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Brembo

BIT:BRE
Snowflake Description

Excellent balance sheet established dividend payer.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
BRE
BIT
€3B
Market Cap
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Last updated 2019/07/17 20:42
Company description

Brembo S.p.A., together with its subsidiaries, designs, develops, and produces braking systems and components under the Brembo, Breco, AP Racing, Bybre, and Marchesini brands for cars, motorbikes, and industrial vehicles and machinery. The last earnings update was 69 days ago. More info.

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BRE Share Price and Events
7 Day Returns
-4.4%
BIT:BRE
1.5%
IT Auto Components
0.9%
IT Market
1 Year Returns
-20.7%
BIT:BRE
-20.4%
IT Auto Components
-1%
IT Market
BRE Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Brembo (BRE) -4.4% -1.9% -17.9% -20.7% -2.1% 84.2%
IT Auto Components 1.5% 3.3% -14% -20.4% -14.9% -4.7%
IT Market 0.9% 5.4% -0.2% -1% 9.6% -30.9%
1 Year Return vs Industry and Market
  • BRE matched the Auto Components industry (-20.4%) over the past year.
  • BRE underperformed the Market in Italy which returned -1% over the past year.
Price Volatility
BRE
Industry
5yr Volatility vs Market

Value

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

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Brembo to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Brembo.

BIT:BRE Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 5 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 14.8%
Perpetual Growth Rate 10-Year IT Government Bond Rate 2.9%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for BIT:BRE
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year IT Govt Bond Rate 2.9%
Equity Risk Premium S&P Global 9%
Auto Components Unlevered Beta Simply Wall St/ S&P Global 1.27
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.27 (1 + (1- 24%) (20.75%)) 		1.315
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)		 1.32
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.93% + (1.315 * 9.02%) 		14.8%

Discounted Cash Flow Calculation for BIT:BRE using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Brembo is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

BIT:BRE DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (EUR, Millions) Source Present Value
Discounted (@ 14.8%)
2020 205.60 Analyst x4 179.10
2021 226.15 Analyst x4 171.61
2022 243.22 Est @ 7.55% 160.77
2023 258.21 Est @ 6.16% 148.68
2024 271.63 Est @ 5.19% 136.25
2025 283.89 Est @ 4.52% 124.05
2026 295.37 Est @ 4.04% 112.43
2027 306.33 Est @ 3.71% 101.57
2028 316.98 Est @ 3.48% 91.55
2029 327.48 Est @ 3.31% 82.40
Present value of next 10 years cash flows €1,308.40
BIT:BRE DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= €327.48 × (1 + 2.93%) ÷ (14.8% – 2.93%) 		€2,841.66
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= €2,841.66 ÷ (1 + 14.8%)10 		€714.97
BIT:BRE Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= €1,308.40 + €714.97 		€2,023.38
Equity Value per Share
(EUR)		 = Total value / Shares Outstanding
= €2,023.38 / 325.19 		€6.22
BIT:BRE Discount to Share Price
Calculation Result
Value per share (EUR) From above. €6.22
Current discount Discount to share price of €9.69
= -1 x (€9.69 - €6.22) / €6.22 		-55.7%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of Brembo is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Brembo's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Brembo's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
BIT:BRE PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-03-31) in EUR €0.72
BIT:BRE Share Price ** BIT (2019-07-17) in EUR €9.69
Italy Auto Components Industry PE Ratio Median Figure of 5 Publicly-Listed Auto Components Companies 13.83x
Italy Market PE Ratio Median Figure of 240 Publicly-Listed Companies 16.03x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Brembo.

BIT:BRE PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= BIT:BRE Share Price ÷ EPS (both in EUR)

= 9.69 ÷ 0.72

 13.4x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Brembo is good value based on earnings compared to the IT Auto Components industry average.
  • Brembo is good value based on earnings compared to the Italy market.
Price based on expected Growth
Does Brembo's expected growth come at a high price?
Raw Data
BIT:BRE PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 13.4x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 5 Analysts		 4.3%per year
Italy Auto Components Industry PEG Ratio Median Figure of 5 Publicly-Listed Auto Components Companies 1.35x
Italy Market PEG Ratio Median Figure of 161 Publicly-Listed Companies 1.35x

*Line of best fit is calculated by linear regression .

