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FBU

Fletcher BuildingNZSE:FBU Stock Report

Market Cap

NZ$5.9b

7D

-0.4%

1Y

67.8%

Updated

22 Oct, 2021

Data

Company Financials +
FBU fundamental analysis
Snowflake Score
Valuation2/6
Future Growth1/6
Past Performance1/6
Financial Health6/6
Dividends5/6

FBU Overview

Fletcher Building Limited, together with its subsidiaries, manufactures and distributes building products in New Zealand, Australia, and internationally.

Fletcher Building Competitors

ArcelorMittal

ENXTAM:MT

€25.4b

Vulcan Materials

NYSE:VMC

US$24.5b

POSCO

KOSE:A005490

₩23.5t

James Hardie Industries

ASX:JHX

AU$23.1b

Price History & Performance

Summary of all time highs, changes and price drops for Fletcher Building
Historical stock prices
Current Share PriceNZ$7.13
52 Week HighNZ$4.05
52 Week LowNZ$7.99
Beta1.16
1 Month Change-1.65%
3 Month Change-3.65%
1 Year Change67.77%
3 Year Change22.51%
5 Year Change-30.44%
Change since IPO219.73%

Recent News & Updates

Oct 12
This Is Why Fletcher Building Limited's (NZSE:FBU) CEO Compensation Looks Appropriate

This Is Why Fletcher Building Limited's (NZSE:FBU) CEO Compensation Looks Appropriate

Performance at Fletcher Building Limited ( NZSE:FBU ) has been reasonably good and CEO Ross Taylor has done a decent...

Sep 16
These 4 Measures Indicate That Fletcher Building (NZSE:FBU) Is Using Debt Reasonably Well

These 4 Measures Indicate That Fletcher Building (NZSE:FBU) Is Using Debt Reasonably Well

David Iben put it well when he said, 'Volatility is not a risk we care about. What we care about is avoiding the...

Jul 29
At NZ$7.56, Is It Time To Put Fletcher Building Limited (NZSE:FBU) On Your Watch List?

At NZ$7.56, Is It Time To Put Fletcher Building Limited (NZSE:FBU) On Your Watch List?

Fletcher Building Limited ( NZSE:FBU ), might not be a large cap stock, but it received a lot of attention from a...

Shareholder Returns

FBUNZ BuildingNZ Market
7D-0.4%1.6%0.7%
1Y67.8%41.3%2.4%

Return vs Industry: FBU exceeded the NZ Building industry which returned 41.3% over the past year.

Return vs Market: FBU exceeded the NZ Market which returned 2.4% over the past year.

Price Volatility

Is FBU's price volatile compared to industry and market?
FBU volatility
FBU Beta1.16
Industry Beta1.09
Market Beta1

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

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

About the Company

FoundedEmployeesCEOWebsite
190914,500Ross Taylorhttps://fletcherbuilding.com

Fletcher Building Limited, together with its subsidiaries, manufactures and distributes building products in New Zealand, Australia, and internationally. It operates through Building Products, Distribution, Concrete, Residential and Development, Construction, and Australia segments. The Building Products segment manufactures, markets, distributes, and sells building products used to build homes, buildings, and infrastructure, including insulations, plasterboards, laminate surfaces, and plastic and concrete piping for the commercial and residential markets.

Fletcher Building Fundamentals Summary

How do Fletcher Building's earnings and revenue compare to its market cap?
FBU fundamental statistics
Market CapNZ$5.89b
Earnings (TTM)NZ$305.00m
Revenue (TTM)NZ$8.12b

19.1x

P/E Ratio

0.7x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
FBU income statement (TTM)
RevenueNZ$8.12b
Cost of RevenueNZ$5.78b
Gross ProfitNZ$2.34b
ExpensesNZ$2.04b
EarningsNZ$305.00m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)0.37
Gross Margin28.84%
Net Profit Margin3.76%
Debt/Equity Ratio22.7%

How did FBU perform over the long term?

See historical performance and comparison

Dividends

5.0%

Current Dividend Yield

81%

Payout Ratio

Valuation

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

19.05x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: FBU (NZ$7.13) is trading above our estimate of fair value (NZ$4.66)

Significantly Below Fair Value: FBU is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: FBU is good value based on its PE Ratio (19.1x) compared to the Oceanic Building industry average (19.3x).

