AIM:BREE

Stock Analysis Report

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

Fundamentals

Adequate balance sheet and fair value.


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


Market Performance


7 Day Return

0.5%

AIM:BREE

4.1%

GB Basic Materials

1.4%

GB Market


1 Year Return

-21.4%

AIM:BREE

-7.4%

GB Basic Materials

-5.7%

GB Market

BREE underperformed the Basic Materials industry which returned -8% over the past year.

BREE underperformed the Market in United Kingdom of Great Britain and Northern Ireland which returned -4.8% over the past year.


Share holder returns

BREEIndustryMarket
7 Day0.5%4.1%1.4%
30 Day0.2%-3.3%-4.8%
90 Day-16.7%-9.4%-1.9%
1 Year-21.4%-21.4%-4.7%-7.4%-1.3%-5.7%
3 Year-12.3%-12.3%27.0%17.8%17.6%3.6%
5 Year35.2%35.2%50.0%36.5%24.6%-2.0%

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 based on future cash flows and its price relative to the stock market?

39%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Breedon Group's share price is below the future cash flow value, and at a moderate discount (> 20%).

Breedon Group's share price is below the future cash flow value, but not at a substantial discount (< 40%).


Price Based on Earnings

Breedon Group is overvalued based on earnings compared to the GB Basic Materials industry average.

Breedon Group is good value based on earnings compared to the United Kingdom of Great Britain and Northern Ireland market.


Price Based on Expected Growth

Breedon Group is poor value based on expected growth next year.


Price Based on Value of Assets

Breedon Group is good value based on assets compared to the GB Basic Materials industry average.


Next Steps

Future Growth

How is Breedon Group expected to perform in the next 1 to 3 years based on estimates from 7 analysts?

11.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Breedon Group's revenue is expected to grow by 4% yearly, however this is not considered high growth (20% yearly).

Breedon Group's earnings are expected to grow by 11% yearly, however this is not considered high growth (20% yearly).

Breedon Group's revenue growth is positive but not above the United Kingdom of Great Britain and Northern Ireland market average.

Breedon Group's earnings growth is positive but not above the United Kingdom of Great Britain and Northern Ireland market average.

Breedon Group's earnings growth is expected to exceed the low risk savings rate of 1.2%.


Earnings per Share Growth Estimates


Future Return on Equity

Unable to establish if Breedon Group will efficiently use shareholders’ funds in the future without estimates of Return on Equity.


Next Steps

Past Performance

How has Breedon Group performed over the past 5 years?

30.6%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Breedon Group has delivered over 20% year on year earnings growth in the past 5 years.

Breedon Group's 1-year earnings growth exceeds its 5-year average (33.2% vs 30.6%)

Breedon Group's earnings growth has not exceeded the GB Basic Materials industry average in the past year (33.2% vs 79.3%).


Return on Equity

Breedon Group has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Breedon Group used its assets less efficiently than the GB Basic Materials industry average last year based on Return on Assets.


Return on Capital Employed

Breedon Group's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Breedon Group's financial position?


Financial Position Analysis

Breedon Group is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Breedon Group's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

Breedon Group's level of debt (38.9%) compared to net worth is satisfactory (less than 40%).

The level of debt compared to net worth has increased over the past 5 years (38.1% vs 38.9% today).

Debt is well covered by operating cash flow (47.3%, greater than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 8x coverage).


Balance Sheet

High level of physical assets or inventory.

Debt is not covered by short term assets, assets are 0.9x debt.


Next Steps

Dividend

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

0.54%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Unable to evaluate Breedon Group's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.

Unable to evaluate Breedon Group's dividend against the top 25% market benchmark as the company has not reported any payouts.

Unable to perform a dividend volatility check as Breedon Group has not reported any payouts.

Unable to verify if Breedon Group's dividend has been increasing as the company has not reported any payouts.


Current Payout to Shareholders

Unable to calculate sustainability of dividends as Breedon Group has not reported any payouts.


Future Payout to Shareholders

No need to calculate the sustainability of Breedon Group's dividends in 3 years as they are not expected to pay a notable one for United Kingdom of Great Britain and Northern Ireland.


Next Steps

Management

What is the CEO of Breedon Group's salary, the management and board of directors tenure and is there insider trading?

2.3yrs

Average management tenure


CEO

Pat Ward 0

3.6yrs

Tenure

UK£1,141,373

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

Pat's remuneration is about average for companies of similar size in United Kingdom of Great Britain and Northern Ireland.

Pat's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

2.3yrs

Average Tenure

The tenure for the Breedon Group management team is about average.


Board Age and Tenure

4.5yrs

Average Tenure

59yo

Average Age

The tenure for the Breedon Group board of directors is about average.