BIT:BRE PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 13.4x ÷ 4.3%

 3.09x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Brembo is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Brembo's assets?
Raw Data
BIT:BRE PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-03-31) in EUR €3.94
BIT:BRE Share Price * BIT (2019-07-17) in EUR €9.69
Italy Auto Components Industry PB Ratio Median Figure of 5 Publicly-Listed Auto Components Companies 1.21x
Italy Market PB Ratio Median Figure of 324 Publicly-Listed Companies 1.51x
BIT:BRE PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= BIT:BRE Share Price ÷ Book Value per Share (both in EUR)

= 9.69 ÷ 3.94

 2.46x

* Primary Listing of Brembo.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Brembo is overvalued based on assets compared to the IT Auto Components industry average.
X
Value checks
We assess Brembo's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Auto Components industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Auto Components industry average (and greater than 0)? (1 check)
    5. Brembo has a total score of 2/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is Brembo expected to perform in the next 1 to 3 years based on estimates from 5 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
4.3%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Brembo expected to grow at an attractive rate?
  • Brembo's earnings growth is expected to exceed the low risk savings rate of 2.9%.
Growth vs Market Checks
  • Brembo's earnings growth is positive but not above the Italy market average.
  • Brembo's revenue growth is expected to exceed the Italy market average.
Annual Growth Rates Comparison
Raw Data
BIT:BRE Future Growth Rates Data Sources
Data Point Source Value (per year)
BIT:BRE Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 5 Analysts 4.3%
BIT:BRE Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 5 Analysts 3.6%
Italy Auto Components Industry Earnings Growth Rate Market Cap Weighted Average 11.4%
Europe Auto Components Industry Revenue Growth Rate Market Cap Weighted Average 4.5%
Italy Market Earnings Growth Rate Market Cap Weighted Average 8.9%
Italy Market Revenue Growth Rate Market Cap Weighted Average 3.5%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
BIT:BRE Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 5 Analyst Estimates (S&P Global) See Below
All numbers in EUR Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
BIT:BRE Future Estimates Data
Date (Data in EUR Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2023-12-31 3,178 1
2022-12-31 3,002 2
2021-12-31 2,965 441 273 4
2020-12-31 2,859 422 268 5
2019-12-31 2,712 157 256 5
BIT:BRE Past Financials Data
Date (Data in EUR Millions) Revenue Cash Flow Net Income *
2019-03-31 2,687 426 235
2018-12-31 2,676 448 238
2018-09-30 2,641 375 264
2018-06-30 2,571 392 267
2018-03-31 2,519 348 264
2017-12-31 2,494 384 263
2017-09-30 2,455 404 251
2017-06-30 2,431 368 250
2017-03-31 2,382 328 248
2016-12-31 2,311 361 241
2016-09-30 2,257 336 238
2016-06-30 2,199 344 222

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Brembo's earnings are expected to grow by 4.3% yearly, however this is not considered high growth (20% yearly).
  • Brembo's revenue is expected to grow by 3.6% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
BIT:BRE Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 5 Analyst Estimates (S&P Global) See Below

All data from Brembo Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

BIT:BRE Future Estimates Data
Date (Data in EUR Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2023-12-31
2022-12-31
2021-12-31 0.83 0.85 0.81 3.00
2020-12-31 0.82 0.88 0.79 5.00
2019-12-31 0.78 0.81 0.77 5.00
BIT:BRE Past Financials Data
Date (Data in EUR Millions) EPS *
2019-03-31 0.72
2018-12-31 0.73
2018-09-30 0.82
2018-06-30 0.82
2018-03-31 0.81
2017-12-31 0.81
2017-09-30 0.77
2017-06-30 0.77
2017-03-31 0.76
2016-12-31 0.74
2016-09-30 0.73
2016-06-30 0.68

