LSE:IBST

Stock Analysis Report

Executive Summary

Ibstock plc manufactures and sells a range of clay and concrete products in the United Kingdom and the United States.


Snowflake Analysis

Good value with adequate balance sheet and pays a dividend.


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's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-0.6%

IBST

-7.1%

GB Basic Materials

6.0%

GB Market


1 Year Return

-38.2%

IBST

-33.9%

GB Basic Materials

-22.7%

GB Market

Return vs Industry: IBST underperformed the UK Basic Materials industry which returned -33.9% over the past year.

Return vs Market: IBST underperformed the UK Market which returned -22.7% over the past year.


Shareholder returns

IBSTIndustryMarket
7 Day-0.6%-7.1%6.0%
30 Day-48.5%-35.6%-20.3%
90 Day-52.2%-41.7%-28.1%
1 Year-34.1%-38.2%-31.7%-33.9%-18.6%-22.7%
3 Year-16.2%-28.6%-7.9%-14.4%-13.4%-24.6%
5 Yearn/a38.2%27.1%1.3%-22.0%

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?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: IBST (£1.48) is trading below our estimate of fair value (£3.29)

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


Price To Earnings Ratio

PE vs Industry: IBST is good value based on its PE Ratio (9.1x) compared to the Basic Materials industry average (9.1x).

PE vs Market: IBST is good value based on its PE Ratio (9.1x) compared to the UK market (12.5x).


Price to Earnings Growth Ratio

PEG Ratio: IBST is poor value based on its PEG Ratio (2.6x)


Price to Book Ratio

PB vs Industry: IBST is overvalued based on its PB Ratio (1.3x) compared to the GB Basic Materials industry average (1.2x).


Next Steps

Future Growth

How is Ibstock forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?

3.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: IBST's forecast earnings growth (3.5% per year) is above the savings rate (0.5%).

Earnings vs Market: IBST's earnings (3.5% per year) are forecast to grow slower than the UK market (15.4% per year).

High Growth Earnings: IBST's earnings are forecast to grow, but not significantly.

Revenue vs Market: IBST's revenue (3.3% per year) is forecast to grow faster than the UK market (2.6% per year).

High Growth Revenue: IBST's revenue (3.3% 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 (15.3%).


Next Steps

Past Performance

How has Ibstock performed over the past 5 years?

1.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: IBST has high quality earnings.

Growing Profit Margin: IBST's current net profit margins (16.2%) are lower than last year (19.5%).


Past Earnings Growth Analysis

Earnings Trend: IBST's earnings have grown by 1.2% per year over the past 5 years.

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

Earnings vs Industry: IBST had negative earnings growth (-13%) over the past year, making it difficult to compare to the Basic Materials industry average (27.3%).


Return on Equity

High ROE: IBST's Return on Equity (14.3%) is considered low.


Next Steps

Financial Health

How is Ibstock's financial position?


Financial Position Analysis

Short Term Liabilities: IBST's short term assets (£163.1M) exceed its short term liabilities (£102.2M).

Long Term Liabilities: IBST's short term assets (£163.1M) do not cover its long term liabilities (£204.6M).


Debt to Equity History and Analysis

Debt Level: IBST's debt to equity ratio (22.5%) is considered satisfactory.

Reducing Debt: IBST's debt to equity ratio has increased from 7.9% to 22.5% over the past 5 years.

Debt Coverage: IBST's debt is well covered by operating cash flow (73%).

Interest Coverage: IBST's interest payments on its debt are well covered by EBIT (41.9x coverage).


Balance Sheet

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

Debt Coverage by Assets: IBST's debt is covered by short term assets (assets are 1.6x debt).


Next Steps

Dividend

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

9.91%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: IBST's dividend (9.91%) is higher than the bottom 25% of dividend payers in the UK market (2.7%).

High Dividend: IBST's dividend (9.91%) is in the top 25% of dividend payers in the UK market (7.3%)


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, IBST has been paying a dividend for less than 10 years.

Growing Dividend: IBST's dividend payments have increased, but the company has only paid a dividend for 4 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (59.6%), IBST's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: IBST's dividends in 3 years are forecast to be covered by earnings (61.2% payout ratio).


Next Steps

Management

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

1.5yrs

Average management tenure


CEO

Joe Hudson (49yo)

1.92s

Tenure

UK£926,687

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 ($USD1.15M) is about average for companies of similar size in the UK market ($USD1.28M).

Compensation vs Earnings: Insufficient data to compare Joe's compensation with company performance.


Leadership Team

NamePositionTenureCompensationOwnership
Joseph Hudson
CEO & Director1.92yrsUK£926.69kno data
Christopher McLeish
CFO & Director0.58yrno datano data
Mark Richmond
Group Development & Investor Relations Directorno datano datano data
John Lambert
Managing Director of Forticreteno datano datano data
Kate Tinsley
Managing Director of Clay Division & Executive Director0.17yrno datano data
Doug Rende
President of Glen-Gery4.17yrsno datano data
Nick Giles
Group Company Secretary0.33yrno datano data
Mark Houghton
Managing Director of Supreme4.5yrsno datano data

1.5yrs

Average Tenure

55yo

Average Age

Experienced Management: IBST's management team is not considered experienced ( 1.5 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Joseph Hudson
CEO & Director1.92yrsUK£926.69kno data
Christopher McLeish
CFO & Director0.58yrno datano data
Kate Tinsley
Managing Director of Clay Division & Executive Director0.17yrno datano data
Justin Read
Independent Non-Executive Director3.17yrsUK£56.05k0.0043% £26.0k
Tracey Graham
Senior Independent Director1.83yrsUK£63.03k0.0024% £14.8k
Louis Leslie Eperjesi
Independent Non-Executive Director1.75yrsUK£29.17k0.0049% £29.7k
Jonathan Nicholls
Chairman of the Board1.83yrsUK£131.56k0.0024% £14.8k
Claire Hawkings
Independent Non-Executive Director1.5yrsUK£16.67k0.0024% £14.8k

1.8yrs

Average Tenure

55.5yo

Average Age

Experienced Board: IBST's board of directors are not considered experienced ( 1.8 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

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


Key Information

  • Name: Ibstock plc
  • Ticker: IBST
  • Exchange: LSE
  • Founded: 1890
  • Industry: Construction Materials
  • Sector: Materials
  • Market Cap: UK£606.928m
  • Shares outstanding: 409.26m
  • Website: https://www.ibstockplc.com

Number of Employees


Location

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

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
IBSTLSE (London Stock Exchange)YesOrdinary SharesGBGBPOct 2015
2I5DB (Deutsche Boerse AG)YesOrdinary SharesDEEUROct 2015
IBSTLBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBGBPOct 2015
IBJH.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDOct 2015

Biography

Ibstock plc manufactures and sells a range of clay and concrete products in the United Kingdom and the United States. Its principal products include clay bricks, brick components, concrete roof tiles, concrete stone masonry substitutes, concrete fencing, pre-stressed concrete, and concrete rail products. The company also provides concrete lintels; precast and pre-stressed concrete products; and architectural masonry, landmark stone and walling stones, as well as concrete rail and infrastructure products. Its products are in new build housing; repair, maintenance, and improvement; other new build; rail and infrastructure markets. The company sells its products to customers in the construction industry, including builders’ merchants, housebuilders, specialist brick distributors, contractors, and installers. Ibstock plc was founded in 1890 and is based in Ibstock, the United Kingdom. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/03/28 23:03
End of Day Share Price2020/03/27 00:00
Earnings2019/12/31
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.