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ABC

Adbri ASX:ABC Stock Report

Last Price

AU$1.83

Market Cap

AU$1.2b

7D

-6.6%

1Y

-43.3%

Updated

28 Sep, 2022

Data

Company Financials +
ABC fundamental analysis
Snowflake Score
Valuation6/6
Future Growth2/6
Past Performance0/6
Financial Health3/6
Dividends2/6

ABC Stock Overview

Adbri Limited manufactures, imports, distributes, and markets construction materials in Australia.

Adbri Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Adbri
Historical stock prices
Current Share PriceAU$1.83
52 Week HighAU$3.42
52 Week LowAU$1.79
Beta1.18
1 Month Change-16.06%
3 Month Change-23.11%
1 Year Change-43.34%
3 Year Change-37.76%
5 Year Change-68.45%
Change since IPO7.65%

Recent News & Updates

Aug 24
Capital Allocation Trends At Adbri (ASX:ABC) Aren't Ideal

Capital Allocation Trends At Adbri (ASX:ABC) Aren't Ideal

If we're looking to avoid a business that is in decline, what are the trends that can warn us ahead of time? A business...

Shareholder Returns

ABCAU Basic MaterialsAU Market
7D-6.6%-5.4%-3.8%
1Y-43.3%-39.4%-12.6%

Return vs Industry: ABC underperformed the Australian Basic Materials industry which returned -38.5% over the past year.

Return vs Market: ABC underperformed the Australian Market which returned -10.6% over the past year.

Price Volatility

Is ABC's price volatile compared to industry and market?
ABC volatility
ABC Average Weekly Movement6.7%
Basic Materials Industry Average Movement5.0%
Market Average Movement9.6%
10% most volatile stocks in AU Market16.8%
10% least volatile stocks in AU Market4.2%

Stable Share Price: ABC is not significantly more volatile than the rest of Australian stocks over the past 3 months, typically moving +/- 7% a week.

Volatility Over Time: ABC's weekly volatility (7%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
18821,500Nick Millerhttps://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

How do Adbri's earnings and revenue compare to its market cap?
ABC fundamental statistics
Market CapAU$1.19b
Earnings (TTM)AU$108.20m
Revenue (TTM)AU$1.63b

11.0x

P/E Ratio

0.7x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
ABC income statement (TTM)
RevenueAU$1.63b
Cost of RevenueAU$1.42b
Gross ProfitAU$207.90m
Other ExpensesAU$99.70m
EarningsAU$108.20m

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

n/a

Earnings per share (EPS)0.17
Gross Margin12.76%
Net Profit Margin6.64%
Debt/Equity Ratio49.2%

How did ABC perform over the long term?

See historical performance and comparison

Dividends

6.6%

Current Dividend Yield

72%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

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

Valuation Score

6/6

Valuation Score 6/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

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.

ABC 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/Revenue1.1x
Enterprise Value/EBITDA10.3x
PEG Ratio1.4x

Price to Earnings Ratio vs Peers

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

ABC PE Ratio vs Peers
The above table shows the PE ratio for ABC vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average12.1x
CSR CSR
7.7x-5.7%AU$2.1b
BKW Brickworks
3.7x-45.5%AU$3.2b
WGN Wagners Holding
19.7x20.6%AU$150.1m
JHX James Hardie Industries
17.5x5.4%AU$13.6b
ABC Adbri
11x8.0%AU$1.2b

Price-To-Earnings vs Peers: ABC is good value based on its Price-To-Earnings Ratio (11x) compared to the peer average (12.1x).


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 good value based on its Price-To-Earnings Ratio (11x) compared to the Global Basic Materials industry average (13.4x)


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.

ABC PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio11x
Fair PE Ratio15.9x

Price-To-Earnings vs Fair Ratio: ABC is good value based on its Price-To-Earnings Ratio (11x) compared to the estimated Fair Price-To-Earnings Ratio (15.9x).


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$1.83) is trading below our estimate of fair value (A$17.1)

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


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.


