Score
4/6Financial Health Score 4/6
Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage
Financial Position Analysis
Short Term Liabilities: ABC's short term assets (A$530.3M) exceed its short term liabilities (A$230.1M).
Long Term Liabilities: ABC's short term assets (A$530.3M) do not cover its long term liabilities (A$783.8M).
Debt to Equity History and Analysis
Debt Level: ABC's net debt to equity ratio (34.5%) is considered satisfactory.
Reducing Debt: ABC's debt to equity ratio has increased from 25.5% to 44.3% over the past 5 years.
Debt Coverage: ABC's debt is well covered by operating cash flow (34.7%).
Interest Coverage: ABC's interest payments on its debt are well covered by EBIT (7.3x coverage).
Balance Sheet
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Dividend
What is Adbri current dividend yield, its reliability and sustainability?
Dividend Score
3/6Dividend Score 3/6
Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage
5.04%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: ABC's dividend (5.04%) is higher than the bottom 25% of dividend payers in the Australian market (2.75%).
High Dividend: ABC's dividend (5.04%) is low compared to the top 25% of dividend payers in the Australian market (6.85%).
Stability and Growth of Payments
Stable Dividend: ABC's dividend payments have been volatile in the past 10 years.
Growing Dividend: ABC's dividend payments have fallen over the past 10 years.
Earnings Payout to Shareholders
Earnings Coverage: With its reasonable payout ratio (69.9%), ABC's dividend payments are covered by earnings.
Cash Payout to Shareholders
Cash Flow Coverage: With its high cash payout ratio (149.1%), ABC'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?
3.4yrs
Average management tenure
CEO
Nick Miller
3.42yrs
Tenure
AU$3,097,351
Compensation
Mr. Nicholas D. Miller, also known as Nick, NZCE(Civil), BE(Hons), FIPENZ, GAICD, has been Chief Executive Officer of ADBRI Limited (formerly known as Adelaide Brighton Limited) since January 30, 2019 and...
CEO Compensation Analysis
Compensation vs Market: Nick's total compensation ($USD2.15M) is above average for companies of similar size in the Australian market ($USD1.04M).
Compensation vs Earnings: Nick's compensation has increased by more than 20% in the past year.
Leadership Team
Experienced Management: ABC's management team is considered experienced (3.4 years average tenure).
Board Members
Experienced Board: ABC's board of directors are not considered experienced ( 2.9 years average tenure), which suggests a new board.
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 not been meaningfully diluted in the past year.
Top Shareholders
Company Information
Adbri Limited's employee growth, exchange listings and data sources
Key Information
- Name: Adbri Limited
- Ticker: ABC
- Exchange: ASX
- Founded: 1882
- Industry: Construction Materials
- Sector: Materials
- Implied Market Cap: AU$1.619b
- Shares outstanding: 652.63m
- Website: https://www.adbri.com.au
Number of Employees
Location
- Adbri Limited
- Aurora Place
- Level 9
- Sydney
- New South Wales
- 2000
- Australia
Listings
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2022/06/27 00:00 |
| End of Day Share Price | 2022/06/27 00:00 |
| Earnings | 2021/12/31 |
| Annual Earnings | 2021/12/31 |
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.