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Brembo is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Brembo's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Italy market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Europe market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Brembo has a total score of 2/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Brembo performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Brembo's growth in the last year to its industry (Auto Components).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Brembo's year on year earnings growth rate has been positive over the past 5 years.
  • Brembo's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • Brembo's 1-year earnings growth is negative, it can't be compared to the Europe Auto Components industry average.
Earnings and Revenue History
Brembo's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Brembo Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

BIT:BRE Past Revenue, Cash Flow and Net Income Data
Date (Data in EUR Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-03-31 2,687.02 234.57 514.67
2018-12-31 2,676.49 238.35 511.14
2018-09-30 2,641.25 264.21 505.98
2018-06-30 2,571.15 266.85 497.22
2018-03-31 2,519.36 263.94 484.64
2017-12-31 2,494.24 263.43 476.88
2017-09-30 2,455.48 250.89 457.17
2017-06-30 2,431.09 250.24 447.58
2017-03-31 2,382.46 247.88 439.46
2016-12-31 2,310.84 240.63 424.02
2016-09-30 2,256.82 238.01 410.90
2016-06-30 2,199.46 222.07 397.66
2016-03-31 2,139.56 198.57 389.63
2015-12-31 2,089.35 183.96 386.99
2015-09-30 2,027.64 166.79 377.52
2015-06-30 1,955.56 154.02 371.32
2015-03-31 1,885.25 138.94 363.26
2014-12-31 1,817.92 129.05 355.80
2014-09-30 1,768.96 120.03 352.73
2014-06-30 1,721.67 109.79 345.94
2014-03-31 1,657.79 104.34 336.38
2013-12-31 1,582.61 89.02 330.63
2013-09-30 1,513.30 92.26 314.88
2013-06-30 1,464.08 85.51 312.07
2013-03-31 1,426.64 77.41 308.01
2012-12-31 1,404.90 77.85 302.16
2012-09-30 1,370.59 61.24 299.28

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Brembo has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Brembo used its assets more efficiently than the IT Auto Components industry average last year based on Return on Assets.
  • Brembo's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Brembo's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Auto Components industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Brembo has a total score of 2/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Brembo's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Brembo's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Brembo is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Brembo's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Brembo's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is covered by short term assets, assets are 1.8x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Brembo Company Filings, last reported 3 months ago.

BIT:BRE Past Debt and Equity Data
Date (Data in EUR Millions) Total Equity Total Debt Cash & Short Term Investments
2019-03-31 1,311.12 653.61 264.45
2018-12-31 1,228.82 482.24 345.12
2018-09-30 1,182.35 503.66 262.94
2018-06-30 1,124.53 525.98 262.75
2018-03-31 1,126.21 491.67 216.01
2017-12-31 1,064.44 519.72 300.83
2017-09-30 988.54 573.84 323.48
2017-06-30 943.06 546.27 286.21
2017-03-31 961.04 545.86 319.02
2016-12-31 882.31 442.25 245.67
2016-09-30 819.78 460.51 203.86
2016-06-30 756.06 448.76 187.99
2016-03-31 734.70 400.74 245.96
2015-12-31 687.55 363.60 202.10
2015-09-30 630.31 427.58 212.20
2015-06-30 596.61 426.54 166.48
2015-03-31 621.41 477.93 222.78
2014-12-31 536.33 482.22 206.02
2014-09-30 505.63 507.48 187.67
2014-06-30 462.22 512.94 183.67
2014-03-31 464.72 491.37 151.36
2013-12-31 429.21 428.90 106.09
2013-09-30 401.98 480.04 108.07
2013-06-30 392.99 487.08 114.21
2013-03-31 413.36 465.47 120.91
2012-12-31 393.82 434.55 115.60
2012-09-30 375.92 534.26 183.95
  • Brembo's level of debt (49.9%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has been reduced over the past 5 years (105.8% vs 49.9% today).
  • Debt is well covered by operating cash flow (65.2%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 21.7x coverage).
Show me more healthy companies in the Auto Components industry
X
Financial health checks
We assess Brembo's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
    7. Brembo has a total score of 5/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
2.27%
Current annual income from Brembo dividends. Estimated to be 2.54% next year.
If you bought €2,000 of Brembo shares you are expected to receive €45 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Brembo's pays a higher dividend yield than the bottom 25% of dividend payers in Italy (2.07%).
  • Brembo's dividend is below the markets top 25% of dividend payers in Italy (4.42%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
BIT:BRE Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 5 Analyst Estimates (S&P Global) See Below
Europe Auto Components Industry Average Dividend Yield Market Cap Weighted Average of 34 Stocks 3.8%
Italy Market Average Dividend Yield Market Cap Weighted Average of 185 Stocks 4%
Italy Minimum Threshold Dividend Yield 10th Percentile 1%
Italy Bottom 25% Dividend Yield 25th Percentile 2.1%
Italy Top 25% Dividend Yield 75th Percentile 4.4%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

