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GFTU

Grafton GroupLSE:GFTU Stock Report

Market Cap

UK£3.2b

7D

3.1%

1Y

93.2%

Updated

26 Oct, 2021

Data

Company Financials +
GFTU fundamental analysis
Snowflake Score
Valuation2/6
Future Growth0/6
Past Performance5/6
Financial Health6/6
Dividends4/6

GFTU Overview

Grafton Group plc engages in the distribution, retailing, and manufacturing businesses in Ireland, the Netherlands, and the United Kingdom.

Grafton Group Competitors

Ferguson

LSE:FERG

UK£23.8b

Travis Perkins

LSE:TPK

UK£3.4b

SIG

LSE:SHI

UK£589.8m

BASF

XTRA:BAS

€58.0b

Price History & Performance

Summary of all time highs, changes and price drops for Grafton Group
Historical stock prices
Current Share PriceUK£13.45
52 Week HighUK£6.61
52 Week LowUK£14.25
Beta1.6
1 Month Change0.67%
3 Month Change6.75%
1 Year Change93.25%
3 Year Change88.90%
5 Year Change168.46%
Change since IPO6,218.11%

Recent News & Updates

Oct 20
At UK£13.05, Is Grafton Group plc (LON:GFTU) Worth Looking At Closely?

At UK£13.05, Is Grafton Group plc (LON:GFTU) Worth Looking At Closely?

Grafton Group plc ( LON:GFTU ), is not the largest company out there, but it saw a double-digit share price rise of...

Oct 07
Grafton Group plc's (LON:GFTU) Intrinsic Value Is Potentially 23% Below Its Share Price

Grafton Group plc's (LON:GFTU) Intrinsic Value Is Potentially 23% Below Its Share Price

Does the October share price for Grafton Group plc ( LON:GFTU ) reflect what it's really worth? Today, we will estimate...

Sep 24
Is Grafton Group (LON:GFTU) Using Too Much Debt?

Is Grafton Group (LON:GFTU) Using Too Much Debt?

The external fund manager backed by Berkshire Hathaway's Charlie Munger, Li Lu, makes no bones about it when he says...

Sep 11
Does Grafton Group (LON:GFTU) Deserve A Spot On Your Watchlist?

Does Grafton Group (LON:GFTU) Deserve A Spot On Your Watchlist?

It's only natural that many investors, especially those who are new to the game, prefer to buy shares in 'sexy' stocks...

Jul 15
Time To Worry? Analysts Just Downgraded Their Grafton Group plc (LON:GFTU) Outlook

Time To Worry? Analysts Just Downgraded Their Grafton Group plc (LON:GFTU) Outlook

One thing we could say about the analysts on Grafton Group plc ( LON:GFTU ) - they aren't optimistic, having just made...

Shareholder Returns

GFTUGB Trade DistributorsGB Market
7D3.1%0.6%0.2%
1Y93.2%47.7%24.7%

Return vs Industry: GFTU exceeded the UK Trade Distributors industry which returned 45.2% over the past year.

Return vs Market: GFTU exceeded the UK Market which returned 23.2% over the past year.

Price Volatility

Is GFTU's price volatile compared to industry and market?
GFTU volatility
GFTU Beta1.6
Industry Beta1.04
Market Beta1

Stable Share Price: GFTU is not significantly more volatile than the rest of UK stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: GFTU's weekly volatility (3%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
190210,065Gavin Slarkhttps://www.graftonplc.com

Grafton Group plc engages in the distribution, retailing, and manufacturing businesses in Ireland, the Netherlands, and the United Kingdom. Its Distribution segment distributes building and plumbing materials to professional trades people engaged in residential repair, maintenance, and improvement projects, as well as in residential and other new build construction. This segment operates 487 branches primarily under the Selco, Buildbase, and Leyland SDM brands in the South East, Midlands, and North of England; the Chadwicks brand in the Republic of Ireland; and the MacBlair brand in Northern Ireland; and the Isero, Polvo, and Gunters en Meuser brands in the Netherlands.

Grafton Group Fundamentals Summary

How do Grafton Group's earnings and revenue compare to its market cap?
GFTU fundamental statistics
Market CapUK£3.18b
Earnings (TTM)UK£200.61m
Revenue (TTM)UK£2.83b

16.0x

P/E Ratio

1.1x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
GFTU income statement (TTM)
RevenueUK£2.83b
Cost of RevenueUK£1.88b
Gross ProfitUK£950.14m
ExpensesUK£749.53m
EarningsUK£200.61m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)0.84
Gross Margin33.54%
Net Profit Margin7.08%
Debt/Equity Ratio16.0%

How did GFTU perform over the long term?

