ASX:BLD

Stock Analysis Report

Executive Summary

Boral Limited manufactures and supplies building and construction materials in Australia, North America, Asia, and internationally.

Snowflake

Fundamentals

Average dividend payer with moderate growth potential.


Similar Companies

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

2.8%

BLD

1.9%

AU Basic Materials

1.0%

AU Market


1 Year Return

-25.9%

BLD

-4.8%

AU Basic Materials

11.7%

AU Market

Return vs Industry: BLD underperformed the Australian Basic Materials industry which returned -4.8% over the past year.

Return vs Market: BLD underperformed the Australian Market which returned 11.7% over the past year.


Shareholder returns

BLDIndustryMarket
7 Day2.8%1.9%1.0%
30 Day-2.3%1.2%-0.2%
90 Day-11.6%6.1%0.3%
1 Year-21.5%-25.9%-0.8%-4.8%18.1%11.7%
3 Year-17.1%-28.6%7.8%-4.2%37.4%19.0%
5 Year18.5%-4.6%68.2%37.8%51.7%17.6%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

34.4%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: BLD (A$4.72) is trading below our estimate of fair value (A$7.2)

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


Price To Earnings Ratio

PE vs Industry: BLD is poor value based on its PE Ratio (25.8x) compared to the Basic Materials industry average (22.8x).

PE vs Market: BLD is poor value based on its PE Ratio (25.8x) compared to the Australian market (17.9x).


Price to Earnings Growth Ratio

Low PEG Ratio: BLD is poor value based on its PEG Ratio (1.1x)


Price to Book Ratio

PB vs Industry: BLD is good value based on its PB Ratio (0.9x) compared to the AU Basic Materials industry average (1.7x).


Next Steps

Future Growth

How is Boral forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?

22.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: BLD's forecast earnings growth (22.8% per year) is above the savings rate (2.3%).

Earnings vs Market: BLD's earnings (22.8% 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: BLD's revenue (2.9% per year) is forecast to grow slower than the Australian market (3.5% per year).

High Growth Revenue: BLD's revenue (2.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: BLD's Return on Equity is forecast to be low in 3 years time (7.8%).


Next Steps

Past Performance

How has Boral performed over the past 5 years?

18.0%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: BLD's earnings have grown by 18% per year over the past 5 years.

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

Earnings vs Industry: BLD had negative earnings growth (-49.4%) over the past year, making it difficult to compare to the Basic Materials industry average (-39.3%).


Return on Equity

High ROE: BLD's Return on Equity (3.7%) is considered low.


Return on Assets

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


Return on Capital Employed

ROCE Improving: BLD has improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is Boral's financial position?


Financial Position Analysis

Short Term Liabilities: BLD's short term assets (A$1.8B) exceeds its short term liabilities (A$1.4B)

Long Term Liabilities: BLD's short term assets (1.8B) do not cover its long term liabilities (2.3B)


Debt to Equity History and Analysis

Debt Level: BLD's debt to equity ratio (40.9%) is considered high

Reducing Debt: BLD's debt to equity ratio has increased from 32.8% to 40.9% over the past 5 years.

Debt Coverage: BLD's debt is well covered by operating cash flow (31.8%).

Interest Coverage: BLD's interest payments on its debt are well covered by EBIT (5.3x coverage).


Balance Sheet

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

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


Next Steps

Dividend

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

5.61%

Current Dividend Yield


Dividend Yield vs Market

company5.6%marketbottom25%2.5%markettop25%5.6%industryaverage4.0%forecastin3Years5.2%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: BLD's dividend (5.61%) is higher than the bottom 25% of dividend payers in the Australian market (2.47%).

High Dividend: BLD's dividend (5.61%) is in the top 25% of dividend payers in the Australian market (5.58%)

Stable Dividend: BLD's dividend payments have been volatile in the past 10 years.

Growing Dividend: BLD's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (144.8%), BLD's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: BLD's dividends in 3 years are forecast to be covered by earnings (62.7% payout ratio).


Next Steps

Management

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

5.9yrs

Average management tenure


CEO

Mike Kane (68yo)

7yrs

Tenure

AU$3,842,000

Compensation

Mr. Michael Kane, also known as Mike, BA, JD, MS, has been the Chief Executive Officer and Managing Director of Boral Limited since October 1, 2012. Mr. Kane served as the President of Boral Industries, In ...


CEO Compensation Analysis

Compensation vs. Market: Mike's total compensation ($USD2.62M) is about average for companies of similar size in the Australian market ($USD2.27M).

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


Management Age and Tenure

5.9yrs

Average Tenure

Experienced Management: BLD's management team is seasoned and experienced (5.9 years average tenure).


Board Age and Tenure

7.0yrs

Average Tenure

64yo

Average Age

Experienced Board: BLD's board of directors are considered experienced (7 years average tenure).


