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Brambles

ASX:BXB
Snowflake Description

Excellent balance sheet with moderate growth potential.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
BXB
ASX
A$19B
Market Cap
  1. Home
  2. AU
  3. Commercial Services
Company description

Brambles Limited operates as a supply-chain logistics company. The last earnings update was 87 days ago. More info.


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BXB Share Price and Events
7 Day Returns
3.2%
ASX:BXB
2.2%
AU Commercial Services
0%
AU Market
1 Year Returns
20.1%
ASX:BXB
15%
AU Commercial Services
15.3%
AU Market
BXB Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Brambles (BXB) 3.2% 6.4% -2% 20.1% 4.5% 27.3%
AU Commercial Services 2.2% 3.1% -1.5% 15% 15.8% 38.7%
AU Market 0% 0.5% 4.7% 15.3% 21.6% 20.7%
1 Year Return vs Industry and Market
  • BXB outperformed the Commercial Services industry which returned 15% over the past year.
  • BXB outperformed the Market in Australia which returned 15.3% over the past year.
Price Volatility
BXB
Industry
5yr Volatility vs Market

BXB Value

 Is Brambles undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Brambles to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Brambles.

ASX:BXB Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model Dividend Discount Model
Dividend Per Share Company Filings (2019-06-30) in USD $ 0.25668407407407
Payout Ratio Company Filings (2019-06-30) 5243.2%
Discount Rate (Cost of Equity) See below 7.1%
Perpetual Growth Rate 10-Year AU Government Bond Rate 2.3%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for ASX:BXB
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year AU Govt Bond Rate 2.3%
Equity Risk Premium S&P Global 6%
Commercial Services Unlevered Beta Simply Wall St/ S&P Global 0.66
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.659 (1 + (1- 30%) (16.79%))
0.789
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.8
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.31% + (0.8 * 5.96%)
7.08%

Discounted Cash Flow Calculation for ASX:BXB using Dividend Discount Model Model

The calculations below outline how an intrinsic value for Brambles is arrived at by discounting future dividends to their present value. This approach is used for finance firms where free cash flow is difficult to estimate (e.g. Banks/ Insurance firms).

If the firm does not pay the majority of its earnings out as a dividend this method will often arrive at a value significantly lower than the share price.

See our documentation to learn about this calculation.

ASX:BXB Gordon Growth Model
Calculation Result
Value per share = Expected dividends per share / (Discount Rate - Perpetual growth rate)
= $0.26 / (7.08% - 2.31%)
$7.94
ASX:BXB Discount to Share Price
Calculation Result
Exchange Rate USD/AUD
(Reporting currency to currency of ASX:BXB)
1.476
Value per Share
(AUD)
= Value per Share in USD x Exchange Rate (USD/AUD)
= $5.38 x 1.476
A$7.94
Value per share (AUD) From above. A$7.94
Current discount Discount to share price of A$12.41
= -1 x (A$12.41 - A$7.94) / A$7.94
-56.2%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of Brambles is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Brambles's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Brambles's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
ASX:BXB PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-06-30) in USD $0.28
ASX:BXB Share Price ** ASX (2019-11-15) in AUD A$12.41
ASX:BXB Share Price converted to USD reporting currency Exchange rate (AUD/ USD) 0.678 $8.41
Australia Commercial Services Industry PE Ratio Median Figure of 12 Publicly-Listed Commercial Services Companies 18.07x
Australia Market PE Ratio Median Figure of 519 Publicly-Listed Companies 18.45x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Brambles.

ASX:BXB PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= ASX:BXB Share Price ÷ EPS (both in USD)

= 8.41 ÷ 0.28

29.51x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Brambles is overvalued based on earnings compared to the AU Commercial Services industry average.
  • Brambles is overvalued based on earnings compared to the Australia market.
Price based on expected Growth
Does Brambles's expected growth come at a high price?
Raw Data
ASX:BXB PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 29.51x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 10 Analysts
7.9%per year
Australia Commercial Services Industry PEG Ratio Median Figure of 9 Publicly-Listed Commercial Services Companies 2.36x
Australia Market PEG Ratio Median Figure of 346 Publicly-Listed Companies 1.59x

*Line of best fit is calculated by linear regression .

