DB:R1H

Stock Analysis Report

Executive Summary

Brambles Limited operates as a supply-chain logistics company.


Snowflake Analysis

Adequate balance sheet with acceptable track record.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: R1H has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

12.1%

R1H

-1.9%

DE Commercial Services

-0.6%

DE Market


1 Year Return

-11.3%

R1H

-32.9%

DE Commercial Services

-20.9%

DE Market

Return vs Industry: R1H exceeded the German Commercial Services industry which returned -32.9% over the past year.

Return vs Market: R1H exceeded the German Market which returned -20.9% over the past year.


Shareholder returns

R1HIndustryMarket
7 Day12.1%-1.9%-0.6%
30 Day-3.0%-21.9%-16.6%
90 Day-10.3%-35.2%-26.0%
1 Year-6.6%-11.3%-30.5%-32.9%-18.6%-20.9%
3 Year8.8%-2.4%-30.8%-36.8%-19.0%-25.8%
5 Year-7.2%-21.1%-39.4%-47.8%-21.1%-31.8%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

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

13.6%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: R1H (€6.5) is trading below our estimate of fair value (€7.53)

Significantly Below Fair Value: R1H is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: R1H is good value based on its PE Ratio (24.2x) compared to the Commercial Services industry average (94.4x).

PE vs Market: R1H is poor value based on its PE Ratio (24.2x) compared to the German market (16.5x).


Price to Earnings Growth Ratio

PEG Ratio: R1H is poor value based on its PEG Ratio (2.4x)


Price to Book Ratio

PB vs Industry: R1H is overvalued based on its PB Ratio (3.5x) compared to the DE Commercial Services industry average (2.2x).


Next Steps

Future Growth

How is Brambles forecast to perform in the next 1 to 3 years based on estimates from 11 analysts?

9.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: R1H's forecast earnings growth (9.9% per year) is above the savings rate (-0.4%).

Earnings vs Market: R1H's earnings (9.9% per year) are forecast to grow slower than the German market (14.1% per year).

High Growth Earnings: R1H's earnings are forecast to grow, but not significantly.

Revenue vs Market: R1H's revenue (4.9% per year) is forecast to grow faster than the German market (4% per year).

High Growth Revenue: R1H's revenue (4.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: R1H's Return on Equity is forecast to be high in 3 years time (23.7%)


Next Steps

Past Performance

How has Brambles performed over the past 5 years?

-5.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: R1H has a large one-off loss of $217.7M impacting its December 31 2019 financial results.

Growing Profit Margin: R1H's current net profit margins (9.5%) are higher than last year (9.2%).


Past Earnings Growth Analysis

Earnings Trend: R1H's earnings have declined by -5.7% per year over the past 5 years.

Accelerating Growth: R1H's earnings growth over the past year (21.6%) exceeds its 5-year average (-5.7% per year).

Earnings vs Industry: R1H earnings growth over the past year (21.6%) exceeded the Commercial Services industry 8.9%.


Return on Equity

High ROE: R1H's Return on Equity (15%) is considered low.


Next Steps

Financial Health

How is Brambles's financial position?


Financial Position Analysis

Short Term Liabilities: R1H's short term assets ($1.9B) exceed its short term liabilities ($1.4B).

Long Term Liabilities: R1H's short term assets ($1.9B) do not cover its long term liabilities ($2.8B).


Debt to Equity History and Analysis

Debt Level: R1H's debt to equity ratio (57.8%) is considered high.

Reducing Debt: R1H's debt to equity ratio has reduced from 116% to 57.8% over the past 5 years.

Debt Coverage: R1H's debt is well covered by operating cash flow (75.1%).

Interest Coverage: R1H's interest payments on its debt are well covered by EBIT (11.6x coverage).


Balance Sheet

Inventory Level: R1H has a high level of physical assets or inventory.

Debt Coverage by Assets: R1H's debt is covered by short term assets (assets are 1x debt).


Next Steps

Dividend

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

1.52%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: R1H's dividend (1.52%) isn’t notable compared to the bottom 25% of dividend payers in the German market (1.69%).

High Dividend: R1H's dividend (1.52%) is low compared to the top 25% of dividend payers in the German market (4.85%).


Stability and Growth of Payments

Stable Dividend: R1H's dividend payments have been volatile in the past 10 years.

Growing Dividend: R1H's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (65.1%), R1H's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: R1H's dividends in 3 years are forecast to be covered by earnings (63.1% payout ratio).