PE vs Market: FBU is good value based on its PE Ratio (19.1x) compared to the NZ market (22.2x).


Price to Earnings Growth Ratio

PEG Ratio: FBU is poor value based on its PEG Ratio (2.2x)


Price to Book Ratio

PB vs Industry: FBU's PB Ratio (1.5x) is in line with the XO Building industry average.


Future Growth

How is Fletcher Building forecast to perform in the next 1 to 3 years based on estimates from 12 analysts?

8.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: FBU's forecast earnings growth (8.7% per year) is above the savings rate (2.1%).

Earnings vs Market: FBU's earnings (8.7% per year) are forecast to grow slower than the NZ market (9.3% per year).

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

Revenue vs Market: FBU's revenue (1.7% per year) is forecast to grow slower than the NZ market (5.2% per year).

High Growth Revenue: FBU's revenue (1.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: FBU's Return on Equity is forecast to be low in 3 years time (12.1%).


Past Performance

How has Fletcher Building performed over the past 5 years?

-21.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: FBU has a large one-off loss of NZ$128.0M impacting its June 30 2021 financial results.

Growing Profit Margin: FBU became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: FBU's earnings have declined by 21.1% per year over the past 5 years.

Accelerating Growth: FBU has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: FBU has become profitable in the last year, making it difficult to compare its past year earnings growth to the Building industry (39.4%).


Return on Equity

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


Financial Health

How is Fletcher Building's financial position?


Financial Position Analysis

Short Term Liabilities: FBU's short term assets (NZ$3.1B) exceed its short term liabilities (NZ$1.9B).

Long Term Liabilities: FBU's short term assets (NZ$3.1B) exceed its long term liabilities (NZ$2.3B).


Debt to Equity History and Analysis

Debt Level: FBU's debt to equity ratio (22.7%) is considered satisfactory.

Reducing Debt: FBU's debt to equity ratio has reduced from 47.3% to 22.7% over the past 5 years.

Debt Coverage: FBU's debt is well covered by operating cash flow (103.7%).

Interest Coverage: FBU's interest payments on its debt are well covered by EBIT (6.4x coverage).


Balance Sheet


Dividend

What is Fletcher Building current dividend yield, its reliability and sustainability?

5.05%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: FBU's dividend (5.05%) is higher than the bottom 25% of dividend payers in the NZ market (2.41%).

High Dividend: FBU's dividend (5.05%) is in the top 25% of dividend payers in the NZ market (4.86%)


Stability and Growth of Payments

Stable Dividend: FBU's dividend payments have been volatile in the past 10 years.

Growing Dividend: FBU's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: At its current payout ratio (81%), FBU's payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: FBU's dividends in 3 years are forecast to be covered by earnings (66.9% payout ratio).


Next Steps

  • Explore strong dividend paying companies in the Capital Goods industry.

Management

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

3.3yrs

Average management tenure


CEO

Ross Taylor (59 yo)

3.92yrs

Tenure

NZ$6,962,919

Compensation

Mr. Ross H. Taylor has been the Chief Executive Officer at Fletcher Building Limited since November 22, 2017. Mr. Taylor joined the Board as an Executive Director in December 2004 of Lend Lease Corp. Ltd....


CEO Compensation Analysis

Compensation vs Market: Ross's total compensation ($USD5.00M) is above average for companies of similar size in the NZ market ($USD1.67M).

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


Leadership Team

Experienced Management: FBU's management team is considered experienced (3.3 years average tenure).


Board Members

Experienced Board: FBU'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: FBU 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

Fletcher Building Limited's employee growth, exchange listings and data sources


Key Information

  • Name: Fletcher Building Limited
  • Ticker: FBU
  • Exchange: NZSE
  • Founded: 1909
  • Industry: Building Products
  • Sector: Capital Goods
  • Market Cap: NZ$5.892b
  • Shares outstanding: 814.95m
  • Website: https://fletcherbuilding.com

Number of Employees


Location

  • Fletcher Building Limited
  • 810 Great South Road
  • Penrose
  • Auckland
  • 1061
  • New Zealand

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/10/22 06:01
End of Day Share Price2021/10/22 00:00
Earnings2021/06/30
Annual Earnings2021/06/30


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.