LSE:IBST

Stock Analysis Report

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Market Cap

UK£958.4m

Last Updated

2021/06/14 23:00 UTC

Data Sources

Company Financials +

Executive Summary

Ibstock plc manufactures and sells clay and concrete building products and solutions primarily in the United Kingdom. More Details

Rewards

Trading at 35.7% below our estimate of its fair value

Earnings are forecast to grow 39.49% per year

Risk Analysis

No risks detected for IBST from our risk checks.


Snowflake Analysis

Adequate balance sheet with reasonable growth potential.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: IBST is less volatile than 75% of UK stocks over the past 3 months, typically moving +/- 3% a week.

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


Market Performance


7 Day Return

0%

IBST

-2.5%

GB Basic Materials

0.5%

GB Market


1 Year Return

20.6%

IBST

43.0%

GB Basic Materials

22.0%

GB Market

Return vs Industry: IBST underperformed the UK Basic Materials industry which returned 43% over the past year.

Return vs Market: IBST underperformed the UK Market which returned 22% over the past year.


Shareholder returns

IBSTIndustryMarket
7 Day0%-2.5%0.5%
30 Day4.2%0.04%2.0%
90 Day7.9%10.4%6.0%
1 Year21.5%20.6%44.8%43.0%28.3%22.0%
3 Year-11.8%-21.0%17.0%10.4%14.0%-0.2%
5 Year43.8%20.1%84.7%69.9%52.6%23.0%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

35.7%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: IBST (£2.34) is trading below our estimate of fair value (£3.64)

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


Price To Earnings Ratio

PE vs Industry: IBST is unprofitable, so we can't compare its PE Ratio to the UK Basic Materials industry average.

PE vs Market: IBST is unprofitable, so we can't compare its PE Ratio to the UK market.


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: IBST is good value based on its PB Ratio (2.4x) compared to the GB Basic Materials industry average (2.6x).


Future Growth

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

39.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: IBST is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (0.9%).

Earnings vs Market: IBST is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: IBST's is expected to become profitable in the next 3 years.

Revenue vs Market: IBST's revenue (10.1% per year) is forecast to grow faster than the UK market (5% per year).

High Growth Revenue: IBST's revenue (10.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: IBST's Return on Equity is forecast to be low in 3 years time (14.6%).


Past Performance

How has Ibstock performed over the past 5 years?

-23.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: IBST is currently unprofitable.

Growing Profit Margin: IBST is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: IBST is unprofitable, and losses have increased over the past 5 years at a rate of 23% per year.

Accelerating Growth: Unable to compare IBST's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: IBST is unprofitable, making it difficult to compare its past year earnings growth to the Basic Materials industry (-42.6%).


Return on Equity

High ROE: IBST has a negative Return on Equity (-7.04%), as it is currently unprofitable.


Financial Health

How is Ibstock's financial position?


Financial Position Analysis

Short Term Liabilities: IBST's short term assets (£143.0M) exceed its short term liabilities (£98.0M).

Long Term Liabilities: IBST's short term assets (£143.0M) do not cover its long term liabilities (£183.9M).


Debt to Equity History and Analysis

Debt Level: IBST's debt to equity ratio (22.3%) is considered satisfactory.

Reducing Debt: IBST's debt to equity ratio has reduced from 63.3% to 22.3% over the past 5 years.

Debt Coverage: IBST's debt is well covered by operating cash flow (50.2%).

Interest Coverage: IBST is unprofitable, therefore interest payments are not well covered by earnings.


Balance Sheet


Dividend

What is Ibstock current dividend yield, its reliability and sustainability?

0.68%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: IBST's dividend (0.68%) isn’t notable compared to the bottom 25% of dividend payers in the UK market (1.28%).

High Dividend: IBST's dividend (0.68%) is low compared to the top 25% of dividend payers in the UK market (4.01%).


Stability and Growth of Payments

Stable Dividend: IBST is not paying a notable dividend for the UK market, therefore no need to check if payments are stable.

Growing Dividend: IBST is not paying a notable dividend for the UK market, therefore no need to check if payments are increasing.


Current Payout to Shareholders

Dividend Coverage: IBST is not paying a notable dividend for the UK market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of IBST'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?

2.4yrs

Average management tenure


CEO

Joe Hudson (51 yo)

3.17yrs

Tenure

UK£539,525

Compensation

Mr. Joseph Hudson, also known as Joe, BA (Hons), FCIPD, Esq., has been Chief Executive Officer and Director of Ibstock plc since April 4, 2018 and January 2, 2018 respectively. He has been a Managing Direc...


CEO Compensation Analysis

Compensation vs Market: Joe's total compensation ($USD761.03K) is below average for companies of similar size in the UK market ($USD1.38M).

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


Leadership Team

Experienced Management: IBST's management team is considered experienced (2.4 years average tenure).


Board Members

Experienced Board: IBST's board of directors are considered experienced (3.1 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

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


Key Information

  • Name: Ibstock plc
  • Ticker: IBST
  • Exchange: LSE
  • Founded: 1825
  • Industry: Construction Materials
  • Sector: Materials
  • Market Cap: UK£958.373m
  • Shares outstanding: 409.56m
  • Website: https://www.ibstockplc.co.uk

Number of Employees


Location

  • Ibstock plc
  • Leicester Road
  • Ibstock
  • Leicestershire
  • LE67 6HS
  • United Kingdom

Listings


Biography

Ibstock plc manufactures and sells clay and concrete building products and solutions primarily in the United Kingdom. Its principal products include clay bricks, brick components, concrete roof tiles, conc...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/06/14 23:00
End of Day Share Price2021/06/14 00:00
Earnings2020/12/31
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.