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Future Growth

How is Adbri forecast to perform in the next 1 to 3 years based on estimates from 12 analysts?

Future Growth Score

2/6

Future Growth Score 2/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


8.0%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ABC's forecast earnings growth (8% per year) is above the savings rate (1.8%).

Earnings vs Market: ABC's earnings (8% per year) are forecast to grow faster than the Australian market (6.7% per year).

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

Revenue vs Market: ABC's revenue (1.8% per year) is forecast to grow slower than the Australian market (3.7% per year).

High Growth Revenue: ABC's revenue (1.8% 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 (9.5%).


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Past Performance

How has Adbri performed over the past 5 years?

Past Performance Score

0/6

Past Performance Score 0/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


-15.1%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: ABC has a large one-off gain of A$27.1M impacting its June 30 2022 financial results.

Growing Profit Margin: ABC's current net profit margins (6.6%) are lower than last year (8%).


Past Earnings Growth Analysis

Earnings Trend: ABC's earnings have declined by 15.1% per year over the past 5 years.

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

Earnings vs Industry: ABC had negative earnings growth (-10.7%) over the past year, making it difficult to compare to the Basic Materials industry average (33.6%).


Return on Equity

High ROE: ABC's Return on Equity (8.4%) is considered low.


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Financial Health

How is Adbri'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: ABC's short term assets (A$531.4M) exceed its short term liabilities (A$268.1M).

Long Term Liabilities: ABC's short term assets (A$531.4M) do not cover its long term liabilities (A$859.2M).


Debt to Equity History and Analysis

Debt Level: ABC's net debt to equity ratio (43.2%) is considered high.

Reducing Debt: ABC's debt to equity ratio has increased from 37.8% to 49.2% over the past 5 years.

Debt Coverage: ABC's debt is well covered by operating cash flow (29.5%).

Interest Coverage: ABC's interest payments on its debt are well covered by EBIT (5.1x coverage).


Balance Sheet


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Dividend

What is Adbri current dividend yield, its reliability and sustainability?

Dividend Score

2/6

Dividend Score 2/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage


6.56%

Current Dividend Yield

Dividend Yield vs Market

Adbri Dividend Yield vs Market
How does Adbri dividend yield compare to the market?
SegmentDividend Yield
Company (Adbri)6.6%
Market Bottom 25% (AU)2.8%
Market Top 25% (AU)7.2%
Industry Average (Basic Materials)3.9%
Analyst forecast in 3 Years (Adbri)6.9%

Notable Dividend: ABC's dividend (6.56%) is higher than the bottom 25% of dividend payers in the Australian market (2.8%).

High Dividend: ABC's dividend (6.56%) is low compared to the top 25% of dividend payers in the Australian market (7.19%).


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 (72.3%), ABC's dividend payments are covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: ABC is paying a dividend but the company has no free cash flows.


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Management

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

3.7yrs

Average management tenure


CEO

Nick Miller

0.92yr

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

Nick Miller's Compensation vs Adbri Earnings
How has Nick Miller's remuneration changed compared to Adbri's earnings?
DateTotal Comp.SalaryCompany Earnings
Jun 30 2022n/an/a

AU$108m

Mar 31 2022n/an/a

AU$112m

Dec 31 2021AU$3mAU$1m

AU$117m

Sep 30 2021n/an/a

AU$119m

Jun 30 2021n/an/a

AU$121m

Mar 31 2021n/an/a

AU$107m

Dec 31 2020AU$3mAU$1m

AU$94m

Sep 30 2020n/an/a

AU$94m

Jun 30 2020n/an/a

AU$94m

Mar 31 2020n/an/a

AU$71m

Dec 31 2019AU$2mAU$1m

AU$47m

Compensation vs Market: Nick's total compensation ($USD2.00M) is above average for companies of similar size in the Australian market ($USD1.09M).

