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FBU

Fletcher Building NZSE:FBU Stock Report

Last Price

NZ$5.30

Market Cap

NZ$4.1b

7D

2.7%

1Y

-31.1%

Updated

07 Aug, 2022

Data

Company Financials +
FBU fundamental analysis
Snowflake Score
Valuation6/6
Future Growth0/6
Past Performance3/6
Financial Health6/6
Dividends5/6

FBU Stock Overview

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

Fletcher Building Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Fletcher Building
Historical stock prices
Current Share PriceNZ$5.30
52 Week HighNZ$7.98
52 Week LowNZ$4.65
Beta1.19
1 Month Change2.91%
3 Month Change-11.96%
1 Year Change-31.08%
3 Year Change12.29%
5 Year Change-33.08%
Change since IPO137.67%

Recent News & Updates

Jul 18
When Should You Buy Fletcher Building Limited (NZSE:FBU)?

When Should You Buy Fletcher Building Limited (NZSE:FBU)?

Fletcher Building Limited ( NZSE:FBU ), might not be a large cap stock, but it saw a double-digit share price rise of...

Apr 27
Fletcher Building Limited's (NZSE:FBU) Intrinsic Value Is Potentially 68% Above Its Share Price

Fletcher Building Limited's (NZSE:FBU) Intrinsic Value Is Potentially 68% Above Its Share Price

In this article we are going to estimate the intrinsic value of Fletcher Building Limited ( NZSE:FBU ) by estimating...

Apr 02
What Is Fletcher Building Limited's (NZSE:FBU) Share Price Doing?

What Is Fletcher Building Limited's (NZSE:FBU) Share Price Doing?

While Fletcher Building Limited ( NZSE:FBU ) might not be the most widely known stock at the moment, it saw significant...

Shareholder Returns

FBUNZ BuildingNZ Market
7D2.7%1.9%2.1%
1Y-31.1%-26.8%-11.3%

Return vs Industry: FBU underperformed the NZ Building industry which returned -26.8% over the past year.

Return vs Market: FBU underperformed the NZ Market which returned -11.3% over the past year.

Price Volatility

Is FBU's price volatile compared to industry and market?
FBU volatility
FBU Average Weekly Movement4.3%
Building Industry Average Movement5.7%
Market Average Movement4.4%
10% most volatile stocks in NZ Market8.2%
10% least volatile stocks in NZ Market3.0%

Stable Share Price: FBU is not significantly more volatile than the rest of NZ stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: FBU's weekly volatility (4%) 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$4.13b
Earnings (TTM)NZ$355.00m
Revenue (TTM)NZ$8.20b

11.6x

P/E Ratio

0.5x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
FBU income statement (TTM)
RevenueNZ$8.20b
Cost of RevenueNZ$5.83b
Gross ProfitNZ$2.37b
Other ExpensesNZ$2.02b
EarningsNZ$355.00m

Last Reported Earnings

Dec 31, 2021

Next Earnings Date

Aug 16, 2022

Earnings per share (EPS)0.46
Gross Margin28.94%
Net Profit Margin4.33%
Debt/Equity Ratio23.2%

How did FBU perform over the long term?

See historical performance and comparison

Dividends

6.8%

Current Dividend Yield

83%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

Is FBU undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

6/6

Valuation Score 6/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for FBU?

Other financial metrics that can be useful for relative valuation.

FBU key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue0.8x
Enterprise Value/EBITDA7.5x
PEG Ratio27.9x

Price to Earnings Ratio vs Peers

How does FBU's PE Ratio compare to its peers?

FBU PE Ratio vs Peers
The above table shows the PE ratio for FBU vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average20.7x
SKL Skellerup Holdings
26.1x10.0%NZ$1.1b
HAYW Hayward Holdings
10.7x3.4%US$2.5b
094124352 Aliaxis
6.4xn/a€2.5b
002011 Zhejiang Dun'an Artificial Environment
39.6x11.8%CN¥15.5b
FBU Fletcher Building
11.6x0.4%NZ$4.1b

Price-To-Earnings vs Peers: FBU is good value based on its Price-To-Earnings Ratio (11.6x) compared to the peer average (20.7x).


