Breedon Group Plc (BREE) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Sigmaroc Plc

Epwin Group Plc

Steppe Cement Ltd.

CRH Plc

Breedon Group Plc

Marshalls Plc

Forterra Plc

Ibstock Plc

Eco Buildings Group Plc

Michelmersh Brick Holdings Plc

Pathfinder Minerals Plc

Why is Breedon Group Plc ?

Poor Management Efficiency with a low ROCE of 10.35%

The company has been able to generate a Return on Capital Employed (avg) of 10.35% signifying low profitability per unit of total capital (equity and debt)

Low ability to service debt as the company has a high Debt to EBITDA ratio of 2.59 times

Low ability to service debt as the company has a high Debt to EBITDA ratio of 2.59 times
The company has been able to generate a Return on Equity (avg) of 8.52% signifying low profitability per unit of shareholders funds

Weak Long Term Fundamental Strength with an average Return on Capital Employed (ROCE) of 10.35%

Flat results in Jun 26

ROCE(HY) Lowest at 6.86%
INTEREST COVERAGE RATIO(Q) Lowest at 755.26
DIVIDEND PAYOUT RATIO(Y) Lowest at 0%

Underperformed the market in the last 1 year

Even though the market (FTSE 100) has generated returns of 18.59% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -4.79% returns

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Building Products)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Breedon Group Plc for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Breedon Group Plc

-4.79%

-0.37

29.62%

FTSE 100

18.59%

1.58

11.75%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

13.04%

EBIT Growth (5y)

17.55%

EBIT to Interest (avg)

8.66

Debt to EBITDA (avg)

1.61

Net Debt to Equity (avg)

0.31

Sales to Capital Employed (avg)

1.00

Tax Ratio

16.22%

Dividend Payout Ratio

61.93%

Pledged Shares

Institutional Holding

ROCE (avg)

9.51%

ROE (avg)

8.52%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

0.88

EV to EBIT

11.72

EV to EBITDA

5.71

EV to Capital Employed

0.91

EV to Sales

0.90

PEG Ratio

Dividend Yield

0.64%

ROCE (Latest)

7.80%

ROE (Latest)

7.74%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Bearish

RSI

No Signal

Bollinger Bands

Bullish

Mildly Bearish

Moving Averages

Mildly Bearish (Daily)

KST

Mildly Bullish

Bearish

Dow Theory

Mildly Bullish

OBV

Mildly Bullish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

5What is working for the Company

OPERATING CASH FLOW(Y)

Highest at GBP 436.9 MM

DIVIDEND PAYOUT RATIO(Y)

Highest at 68.03%

-11What is not working for the Company

ROCE(HY)

Lowest at 6.86%

INTEREST COVERAGE RATIO(Q)

Lowest at 755.26

DIVIDEND PAYOUT RATIO(Y)

Lowest at 0%

DIVIDEND PER SHARE(HY)

Lowest at GBP 4.79

OPERATING PROFIT MARGIN(Q)

Lowest at 13.38 %

PRE-TAX PROFIT(Q)

Lowest at GBP 29.2 MM

NET PROFIT(Q)

Lowest at GBP 29.22 MM

EPS(Q)

Lowest at GBP 0.07

Here's what is working for Breedon Group Plc

Operating Cash Flow

Highest at GBP 436.9 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (GBP MM)

Dividend Payout Ratio

Highest at 68.03% and Grown

In each year in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Here's what is not working for Breedon Group Plc

Interest Coverage Ratio

Lowest at 755.26

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Operating Profit Margin

Lowest at 13.38 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at GBP 29.2 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (GBP MM)

Pre-Tax Profit

Fallen at -25.51%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (GBP MM)

Net Profit

Lowest at GBP 29.22 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (GBP MM)

EPS

Lowest at GBP 0.07

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (GBP)

Dividend per share

Lowest at GBP 4.79

in the last five years

MOJO Watch

Company is distributing lower dividend than previous years

DPS (GBP)

Dividend Payout Ratio

Lowest at 0%

in the last five years

MOJO Watch

Company is distributing lower proportion of profits generated as dividend

DPR (%)