Fletcher Building Limited, together with its subsidiaries, manufactures and distributes building products in New Zealand, Australia, North America, Asia, Europe, and internationally. More Details
Excellent balance sheet with moderate growth potential.
Share Price & News
How has Fletcher Building's share price performed over time and what events caused price changes?
Latest Share Price and Events
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.
7 Day Return
NZ Basic Materials
1 Year Return
NZ Basic Materials
Return vs Industry: FBU exceeded the NZ Basic Materials industry which returned 98.6% over the past year.
Return vs Market: FBU exceeded the NZ Market which returned 15.8% over the past year.
Long-Term Price Volatility Vs. Market
How volatile is Fletcher Building's share price compared to the market and industry in the last 5 years?
Simply Wall St News
1 week ago | Simply Wall StA Look At The Intrinsic Value Of Fletcher Building Limited (NZSE:FBU)
4 weeks ago | Simply Wall StAt NZ$7.04, Is Fletcher Building Limited (NZSE:FBU) Worth Looking At Closely?
1 month ago | Simply Wall StThese 4 Measures Indicate That Fletcher Building (NZSE:FBU) Is Using Debt Extensively
Is Fletcher Building undervalued compared to its fair value and its price relative to the market?
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: FBU (NZ$7.34) is trading below our estimate of fair value (NZ$8.2)
Significantly Below Fair Value: FBU is trading below fair value, but not by a significant amount.
Price To Earnings Ratio
PE vs Industry: FBU is unprofitable, so we can't compare its PE Ratio to the Oceanic Basic Materials industry average.
PE vs Market: FBU is unprofitable, so we can't compare its PE Ratio to the NZ market.
Price to Earnings Growth Ratio
PEG Ratio: Insufficient data to calculate FBU's PEG Ratio to determine if it is good value.
Price to Book Ratio
PB vs Industry: FBU is good value based on its PB Ratio (1.7x) compared to the XO Basic Materials industry average (2.2x).
How is Fletcher Building forecast to perform in the next 1 to 3 years based on estimates from 12 analysts?
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: FBU is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (2.1%).
Earnings vs Market: FBU is forecast to become profitable over the next 3 years, which is considered above average market growth.
High Growth Earnings: FBU's is expected to become profitable in the next 3 years.
Revenue vs Market: FBU's revenue (2.1% per year) is forecast to grow slower than the NZ market (6.5% per year).
High Growth Revenue: FBU's revenue (2.1% 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 (9.5%).
How has Fletcher Building performed over the past 5 years?
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: FBU is currently unprofitable.
Growing Profit Margin: FBU is currently unprofitable.
Past Earnings Growth Analysis
Earnings Trend: FBU is unprofitable, and losses have increased over the past 5 years at a rate of 36.9% per year.
Accelerating Growth: Unable to compare FBU's earnings growth over the past year to its 5-year average as it is currently unprofitable
Earnings vs Industry: FBU is unprofitable, making it difficult to compare its past year earnings growth to the Basic Materials industry (16.6%).
Return on Equity
High ROE: FBU has a negative Return on Equity (-4.06%), as it is currently unprofitable.
How is Fletcher Building's financial position?
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$2.4B).
Debt to Equity History and Analysis
Debt Level: FBU's debt to equity ratio (25.2%) is considered satisfactory.
Reducing Debt: FBU's debt to equity ratio has reduced from 54.7% to 25.2% over the past 5 years.
Debt Coverage: FBU's debt is well covered by operating cash flow (93.1%).
Interest Coverage: FBU is unprofitable, therefore interest payments are not well covered by earnings.
What is Fletcher Building current dividend yield, its reliability and sustainability?
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: FBU's dividend (3.27%) is higher than the bottom 25% of dividend payers in the NZ market (2.44%).
High Dividend: FBU's dividend (3.27%) is low compared to the top 25% of dividend payers in the NZ market (4.69%).
Stability and Growth of Payments
Stable Dividend: FBU's dividend payments have been volatile in the past 10 years.
Growing Dividend: FBU's dividend payments have fallen over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: FBU is paying a dividend but the company is unprofitable.
Future Payout to Shareholders
Future Dividend Coverage: FBU's dividends in 3 years are forecast to be covered by earnings (70.3% payout ratio).
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Ross Taylor (58 yo)
Mr. Ross H. Taylor has been the Chief Executive Officer at Fletcher Building Limited since November 22, 2017. Mr. Taylor joined the Board as an Executive Director in December 2004 of Lend Lease Corp. Ltd. ...
CEO Compensation Analysis
Compensation vs Market: Ross's total compensation ($USD2.88M) is above average for companies of similar size in the NZ market ($USD1.47M).
Compensation vs Earnings: Ross's compensation has been consistent with company performance over the past year.
Experienced Management: FBU's management team is considered experienced (2.8 years average tenure).
Experienced Board: FBU's board of directors are not considered experienced ( 2.7 years average tenure), which suggests a new board.
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
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Fletcher Building Limited's company bio, employee growth, exchange listings and data sources
- Name: Fletcher Building Limited
- Ticker: FBU
- Exchange: NZSE
- Founded: 1909
- Industry: Construction Materials
- Sector: Materials
- Market Cap: NZ$6.027b
- Shares outstanding: 822.23m
- Website: https://fletcherbuilding.com
Number of Employees
- Fletcher Building Limited
- 810 Great South Road
- New Zealand
Fletcher Building Limited, together with its subsidiaries, manufactures and distributes building products in New Zealand, Australia, North America, Asia, Europe, and internationally. It operates through Bu...
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2021/05/14 07:01|
|End of Day Share Price||2021/05/14 00:00|
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.