ASX:BXB PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 29.51x ÷ 7.9%

3.73x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Brambles is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Brambles's assets?
Raw Data
ASX:BXB PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-06-30) in USD $2.40
ASX:BXB Share Price * ASX (2019-11-15) in AUD A$12.41
ASX:BXB Share Price converted to USD reporting currency Exchange rate (AUD/ USD) 0.678 $8.41
Australia Commercial Services Industry PB Ratio Median Figure of 27 Publicly-Listed Commercial Services Companies 2.46x
Australia Market PB Ratio Median Figure of 1,585 Publicly-Listed Companies 1.71x
ASX:BXB PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= ASX:BXB Share Price ÷ Book Value per Share (both in USD)

= 8.41 ÷ 2.40

3.51x

* Primary Listing of Brambles.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Brambles is overvalued based on assets compared to the AU Commercial Services industry average.
X
Value checks
We assess Brambles's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Commercial Services industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Commercial Services industry average (and greater than 0)? (1 check)
  5. Brambles has a total score of 0/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

BXB Future Performance

 How is Brambles expected to perform in the next 1 to 3 years based on estimates from 10 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
7.9%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Brambles expected to grow at an attractive rate?
  • Brambles's earnings growth is expected to exceed the low risk savings rate of 2.3%.
Growth vs Market Checks
  • Brambles's earnings growth is positive but not above the Australia market average.
  • Brambles's revenue growth is expected to exceed the Australia market average.
Annual Growth Rates Comparison
Raw Data
ASX:BXB Future Growth Rates Data Sources
Data Point Source Value (per year)
ASX:BXB Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 10 Analysts 7.9%
ASX:BXB Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 10 Analysts 4.1%
Australia Commercial Services Industry Earnings Growth Rate Market Cap Weighted Average 11%
Australia Commercial Services Industry Revenue Growth Rate Market Cap Weighted Average 5.5%
Australia Market Earnings Growth Rate Market Cap Weighted Average 9.8%
Australia Market Revenue Growth Rate Market Cap Weighted Average 3.6%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
ASX:BXB Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (4 months ago) See Below
Future Estimates Average of up to 10 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
ASX:BXB Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2023-06-30 5,360 1,345 619 1
2022-06-30 5,272 1,249 606 8
2021-06-30 5,026 1,161 558 10
2020-06-30 4,767 1,110 515 10
2019-11-15
ASX:BXB Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-06-30 4,802 1,338 454
2018-12-31 5,862 1,410 655
2018-09-30 5,810 1,417 714
2018-06-30 4,631 1,423 554
2017-12-31 5,465 1,282 721
2017-09-30 5,336 1,247 583
2017-06-30 5,206 1,211 445
2016-12-31 4,864 1,114 466
2016-09-30 4,927 1,140 529

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Brambles's earnings are expected to grow by 7.9% yearly, however this is not considered high growth (20% yearly).
  • Brambles's revenue is expected to grow by 4.1% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
ASX:BXB Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (4 months ago) See Below
Future Estimates Average of up to 10 Analyst Estimates (S&P Global) See Below

All data from Brambles Company Filings, last reported 4 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

ASX:BXB Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2023-06-30 0.44 0.44 0.44 1.00
2022-06-30 0.44 0.52 0.40 6.00
2021-06-30 0.40 0.46 0.36 8.00
2020-06-30 0.34 0.36 0.33 8.00
2019-11-15
ASX:BXB Past Financials Data
Date (Data in USD Millions) EPS *
2019-06-30 0.28
2018-12-31 0.41
2018-09-30 0.45
2018-06-30 0.35
2017-12-31 0.45
2017-09-30 0.37
2017-06-30 0.28
2016-12-31 0.29
2016-09-30 0.33

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Brambles is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).
X
Future performance checks
We assess Brambles's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Australia market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Australia market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Brambles has a total score of 3/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

