Executive Summary
Brickworks Limited manufactures, sells, and distributes building products for the residential and commercial markets in Australia and internationally. More Details
Rewards
Risk Analysis
Earnings are forecast to decline by an average of 30.3% per year for the next 3 years
Snowflake Analysis
Undervalued established dividend payer.
Similar Companies
Share Price & News
How has Brickworks's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: BKW is less volatile than 75% of Australian stocks over the past 3 months, typically moving +/- 3% a week.
Volatility Over Time: BKW's weekly volatility (3%) has been stable over the past year.
Market Performance
7 Day Return
-0.2%
BKW
1.7%
AU Basic Materials
0.3%
AU Market
1 Year Return
6.8%
BKW
28.6%
AU Basic Materials
12.5%
AU Market
Return vs Industry: BKW underperformed the Australian Basic Materials industry which returned 28.6% over the past year.
Return vs Market: BKW underperformed the Australian Market which returned 12.5% over the past year.
Shareholder returns
| BKW | Industry | Market | |
|---|---|---|---|
| 7 Day | -0.2% | 1.7% | 0.3% |
| 30 Day | -2.1% | 4.8% | 2.2% |
| 90 Day | -3.7% | 4.1% | 4.0% |
| 1 Year | 10.6%6.8% | 32.0%28.6% | 16.1%12.5% |
| 3 Year | 36.5%23.6% | 19.8%8.4% | 31.1%15.1% |
| 5 Year | 52.1%28.1% | 65.8%39.0% | 62.5%31.3% |
Long-Term Price Volatility Vs. Market
How volatile is Brickworks's share price compared to the market and industry in the last 5 years?
Simply Wall St News
10 hours ago | Simply Wall St
Here's Why I Think Brickworks (ASX:BKW) Might Deserve Your Attention Today1 week ago | Simply Wall St
What Is Brickworks Limited's (ASX:BKW) Share Price Doing?2 weeks ago | Simply Wall St
Is There More To The Story Than Brickworks' (ASX:BKW) Earnings Growth?Valuation
Is Brickworks undervalued compared to its fair value and its price relative to the market?
22.7%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: BKW (A$18.99) is trading below our estimate of fair value (A$24.57)
Significantly Below Fair Value: BKW is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: BKW is good value based on its PE Ratio (9x) compared to the AU Basic Materials industry average (23.7x).
PE vs Market: BKW is good value based on its PE Ratio (9x) compared to the Australian market (20x).
Price to Earnings Growth Ratio
PEG Ratio: BKW's earnings are forecast to decline next year, so we can't calculate its PEG ratio.
Price to Book Ratio
PB vs Industry: BKW is good value based on its PB Ratio (1.2x) compared to the AU Basic Materials industry average (2.9x).
Next Steps
Future Growth
How is Brickworks forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?
-30.3%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: BKW's earnings are forecast to decline over the next 3 years (-30.3% per year).
Earnings vs Market: BKW's earnings are forecast to decline over the next 3 years (-30.3% per year).
High Growth Earnings: BKW's earnings are forecast to decline over the next 3 years.
Revenue vs Market: BKW's revenue (3.6% per year) is forecast to grow slower than the Australian market (5.6% per year).
High Growth Revenue: BKW's revenue (3.6% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: BKW's Return on Equity is forecast to be low in 3 years time (5.6%).
Next Steps
Past Performance
How has Brickworks performed over the past 5 years?
19.0%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: BKW has a large one-off loss of A$106.4M impacting its July 31 2020 financial results.
Growing Profit Margin: BKW's current net profit margins (33.1%) are higher than last year (21.4%).
Past Earnings Growth Analysis
Earnings Trend: BKW's earnings have grown by 19% per year over the past 5 years.
Accelerating Growth: BKW's earnings growth over the past year (60.6%) exceeds its 5-year average (19% per year).
Earnings vs Industry: BKW earnings growth over the past year (60.6%) exceeded the Basic Materials industry -6.4%.
Return on Equity
High ROE: BKW's Return on Equity (13.1%) is considered low.
Next Steps
Financial Health
How is Brickworks's financial position?
Financial Position Analysis
Short Term Liabilities: BKW's short term assets (A$637.4M) exceed its short term liabilities (A$232.9M).
Long Term Liabilities: BKW's short term assets (A$637.4M) do not cover its long term liabilities (A$1.2B).
Debt to Equity History and Analysis
Debt Level: BKW's debt to equity ratio (27%) is considered satisfactory.
Reducing Debt: BKW's debt to equity ratio has increased from 18% to 27% over the past 5 years.