Next Steps

Management

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

3.2yrs

Average management tenure


CEO

Graham Chipchase (56yo)

3.17s

Tenure

US$2,576,000

Compensation

Mr. Graham Andrew Chipchase has been the Chief Executive Officer and Executive Director at Brambles Limited since February 20, 2017, joined in Brambles at the beginning of January 2017. Mr. Chipchase serve ...


CEO Compensation Analysis

Compensation vs Market: Graham's total compensation ($USD2.58M) is below average for companies of similar size in the German market ($USD5.20M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Graham Chipchase
CEO, Chairman of Executive Leadership Team & Executive Director3.17yrsUS$2.58m0.0022% $223.9k
Nessa O'Sullivan
CFO & Executive Director3yrsUS$1.49m0.0015% $148.9k
Michael Pooley
President of CHEP Europe3.17yrsUS$813.00k0.00014% $14.0k
Laura Nador
President of CHEP North America3.08yrsUS$744.00k0.00096% $96.0k
Rodney Hefford
Chief Information Officer2.83yrsno datano data
Raluca Chiriacescu
Director of Investor Relationsno datano datano data
Robert Gerrard
Group VP of Legal & Secretariat and Company Secretary3.17yrsno datano data
Patrick Bradley
Group Senior Vice President of Human Resources1.58yrsno datano data
Carmelo Alonso-Bernaola
Senior Vice President of Global Supply Chain9.17yrsno datano data
Alasdair Hamblin
Senior Vice President of Strategy & Innovation1.17yrsno datano data

3.2yrs

Average Tenure

54yo

Average Age

Experienced Management: R1H's management team is considered experienced (3.2 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Graham Chipchase
CEO, Chairman of Executive Leadership Team & Executive Director3.17yrsUS$2.58m0.0022% $223.9k
Nessa O'Sullivan
CFO & Executive Director3yrsUS$1.49m0.0015% $148.9k
Rodney Slater
Member of the USA Advisory Board9.58yrsno datano data
Anthony Froggatt
Independent Non-Executive Director13.83yrsUS$188.00k0.00098% $98.0k
Stephen Johns
Independent Non-Executive Chairman5.58yrsUS$469.00k0.0040% $400.8k
Brian Long
Independent Non-Executive Director5.75yrsUS$203.00k0.0016% $157.9k
Tahira Hassan
Independent Non-Executive Director8.33yrsUS$165.00k0.00099% $99.0k
John Mullen
Independent Non-Executive Director0.42yrUS$104.00kno data
Scott Perkins
Independent Non-Executive Director4.83yrsUS$171.00k0.0013% $130.9k
John Claringbould
Member of the USA Advisory Board9.58yrsno datano data

5.7yrs

Average Tenure

64yo

Average Age

Experienced Board: R1H's board of directors are considered experienced (5.7 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: R1H 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

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


Key Information

  • Name: Brambles Limited
  • Ticker: R1H
  • Exchange: DB
  • Founded: 1875
  • Industry: Diversified Support Services
  • Sector: Commercial Services
  • Market Cap: AU$17.736b
  • Listing Market Cap: AU$9.996b
  • Shares outstanding: 1.52b
  • Website: https://www.brambles.com

Number of Employees


Location

  • Brambles Limited
  • Angel Place
  • Level 10
  • Sydney
  • New South Wales
  • 2000
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
BXBASX (Australian Securities Exchange)YesOrdinary SharesAUAUDJan 1992
R1HDB (Deutsche Boerse AG)YesOrdinary SharesDEEURJan 1992
BMBL.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJan 1992
BXBCHIA (Chi-X Australia)YesOrdinary SharesAUAUDJan 1992
BXBL.YOTCPK (Pink Sheets LLC)SPONSORED ADRUSUSDOct 2008

Biography

Brambles Limited operates as a supply-chain logistics company. The company operates through CHEP North America and Latin America; CHEP Europe, Middle East, Africa and India; and CHEP Australia, New Zealand and Asia, excluding India segments. It engages in the pooling of unit-load equipment and associated services, focusing on the outsourced management of pallets, crates, and containers. The company serves customers in the fast-moving consumer goods, fresh produce, beverage, retail, and general manufacturing industries in the Americas, Europe, Australia, and internationally. Brambles Limited was founded in 1875 and is based in Sydney, Australia. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/06 21:42
End of Day Share Price2020/04/06 00:00
Earnings2019/12/31
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.