ASX:BGP

Stock Analysis Report

Executive Summary

Briscoe Group Limited, through its subsidiaries, engages in the retail of homeware and sporting goods in New Zealand.

Rewards

Trading at 22.3% below its fair value

Earnings grew by 0.4% over the past year

Pays a high and reliable dividend of 5.05%

Risk Analysis

No risks detected for BGP from our risk checks.


Snowflake Analysis

Excellent balance sheet established dividend payer.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: BGP has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0%

BGP

-0.7%

AU Specialty Retail

1.5%

AU Market


1 Year Return

20.0%

BGP

39.9%

AU Specialty Retail

15.6%

AU Market

Return vs Industry: BGP underperformed the Australian Specialty Retail industry which returned 40.9% over the past year.

Return vs Market: BGP exceeded the Australian Market which returned 16.1% over the past year.


Shareholder returns

BGPIndustryMarket
7 Day0%-0.7%1.5%
30 Day0%-1.1%0.4%
90 Dayn/a3.4%4.1%
1 Year28.7%20.0%46.3%39.9%20.6%15.6%
3 Yearn/a34.2%17.0%37.1%18.7%
5 Yearn/a87.3%51.2%50.9%17.1%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

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

22.3%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: BGP (A$3.9) is trading below our estimate of fair value (A$5.02)

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


Price To Earnings Ratio

PE vs Industry: BGP is good value based on its PE Ratio (14.1x) compared to the Specialty Retail industry average (17x).

PE vs Market: BGP is good value based on its PE Ratio (14.1x) compared to the Australian market (18.8x).


Price to Earnings Growth Ratio

PEG Ratio: BGP is poor value based on its PEG Ratio (109.2x)


Price to Book Ratio

PB vs Industry: BGP is overvalued based on its PB Ratio (3.6x) compared to the AU Specialty Retail industry average (2.3x).


Next Steps

Future Growth

How is Briscoe Group forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

0.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: BGP's forecast earnings growth (0.1% per year) is below the savings rate (1.1%).

Earnings vs Market: BGP's earnings (0.1% per year) are forecast to grow slower than the Australian market (9.6% per year).

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

Revenue vs Market: BGP's revenue (2.7% per year) is forecast to grow slower than the Australian market (4.2% per year).

High Growth Revenue: BGP's revenue (2.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: BGP's Return on Equity is forecast to be high in 3 years time (23.3%)


Next Steps

Past Performance

How has Briscoe Group performed over the past 5 years?

11.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: BGP has high quality earnings.

Growing Profit Margin: BGP's current net profit margins (9.7%) are lower than last year (10.1%).


Past Earnings Growth Analysis

Earnings Trend: BGP's earnings have grown by 11.1% per year over the past 5 years.

Accelerating Growth: BGP's earnings growth over the past year (0.4%) is below its 5-year average (11.1% per year).

Earnings vs Industry: BGP earnings growth over the past year (0.4%) exceeded the Specialty Retail industry -2.3%.


Return on Equity

High ROE: BGP's Return on Equity (25.4%) is considered high.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Briscoe Group's financial position?


Financial Position Analysis

Short Term Liabilities: BGP's short term assets (NZ$153.5M) exceed its short term liabilities (NZ$91.1M).

Long Term Liabilities: BGP's short term assets (NZ$153.5M) do not cover its long term liabilities (NZ$228.2M).


Debt to Equity History and Analysis

Debt Level: BGP is debt free.

Reducing Debt: BGP has not had any debt for past 5 years.

Debt Coverage: BGP has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: BGP has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet

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

Debt Coverage by Assets: Insufficient data to determine if BGP's debt is covered by short term assets.


Next Steps

Dividend

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

5.05%

Current Dividend Yield


Dividend Yield vs Market

company5.1%marketbottom25%2.3%markettop25%5.5%industryaverage4.0%forecastin3Years5.6%

Current dividend yield vs market & industry

Notable Dividend: BGP's dividend (5.05%) is higher than the bottom 25% of dividend payers in the Australian market (2.29%).

High Dividend: BGP's dividend (5.05%) is low compared to the top 25% of dividend payers in the Australian market (5.5%).


Stability and Growth of Payments

Stable Dividend: BGP's dividends per share have been stable in the past 10 years.

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


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (72.9%), BGP's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: BGP's dividends in 3 years are forecast to be covered by earnings (75.5% payout ratio).


Next Steps

Management

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

10.5yrs

Average management tenure


CEO

Rod Duke 0

29.1yrs

Tenure

NZ$978,116

Compensation

Mr. Rodney Adrian Duke, also known as Rod, has been Group Managing Director of Briscoe Group Limited since 1991. From 1981 to 1988, Mr. Duke served in the positions of New South Wales Manager of Homecraft/ ...


CEO Compensation Analysis

Compensation vs Market: Rod's total compensation ($USD629.34K) is about average for companies of similar size in the Australian market ($USD704.85K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Rodney Duke
Deputy Chairman & Group Managing Director29.1yrsNZ$978.12k76.93% NZ$646.5m
Geoffrey Scowcroft
Chief Financial Officer17.3yrsno data0.34% NZ$2.9m
Andrew Scott
Chief Operating Officer0.6yrsno datano data
Aston Moss
Group General Manager of Human Resources3.8yrsno datano data

10.5yrs

Average Tenure

Experienced Management: BGP's management team is seasoned and experienced (10.5 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Rodney Duke
Deputy Chairman & Group Managing Director29.1yrsNZ$978.12k76.93% NZ$646.5m
Anthony Batterton
Independent Non-Executive Director3.7yrsNZ$78.13k0.0090% NZ$75.6k
Rosanne O'Loghlen Meo
Independent Non-Executive Chairman18.8yrsNZ$128.46k0.045% NZ$378.3k
Richard Andrew Coupe
Independent Non-Executive Director3.3yrsNZ$75.96k0.0045% NZ$37.8k

11.2yrs

Average Tenure

Experienced Board: BGP's board of directors are seasoned and experienced ( 11.2 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

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


Key Information

  • Name: Briscoe Group Limited
  • Ticker: BGP
  • Exchange: ASX
  • Founded: 1781
  • Industry: Homefurnishing Retail
  • Sector: Retail
  • Market Cap: NZ$877.645m
  • Listing Market Cap: NZ$840.431m
  • Shares outstanding: 222.19m
  • Website: https://www.briscoegroup.co.nz

Location

  • Briscoe Group Limited
  • 1 Taylors Road
  • Morningside
  • Auckland
  • 1025
  • New Zealand

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
BGPNZSE (New Zealand Stock Exchange)YesOrdinary SharesNZNZDDec 2001
BGPASX (Australian Securities Exchange)YesOrdinary SharesAUAUDDec 2001
BGPCHIA (Chi-X Australia)YesOrdinary SharesAUAUDDec 2001

Biography

Briscoe Group Limited, through its subsidiaries, engages in the retail of homeware and sporting goods in New Zealand. The company operates in two segments, Homeware and Sporting Goods. It operates under the Briscoes Homeware, Living & Giving, and Rebel Sport brand names. As of January 27, 2019, the company operated a network of 46 bricks and mortar stores, including 13 fulfilment hubs in the homewares sector; and 38 stores, including 9 fulfilment hubs in the sporting goods sector. It also sells products online. The company was founded in 1781 and is headquartered in Auckland, New Zealand. Briscoe Group Limited is a subsidiary of JB Were (NZ) Nominees Limited. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/17 10:51
End of Day Share Price2020/02/14 00:00
Earnings2019/07/28
Annual Earnings2019/01/27


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.