BXB Past Performance

  How has Brambles performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Brambles's growth in the last year to its industry (Commercial Services).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Brambles's year on year earnings growth rate has been positive over the past 5 years, however the most recent earnings are below average.
  • Brambles's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • Brambles's 1-year earnings growth is negative, it can't be compared to the AU Commercial Services industry average.
Earnings and Revenue History
Brambles's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Brambles Company Filings, last reported 4 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

ASX:BXB Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-06-30 4,802.00 454.10 137.10
2018-12-31 5,862.40 655.10 149.30
2018-09-30 5,810.20 714.30 149.85
2018-06-30 4,630.60 553.50 137.70
2017-12-31 5,465.20 720.60 152.90
2017-09-30 5,335.55 582.75 151.45
2017-06-30 5,205.90 444.90 150.00
2016-12-31 4,863.90 466.40 145.20
2016-09-30 4,927.15 529.35 154.60
2016-06-30 4,990.40 592.30 164.00
2015-12-31 5,400.50 591.50 191.90
2015-09-30 5,480.85 589.55 200.05
2015-06-30 5,561.20 587.60 208.20
2014-12-31 5,655.70 590.20 221.20
2014-09-30 5,594.45 587.35 218.60
2014-06-30 5,533.20 584.50 216.00
2013-12-31 5,331.30 583.80 205.80
2013-09-30 5,207.10 570.05 203.15
2013-06-30 5,082.90 556.30 200.50
2013-03-31 5,407.20 587.75 270.70
2012-12-31 5,328.10 586.00 271.00

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Brambles has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Brambles used its assets less efficiently than the AU Commercial Services industry average last year based on Return on Assets.
  • Brambles's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Brambles's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Commercial Services industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Brambles has a total score of 1/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

BXB Health

 How is Brambles's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Brambles's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Brambles is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Brambles's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Brambles's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is covered by short term assets, assets are 1.4x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Brambles Company Filings, last reported 4 months ago.

ASX:BXB Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-06-30 3,808.20 2,200.20 2,102.50
2018-12-31 2,860.70 2,606.80 199.60
2018-09-30 2,860.70 2,606.80 199.60
2018-06-30 2,778.40 2,466.90 180.20
2017-12-31 3,161.10 2,980.70 273.30
2017-09-30 3,161.10 2,980.70 273.30
2017-06-30 2,846.70 2,710.30 159.70
2016-12-31 2,838.50 2,679.00 203.40
2016-09-30 2,838.50 2,679.00 203.40
2016-06-30 2,955.10 2,739.60 156.10
2015-12-31 2,726.70 2,895.60 237.70
2015-09-30 2,726.70 2,895.60 237.70
2015-06-30 2,641.10 2,822.70 166.20
2014-12-31 2,617.00 3,062.20 216.10
2014-09-30 2,617.00 3,062.20 216.10
2014-06-30 2,751.00 2,576.60 236.90
2013-12-31 2,595.50 2,907.70 515.90
2013-09-30 2,595.50 2,907.70 515.90
2013-06-30 3,025.40 2,821.10 139.00
2013-03-31 3,025.40 2,821.10 139.00
2012-12-31 3,044.10 2,821.90 145.00
  • Brambles's level of debt (57.2%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has been reduced over the past 5 years (93.6% vs 57.2% today).
  • Debt is well covered by operating cash flow (61.4%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 10.5x coverage).
X
Financial health checks
We assess Brambles's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Brambles has a total score of 5/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

BXB Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
2.31%
Current annual income from Brambles dividends. Estimated to be 3.05% next year.
If you bought A$2,000 of Brambles shares you are expected to receive A$46 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Brambles's pays a lower dividend yield than the bottom 25% of dividend payers in Australia (2.36%).
  • Brambles's dividend is below the markets top 25% of dividend payers in Australia (5.58%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
ASX:BXB Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 10 Analyst Estimates (S&P Global) See Below
Australia Commercial Services Industry Average Dividend Yield Market Cap Weighted Average of 12 Stocks 2.6%
Australia Market Average Dividend Yield Market Cap Weighted Average of 391 Stocks 4.1%
Australia Minimum Threshold Dividend Yield 10th Percentile 1.5%
Australia Bottom 25% Dividend Yield 25th Percentile 2.4%
Australia Top 25% Dividend Yield 75th Percentile 5.6%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

