NZSE:BGP

Stock Analysis Report

Executive Summary

Briscoe Group Limited, through its subsidiaries, engages in the retail of homeware and sporting goods in New Zealand.

Snowflake

Fundamentals

Excellent balance sheet established dividend payer.

Share Price & News

How has Briscoe Group's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

1.4%

BGP

0.01%

NZ Specialty Retail

0.09%

NZ Market


1 Year Return

5.8%

BGP

5.9%

NZ Specialty Retail

18.9%

NZ Market

Return vs Industry: BGP exceeded the NZ Specialty Retail industry which returned 5.9% over the past year.

Return vs Market: BGP underperformed the NZ Market which returned 18.9% over the past year.


Shareholder returns

BGPIndustryMarket
7 Day1.4%0.01%0.09%
30 Day-1.9%5.4%2.0%
90 Day6.7%15.5%2.9%
1 Year13.4%5.8%17.0%5.9%24.1%18.9%
3 Year21.0%0.3%51.5%21.6%55.1%34.8%
5 Year82.8%34.7%83.0%28.0%104.3%58.5%

Price Volatility Vs. Market

How volatile is Briscoe Group's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Briscoe Group undervalued compared to its fair value and its price relative to the market?

17.9%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: BGP (NZ$3.65) is trading below our estimate of fair value (NZ$4.45)

Significantly Undervalued: BGP is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: BGP is poor value based on its PE Ratio (13x) compared to the Specialty Retail industry average (12.8x).

PE vs Market: BGP is good value based on its PE Ratio (13x) compared to the NZ market (18.5x).


Price to Earnings Growth Ratio

Low PEG Ratio: BGP's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: BGP is overvalued based on its PB Ratio (3.3x) compared to the NZ Specialty Retail industry average (1.6x).


Next Steps

Future Growth

How is Briscoe Group forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

-0.01%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: BGP's earnings are forecast to decline over the next 3 years (-0.01% per year).

Earnings vs Market: BGP's earnings are forecast to decline over the next 3 years (-0.01% per year).

High Growth Earnings: BGP's earnings are forecast to decline over the next 3 years.

Revenue vs Market: BGP's revenue (2.7% per year) is forecast to grow slower than the NZ market (4.2% per year).

High Growth Revenue: BGP's revenue (2.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: BGP's Return on Equity is forecast to be high in 3 years time (22.4%)


Next Steps

Past Performance

How has Briscoe Group performed over the past 5 years?

11.1%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: BGP's earnings have grown by 11.1% per year over the past 5 years.

Accelerating Growth: BGP's earnings growth over the past year (0.4%) is below its 5-year average (11.1% per year).

Earnings vs Industry: BGP earnings growth over the past year (0.4%) exceeded the Specialty Retail industry -1.2%.


Return on Equity

High ROE: BGP's Return on Equity (25.4%) is considered high.


Return on Assets

ROA vs Industry: BGP has a higher Return on Assets than the Specialty Retail industry average last year.


Return on Capital Employed

ROCE Improving: BGP's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Briscoe Group's financial position?


Financial Position Analysis

Short Term Liabilities: BGP's short term assets (NZ$153.5M) exceeds its short term liabilities (NZ$91.1M)

Long Term Liabilities: BGP's short term assets (153.5M) do not cover its long term liabilities (228.2M)


Debt to Equity History and Analysis

Debt Level: BGP is debt free.

Reducing Debt: BGP has not had any debt for past 5 years.

Debt Coverage: BGP has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: BGP has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: BGP has a high level of physical assets or inventory.

Debt Coverage by Assets: Insufficient data to determine if BGP's debt is covered by short term assets.


Next Steps

Dividend

What is Briscoe Group's current dividend yield, its reliability and sustainability?

5.48%

Current Dividend Yield


Dividend Yield vs Market

company5.5%marketbottom25%3.0%markettop25%5.6%industryaverage5.7%forecastin3Years6.0%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: BGP's dividend (5.48%) is higher than the bottom 25% of dividend payers in the NZ market (3.03%).

High Dividend: BGP's dividend (5.48%) is low compared to the top 25% of dividend payers in the NZ market (5.61%).

Stable Dividend: BGP's dividends per share have been stable in the past 10 years.

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


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (72.9%), BGP's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: BGP's dividends in 3 years are forecast to be covered by earnings (75.5% payout ratio).


Next Steps

Management

What is the CEO of Briscoe Group's salary, the management and board of directors tenure and is there insider trading?

10.2yrs

Average management tenure


CEO

Rod Duke 0

28.8yrs

Tenure

NZ$978,116

Compensation

Mr. Rodney Adrian Duke, also known as Rod, has been Group Managing Director of Briscoe Group Limited since 1991. From 1981 to 1988, Mr. Duke served in the positions of New South Wales Manager of Homecraft/ ...


CEO Compensation Analysis

Compensation vs. Market: Rod's total compensation ($USD615.09K) is about average for companies of similar size in the NZ market ($USD491.23K).

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


Management Age and Tenure

10.2yrs

Average Tenure

Experienced Management: BGP's management team is seasoned and experienced (10.2 years average tenure).


Board Age and Tenure

10.9yrs

Average Tenure

Experienced Board: BGP's board of directors are seasoned and experienced ( 10.9 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown


Management Team

  • Rod Duke

    Deputy Chairman & Group Managing Director

    • Tenure: 28.8yrs
    • Compensation: NZ$978.12k
  • Geoff Scowcroft

    Chief Financial Officer

    • Tenure: 17yrs
  • Aston Moss

    Group General Manager of Human Resources

    • Tenure: 3.4yrs
  • Andrew Scott

    Chief Operating Officer

    • Tenure: 0.3yrs

Board Members

  • Tony Batterton

    Independent Non-Executive Director

    • Tenure: 3.3yrs
    • Compensation: NZ$78.13k
  • Dame O'Loghlen Meo (74yo)

    Independent Non-Executive Chairman

    • Tenure: 18.4yrs
    • Compensation: NZ$128.46k
  • Rod Duke

    Deputy Chairman & Group Managing Director

    • Tenure: 28.8yrs
    • Compensation: NZ$978.12k
  • Andy Coupe

    Independent Non-Executive Director

    • Tenure: 3yrs
    • Compensation: NZ$75.96k

Company Information

Briscoe Group Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Briscoe Group Limited
  • Ticker: BGP
  • Exchange: NZSE
  • Founded: 1781
  • Industry: Homefurnishing Retail
  • Sector: Retail
  • Market Cap: NZ$810.806m
  • Shares outstanding: 222.14m
  • Website: https://www.briscoegroup.co.nz

Location

  • Briscoe Group Limited
  • 1 Taylors Road
  • Morningside
  • Auckland
  • 1025
  • New Zealand

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
BGPNZSE (New Zealand Stock Exchange)YesOrdinary SharesNZNZDDec 2001
BGPASX (Australian Securities Exchange)YesOrdinary SharesAUAUDDec 2001

Biography

Briscoe Group Limited, through its subsidiaries, engages in the retail of homeware and sporting goods in New Zealand. The company operates in two segments, Homeware and Sporting Goods. It operates under th ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/15 10:31
End of Day Share Price2019/10/15 00:00
Earnings2019/07/28
Annual Earnings2019/01/27


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.