Debt Coverage: BKW's debt is not well covered by operating cash flow (11.6%).
Interest Coverage: BKW's interest payments on its debt are not well covered by EBIT (1.8x coverage).
Balance Sheet
Next Steps
Dividend
What is Brickworks's current dividend yield, its reliability and sustainability?
3.11%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: BKW's dividend (3.11%) is higher than the bottom 25% of dividend payers in the Australian market (2.09%).
High Dividend: BKW's dividend (3.11%) is low compared to the top 25% of dividend payers in the Australian market (5.52%).
Stability and Growth of Payments
Stable Dividend: BKW's dividends per share have been stable in the past 10 years.
Growing Dividend: BKW's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonably low payout ratio (28%), BKW's dividend payments are well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: BKW's dividends in 3 years are forecast to be covered by earnings (69.3% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
5.9yrs
Average management tenure
CEO
Lindsay Partridge (65 yo)
21.17yrs
Tenure
AU$2,872,605
Compensation
Mr. Lindsay R. Partridge, AM; BSc. Hons.Ceramic Eng; SFCDA; FAICD; Dip.CD, has been the Managing Director and Executive Director of Brickworks Limited since 2000 and joined in 1985. Mr. Partridge served as...
CEO Compensation Analysis
Compensation vs Market: Lindsay's total compensation ($USD2.24M) is above average for companies of similar size in the Australian market ($USD1.41M).
Compensation vs Earnings: Lindsay's compensation has been consistent with company performance over the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| MD & Executive Director | 21.17yrs | AU$2.87m | 0.13% A$ 3.6m | |
| Chief Financial Officer | 4.75yrs | AU$1.38m | 0.0054% A$ 154.7k | |
| Group General Manager of Operations | 4.08yrs | AU$250.63k | no data | |
| Company Secretary & General Counsel | 5.92yrs | no data | no data | |
| Group GM of Brickworks Sales & Group GM of Austral Bricks Australia | 18.17yrs | AU$459.74k | no data | |
| General Manager of Corporate Development | no data | no data | no data | |
| President of Brickworks Building Products North America | 2.33yrs | AU$381.97k | no data | |
| General Manager of Austral Masonry | 6.08yrs | AU$183.89k | no data |
5.9yrs
Average Tenure
Experienced Management: BKW's management team is seasoned and experienced (5.9 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| MD & Executive Director | 21.17yrs | AU$2.87m | 0.13% A$ 3.6m | |
| Non Executive Chairman | 22.17yrs | AU$260.00k | 2.25% A$ 64.1m | |
| Lead Independent Director | no data | AU$161.00k | 0.0094% A$ 268.2k | |
| Deputy Chairman | no data | AU$140.00k | 0.16% A$ 4.6m | |
| Independent Non-Executive Director | 20.17yrs | AU$156.75k | 0.011% A$ 300.6k | |
| Independent Non-Executive Director | 1.42yrs | AU$124.96k | 0.00068% A$ 19.4k | |
| Independent Non-Executive Director | 1.17yrs | AU$79.33k | 0.00066% A$ 18.8k |
20.2yrs
Average Tenure
65yo
Average Age
Experienced Board: BKW's board of directors are seasoned and experienced ( 20.2 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 not been meaningfully diluted in the past year.
Top Shareholders
Company Information
Brickworks Limited's company bio, employee growth, exchange listings and data sources
Key Information
- Name: Brickworks Limited
- Ticker: BKW
- Exchange: ASX
- Founded: 1934
- Industry: Construction Materials
- Sector: Materials
- Market Cap: AU$2.850b
- Shares outstanding: 150.94m
- Website: https://www.brickworks.com.au
Number of Employees
Location
- Brickworks Limited
- 738 - 780 Wallgrove Road
- Horsley Park
- New South Wales
- 2175
- Australia
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| BKW | ASX (Australian Securities Exchange) | Yes | Ordinary Shares | AU | AUD | Jan 1992 |
| BRKW.F | OTCPK (Pink Sheets LLC) | Yes | Ordinary Shares | US | USD | Jan 1992 |
| BKW | CHIA (Chi-X Australia) | Yes | Ordinary Shares | AU | AUD | Jan 1992 |
Biography
Brickworks Limited manufactures, sells, and distributes building products for the residential and commercial markets in Australia and internationally. It operates through Building Products Australia, Build...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/03/04 07:05 |
| End of Day Share Price | 2021/03/04 00:00 |
| Earnings | 2020/07/31 |
| Annual Earnings | 2020/07/31 |
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.