Insider Trading

Insider Buying: BLD insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

SellAU$247,392,24704 Sep 19
Capital Research and Management Company
EntityCompany
Shares57,961,722
Max PriceAU$4.27
BuyAU$59,63104 Sep 19
Peter Alexander
EntityIndividual
Role
Member of the Board of Directors
Non-Executive Director
Shares14,300
Max PriceAU$4.17
BuyAU$98,69929 Aug 19
Kathryn Fagg
EntityIndividual
Role
Chairman of the Board
Non-Executive Chairman
Shares23,783
Max PriceAU$4.15
BuyAU$60,69229 Aug 19
Karen Moses
EntityIndividual
Role
Member of the Board of Directors
Non-Executive Director
Shares13,825
Max PriceAU$4.39
BuyAU$199,99829 Aug 19
Paul Rayner
EntityIndividual
Role
Member of the Board of Directors
Non-Executive Director
Shares48,780
Max PriceAU$4.10
SellAU$34,726,11328 Aug 19
Capital Research and Management Company
EntityCompany
Shares12,665,445
Max PriceAU$2.74
SellAU$109,80015 Aug 19
BlackRock, Inc.
EntityCompany
Shares18,603,842
Max PriceAU$5.68
BuyAU$74,18915 Aug 19
BlackRock, Inc.
EntityCompany
Shares3,700,899
Max PriceAU$5.74
BuyAU$57,561,41009 Aug 19
Nikko Asset Management Co., Ltd.
EntityCompany
Shares11,341,278
Max PriceAU$5.41
BuyAU$451,67709 Aug 19
Sumitomo Mitsui Trust Asset Management Co., Ltd.
EntityCompany
Shares87,109
Max PriceAU$5.19
SellAU$4,532,98319 May 19
BlackRock, Inc.
EntityCompany
Shares8,728,291
Max PriceAU$7.05
BuyAU$78,31219 May 19
BlackRock, Inc.
EntityCompany
Shares19,551,183
Max PriceAU$7.05
BuyAU$42,25505 Mar 19
Peter Alexander
EntityIndividual
Role
Member of the Board of Directors
Non-Executive Director
Shares8,571
Max PriceAU$4.93
SellAU$5,567,86320 Feb 19
Nikko Asset Management Co., Ltd.
EntityCompany
Shares1,215,896
Max PriceAU$4.87
BuyAU$3,240,71120 Feb 19
Sumitomo Mitsui Trust Asset Management Co., Ltd.
EntityCompany
Shares654,258
Max PriceAU$4.95
BuyAU$890,10620 Feb 19
Nikko Asset Management Co., Ltd.
EntityCompany
Shares175,726
Max PriceAU$5.07
BuyAU$493,83423 Dec 18
Sumitomo Mitsui Trust Asset Management Co., Ltd.
EntityCompany
Shares97,916
Max PriceAU$5.04
BuyAU$64,965,25723 Dec 18
Nikko Asset Management Co., Ltd.
EntityCompany
Shares11,305,337
Max PriceAU$6.99

Ownership Breakdown


Management Team

  • Mike Kane (68yo)

    CEO, MD & Director

    • Tenure: 7yrs
    • Compensation: AU$3.84m
  • Damien Sullivan

    Group General Counsel

    • Tenure: 6.3yrs
  • Wayne Manners

    President & CEO of Boral Australia

    • Tenure: 0.7yrs
    • Compensation: AU$323.50k
  • Dominic Millgate (44yo)

    Company Secretary

    • Tenure: 6.3yrs
  • Kylie FitzGerald

    Group Communications & Investor Relations Director

    • Tenure: 0yrs
  • Ross Harper

    Group President of Operations

    • Tenure: 0.7yrs
    • Compensation: AU$1.02m
  • Rosaline Ng

    Group President Ventures & CFO

    • Tenure: 0yrs
    • Compensation: AU$1.44m
  • Linda Coates

    Group Human Resources Director

    • Tenure: 5.9yrs
  • David Mariner

    President & CEO of Boral Industries Inc

    • Tenure: 3.3yrs
    • Compensation: AU$1.24m
  • Frederic Rougemont

    Chief Executive Officer of USG Boral

    • Tenure: 0yrs

Board Members

  • Peter Alexander (62yo)

    Non-Executive Director

    • Tenure: 1.1yrs
    • Compensation: AU$147.40k
  • Paul Rayner (65yo)

    Non-Executive Director

    • Tenure: 11.1yrs
    • Compensation: AU$197.20k
  • John Marlay (70yo)

    Non-Executive Director

    • Tenure: 9.8yrs
    • Compensation: AU$197.40k
  • Karen Moses (61yo)

    Non-Executive Director

    • Tenure: 3.6yrs
    • Compensation: AU$192.40k
  • Kathryn Fagg (58yo)

    Non-Executive Chairman

    • Tenure: 1.3yrs
    • Compensation: AU$465.60k
  • Eileen Doyle (64yo)

    Non-Executive Director

    • Tenure: 9.6yrs
    • Compensation: AU$208.30k
  • Mike Kane (68yo)

    CEO, MD & Director

    • Tenure: 7yrs
    • Compensation: AU$3.84m

Company Information

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


Key Information

  • Name: Boral Limited
  • Ticker: BLD
  • Exchange: ASX
  • Founded: 1946
  • Industry: Construction Materials
  • Sector: Materials
  • Market Cap: AU$5.475b
  • Shares outstanding: 1.17b
  • Website: https://www.boral.com.au

Number of Employees


Location

  • Boral Limited
  • 15 Blue Street
  • Level 18
  • North Sydney
  • New South Wales
  • 2060
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
BOAL.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDFeb 2000
HQKDB (Deutsche Boerse AG)YesOrdinary SharesDEEURFeb 2000
BLDASX (Australian Securities Exchange)YesOrdinary SharesAUAUDFeb 2000
BLDCHIA (Chi-X Australia)YesOrdinary SharesAUAUDFeb 2000
BOAL.YOTCPK (Pink Sheets LLC)SPONSORED ADRUSUSDAug 2000

Biography

Boral Limited manufactures and supplies building and construction materials in Australia, North America, Asia, and internationally. It offers asphalt, blocks, bricks, cement materials, concrete, pavers and ...


Company Analysis and Financial Data Status

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


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.