Fletcher Building Limited, together with its subsidiaries, manufactures and distributes building products in New Zealand, Australia, North America, Asia, Europe, and internationally.
Very undervalued with excellent balance sheet.
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 has not had significant price volatility in the past 3 months.
7 Day Return
NZ Basic Materials
1 Year Return
NZ Basic Materials
Return vs Industry: FBU underperformed the NZ Basic Materials industry which returned -5.2% over the past year.
Return vs Market: FBU underperformed the NZ Market which returned 1.3% over the past year.
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
2 weeks ago | Simply Wall StIntroducing Fletcher Building (NZSE:FBU), The Stock That Slid 53% In The Last Five Years
3 weeks ago | Simply Wall StShould You Worry About Fletcher Building Limited's (NZSE:FBU) CEO Salary Level?
1 month ago | Simply Wall StShould You Use Fletcher Building's (NZSE:FBU) Statutory Earnings To Analyse It?
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$3.51) is trading below our estimate of fair value (NZ$6.09)
Significantly Below Fair Value: FBU is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: FBU is good value based on its PE Ratio (15.9x) compared to the Basic Materials industry average (25.9x).
PE vs Market: FBU is good value based on its PE Ratio (15.9x) compared to the NZ market (18.6x).
Price to Earnings Growth Ratio
PEG Ratio: FBU is good value based on its PEG Ratio (0.7x)
Price to Book Ratio
PB vs Industry: FBU is good value based on its PB Ratio (0.8x) compared to the XO Basic Materials industry average (1.2x).
How is Fletcher Building forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: FBU's forecast earnings growth (23.4% per year) is above the savings rate (2.6%).
Earnings vs Market: FBU's earnings (23.4% per year) are forecast to grow faster than the NZ market (8.7% per year).
High Growth Earnings: earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: FBU's revenue is expected to decline over the next 3 years (-1.6% per year).
High Growth Revenue: FBU's revenue is forecast to decline over the next 3 years (-1.6% 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 (4.8%).
How has Fletcher Building performed over the past 5 years?
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: FBU has a large one-off loss of NZ$129.0M impacting its December 31 2009 financial results.
Growing Profit Margin: FBU's current net profit margins (2.3%) are lower than last year (2.4%).
Past Earnings Growth Analysis
Earnings Trend: FBU's earnings have declined by -23.8% per year over the past 5 years.
Accelerating Growth: FBU's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: FBU had negative earnings growth (-3.1%) over the past year, making it difficult to compare to the Basic Materials industry average (-50.2%).
Return on Equity
High ROE: FBU's Return on Equity (5.2%) is considered low.
How is Fletcher Building's financial position?
Financial Position Analysis
Short Term Liabilities: FBU's short term assets (NZ$3.2B) exceed its short term liabilities (NZ$1.7B).
Long Term Liabilities: FBU's short term assets (NZ$3.2B) exceed its long term liabilities (NZ$2.9B).
Debt to Equity History and Analysis
Debt Level: FBU's debt to equity ratio (35.2%) is considered satisfactory.
Reducing Debt: FBU's debt to equity ratio has reduced from 55.2% to 35.2% over the past 5 years.
Debt Coverage: FBU's debt is not well covered by operating cash flow (19.6%).
Interest Coverage: FBU's interest payments on its debt are well covered by EBIT (4.4x coverage).
What is Fletcher Building current dividend yield, its reliability and sustainability?
Forecast Dividend Yield
Dividend Yield vs Market
Notable Dividend: Unable to evaluate FBU's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.
High Dividend: Unable to evaluate FBU's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.
Stability and Growth of Payments
Stable Dividend: Insufficient data to determine if FBU's dividends per share have been stable in the past.
Growing Dividend: Insufficient data to determine if FBU's dividend payments have been increasing.
Current Payout to Shareholders
Dividend Coverage: FBU is not paying a notable dividend for the NZ market.
Future Payout to Shareholders
Future Dividend Coverage: No need to calculate the sustainability of FBU's dividend in 3 years as they are not forecast to pay a notable one for the NZ market.