Insider Trading

No 3 month open market individual insider trading information.


Recent Insider Transactions

BuyUK£56,00014 Dec 18
Amit Bhatia
EntityIndividual
Role
Chairman of the Board
Non-Executive Chairman
Shares100,000
Max PriceUK£0.56
BuyUK£98,12314 Dec 18
Jude Lagan
EntityIndividual
Role
Senior Key Executive
Managing Director of Breedon Cement
Shares175,000
Max PriceUK£0.56
BuyUK£142,00012 Dec 18
David Warr
EntityIndividual
Shares250,000
Max PriceUK£0.57
BuyUK£19,99812 Dec 18
Stephen Tagg
EntityIndividual
Role
Head of Human Resources
Group Human Resources Director
Shares35,085
Max PriceUK£0.57
BuyUK£21,63906 Dec 18
Rob Wood
EntityIndividual
Role
Member of the Board of Directors
Group Finance Director & Director
Shares37,000
Max PriceUK£0.58
BuyUK£175,80006 Dec 18
Peter W. Tom
EntityIndividual
Shares300,000
Max PriceUK£0.59
BuyUK£49,98806 Dec 18
Patrick Ward
EntityIndividual
Role
Chief Executive Officer
Group Chief Executive & Director
Shares85,743
Max PriceUK£0.58
BuyUK£19,82206 Dec 18
Ross McDonald
EntityIndividual
Shares34,000
Max PriceUK£0.58
BuyUK£100,36423 Oct 18
Peter C. Cornell
EntityIndividual
Role
Member of the Board of Directors
Independent Non-Executive Director
Shares140,000
Max PriceUK£0.72
BuyUK£249,77117 Oct 18
Jude Lagan
EntityIndividual
Role
Senior Key Executive
Managing Director of Breedon Cement
Shares357,000
Max PriceUK£0.70
BuyUK£25,37312 Oct 18
Stephen Jacobs
EntityIndividual
Role
Head of Corporate Communications
Head of Communications & Marketing
Shares38,532
Max PriceUK£0.66
BuyUK£32,49912 Oct 18
Stephen Tagg
EntityIndividual
Role
Head of Human Resources
Group Human Resources Director
Shares48,578
Max PriceUK£0.67
BuyUK£48,52512 Oct 18
Patrick Ward
EntityIndividual
Role
Chief Executive Officer
Group Chief Executive & Director
Shares75,000
Max PriceUK£0.65

Ownership Breakdown


Management Team

  • Steve Tagg

    Group Human Resources Director

    • Tenure: 3.3yrs
  • Alan MacKenzie

    Managing Director of Breedon Northern

    • Tenure: 0.0yrs
  • Steve Jacobs

    Head of Communications & Marketing

    • Tenure: 9.6yrs
  • Mike Pearce

    Managing Director of Breedon Southern

    • Tenure: 1.4yrs
  • Pat Ward

    Group Chief Executive & Director

    • Tenure: 3.6yrs
    • Compensation: UK£1.14m
  • Rob Wood (52yo)

    Group Finance Director & Director

    • Tenure: 5.5yrs
    • Compensation: UK£817.94k
  • Jude Lagan

    Managing Director of Breedon Cement

    • Tenure: 1.3yrs
  • Terry Lagan

    Managing Director of Breedon Republic of Ireland

    • Tenure: 1.3yrs
  • Aidan Mullan

    Managing Director of Breedon Northern Ireland

    • Tenure: 0.6yrs
  • Nigel Clamp

    Group Head of Health

    • Tenure: 0.0yrs

Board Members

  • Peter C. Cornell (65yo)

    Independent Non-Executive Director

    • Tenure: 0.8yrs
    • Compensation: UK£12.50k
  • David Williams (66yo)

    Non-Executive Director

    • Tenure: 11.2yrs
    • Compensation: UK£57.50k
  • Amit Bhatia (39yo)

    Non-Executive Chairman

    • Tenure: 0.3yrs
    • Compensation: UK£37.50k
  • Susie Farnon (59yo)

    Senior Independent Director

    • Tenure: 7.6yrs
    • Compensation: UK£58.65k
  • Pat Ward

    Group Chief Executive & Director

    • Tenure: 3.6yrs
    • Compensation: UK£1.14m
  • Rob Wood (52yo)

    Group Finance Director & Director

    • Tenure: 5.5yrs
    • Compensation: UK£817.94k

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: 2007
  • Industry: Construction Materials
  • Sector: Materials
  • Market Cap: UK£1.037b
  • Shares outstanding: 1.68b
  • 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 Analysis2019/08/22 21:14
End of Day Share Price2019/08/22 00:00
Earnings2019/06/30
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.