TSXV:FBF

Stock Analysis Report

Fab-Form Industries

Executive Summary

Fab-Form Industries Ltd. develops, manufactures, and distributes proprietary technology to form concrete footings, columns, foundations, and walls for building structures in Canada and the United States.

Rewards

Trading at 83% below its fair value

Earnings grew by 55.4% over the past year

Risk Analysis

Does not have a meaningful market cap (CA$3M)

Does not have meaningful revenue (CA$3M)



Snowflake Analysis

Flawless balance sheet with outstanding track record.

Share Price & News

How has Fab-Form Industries's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

-7.5%

FBF

-0.4%

CA Basic Materials

0.4%

CA Market


1 Year Return

-24.5%

FBF

46.2%

CA Basic Materials

11.2%

CA Market

Return vs Industry: FBF underperformed the Canadian Basic Materials industry which returned 46.2% over the past year.

Return vs Market: FBF underperformed the Canadian Market which returned 11.2% over the past year.


Shareholder returns

FBFIndustryMarket
7 Day-7.5%-0.4%0.4%
30 Day23.3%4.5%0.007%
90 Day0%1.1%0.4%
1 Year-24.5%-24.5%47.6%46.2%14.8%11.2%
3 Year68.2%68.2%13.7%10.9%15.9%5.3%
5 Year131.3%131.3%110.6%101.7%34.0%14.2%

Price Volatility Vs. Market

How volatile is Fab-Form Industries's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Fab-Form Industries undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: FBF (CA$0.37) is trading below our estimate of fair value (CA$2.18)

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


Price To Earnings Ratio

PE vs Industry: FBF is good value based on its PE Ratio (10.3x) compared to the Basic Materials industry average (24.5x).

PE vs Market: FBF is good value based on its PE Ratio (10.3x) compared to the Canadian market (15.3x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate FBF's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: FBF is overvalued based on its PB Ratio (2.2x) compared to the XN Basic Materials industry average (2x).


Next Steps

Future Growth

How is Fab-Form Industries forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

19.6%

Forecasted Materials industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Fab-Form Industries has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has Fab-Form Industries performed over the past 5 years?

31.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: FBF has high quality earnings.

Growing Profit Margin: FBF's current net profit margins (11.1%) are higher than last year (7.4%).


Past Earnings Growth Analysis

Earnings Trend: FBF's earnings have grown significantly by 31.9% per year over the past 5 years.

Accelerating Growth: FBF's earnings growth over the past year (55.4%) exceeds its 5-year average (31.9% per year).

Earnings vs Industry: FBF earnings growth over the past year (55.4%) exceeded the Basic Materials industry -20.1%.


Return on Equity

High ROE: FBF's Return on Equity (21.7%) is considered high.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Fab-Form Industries's financial position?


Financial Position Analysis

Short Term Liabilities: FBF's short term assets (CA$1.7M) exceed its short term liabilities (CA$322.6K).

Long Term Liabilities: FBF's short term assets (CA$1.7M) exceed its long term liabilities (CA$56.8K).


Debt to Equity History and Analysis

Debt Level: FBF is debt free.

Reducing Debt: FBF has no debt compared to 5 years ago when its debt to equity ratio was 242.3%.

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

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


Balance Sheet

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

Debt Coverage by Assets: FBF's debt is not covered by short term assets (assets are -24.8x debt).


Next Steps

Dividend

What is Fab-Form Industries's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%2.0%markettop25%5.7%industryaverage0.9%forecastin3Yearsn/a

Current dividend yield vs market & industry

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

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


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

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


Next Steps

Management

What is the CEO of Fab-Form Industries's salary, the management and board of directors tenure and is there insider trading?

5.9yrs

Average board tenure


CEO

Rick Fearn (75yo)

33.9yrs

Tenure

CA$64,194

Compensation

Mr. Richard N. Fearn, also known as Rick founded Fab-Form Industries Ltd. and has been its President and Chief Executive Officer since 1986. Mr. Fearn has invented and patented various aspects of the fabri ...


CEO Compensation Analysis

Compensation vs Market: Rick's total compensation ($USD48.62K) is below average for companies of similar size in the Canadian market ($USD170.89K).

Compensation vs Earnings: Rick's compensation has increased by more than 20% in the past year.


Board Age and Tenure

5.9yrs

Average Tenure

73yo

Average Age

Experienced Board: FBF's board of directors are considered experienced (5.9 years average tenure).


Insider Trading

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


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • Rick Fearn (75yo)

    CEO, President & Non Independent Director

    • Tenure: 33.9yrs
    • Compensation: CA$64.19k
  • Herb Bentz (66yo)

    Chief Financial Officer

    • Tenure: 9.9yrs
    • Compensation: CA$2.00k
  • Bruce Clark (73yo)

    Corporate Secretary & Independent Director

    • Tenure: 5.9yrs
    • Compensation: CA$2.00k
  • Joey Fearn (31yo)

    Director

    • Tenure: 1.4yrs
    • Compensation: CA$2.00k
  • Stephen Gabbott

    Information Manager

    • Tenure: 0yrs

Board Members

  • Rick Fearn (75yo)

    CEO, President & Non Independent Director

    • Tenure: 33.9yrs
    • Compensation: CA$64.19k
  • Don Russell (73yo)

    Independent Chairman of the board

    • Tenure: 0yrs
    • Compensation: CA$2.00k
  • Bruce Clark (73yo)

    Corporate Secretary & Independent Director

    • Tenure: 5.9yrs
    • Compensation: CA$2.00k
  • Joey Fearn (31yo)

    Director

    • Tenure: 1.4yrs
    • Compensation: CA$2.00k

Company Information

Fab-Form Industries Ltd.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Fab-Form Industries Ltd.
  • Ticker: FBF
  • Exchange: TSXV
  • Founded: 1986
  • Industry: Construction Materials
  • Sector: Materials
  • Market Cap: CA$3.264m
  • Shares outstanding: 8.82m
  • Website: https://www.fab-form.com

Location

  • Fab-Form Industries Ltd.
  • 1610 Derwent Way
  • Unit 19
  • Delta
  • British Columbia
  • V3M 6W1
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
FBFTSXV (TSX Venture Exchange)YesCommon SharesCACADOct 1999

Biography

Fab-Form Industries Ltd. develops, manufactures, and distributes proprietary technology to form concrete footings, columns, foundations, and walls for building structures in Canada and the United States. T ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/12 23:39
End of Day Share Price2019/12/11 00:00
Earnings2019/09/30
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.