NZSE:FBU

Stock Analysis Report

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Executive Summary

Fletcher Building Limited, together with its subsidiaries, manufactures and distributes building products in New Zealand, Australia, North America, Asia, Europe, and internationally. More Details


Snowflake Analysis

Adequate balance sheet with moderate growth potential.


Similar Companies

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.


Market Performance


7 Day Return

-1.7%

FBU

-3.6%

NZ Basic Materials

-1.0%

NZ Market


1 Year Return

-9.5%

FBU

13.0%

NZ Basic Materials

6.7%

NZ Market

Return vs Industry: FBU underperformed the NZ Basic Materials industry which returned 13.5% over the past year.

Return vs Market: FBU underperformed the NZ Market which returned 6.9% over the past year.


Shareholder returns

FBUIndustryMarket
7 Day-1.7%-3.6%-1.0%
30 Day5.9%3.9%4.2%
90 Day19.8%20.3%6.0%
1 Year-9.5%-9.5%15.2%13.0%11.0%6.7%
3 Year-35.8%-41.9%9.0%-1.6%46.4%27.1%
5 Year-32.8%-45.1%38.1%15.2%96.2%48.3%

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

Valuation

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

0.97x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: FBU (NZ$4.12) is trading above our estimate of fair value (NZ$1.97)

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


Price To Earnings Ratio

PE vs Industry: FBU is unprofitable, so we can't compare its PE Ratio to the XX 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 (1x) compared to the XO Basic Materials industry average (2.1x).


Next Steps

Future Growth

How is Fletcher Building forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?

50.1%

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 (2.6%).

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 (0.8% per year) is forecast to grow slower than the NZ market (5.5% per year).

High Growth Revenue: FBU's revenue (0.8% 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 (6.1%).


Next Steps

Past Performance

How has Fletcher Building performed over the past 5 years?

-30.6%

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 30.6% 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 (1.1%).


Return on Equity

High ROE: FBU has a negative Return on Equity (-5.21%), as it is currently unprofitable.


Next Steps

Financial Health

How is Fletcher Building's financial position?


Financial Position Analysis

Short Term Liabilities: FBU's short term assets (NZ$3.8B) exceed its short term liabilities (NZ$2.4B).

Long Term Liabilities: FBU's short term assets (NZ$3.8B) exceed its long term liabilities (NZ$2.9B).


Debt to Equity History and Analysis

Debt Level: FBU's debt to equity ratio (50.7%) is considered high.

Reducing Debt: FBU's debt to equity ratio has reduced from 52.7% to 50.7% over the past 5 years.

Debt Coverage: FBU's debt is well covered by operating cash flow (22.9%).

Interest Coverage: FBU is unprofitable, therefore interest payments are not well covered by earnings.


Balance Sheet


Next Steps

Dividend

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

3.69%

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.


Next Steps

Management

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

2.3yrs

Average management tenure


CEO

Ross Taylor (58 yo)

2.92yrs

Tenure

NZ$4,015,104

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 ($USD2.70M) is above average for companies of similar size in the NZ market ($USD1.17M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Ross Taylor
Chief Executive Officer2.92yrsNZ$4.02m0.15%
NZ$ 4.9m
Bevan McKenzie
Chief Financial Officer3.92yrsno data0.030%
NZ$ 1.0m
Daniel Beecham
Chief Information Officer0.67yrno data0.0087%
NZ$ 294.4k
Aleida White
Head of Investor Relationsno datano datano data
Andrew Clarke
Group General Counsel & Company Secretary1.08yrsno data0.016%
NZ$ 551.1k
Leela Gantman
Head of Communicationsno datano datano data
Claire Carroll
Chief People & Communications Officer2.25yrsno data0.019%
NZ$ 628.6k
Dean Fradgley
Chief Executive of Australian Division5.17yrsno data0.047%
NZ$ 1.6m
Steve Evans
Chief Executive of Residential & Development5.75yrsno data0.033%
NZ$ 1.1m
Wendi Croft
Chief Health & Safety Officer2.25yrsno data0.0053%
NZ$ 181.7k
Ian Jones
Chief Executive of Concrete Division2.25yrsno data0.020%
NZ$ 670.0k
Bruce McEwen
Chief Executive of Distribution Division2.25yrsno data0.018%
NZ$ 604.8k

2.3yrs

Average Tenure

Experienced Management: FBU's management team is considered experienced (2.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Peter Crowley
Independent Non-Executive Director1yrNZ$137.22k0.0024%
NZ$ 82.5k
Robert McDonald
Independent Non-Executive Director2.08yrsNZ$189.55k0.0061%
NZ$ 206.5k
Martin Brydon
Independent Non-Executive Director2.08yrsNZ$177.09k0.0024%
NZ$ 82.5k
Barbara Chapman
Independent Non-Executive Director2.08yrsNZ$173.09k0.0024%
NZ$ 82.5k
Bruce Hassall
Independent Non-Executive Chairman2.08yrsNZ$344.66k0.0027%
NZ$ 92.0k
Douglas McKay
Independent Non-Executive Director2.08yrsNZ$192.09k0.0024%
NZ$ 82.5k
Cathy Quinn
Independent Non-Executive Director2.08yrsNZ$178.09k0.0037%
NZ$ 123.9k

2.1yrs

Average Tenure

64yo

Average Age

Experienced Board: FBU's board of directors are not considered experienced ( 2.1 years average tenure), which suggests a new board.


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

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


Key Information

  • Name: Fletcher Building Limited
  • Ticker: FBU
  • Exchange: NZSE
  • Founded: 1909
  • Industry: Construction Materials
  • Sector: Materials
  • Market Cap: NZ$3.396b
  • Shares outstanding: 822.23m
  • Website: https://fletcherbuilding.com

Number of Employees


Location

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

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
FBUNZSE (New Zealand Stock Exchange)YesOrdinary SharesNZNZDMar 2001
FBUASX (Australian Securities Exchange)YesOrdinary SharesAUAUDMar 2001
FRCE.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDMar 2001
FLQDB (Deutsche Boerse AG)YesOrdinary SharesDEEURMar 2001
FBUCHIA (Chi-X Australia)YesOrdinary SharesAUAUDMar 2001
FCRE.YOTCPK (Pink Sheets LLC)SPONS ADR NEWUSUSDNov 2010

Biography

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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/28 10:33
End of Day Share Price2020/10/28 00:00
Earnings2020/06/30
Annual Earnings2020/06/30


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.