BIT:BRE Future Dividends Estimate Data
Date (Data in €) Dividend per Share (annual) Avg. No. Analysts
2023-12-31
2022-12-31
2021-12-31 0.26 4.00
2020-12-31 0.25 5.00
2019-12-31 0.23 5.00
BIT:BRE Past Annualized Dividends Data
Date (Data in €) Dividend per share (annual) Avg. Yield (%)
2019-03-18 0.220 2.110
2019-03-04 0.220 2.114
2018-03-20 0.220 2.017
2018-03-05 0.220 1.736
2017-03-20 0.200 1.494
2017-03-03 0.200 1.518
2016-04-21 0.160 1.494
2015-03-24 0.120 1.528
2015-03-05 0.120 1.586
2014-03-06 0.100 1.818
2013-03-05 0.080 2.500
2012-07-31 0.060 3.375
2012-03-02 0.060 3.656
2011-03-02 0.060 3.798
2010-05-13 0.045 3.408
2009-03-19 0.045 4.689

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been stable in the past 10 years.
  • Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of Brembo's earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by earnings (3.3x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (3.2x coverage).
Show me more dividend paying companies in the Auto Components industry
X
Income/ dividend checks
We assess Brembo's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Brembo afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
    7. Brembo has a total score of 5/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

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

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Daniele Schillaci
TENURE AS CEO 0 years
CEO Bio

Mr. Daniele Schillaci has been Chief Executive Officer, Managing Director ?& Director at Brembo S.p.A. since July 1, 2019. Mr. Schillaci served as an Executive Vice President of Global Marketing and Sales, Zero Emission Vehicle and Battery Business Unit at Nissan Motor Co. Ltd., since March 14, 2017 until May 15, 2019. Mr. Schillaci served as Executive Vice President for Global Marketing and Sales at Nissan Motor Co. Ltd. from June 15, 2015 to March 14, 2017. Mr. Schillaci began his career in 1993 at Renault SA, (now Nissan's French partner), and joined Fiat Auto SpA in 2001 as Head of the Alfa Romeo unit in Italy. Since 2002, he has held a number of key positions at Toyota's European operations and served as its senior vice president at Toyota Motor Europe since 2012. Mr. Schillaci served as a Non-Executive Director at Toyota Caetano Portugal SA since February 6, 2012.

CEO Compensation
  • Insufficient data for Daniele to compare compensation growth.
  • Insufficient data for Daniele to establish whether their remuneration is reasonable compared to companies of similar size in Italy.
Management Team Tenure

Average tenure of the Brembo management team in years:

10.4
Average Tenure
  • The average tenure for the Brembo management team is over 5 years, this suggests they are a seasoned and experienced team.
Management Team

Alberto Bombassei

TITLE
Chairman & President
COMPENSATION
€5M
AGE
79
TENURE
11.3 yrs

Matteo Tiraboschi

TITLE
Executive Deputy Chairman
COMPENSATION
€3M
TENURE
10.2 yrs

Cristina Bombassei

TITLE
Chief CSR Officer & Executive Director
COMPENSATION
€196K

Daniele Schillaci

TITLE
CEO, MD & Director

Umberto Simonelli

TITLE
Chief Legal & Corporate Affairs Officer and Company Secretary
AGE
37
TENURE
10.4 yrs