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Ross Taylor (58yo)
Mr. Ross H. Taylor has been the Chief Executive Officer at Fletcher Building Limited since November 22, 2017. Mr. Taylor joined the Board as an Executive Director in December 2004 of Lend Lease Corp. Ltd. ...
CEO Compensation Analysis
Compensation vs Market: Ross's total compensation ($USD3.46M) is above average for companies of similar size in the NZ market ($USD1.15M).
Compensation vs Earnings: Ross's compensation has been consistent with company performance over the past year.
|Chief Executive Officer||2.67yrs||NZ$5.30m||0.12% NZ$3.6m|
|Chief Financial Officer||3.67yrs||no data||0.027% NZ$778.4k|
|Chief Information Officer||0.42yr||no data||0.0019% NZ$56.0k|
|Head of Investor Relations||no data||no data||no data|
|Group General Counsel & Company Secretary||0.83yr||no data||0.0067% NZ$193.2k|
|Head of Communications||no data||no data||no data|
|Chief People & Communications Officer||2yrs||no data||0.012% NZ$355.0k|
|Chief Executive of Australian Division||4.92yrs||no data||0.036% NZ$1.0m|
|Chief Executive of Residential & Development||5.5yrs||no data||0.034% NZ$974.0k|
|Chief Health & Safety Officer||2yrs||no data||0.0030% NZ$85.7k|
Experienced Management: FBU's management team is considered experienced (2.3 years average tenure).
|Independent Non-Executive Director||0.75yr||no data||0.0024% NZ$70.1k|
|Independent Non-Executive Director||1.83yrs||NZ$157.24k||0.0061% NZ$175.6k|
|Independent Non-Executive Director||1.83yrs||NZ$153.10k||0.0024% NZ$70.1k|
|Independent Non-Executive Director||1.83yrs||NZ$146.66k||0.0024% NZ$70.1k|
|Independent Non-Executive Chairman||1.83yrs||NZ$333.42k||0.0027% NZ$78.2k|
|Independent Non-Executive Director||1.83yrs||NZ$165.51k||0.0024% NZ$70.1k|
|Independent Non-Executive Director||1.83yrs||NZ$153.85k||0.0037% NZ$105.3k|
Experienced Board: FBU's board of directors are not considered experienced ( 1.8 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: Insufficient data to determine if 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$2.884b
- Shares outstanding: 821.68m
- Website: https://fletcherbuilding.com
Number of Employees
- Fletcher Building Limited
- 810 Great South Road
- New Zealand
|Ticker||Exchange||Primary Security||Security Type||Country||Currency||Listed on|
|FBU||NZSE (New Zealand Stock Exchange)||Yes||Ordinary Shares||NZ||NZD||Mar 2001|
|FBU||ASX (Australian Securities Exchange)||Yes||Ordinary Shares||AU||AUD||Mar 2001|
|FRCE.F||OTCPK (Pink Sheets LLC)||Yes||Ordinary Shares||US||USD||Mar 2001|
|FLQ||DB (Deutsche Boerse AG)||Yes||Ordinary Shares||DE||EUR||Mar 2001|
|FBU||CHIA (Chi-X Australia)||Yes||Ordinary Shares||AU||AUD||Mar 2001|
|FCRE.Y||OTCPK (Pink Sheets LLC)||SPONS ADR NEW||US||USD||Nov 2010|
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 Building Products, Distribution, Steel, 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. The Distribution segment distributes building, plumbing, and pipeline products under the PlaceMakers, Mico, Forman Building Systems, and Snappy brands. The Steel segment manufactures and distributes steel products. The Concrete segment engages in the extraction of aggregates, and production of cement and concrete. The Residential and Development segment builds residential homes; and develops and sells primarily commercial sites. The Construction segment builds and maintains public and commercial buildings, transport and utilities infrastructure, and buildings and infrastructure, as well as designs, constructs, and maintains roads and civil infrastructure. The Australia segment manufactures and distributes building materials, such as insulation, plasterboard, laminate surfaces, steel roofing, and plastic and concrete piping for a range of industries across Australia. It also operates approximately 225 retail sites. The company was founded in 1909 and is headquartered in Auckland, New Zealand.
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2020/07/05 10:33|
|End of Day Share Price||2020/07/03 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.