ASX:BXB Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2023-06-30 0.24 1.00
2022-06-30 0.25 8.00
2021-06-30 0.22 9.00
2020-06-30 0.30 9.00
2019-11-15
ASX:BXB Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2019-08-20 0.194 2.510
2019-02-18 0.196 2.358
2018-09-28 0.203 2.760
2018-02-19 0.206 2.979
2017-08-21 0.218 3.020
2017-02-20 0.213 2.969
2016-08-17 0.208 2.462
2016-02-22 0.207 2.302
2015-09-29 0.192 2.631
2015-02-23 0.194 2.598
2014-08-19 0.208 2.730
2014-02-19 0.241 2.882
2013-09-09 0.235 2.965
2013-08-21 0.240 3.065
2013-02-20 0.240 3.043
2012-08-16 0.265 3.577
2012-02-16 0.251 3.882
2011-08-17 0.245 3.789
2011-02-14 0.255 3.717
2010-09-15 0.234 3.694
2010-08-19 0.220 4.247
2010-02-17 0.184 3.531
2009-08-20 0.248 4.275
2009-02-16 0.221 6.215

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been volatile in the past 10 years (annual drop of over 20%).
  • Dividends per share have fallen over the past 10 years.
Current Payout to shareholders
What portion of Brambles's earnings are paid to the shareholders as a dividend.
  • Dividends paid are covered by earnings (1.4x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be covered by earnings (1.8x coverage).
X
Income/ dividend checks
We assess Brambles's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.5%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Brambles afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Brambles has a total score of 2/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

BXB Management

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

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Graham Chipchase
COMPENSATION $2,576,000
AGE 56
TENURE AS CEO 2.8 years
CEO Bio

Mr. Graham Andrew Chipchase has been the Chief Executive Officer and Executive Director at Brambles Limited since February 20, 2017, joined in Brambles at the beginning of January 2017. Mr. Chipchase served as an Executive Director of Rexam Ltd. since February 10, 2003. He served as the Chief Executive Officer of Rexam Ltd. from January 1, 2010 to June 2016 and served as its Group Director of Plastic Packaging since July 15, 2005. He was responsible for Rexam Ltd.'s global plastic packaging business which includes healthcare, closures, personal care and other markets. In that role, he has led acquisition and integration of Precise Technology (USA), Delta (USA), Airpsray (NL), FangXin (China), TruePack (India) with the objective to reach global leadership in selected markets. He has leveraged organic growth through lean enterprise, innovation and global customer management programs across the Sector's 45 sites worldwide. He served as Finance Director of Rexam Ltd. from March 10, 2003 to July 15, 2005. He served as Finance Director of GKN plc's Aerospace Services business from 2001 to 2003. He started his career with Coopers & Lybrand. Later he joined The BOC Group PLC and served as Corporate Finance Manager since 1990. He served in various positions within Financial Planning and Analysis in both BOC's US and European subsidiaries including Group Controller since 1999 and then as Director of Planning and Financial Control. He has been a Non-Executive Director of AstraZeneca Plc since April 26, 2012 and its Senior Independent Non-Executive Director since January 1, 2019. Mr. Chipchase holds MA in Chemistry from Oriel College, Oxford and is a fellow of the Institute of Chartered Accountants in England and Wales.

CEO Compensation
  • Graham's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Graham's remuneration is about average for companies of similar size in Australia.
Management Team Tenure

Average tenure and age of the Brambles management team in years:

2.8
Average Tenure
53.5
Average Age
  • The tenure for the Brambles management team is about average.
Management Team

Graham Chipchase

TITLE
CEO, Chairman of Executive Leadership Team & Executive Director
COMPENSATION
$3M
AGE
56
TENURE
2.8 yrs