Giovanni Canavotto

TITLE
GM of Systems Division & Executive Director
Board of Directors Tenure

Average tenure of the Brembo board of directors in years:

8.1
Average Tenure
  • The tenure for the Brembo board of directors is about average.
Board of Directors

Alberto Bombassei

TITLE
Chairman & President
COMPENSATION
€5M
AGE
79
TENURE
26.5 yrs

Matteo Tiraboschi

TITLE
Executive Deputy Chairman
COMPENSATION
€3M
TENURE
8.1 yrs

Cristina Bombassei

TITLE
Chief CSR Officer & Executive Director
COMPENSATION
€196K
TENURE
22.5 yrs

Daniele Schillaci

TITLE
CEO, MD & Director

Giovanni Canavotto

TITLE
GM of Systems Division & Executive Director

Barbara Borra

TITLE
Independent & Non-Executive Director
COMPENSATION
€65K
TENURE
5.2 yrs

Raffaele Pagani

TITLE
Chairwoman of Board of Statutory Auditors
COMPENSATION
€62K
TENURE
5.2 yrs

Laura Cioli

TITLE
Independent & Non-Executive Director

Valerio Battista

TITLE
Lead Independent Director
AGE
62
TENURE
2.3 yrs

Umberto Nicodano

TITLE
Non-Executive Director
COMPENSATION
€55K
TENURE
19.5 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month individual insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (€) Value (€)
X
Management checks
We assess Brembo's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
    5. Brembo has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

If You Had Bought Brembo (BIT:BRE) Shares Five Years Ago You'd Have Made 100%

To wit, the Brembo share price has climbed 100% in five years, easily topping the market return of -30% (ignoring dividends). … During five years of share price growth, Brembo achieved compound earnings per share (EPS) growth of 18% per year. … So the EPS growth rate is rather close to the annualized share price gain of 15% per year.

Simply Wall St - –

When Should You Buy Brembo S.p.A. (BIT:BRE)?

The stock’s ratio of 14.21x is currently trading in-line with its industry peers’ ratio, which means if you buy Brembo today, you’d be paying a relatively fair price for it. … BRE’s optimistic future growth appears to have been factored into the current share price, with shares trading around its fair value. … Will you have enough confidence to invest in the company should the price drop below its fair value?

Simply Wall St - –

Where Brembo S.p.A.'s (BIT:BRE) Earnings Growth Stands Against Its Industry

After reading Brembo S.p.A.'s (BIT:BRE) latest earnings update (31 March 2019), I found it beneficial to look back at how the company has performed in the past and compare this against the most recent numbers. … Check out our latest analysis for Brembo How Did BRE's Recent Performance Stack Up Against Its Past? … Furthermore, this one-year growth rate has been lower than its average earnings growth rate over the past 5 years of 17%, indicating the rate at which BRE is growing has slowed down.

Simply Wall St - –

How Financially Strong Is Brembo S.p.A. (BIT:BRE)?

Does BRE Produce Much Cash Relative To Its Debt? … With this growth in debt, the current cash and short-term investment levels stands at €264m to keep the business going. … On top of this, BRE has produced €426m in operating cash flow over the same time period, resulting in an operating cash to total debt ratio of 65%, indicating that BRE’s operating cash is sufficient to cover its debt.

Simply Wall St - –

Should We Be Delighted With Brembo S.p.A.'s (BIT:BRE) ROE Of 18%?

The formula for ROE is: Return on Equity = Net Profit ÷ Shareholders' Equity Or for Brembo: 18% = €235m ÷ €1.3b (Based on the trailing twelve months to March 2019.) Most readers would understand what net profit is, but it’s worth explaining the concept of shareholders’ equity. … Does Brembo Have A Good Return On Equity? … If you would prefer check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity and low debt.

