ASX:ABC

Stock Analysis Report

Executive Summary

Adelaide Brighton Limited produces, imports, distributes, and markets construction materials in Australia.

Snowflake

Fundamentals

Mediocre balance sheet with moderate growth potential.


Similar Companies

Share Price & News

How has Adelaide Brighton's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

3.8%

ABC

1.7%

AU Basic Materials

1.3%

AU Market


1 Year Return

-47.1%

ABC

-6.6%

AU Basic Materials

9.9%

AU Market

Return vs Industry: ABC underperformed the Australian Basic Materials industry which returned -6.6% over the past year.

Return vs Market: ABC underperformed the Australian Market which returned 9.9% over the past year.


Share holder returns

ABCIndustryMarket
7 Day3.8%1.7%1.3%
30 Day-6.8%0.7%-0.7%
90 Day-27.2%4.0%-0.4%
1 Year-45.3%-47.1%-2.6%-6.6%16.3%9.9%
3 Year-36.1%-43.4%6.3%-5.6%35.8%17.6%
5 Year16.0%-7.4%70.1%39.2%51.9%17.8%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Adelaide Brighton undervalued based on future cash flows and its price relative to the stock market?

2%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Undervalued: ABC (A$3.02) is trading below our estimate of fair value (A$3.09)

Significantly Undervalued: ABC is trading below fair value, but not by a significant amount.


Price Based on Earnings

PE vs Industry: ABC is poor value based on its PE Ratio (23.9x) compared to the Basic Materials industry average (22.2x).

PE vs Market: ABC is poor value based on its PE Ratio (23.9x) compared to the Australian market (17.9x).


Price Based on Expected Growth

Low PEG Ratio: ABC is good value based on its PEG Ratio (0.8x)


Price Based on Value of Assets

PB vs Industry: ABC is overvalued based on its PB Ratio (1.8x) compared to the AU Basic Materials industry average (1.7x).


Next Steps

Future Growth

How is Adelaide Brighton expected to perform in the next 1 to 3 years based on estimates from 9 analysts?

28.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Earnings vs Savings Rate: ABC's forecast earnings growth (28.3% per year) is above the savings rate (2.3%).

Earnings vs Market: ABC's earnings (28.3% per year) are forecast to grow faster than the Australian market (10.2% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: ABC's revenue (0.7% per year) is forecast to grow slower than the Australian market (3.6% per year).

High Growth Revenue: ABC's revenue (0.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Estimates


Future Return on Equity

High Future ROE: ABC's Return on Equity is forecast to be low in 3 years time (10%).


Next Steps

Past Performance

How has Adelaide Brighton performed over the past 5 years?

-3.0%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: ABC's earnings have declined by -3% 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 (-57.6%) over the past year, making it difficult to compare to the Basic Materials industry average (-39.3%).


Return on Equity

High ROE: ABC's Return on Equity (7.3%) is considered low.


Return on Assets

ROA vs Industry: ABC's Return on Assets is below or equal to the Basic Materials industry average last year.


Return on Capital Employed

ROCE Improving: ABC's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Adelaide Brighton's financial position?


Financial Position Analysis

Short Term Liabilities: ABC's short term assets (A$477.2M) exceeds its short term liabilities (A$180.7M)

Long Term Liabilities: ABC's short term assets (477.2M) do not cover its long term liabilities (774.9M)


Debt to Equity History and Analysis

Debt Level: ABC's debt to equity ratio (51.1%) is considered high

Reducing Debt: ABC's debt to equity ratio has increased from 36.6% to 51.1% over the past 5 years.

Debt Coverage: ABC's debt is well covered by operating cash flow (31.4%).

Interest Coverage: ABC's interest payments on its debt are well covered by EBIT (9.8x coverage).


Balance Sheet

Inventory Level: ABC has a high level of physical assets or inventory.

Debt Coverage by Assets: ABC's debt is not covered by short term assets (assets are 0.8x debt).


Next Steps

Dividend

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

4.39%

Expected Dividend Yield


Dividend Yield vs Market

company0%marketbottom25%2.5%markettop25%5.6%industryaverage5.7%forecastin3Years4.4%

Current dividend yield vs market & industry


Dividend Yield and Payments Analysis

Notable Dividend: Unable to evaluate ABC's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate ABC's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.

Stable Dividend: Insufficient data to determine if ABC's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if ABC's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: ABC is not paying a notable dividend for .