Nessa O'Sullivan

TITLE
CFO & Executive Director
COMPENSATION
$1M
AGE
54
TENURE
3 yrs

Mike Pooley

TITLE
President of CHEP Europe
COMPENSATION
$813K
AGE
51
TENURE
2.8 yrs

Laura Nador

TITLE
President of CHEP North America
COMPENSATION
$744K
AGE
47
TENURE
2.7 yrs

Rod Hefford

TITLE
Chief Information Officer
AGE
55
TENURE
2.4 yrs

Raluca Chiriacescu

TITLE
Director of Investor Relations

Robert Gerrard

TITLE
Group VP of Legal & Secretariat and Company Secretary
AGE
57
TENURE
2.8 yrs

Patrick Bradley

TITLE
Group Senior Vice President of Human Resources
TENURE
1.2 yrs

Prasad Srinivasamurthy

TITLE
President of BXB Digital
AGE
48
TENURE
3.7 yrs

Carmelo Alonso-Bernaola

TITLE
Senior Vice President of Global Supply Chain
AGE
53
TENURE
8.8 yrs
Board of Directors Tenure

Average tenure and age of the Brambles board of directors in years:

5.3
Average Tenure
64
Average Age
  • The tenure for the Brambles board of directors is about average.
Board of Directors

Stephen Johns

TITLE
Independent Non-Executive Chairman
COMPENSATION
$469K
AGE
72
TENURE
5.2 yrs

Graham Chipchase

TITLE
CEO, Chairman of Executive Leadership Team & Executive Director
COMPENSATION
$3M
AGE
56
TENURE
2.8 yrs

Nessa O'Sullivan

TITLE
CFO & Executive Director
COMPENSATION
$1M
AGE
54
TENURE
2.6 yrs

Tony Froggatt

TITLE
Independent Non-Executive Director
COMPENSATION
$188K
AGE
71
TENURE
13.4 yrs

Brian Long

TITLE
Independent Non-Executive Director
COMPENSATION
$203K
AGE
73
TENURE
5.3 yrs

John Mullen

TITLE
Non-Executive Director
COMPENSATION
$104K
AGE
64

John Claringbould

TITLE
Member of the USA Advisory Board
TENURE
9.2 yrs

Rodney Slater

TITLE
Member of the USA Advisory Board
AGE
64
TENURE
9.2 yrs

Tahira Hassan

TITLE
Independent Non-Executive Director
COMPENSATION
$165K
AGE
66
TENURE
7.9 yrs