See historical performance and comparison

Dividends

1.3%

Current Dividend Yield

27%

Payout Ratio

Valuation

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

16.05x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: GFTU (£13.29) is trading above our estimate of fair value (£9.49)

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


Price To Earnings Ratio

PE vs Industry: GFTU is good value based on its PE Ratio (15.9x) compared to the UK Trade Distributors industry average (24.3x).

PE vs Market: GFTU is good value based on its PE Ratio (15.9x) compared to the UK market (21.3x).


Price to Earnings Growth Ratio

PEG Ratio: GFTU's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: GFTU's PB Ratio (1.9x) is in line with the GB Trade Distributors industry average.


Future Growth

How is Grafton Group forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?

-14.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: GFTU's earnings are forecast to decline over the next 3 years (-14.2% per year).

Earnings vs Market: GFTU's earnings are forecast to decline over the next 3 years (-14.2% per year).

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

Revenue vs Market: GFTU's revenue (2.2% per year) is forecast to grow slower than the UK market (5% per year).

High Growth Revenue: GFTU's revenue (2.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: GFTU's Return on Equity is forecast to be low in 3 years time (10.2%).


Past Performance

How has Grafton Group performed over the past 5 years?

7.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: GFTU has high quality earnings.

Growing Profit Margin: GFTU's current net profit margins (7.1%) are higher than last year (4.7%).


Past Earnings Growth Analysis

Earnings Trend: GFTU's earnings have grown by 7.3% per year over the past 5 years.

Accelerating Growth: GFTU's earnings growth over the past year (105.9%) exceeds its 5-year average (7.3% per year).

Earnings vs Industry: GFTU earnings growth over the past year (105.9%) exceeded the Trade Distributors industry 34%.


Return on Equity

High ROE: GFTU's Return on Equity (12.3%) is considered low.


Financial Health

How is Grafton Group's financial position?


Financial Position Analysis

Short Term Liabilities: GFTU's short term assets (£1.5B) exceed its short term liabilities (£539.3M).

Long Term Liabilities: GFTU's short term assets (£1.5B) exceed its long term liabilities (£752.5M).


Debt to Equity History and Analysis

Debt Level: GFTU's debt to equity ratio (16%) is considered satisfactory.

Reducing Debt: GFTU's debt to equity ratio has reduced from 29.5% to 16% over the past 5 years.

Debt Coverage: GFTU's debt is well covered by operating cash flow (168.1%).

Interest Coverage: GFTU's interest payments on its debt are well covered by EBIT (11.4x coverage).


Balance Sheet


Dividend

What is Grafton Group current dividend yield, its reliability and sustainability?

1.26%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: GFTU's dividend (1.28%) isn’t notable compared to the bottom 25% of dividend payers in the UK market (1.4%).

High Dividend: GFTU's dividend (1.28%) is low compared to the top 25% of dividend payers in the UK market (4.06%).


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (27.4%), GFTU's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: GFTU's dividends in 3 years are forecast to be well covered by earnings (31.8% payout ratio).


Next Steps

Management

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

8.1yrs

Average management tenure


CEO

Gavin Slark (56 yo)

10.25yrs

Tenure

UK£1,119,000

Compensation

Mr. Gavin Slark has been Chief Executive Officer of Grafton Group Plc since July 1, 2011 and Director since April 1, 2011. Mr. Slark served as an Interim Chief Executive of Grafton Group plc from April 1,...


CEO Compensation Analysis

Compensation vs Market: Gavin's total compensation ($USD1.54M) is about average for companies of similar size in the UK market ($USD1.66M).

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


Leadership Team

Experienced Management: GFTU's management team is seasoned and experienced (8.1 years average tenure).


Board Members

Experienced Board: GFTU's board of directors are considered experienced (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

Grafton Group plc's employee growth, exchange listings and data sources


Key Information

  • Name: Grafton Group plc
  • Ticker: GFTU
  • Exchange: LSE
  • Founded: 1902
  • Industry: Trading Companies and Distributors
  • Sector: Capital Goods
  • Market Cap: UK£3.181b
  • Shares outstanding: 239.34m
  • Website: https://www.graftonplc.com

Number of Employees


Location

  • Grafton Group plc
  • Heron House
  • Corrig Road
  • Dublin
  • Co. Dublin
  • 18
  • Ireland

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/10/26 21:14
End of Day Share Price2021/10/26 00:00
Earnings2021/06/30
Annual Earnings2020/12/31


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.