AIM:MBH

Stock Analysis Report

Michelmersh Brick Holdings

Executive Summary

Michelmersh Brick Holdings Plc, through its subsidiaries, manufactures and sells bricks, tiles, and building products in the United Kingdom, Europe, and internationally.

Snowflake

Fundamentals

Solid track record and good value.


Similar Companies

Share Price & News

How has Michelmersh Brick Holdings's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

3.8%

MBH

1.0%

GB Basic Materials

-0.2%

GB Market


1 Year Return

38.4%

MBH

17.0%

GB Basic Materials

4.7%

GB Market

Return vs Industry: MBH exceeded the UK Basic Materials industry which returned 17% over the past year.

Return vs Market: MBH exceeded the UK Market which returned 4.7% over the past year.


Shareholder returns

MBHIndustryMarket
7 Day3.8%1.0%-0.2%
30 Day0%1.1%0.8%
90 Day27.9%1.7%3.7%
1 Year43.4%38.4%20.4%17.0%10.1%4.7%
3 Year140.5%121.1%34.1%24.4%20.9%5.6%
5 Year100.1%80.3%81.6%67.6%32.3%2.2%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Michelmersh Brick Holdings 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: MBH (£1.1) is trading below our estimate of fair value (£6.33)

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


Price To Earnings Ratio

PE vs Industry: MBH is poor value based on its PE Ratio (16.7x) compared to the Basic Materials industry average (14.7x).

PE vs Market: MBH is good value based on its PE Ratio (16.7x) compared to the UK market (17.2x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: MBH is good value based on its PB Ratio (1.4x) compared to the GB Basic Materials industry average (1.5x).


Next Steps

Future Growth

How is Michelmersh Brick Holdings forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

3.7%

Forecasted annual revenue growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if MBH's forecast earnings growth is above the savings rate (1.2%).

Earnings vs Market: Insufficient data to determine if MBH's earnings are forecast to grow faster than the UK market

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

Revenue vs Market: MBH's revenue (3.7% per year) is forecast to grow faster than the UK market (3.6% per year).

High Growth Revenue: MBH's revenue (3.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: MBH's Return on Equity is forecast to be low in 3 years time (10.3%).


Next Steps

Past Performance

How has Michelmersh Brick Holdings performed over the past 5 years?

14.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: MBH has high quality earnings.

Growing Profit Margin: MBH's current net profit margins (11.6%) are higher than last year (7.4%).


Past Earnings Growth Analysis

Earnings Trend: MBH's earnings have grown by 14% per year over the past 5 years.

Accelerating Growth: MBH's earnings growth over the past year (75.8%) exceeds its 5-year average (14% per year).

Earnings vs Industry: MBH earnings growth over the past year (75.8%) exceeded the Basic Materials industry 30.3%.


Return on Equity

High ROE: MBH's Return on Equity (8.4%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Michelmersh Brick Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: MBH's short term assets (£29.2M) exceeds its short term liabilities (£13.0M)

Long Term Liabilities: MBH's short term assets (£29.2M) do not cover its long term liabilities (33.4M)


Debt to Equity History and Analysis

Debt Level: MBH's debt to equity ratio (32.6%) is considered satisfactory.

Reducing Debt: MBH's debt to equity ratio has increased from 11.4% to 32.6% over the past 5 years.

Debt Coverage: MBH's debt is well covered by operating cash flow (59.6%).

Interest Coverage: MBH's interest payments on its debt are well covered by EBIT (13.1x coverage).


Balance Sheet

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

Debt Coverage by Assets: MBH's debt is covered by short term assets (assets are 1.3x debt).


Next Steps

Dividend

What is Michelmersh Brick Holdings's current dividend yield, its reliability and sustainability?

2.91%

Current Dividend Yield


Upcoming Dividend Payment

Purchase Michelmersh Brick Holdings before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield vs Market

company2.9%marketbottom25%2.0%markettop25%5.3%industryaverage2.7%forecastin3Years3.2%

Current dividend yield vs market & industry

Notable Dividend: MBH's dividend (2.91%) is higher than the bottom 25% of dividend payers in the UK market (1.97%).