Scott Perkins

TITLE
Independent Non-Executive Director
COMPENSATION
$171K
AGE
54
TENURE
4.4 yrs
Who owns this company?
Recent Insider Trading
  • More shares have been bought than sold by Brambles individual insiders in the past 3 months, but not in substantial volumes.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (A$) Value (A$)
10. Nov 19 Sell BlackRock, Inc. Company 01. Aug 19 01. Nov 19 -1,111,085 A$13.20 A$-526,672
10. Nov 19 Buy BlackRock, Inc. Company 01. Aug 19 07. Nov 19 2,501,680 A$13.25 A$76,927
07. Nov 19 Buy Graham Chipchase Individual 31. Oct 19 31. Oct 19 35 A$11.89 A$416
02. Sep 19 Buy Nessa O'Sullivan Individual 30. Aug 19 30. Aug 19 36 A$11.32 A$408
02. Sep 19 Buy Graham Chipchase Individual 30. Aug 19 30. Aug 19 36 A$11.32 A$408
05. Aug 19 Buy First Sentier Investors (Australia) IM Ltd Company 02. Apr 19 02. Aug 19 4,868,243 A$13.05 A$60,777,089
05. Aug 19 Sell ASB Group Investments Ltd. Company 29. Mar 19 27. Jun 19 -296,473 A$12.16 A$-3,606,007
05. Aug 19 Buy ASB Group Investments Ltd. Company 05. Apr 19 06. May 19 36,404 A$11.59 A$422,081
05. Aug 19 Sell First Sentier Investors (Australia) IM Ltd Company 25. Mar 19 02. Aug 19 -5,076,481 A$12.61 A$-63,378,404
05. Aug 19 Buy First Sentier Investors (Australia) IM Ltd Company 22. Mar 19 02. Aug 19 6,534,605 A$12.39 A$80,566,734
05. Aug 19 Buy Nessa O'Sullivan Individual 31. Jul 19 31. Jul 19 31 A$13.09 A$406
05. Aug 19 Buy Graham Chipchase Individual 31. Jul 19 31. Jul 19 31 A$13.09 A$406
01. Jul 19 Buy Nessa O'Sullivan Individual 28. Jun 19 28. Jun 19 31 A$12.91 A$400
01. Jul 19 Buy Graham Chipchase Individual 28. Jun 19 28. Jun 19 32 A$12.91 A$413
04. Jun 19 Buy Nessa O'Sullivan Individual 31. May 19 31. May 19 35 A$12.09 A$423
04. Jun 19 Buy Graham Chipchase Individual 31. May 19 31. May 19 34 A$12.09 A$411
26. May 19 Sell The Vanguard Group, Inc. Company 30. Nov 18 14. May 19 -6,900,911 A$12.17 A$-83,970,812
26. May 19 Buy The Vanguard Group, Inc. Company 22. Nov 18 17. May 19 3,714,612 A$12.58 A$46,729,819
01. May 19 Buy Nessa O'Sullivan Individual 30. Apr 19 30. Apr 19 34 A$12.06 A$410
01. May 19 Buy Graham Chipchase Individual 30. Apr 19 30. Apr 19 34 A$12.06 A$410
01. Apr 19 Buy Graham Chipchase Individual 29. Mar 19 29. Mar 19 35 A$11.96 A$419
25. Mar 19 Sell Realindex Investments Pty Limited Company 11. Jul 18 11. Mar 19 -1,632,518 A$10.61 A$-17,313,433
25. Mar 19 Buy Realindex Investments Pty Limited Company 16. Jul 18 22. Mar 19 2,605,714 A$10.39 A$27,083,058
25. Mar 19 Sell First State Investment Management (UK) Limited Company 28. Nov 18 25. Feb 19 -1,596,170 A$10.64 A$-16,987,604
25. Mar 19 Sell ASB Group Investments Ltd. Company 07. Aug 18 28. Feb 19 -448,034 A$11.03 A$-4,941,173
25. Mar 19 Sell First Sentier Investors (Australia) IM Ltd Company 10. Jul 18 22. Mar 19 -15,393,163 A$11.03 A$-165,994,301
25. Mar 19 Buy First Sentier Investors (Australia) IM Ltd Company 10. Jul 18 22. Mar 19 33,093,088 A$11.00 A$362,297,132
13. Mar 19 Sell Schroder Investment Management (Singapore) Ltd Company 12. Oct 16 13. Mar 19 -5,429,967 A$10.16 A$-55,148,551
13. Mar 19 Buy Schroder Investment Management (Singapore) Ltd Company 12. Oct 16 13. Mar 19 2,578,009 A$9.99 A$25,754,327
13. Mar 19 Sell Schroder Investment Management (Hong Kong) Limited Company 12. Oct 16 13. Mar 19 -2,529,878 A$9.94 A$-25,157,214
13. Mar 19 Buy Schroder Investment Management (Hong Kong) Limited Company 12. Oct 16 13. Mar 19 1,136,597 A$9.67 A$10,989,543
13. Mar 19 Sell Schroder Investment Management Limited Company 12. Oct 16 13. Mar 19 -26,135,587 A$10.71 A$-258,209,017
13. Mar 19 Buy Schroder Investment Management Limited Company 12. Oct 16 13. Mar 19 22,694,377 A$10.18 A$228,923,512
13. Mar 19 Sell Schroder Investment Management North America Inc. Company 12. Oct 16 13. Mar 19 -7,944,537 A$10.93 A$-86,864,154
13. Mar 19 Buy Schroder Investment Management North America Inc. Company 12. Oct 16 13. Mar 19 13,113,116 A$9.81 A$128,586,403
04. Mar 19 Buy Nessa O'Sullivan Individual 28. Feb 19 28. Feb 19 38 A$11.77 A$447
04. Mar 19 Buy Graham Chipchase Individual 28. Feb 19 28. Feb 19 38 A$11.77 A$447
31. Jan 19 Buy Nessa O'Sullivan Individual 31. Jan 19 31. Jan 19 41 A$10.70 A$439
31. Jan 19 Buy Graham Chipchase Individual 31. Jan 19 31. Jan 19 42 A$10.70 A$449
02. Jan 19 Buy Nessa O'Sullivan Individual 31. Dec 18 31. Dec 18 43 A$10.25 A$441
02. Jan 19 Buy Graham Chipchase Individual 31. Dec 18 31. Dec 18 43 A$10.25 A$441
03. Dec 18 Buy Nessa O'Sullivan Individual 30. Nov 18 30. Nov 18 41 A$10.50 A$431
03. Dec 18 Buy Graham Chipchase Individual 30. Nov 18 30. Nov 18 41 A$10.50 A$431
25. Nov 18 Buy The Vanguard Group, Inc. Company 21. Nov 18 21. Nov 18 22,540 A$10.50 A$236,670
21. Nov 18 Sell The Vanguard Group, Inc. Company 19. Nov 18 19. Nov 18 -60,125 A$10.26 A$-616,883
21. Nov 18 Buy The Vanguard Group, Inc. Company 19. Nov 18 19. Nov 18 25,531 A$10.27 A$262,203
20. Nov 18 Buy The Vanguard Group, Inc. Company 19. Jul 18 16. Nov 18 3,451,481 A$11.50 A$39,272,214
X
Management checks
We assess Brambles's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Brambles has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

