ASX:BKW

Stock Analysis Report

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Market Cap

AU$3.7b

Last Updated

2021/07/31 08:18 UTC

Data Sources

Company Financials +

Executive Summary

Brickworks Limited manufactures, sells, and distributes building products for the residential and commercial markets in Australia and internationally. More Details


Snowflake Analysis

Established dividend payer with proven track record.


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 +/- 4% a week.

Volatility Over Time: BKW's weekly volatility (4%) has been stable over the past year.


Market Performance


7 Day Return

-2.1%

BKW

-1.7%

AU Basic Materials

0.01%

AU Market


1 Year Return

48.5%

BKW

65.0%

AU Basic Materials

27.8%

AU Market

Return vs Industry: BKW underperformed the Australian Basic Materials industry which returned 65% over the past year.

Return vs Market: BKW exceeded the Australian Market which returned 27.8% over the past year.


Shareholder returns

BKWIndustryMarket
7 Day-2.1%-1.7%0.01%
30 Day-1.4%0.8%1.8%
90 Day19.5%8.4%4.7%
1 Year53.0%48.5%68.9%65.0%32.6%27.8%
3 Year73.4%57.2%50.2%37.1%34.4%18.1%
5 Year95.7%65.0%75.8%48.8%66.2%33.9%

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

Valuation

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

11.29x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: BKW (A$24.25) is trading above our estimate of fair value (A$16.5)

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


Price To Earnings Ratio

PE vs Industry: BKW is good value based on its PE Ratio (11.3x) compared to the Australian Basic Materials industry average (24.6x).

PE vs Market: BKW is good value based on its PE Ratio (11.3x) compared to the Australian market (20.5x).


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 (1.5x) compared to the AU Basic Materials industry average (2.4x).


Future Growth

How is Brickworks forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?

-13.0%

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 (-13% per year).

Earnings vs Market: BKW's earnings are forecast to decline over the next 3 years (-13% per year).

High Growth Earnings: BKW's earnings are forecast to decline over the next 3 years.

Revenue vs Market: BKW's revenue (2% per year) is forecast to grow slower than the Australian market (4.9% per year).

High Growth Revenue: BKW's revenue (2% 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 (5.8%).


Past Performance

How has Brickworks performed over the past 5 years?

20.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: BKW has a large one-off loss of A$105.8M impacting its January 31 2021 financial results.

Growing Profit Margin: BKW's current net profit margins (34.5%) are higher than last year (12.4%).


Past Earnings Growth Analysis

Earnings Trend: BKW's earnings have grown significantly by 20.6% per year over the past 5 years.

Accelerating Growth: BKW's earnings growth over the past year (181.3%) exceeds its 5-year average (20.6% per year).

Earnings vs Industry: BKW earnings growth over the past year (181.3%) exceeded the Basic Materials industry 16.6%.


Return on Equity

High ROE: BKW's Return on Equity (13.6%) is considered low.


Financial Health

How is Brickworks's financial position?


Financial Position Analysis

Short Term Liabilities: BKW's short term assets (A$514.5M) exceed its short term liabilities (A$234.3M).

Long Term Liabilities: BKW's short term assets (A$514.5M) do not cover its long term liabilities (A$1.1B).


Debt to Equity History and Analysis

Debt Level: BKW's debt to equity ratio (25.2%) is considered satisfactory.

Reducing Debt: BKW's debt to equity ratio has increased from 16.4% to 25.2% over the past 5 years.

Debt Coverage: BKW's debt is well covered by operating cash flow (28.2%).

Interest Coverage: BKW's interest payments on its debt are not well covered by EBIT (1.9x coverage).


Balance Sheet


Dividend

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

2.47%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: BKW's dividend (2.47%) is higher than the bottom 25% of dividend payers in the Australian market (1.99%).

High Dividend: BKW's dividend (2.47%) is low compared to the top 25% of dividend payers in the Australian market (4.98%).


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 (27.9%), 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 (61.4% payout ratio).


Next Steps

Management

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

6.2yrs

Average management tenure


CEO

Lindsay Partridge (66 yo)

21.5yrs

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 ($USD2.11M) is about average for companies of similar size in the Australian market ($USD1.70M).

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


Leadership Team

Experienced Management: BKW's management team is seasoned and experienced (6.2 years average tenure).


Board Members

Experienced Board: BKW's board of directors are seasoned and experienced ( 20.5 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$3.655b
  • Shares outstanding: 150.71m
  • Website: https://www.brickworks.com.au

Number of Employees


Location

  • Brickworks Limited
  • 738 - 780 Wallgrove Road
  • Horsley Park
  • New South Wales
  • 2175
  • Australia

Listings


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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/07/31 08:18
End of Day Share Price2021/07/30 00:00
Earnings2021/01/31
Annual Earnings2020/07/31


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.