Compensation vs Earnings: Nick's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Leadership Team

Experienced Management: ABC's management team is considered experienced (3.7 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: ABC insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

ASX:ABC Recent Insider Transactions by Companies or Individuals
DateValueNameEntityRoleSharesMax Price
16 Sep 22BuyAU$2,795,900The Vanguard Group, Inc.Company982,763AU$2.88
12 Sep 22BuyAU$105,795Michael WrightIndividual50,000AU$2.12
04 Aug 22SellAU$1,236,328The Vanguard Group, Inc.Company469,379AU$2.71
27 Oct 21BuyAU$64,009The Vanguard Group, Inc.Company20,757AU$3.14
19 Oct 21BuyAU$4,413,888The Vanguard Group, Inc.Company1,149,450AU$3.84
30 Sep 21SellAU$375,303The Vanguard Group, Inc.Company94,684AU$3.96

Ownership Breakdown

What is the ownership structure of ABC?
Owner TypeNumber of SharesOwnership Percentage
Individual Insiders5,056,2410.8%
Institutions94,503,97614.5%
General Public276,027,71342.3%
Private Companies277,039,62542.4%

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


Top Shareholders

Top 25 shareholders own 56.97% of the company
OwnershipNameSharesCurrent ValueChange %Portfolio %
32.99%
Barro Properties Pty Ltd
215,285,359A$394.0m0%no data
5.02%
The Vanguard Group, Inc.
32,732,862A$59.9m0.49%no data
4.99%
Barro Group Pty Ltd.
32,576,391A$59.6m0%no data
1.75%
Carltonbridge Pty Limited
11,416,000A$20.9m0%no data
1.58%
Norges Bank Investment Management
10,341,786A$18.9m0%no data
1.47%
Lazard Asset Management LLC
9,598,354A$17.6m0%0.01%
1.33%
Dimensional Fund Advisors LP
8,667,449A$15.9m5.31%no data
1.18%
Argo Investments Limited
7,681,385A$14.1m0%0.26%
1.01%
Cloverdew Pty Ltd
6,580,000A$12.0m0%no data
0.93%
Wilson Asset Management (International) Pty Limited
6,057,348A$11.1m0%0.54%
0.77%
Churchbridge Pty Ltd
5,040,000A$9.2m0%no data
0.63%
Raymond Barro
4,138,704A$7.6m0%no data
0.55%
Rayonbridge Pty Ltd
3,574,000A$6.5m0%no data
0.46%
J.P. Morgan Asset Management, Inc.
3,031,448A$5.5m0.28%no data
0.33%
Netwealth Investments Ltd.
2,137,120A$3.9m0%0.05%
0.31%
Sunstone Finance Pty Ltd
2,000,000A$3.7m0%no data
0.28%
Charles Schwab Investment Management, Inc.
1,816,939A$3.3m2.37%no data
0.23%
Australian Executor Trustees Limited, Asset Management Arm
1,472,025A$2.7m0%8.6%
0.19%
WisdomTree Asset Management, Inc.
1,259,702A$2.3m1.07%0.01%
0.19%
State Street Global Advisors, Inc.
1,246,850A$2.3m1.91%no data
0.18%
Bessemer Investment Management LLC
1,161,847A$2.1m8.9%no data
0.17%
BetaShares Capital Limited
1,114,589A$2.0m4.78%0.02%
0.17%
MAM Pty Limited
1,083,744A$2.0m0%0.13%
0.16%
American Century Investment Management Inc
1,016,033A$1.9m15.27%no data
0.11%
SEI Investments Company
749,148A$1.4m0%no data

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$1.194b
  • 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

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ABCASX (Australian Securities Exchange)YesOrdinary SharesAUAUDJan 1992
ADBC.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJan 1992
GHODB (Deutsche Boerse AG)YesOrdinary SharesDEEURJan 1992
ABCCHIA (Chi-X Australia)YesOrdinary SharesAUAUDJan 1992
ADLD.YOTCPK (Pink Sheets LLC)UNSPONSORD ADRUSUSDJul 2015

Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/09/28 00:00
End of Day Share Price2022/09/28 00:00
Earnings2022/06/30
Annual Earnings2021/12/31


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.