High Dividend: MBH's dividend (2.91%) is low compared to the top 25% of dividend payers in the UK market (5.33%).


Stability and Growth of Payments

Stable Dividend: MBH has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: MBH's dividend payments have increased, but the company has only paid a dividend for 5 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (50%), MBH's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: MBH's dividends in 3 years are forecast to be well covered by earnings (45.3% payout ratio).


Next Steps

Management

What is the CEO of Michelmersh Brick Holdings's salary, the management and board of directors tenure and is there insider trading?

6.4yrs

Average management tenure


CEO

Frank Hanna (51yo)

3.8yrs

Tenure

UK£348,000

Compensation

Mr. Frank Hanna has been the Co-Chief Executive Officer at Michelmersh Brick Holdings plc since January 01, 2016 and served as its Commercial Director. Mr. Hanna served as Sales and Technical Director at F ...


CEO Compensation Analysis

Compensation vs Market: Frank's total compensation ($USD449.19K) is above average for companies of similar size in the UK market ($USD322.70K).

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


Management Age and Tenure

6.4yrs

Average Tenure

55yo

Average Age

Experienced Management: MBH's management team is seasoned and experienced (6.4 years average tenure).


Board Age and Tenure

8.5yrs

Average Tenure

59yo

Average Age

Experienced Board: MBH's board of directors are considered experienced (8.5 years average tenure).


Insider Trading

Insider Buying: MBH insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUK£540,00022 Oct 19
Frank Hanna
EntityIndividual
Role
Co-Chief Executive Officer
Joint CEO & Director
Shares500,000
Max PriceUK£1.08
SellUK£562,50021 Oct 19
Martin Warner
EntityIndividual
Role
Chairman of the Board
Founder & Non-Executive Chairman
Shares500,000
Max PriceUK£1.13

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 2.6%.


Management Team

  • Steve Morgan (59yo)

    Finance Director

    • Tenure: 0yrs
    • Compensation: UK£310.00k
  • Martin Warner (66yo)

    Founder & Non-Executive Chairman

    • Tenure: 2.5yrs
    • Compensation: UK£101.00k
  • Frank Hanna (51yo)

    Joint CEO & Director

    • Tenure: 3.8yrs
    • Compensation: UK£348.00k
  • Peter Sharp (51yo)

    Co-CEO & Director

    • Tenure: 8.5yrs
    • Compensation: UK£359.00k

Board Members

  • Steve Morgan (59yo)

    Finance Director

    • Tenure: 0yrs
    • Compensation: UK£310.00k
  • Martin Warner (66yo)

    Founder & Non-Executive Chairman

    • Tenure: 2.5yrs
    • Compensation: UK£101.00k
  • Bob Carlton-Porter (75yo)

    Senior Independent Director

    • Tenure: 0yrs
    • Compensation: UK£50.00k
  • Frank Hanna (51yo)

    Joint CEO & Director

    • Tenure: 3.8yrs
    • Compensation: UK£348.00k
  • Peter Sharp (51yo)

    Co-CEO & Director

    • Tenure: 8.5yrs
    • Compensation: UK£359.00k

Company Information

Michelmersh Brick Holdings plc's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Michelmersh Brick Holdings plc
  • Ticker: MBH
  • Exchange: AIM
  • Founded: 1997
  • Industry: Construction Materials
  • Sector: Materials
  • Market Cap: UK£101.733m
  • Shares outstanding: 92.48m
  • Website: https://www.mbhplc.co.uk

Number of Employees


Location

  • Michelmersh Brick Holdings plc
  • Freshfield Lane
  • Danehill
  • Haywards Heath
  • West Sussex
  • RH17 7HH
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
MBHAIM (London Stock Exchange AIM Market)YesOrdinary SharesGBGBPMay 2004
MPODB (Deutsche Boerse AG)YesOrdinary SharesDEEURMay 2004

Biography

Michelmersh Brick Holdings Plc, through its subsidiaries, manufactures and sells bricks, tiles, and building products in the United Kingdom, Europe, and internationally. It operates through Building Materi ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/11/21 20:31
End of Day Share Price2019/11/21 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.