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of ABC's dividend in 3 years as they are not forecast to pay a notable one for the Australian market.


Next Steps

Management

What is the CEO of Adelaide Brighton's salary, the management and board of directors tenure and is there insider trading?

5.0yrs

Average management tenure


CEO

Nick Miller 0

0.8yrs

Tenure

0

Mr. Nicholas D. Miller, also known as Nick, NZCE(Civil), BE(Hons), FIPENZ, GAICD, has been Chief Executive Officer of Adelaide Brighton Limited since January 30, 2019. He is a Board member of the Australia ...


Management Age and Tenure

5.0yrs

Average Tenure

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


Board Age and Tenure

1.0yrs

Average Tenure

58yo

Average Age

Experienced Board: ABC's board of directors are not considered experienced ( 1 years average tenure), which suggests a new board.


Insider Trading

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


Recent Insider Transactions

BuyAU$17,72617 May 19
Vanessa Guthrie
EntityIndividual
Role
Member of the Board of Directors
Independent Non-Executive Director
Shares5,000
Max PriceAU$3.62
BuyAU$105,00017 May 19
Zlatko Todorcevski
EntityIndividual
Role
Vice Chairman
Deputy Chairman & Lead Independent Director
Shares30,000
Max PriceAU$3.50
BuyAU$51,90015 May 19
Kenneth Scott-Mackenzie
EntityIndividual
Role
Member of the Board of Directors
Independent Non-Executive Director
Shares15,000
Max PriceAU$3.46

Ownership Breakdown


Management Team

  • Marcus R. Clayton

    General Counsel & Company Secretary

    • Tenure: 16.7yrs
    • Compensation: AU$925.70k
  • Nick Miller

    Chief Executive Officer

    • Tenure: 0.8yrs
  • Luba Alexander

    Group Corporate Affairs Adviser

    • Tenure: 0yrs
  • Theresa Mlikota

    Chief Financial Officer

    • Tenure: 0.5yrs
  • George Agriogiannis

    Executive General Manager of Concrete & Aggregates

    • Tenure: 8.6yrs
    • Compensation: AU$786.22k
  • Andrew Dell

    Executive General Manager of Concrete Products

    • Tenure: 4.4yrs
    • Compensation: AU$618.80k
  • Brad Lemmon

    Executive General Manager of Cement and Lime

    • Tenure: 5.7yrs
    • Compensation: AU$860.00k
  • Michael Miller

    Executive General Manager of Marketing & International Trade

    • Tenure: 5.7yrs
    • Compensation: AU$288.49k
  • Dimity Smith

    Executive General Manager of Human Resources

    • Tenure: 3.8yrs

Board Members

  • Ken Scott-Mackenzie (68yo)

    Independent Non-Executive Director

    • Tenure: 9.3yrs
    • Compensation: AU$190.18k
  • Emma Stein (58yo)

    Independent Non-Executive Director

    • Tenure: 0yrs
  • Vanessa Guthrie (57yo)

    Independent Non-Executive Director

    • Tenure: 1.7yrs
    • Compensation: AU$155.03k
  • Raymond Barro (58yo)

    Chairman

    • Tenure: 0.4yrs
    • Compensation: AU$157.58k
  • Zlatko Todorcevski (51yo)

    Deputy Chairman & Lead Independent Director

    • Tenure: 0.4yrs
    • Compensation: AU$317.26k
  • Geoffrey Tarrant (50yo)

    Non-Executive Director

    • Tenure: 1.7yrs
    • Compensation: AU$134.59k
  • Rhonda Barro (65yo)

    Director

    • Tenure: 0.4yrs

Company Information

Adelaide Brighton Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Adelaide Brighton Limited
  • Ticker: ABC
  • Exchange: ASX
  • Founded: 1882
  • Industry: Construction Materials
  • Sector: Materials
  • Market Cap: AU$1.929b
  • Shares outstanding: 651.72m
  • Website: https://www.adbri.com.au

Number of Employees


Location

  • Adelaide Brighton Limited
  • 157 Grenfell Street
  • Level 1
  • Adelaide
  • South Australia
  • 5000
  • 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

Biography

Adelaide Brighton Limited produces, imports, distributes, and markets construction materials in Australia. The company operates in two segments, Cement, Lime, Concrete and Aggregates; and Concrete Products ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/14 10:33
End of Day Share Price2019/10/14 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.

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