Simply Wall St - –

One Thing To Remember About The Brembo S.p.A. (BIT:BRE) Share Price

(BIT:BRE), then you might want to consider its beta (a measure of share price volatility) in order to understand how the stock could impact your portfolio. … It takes deep pocketed investors to influence the share price of a large company, so it's a little unusual to see companies this size with high beta values. … What this means for you: Since Brembo has a reasonably high beta, it's worth considering why it is so heavily influenced by broader market sentiment.

Simply Wall St - –

Here's What Brembo S.p.A.'s (BIT:BRE) ROCE Can Tell Us

Specifically, we're going to calculate its Return On Capital Employed (ROCE), in the hopes of getting some insight into the business. … Return On Capital Employed (ROCE): What is it? … ROCE is a measure of a company's yearly pre-tax profit (its return), relative to the capital employed in the business.

Simply Wall St - –

Brembo S.p.A. (BIT:BRE): What We Can Expect From This Growth Stock

Help shape the future of investing tools and you could win a $250 gift card! … (BIT:BRE) released its earnings in December 2018, … the higher past 5-year average growth rate of 19%.

Simply Wall St - –

How Does Brembo S.p.A. (BIT:BRE) Stand Up To These Simple Dividend Safety Checks?

(BIT:BRE) be an attractive dividend share to own for the long haul? … Regular readers know we like to apply the same approach to each dividend stock, and we hope you'll find our analysis useful. … While Brembo's 1.9% dividend yield is not the highest, we think its lengthy payment history is quite interesting.

Simply Wall St - –

Here's What Brembo S.p.A.'s (BIT:BRE) P/E Is Telling Us

The goal of this article is to teach you how to use price to earnings ratios (P/E ratios). … We'll apply a basic P/E ratio analysis to Brembo S.p.A.'s (BIT:BRE), to help you decide if the stock is worth further research. … Price to Earnings Ratio = Share Price ÷ Earnings per Share (EPS)

Simply Wall St - –

Company Info

Description

Brembo S.p.A., together with its subsidiaries, designs, develops, and produces braking systems and components under the Brembo, Breco, AP Racing, Bybre, and Marchesini brands for cars, motorbikes, and industrial vehicles and machinery. It operates through Discs/Systems/Motorbikes and After Market/Performance Group segments. The company offers brake discs, calipers, wheel-side modules, and braking systems, as well as integrated engineering services for cars and commercial vehicles; and discs, calipers, brake master cylinders, lightweight alloy wheels, and completes braking systems for motorcycles. It also provides spare parts comprising brake discs, brake pads, drums, brake shoes, kits for drum brakes, and hydraulic components. In addition, the company designs and produces Brembo Racing branded braking systems for race cars and motorbikes; AP Racing branded braking systems and clutches for race cars; Marchesini branded magnesium and aluminium wheels for racing motorbikes. It operates in 15 countries. The company was founded in 1961 and is headquartered in Stezzano, Italy. Brembo S.p.A. is a subsidiary of Nuova FourB S.r.l.

Details
Name: Brembo S.p.A.
BRE
Exchange: BIT
Founded: 1961
€3,149,438,516
325,187,250
Website: http://www.brembo.com
Address: Brembo S.p.A.
Kilometro Rosso Science and Technology Park,
Viale Europa, 2,
Stezzano,
Bergamo, 24040,
Italy
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
BIT BRE Ordinary Shares Borsa Italiana IT EUR 03. Jul 1995
OTCPK BRBO.F Ordinary Shares Pink Sheets LLC US USD 03. Jul 1995
DB BRCA Ordinary Shares Deutsche Boerse AG DE EUR 03. Jul 1995
LSE 0RPV Ordinary Shares London Stock Exchange GB EUR 03. Jul 1995
WBAG BRE Ordinary Shares Wiener Boerse AG AT EUR 03. Jul 1995
Number of employees
Current staff
Staff numbers
10,693
Brembo employees.
Industry
Auto Parts and Equipment
Automobiles
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/07/17 20:42
End of day share price update: 2019/07/17 00:00
Last estimates confirmation: 2019/05/13
Last earnings filing: 2019/05/09
Last earnings reported: 2019/03/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.

Related Companies

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