BIT:BZU

Stock Analysis Report

Executive Summary

Buzzi Unicem SpA, together with its subsidiaries, manufactures, distributes, and sells cement, ready-mix concrete, and aggregates.

Rewards

Trading at 42.5% below its fair value

Earnings are forecast to grow 5.78% per year

Risk Analysis

No risks detected for BZU from our risk checks.


Snowflake Analysis

Excellent balance sheet and good value.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

-2.3%

BZU

-1.8%

IT Basic Materials

1.0%

IT Market


1 Year Return

32.9%

BZU

9.0%

IT Basic Materials

17.6%

IT Market

Return vs Industry: BZU exceeded the Italian Basic Materials industry which returned 9.3% over the past year.

Return vs Market: BZU exceeded the Italian Market which returned 18.6% over the past year.


Shareholder returns

BZUIndustryMarket
7 Day-2.3%-1.8%1.0%
30 Day4.3%-1.8%4.1%
90 Day-0.6%0.3%6.5%
1 Year33.7%32.9%12.4%9.0%22.8%17.6%
3 Year-1.5%-3.1%1.6%-6.6%39.4%25.4%
5 Year83.5%79.1%10.4%-3.5%17.6%-22.5%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

42.5%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: BZU (€22.57) is trading below our estimate of fair value (€39.28)

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


Price To Earnings Ratio

PE vs Industry: BZU is good value based on its PE Ratio (11.7x) compared to the Basic Materials industry average (13x).

PE vs Market: BZU is good value based on its PE Ratio (11.7x) compared to the Italian market (19.1x).


Price to Earnings Growth Ratio

PEG Ratio: BZU is poor value based on its PEG Ratio (2x)


Price to Book Ratio

PB vs Industry: BZU is overvalued based on its PB Ratio (1.4x) compared to the XE Basic Materials industry average (1.2x).


Next Steps

Future Growth

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

5.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: BZU's forecast earnings growth (5.8% per year) is above the savings rate (1.2%).

Earnings vs Market: BZU's earnings (5.8% per year) are forecast to grow slower than the Italian market (9.9% per year).

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

Revenue vs Market: BZU's revenue (4.2% per year) is forecast to grow faster than the Italian market (4.2% per year).

High Growth Revenue: BZU's revenue (4.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: BZU's Return on Equity is forecast to be low in 3 years time (10.5%).


Next Steps

Past Performance

How has Buzzi Unicem performed over the past 5 years?

35.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: BZU has high quality earnings.

Growing Profit Margin: BZU's current net profit margins (12.9%) are lower than last year (14.2%).


Past Earnings Growth Analysis

Earnings Trend: BZU has become profitable over the past 5 years, growing earnings by 35.3% per year.

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

Earnings vs Industry: BZU had negative earnings growth (-0.8%) over the past year, making it difficult to compare to the Basic Materials industry average (25.3%).


Return on Equity

High ROE: BZU's Return on Equity (11.6%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Buzzi Unicem's financial position?


Financial Position Analysis

Short Term Liabilities: BZU's short term assets (€1.7B) exceed its short term liabilities (€805.8M).

Long Term Liabilities: BZU's short term assets (€1.7B) do not cover its long term liabilities (€1.9B).


Debt to Equity History and Analysis

Debt Level: BZU's debt to equity ratio (38.7%) is considered satisfactory.

Reducing Debt: BZU's debt to equity ratio has reduced from 69.9% to 38.7% over the past 5 years.

Debt Coverage: BZU's debt is well covered by operating cash flow (32.4%).

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


Balance Sheet

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

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


Next Steps

Dividend

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

0.55%

Current Dividend Yield


Dividend Yield vs Market

company0.6%marketbottom25%1.9%markettop25%4.4%industryaverage2.9%forecastin3Years0.9%

Current dividend yield vs market & industry

Notable Dividend: BZU's dividend (0.55%) isn’t notable compared to the bottom 25% of dividend payers in the Italian market (1.87%).

High Dividend: BZU's dividend (0.55%) is low compared to the top 25% of dividend payers in the Italian market (4.34%).


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: BZU is not paying a notable dividend for the Italian market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of BZU's dividend in 3 years as they are not forecast to pay a notable one for the Italian market.


Next Steps

Management

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

13.6yrs

Average board tenure


CEO

Buzzi Unicem has no CEO, or we have no data on them.


Board Members

NamePositionTenureCompensationOwnership
Enrico Buzzi
Executive Chairman of the Board2.8yrs€243.60kno data
Pietro Buzzi
Chief Executive of Finance & Executive Director20.1yrs€329.89kno data
Michele Buzzi
Chief Executive Operations & Executive Director15.1yrs€315.99kno data
Gianfelice Mario Rocca
Non-Executive Independent Director17.1yrs€45.00kno data
Maurizio Sella
Non-Executive Independent Director21.1yrs€60.00kno data
Alessandro Buzzi
Honorary Chairman0yrs€98.09kno data
Paolo Burlando
Non-Executive Independent Director12.1yrs€210.00kno data
Elsa Fornero
Non-Executive Independent Director6.1yrs€45.00kno data
Veronica Buzzi
Non-Executive Vice Chairman of the Board2.8yrs€45.00kno data
Fabrizio Di Giusto
Chairman of Board of Statutory Auditors0yrs€45.00kno data

13.6yrs

Average Tenure

71yo

Average Age

Experienced Board: BZU's board of directors are seasoned and experienced ( 13.6 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

Buzzi Unicem S.p.A.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Buzzi Unicem S.p.A.
  • Ticker: BZU
  • Exchange: BIT
  • Founded: 1907
  • Industry: Construction Materials
  • Sector: Materials
  • Market Cap: €4.336b
  • Shares outstanding: 205.30m
  • Website: https://www.buzziunicem.it

Number of Employees


Location

  • Buzzi Unicem S.p.A.
  • via Luigi Buzzi, 6
  • Casale Monferrato
  • Alessandria
  • 15033
  • Italy

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
BZZF.FOTCPK (Pink Sheets LLC)Saving SharesUSUSDJan 1992
UCMDB (Deutsche Boerse AG)YesOrdinary SharesDEEURJan 1992
UCM1DB (Deutsche Boerse AG)Saving SharesDEEURJan 1992
BZUBIT (Borsa Italiana)YesOrdinary SharesITEURJan 1992
BZURBIT (Borsa Italiana)Saving SharesITEURJan 1992
BZZU.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJan 1992
0NVQLSE (London Stock Exchange)YesOrdinary SharesGBEURJan 1992
0NVRLSE (London Stock Exchange)Saving SharesGBEURJan 1992
BZUMBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBEURJan 1992
BZURMBATS-CHIXE (BATS 'Chi-X Europe')Saving SharesGBEURJan 1992
BZUWBAG (Wiener Boerse AG)YesOrdinary SharesATEURJan 1992
BZZU.YOTCPK (Pink Sheets LLC)UNSPONSORD ADRUSUSDOct 2008

Biography

Buzzi Unicem SpA, together with its subsidiaries, manufactures, distributes, and sells cement, ready-mix concrete, and aggregates. The company has operations in Italy, the United States, Germany, Luxembourg, the Netherlands, Poland, the Czech Republic, Slovakia, Ukraine, Russia, Mexico, and Brazil. Buzzi Unicem SpA was founded in 1907 and is based in Casale Monferrato, Italy. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/20 20:56
End of Day Share Price2020/02/20 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.