Price to Earnings Ratio vs Industry

How does FBU's PE Ratio compare vs other companies in the Global Building Industry?

Price-To-Earnings vs Industry: FBU is good value based on its Price-To-Earnings Ratio (11.6x) compared to the Global Building industry average (14.9x)


Price to Earnings Ratio vs Fair Ratio

What is FBU's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

FBU PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio11.6x
Fair PE Ratio22.6x

Price-To-Earnings vs Fair Ratio: FBU is good value based on its Price-To-Earnings Ratio (11.6x) compared to the estimated Fair Price-To-Earnings Ratio (22.6x).


Share Price vs Fair Value

What is the Fair Price of FBU when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: FBU (NZ$5.3) is trading below our estimate of fair value (NZ$8.14)

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


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.


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Future Growth

How is Fletcher Building forecast to perform in the next 1 to 3 years based on estimates from 13 analysts?

Future Growth Score

0/6

Future Growth Score 0/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


0.4%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: FBU's forecast earnings growth (0.4% per year) is below the savings rate (2.1%).

Earnings vs Market: FBU's earnings (0.4% per year) are forecast to grow slower than the NZ market (5.5% per year).

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

Revenue vs Market: FBU's revenue (0.2% per year) is forecast to grow slower than the NZ market (5.9% per year).

High Growth Revenue: FBU's revenue (0.2% 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 (11.9%).


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Past Performance

How has Fletcher Building performed over the past 5 years?

Past Performance Score

3/6

Past Performance Score 3/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


11.1%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: FBU has high quality earnings.

Growing Profit Margin: FBU became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: FBU's earnings have grown by 11.1% 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 (14%).


Return on Equity

High ROE: FBU's Return on Equity (9.8%) is considered low.


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Financial Health

How is Fletcher Building's financial position?

Financial Health Score

6/6

Financial Health Score 6/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: FBU's short term assets (NZ$3.0B) exceed its short term liabilities (NZ$1.8B).

Long Term Liabilities: FBU's short term assets (NZ$3.0B) exceed its long term liabilities (NZ$2.3B).


Debt to Equity History and Analysis

Debt Level: FBU's net debt to equity ratio (12.3%) is considered satisfactory.

Reducing Debt: FBU's debt to equity ratio has reduced from 60.9% to 23.2% over the past 5 years.

Debt Coverage: FBU's debt is well covered by operating cash flow (71.8%).

Interest Coverage: FBU's interest payments on its debt are well covered by EBIT (6.6x coverage).


Balance Sheet


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Dividend

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

Dividend Score

5/6

Dividend Score 5/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage


6.79%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: FBU's dividend (6.79%) is higher than the bottom 25% of dividend payers in the NZ market (2.95%).

High Dividend: FBU's dividend (6.79%) is in the top 25% of dividend payers in the NZ market (5.8%)


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.


Earnings Payout to Shareholders

Earnings Coverage: At its current payout ratio (83.1%), FBU's payments are covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: At its current cash payout ratio (85.2%), FBU's dividend payments are covered by cash flows.


Discover strong dividend paying companies

Management

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

4.1yrs

Average management tenure


CEO

Ross Taylor (60 yo)

4.75yrs

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 ($USD4.34M) is above average for companies of similar size in the NZ market ($USD1.65M).

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 (4.1 years average tenure).


Board Members

Experienced Board: FBU's board of directors are considered experienced (3.9 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
  • Implied Market Cap: NZ$4.126b
  • Shares outstanding: 778.47m
  • 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 Analysis2022/08/07 00:00
End of Day Share Price2022/08/05 00:00
Earnings2021/12/31
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.