AIM:BREE

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Executive Summary

Breedon Group plc, through its subsidiaries, engages in the quarrying, production, and sale of aggregates and related activities in England and Scotland.


Snowflake Analysis

Reasonable growth potential with adequate balance sheet.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

5.3%

BREE

5.5%

GB Basic Materials

2.7%

GB Market


1 Year Return

27.4%

BREE

-15.0%

GB Basic Materials

-12.4%

GB Market

Return vs Industry: BREE exceeded the UK Basic Materials industry which returned -15% over the past year.

Return vs Market: BREE exceeded the UK Market which returned -12.4% over the past year.


Shareholder returns

BREEIndustryMarket
7 Day5.3%5.5%2.7%
30 Day-1.6%-0.3%0.2%
90 Day-2.4%-1.1%4.0%
1 Year27.4%27.4%-13.9%-15.0%-8.8%-12.4%
3 Year-10.9%-10.9%2.9%-3.0%-4.9%-16.3%
5 Year52.4%52.4%75.1%65.3%14.2%-11.1%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

4.9%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: BREE (£0.8) is trading below our estimate of fair value (£0.84)

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


Price To Earnings Ratio

PE vs Industry: BREE is poor value based on its PE Ratio (41.8x) compared to the GB Basic Materials industry average (14x).

PE vs Market: BREE is poor value based on its PE Ratio (41.8x) compared to the UK market (15.9x).


Price to Earnings Growth Ratio

PEG Ratio: BREE is good value based on its PEG Ratio (0.9x)


Price to Book Ratio

PB vs Industry: BREE's PB Ratio (1.6x) is in line with the GB Basic Materials industry average.


Next Steps

Future Growth

How is Breedon Group forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

45.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: BREE's forecast earnings growth (45.8% per year) is above the savings rate (1.2%).

Earnings vs Market: BREE's earnings (45.8% per year) are forecast to grow faster than the UK market (22.9% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: BREE's revenue (9.7% per year) is forecast to grow faster than the UK market (4.8% per year).

High Growth Revenue: BREE's revenue (9.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if BREE's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Breedon Group performed over the past 5 years?

19.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: BREE has high quality earnings.

Growing Profit Margin: BREE's current net profit margins (3.9%) are lower than last year (7.9%).


Past Earnings Growth Analysis

Earnings Trend: BREE's earnings have grown by 19.2% per year over the past 5 years.

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

Earnings vs Industry: BREE had negative earnings growth (-56.1%) over the past year, making it difficult to compare to the Basic Materials industry average (-2.1%).


Return on Equity

High ROE: BREE's Return on Equity (3.8%) is considered low.


Next Steps

Financial Health

How is Breedon Group's financial position?


Financial Position Analysis

Short Term Liabilities: BREE's short term assets (£326.2M) exceed its short term liabilities (£252.9M).

Long Term Liabilities: BREE's short term assets (£326.2M) do not cover its long term liabilities (£403.4M).


Debt to Equity History and Analysis

Debt Level: BREE's debt to equity ratio (39.5%) is considered satisfactory.

Reducing Debt: BREE's debt to equity ratio has increased from 29% to 39.5% over the past 5 years.

Debt Coverage: BREE's debt is well covered by operating cash flow (47.9%).

Interest Coverage: BREE's interest payments on its debt are well covered by EBIT (5.6x coverage).


Balance Sheet


Next Steps

Dividend

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

0.74%

Forecast Dividend Yield


Dividend Yield vs Market

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

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


Stability and Growth of Payments

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

Growing Dividend: Insufficient data to determine if BREE'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 BREE's dividend in 3 years as they are not forecast to pay a notable one for the UK market.


Next Steps

Management

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

2.3yrs

Average management tenure


CEO

Pat Ward

4.58yrs

Tenure

UK£2,076,492

Compensation

Mr. Patrick Ward, also known as Pat, has been Group Chief Executive of Breedon Group plc since January 20, 2016 and its Director since March 8, 2016. Mr. Ward served as the Chief Executive Officer of Aggre ...


CEO Compensation Analysis

Compensation vs Market: Pat's total compensation ($USD2.71M) is above average for companies of similar size in the UK market ($USD1.76M).

Compensation vs Earnings: Pat's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Patrick Ward
Group Chief Executive & Director4.58yrsUK£2.08m0.077%
£ 1.0m
Rob Wood
Group Finance Director & Director6.5yrsUK£1.16m0.064%
£ 861.7k
Stephen Jacobs
Head of Communications & Marketing10.58yrsno data0.036%
£ 488.2k
Stephen Tagg
Group Human Resources Director4.25yrsno data0.028%
£ 380.4k
Alan MacKenzie
Managing Director of Breedon Northernno datano data0.0085%
£ 115.2k
Mike Pearce
Managing Director of Breedon Southern2.42yrsno datano data
Jude Lagan
Managing Director of Breedon Cement2.25yrsno data0.032%
£ 425.6k
Terry Lagan
Managing Director of Breedon Republic of Ireland2.25yrsno datano data
Aidan Mullan
Managing Director of Breedon Northern Ireland1.58yrsno datano data
Nigel Clamp
Group Head of Health1yrno datano data
Donna Hunt
Group Head of Sustainability0.17yrno datano data

2.3yrs

Average Tenure

Experienced Management: BREE's management team is considered experienced (2.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Patrick Ward
Group Chief Executive & Director4.58yrsUK£2.08m0.077%
£ 1.0m
Rob Wood
Group Finance Director & Director6.5yrsUK£1.16m0.064%
£ 861.7k
Carol Hui
Independent Non-Executive Director0.25yrno datano data
Clive Watson
Senior Independent Director0.42yrUK£20.00k0.0059%
£ 80.0k
Amit Bhatia
Non-Executive Chairman1.25yrsUK£121.39k0.030%
£ 399.9k
Mansurah Mannings
Independent Non-Executive Director0.67yrUK£5.00kno data

1.0yrs

Average Tenure

56yo

Average Age

Experienced Board: BREE's board of directors are not considered experienced ( 1 years average tenure), which suggests a new board.


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

Breedon Group plc's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Breedon Group plc
  • Ticker: BREE
  • Exchange: AIM
  • Founded:
  • Industry: Construction Materials
  • Sector: Materials
  • Market Cap: UK£1.349b
  • Shares outstanding: 1.69b
  • Website: https://www.breedongroup.com

Number of Employees


Location

  • Breedon Group plc
  • 28 Esplanade
  • Saint Helier
  • JE2 3QA
  • Jersey

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
BREEAIM (London Stock Exchange AIM Market)YesOrdinary SharesGBGBPJun 2008
CQBDB (Deutsche Boerse AG)YesOrdinary SharesDEEURJun 2008

Biography

Breedon Group plc, through its subsidiaries, engages in the quarrying, production, and sale of aggregates and related activities in England and Scotland. The company offers various aggregates, such as crus ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/08/09 21:16
End of Day Share Price2020/08/07 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


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.