BXB News

Simply Wall St News

Brambles (ASX:BXB) Seems To Use Debt Quite Sensibly

Debt assists a business until the business has trouble paying it off, either with new capital or with free cash flow. … When we think about a company's use of debt, we first look at cash and debt together. … Finally, a business needs free cash flow to pay off debt; accounting profits just don't cut it.

Simply Wall St -

Does Brambles Limited's (ASX:BXB) Stock Price Account For Its Growth?

BXB is trading at price-to-earnings (PE) ratio of 28.04x, which suggests that Brambles is overvalued based on current earnings compared to the Commercial Services industry average of 21.53x , and overvalued compared to the AU market average ratio of 16.23x. … ASX:BXB Price Estimation Relative to Market, August 21st 2019 After looking at BXB's value based on current earnings, we can see it seems overvalued relative to other companies in the industry. … But, since Brambles is a high-growth stock, we must also account for its earnings growth by using calculation called the PEG ratio.

Simply Wall St -

Here’s What Brambles Limited’s (ASX:BXB) Return On Capital Can Tell Us

In particular, we'll consider its Return On Capital Employed (ROCE), as that can give us insight into how profitably the company is able to employ capital in its business. … Analysts use this formula to calculate return on capital employed: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) Or for Brambles: 0.19 = US$1.1b ÷ (US$8.0b - US$2.2b) (Based on the trailing twelve months to December 2018.) So, Brambles has an ROCE of 19%. … The Bottom Line On Brambles's ROCE This is good to see, and with a sound ROCE, Brambles could be worth a closer look.

Simply Wall St -

Does Brambles's (ASX:BXB) Share Price Gain of 31% Match Its Business Performance?

For example, long term Brambles Limited (ASX:BXB) shareholders have enjoyed a 31% share price rise over the last half decade, well in excess of the market return of around 12% (not including dividends). … One way to examine how market sentiment has changed over time is to look at the interaction between a company's share price and its earnings per share (EPS). … During five years of share price growth, Brambles achieved compound earnings per share (EPS) growth of 1.9% per year.

Simply Wall St -

Boasting A 23% Return On Equity, Is Brambles Limited (ASX:BXB) A Top Quality Stock?

The formula for return on equity is: Return on Equity = Net Profit ÷ Shareholders' Equity Or for Brambles: 23% = US$655m ÷ US$2.9b (Based on the trailing twelve months to December 2018.) Most readers would understand what net profit is, but it’s worth explaining the concept of shareholders’ equity. … In my book the highest quality companies have high return on equity, despite low debt. … If you would prefer check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity and low debt.

Simply Wall St -

Here's What Brambles Limited's (ASX:BXB) P/E Is Telling Us

The goal of this article is to teach you how to use price to earnings ratios (P/E ratios). … Check out our latest analysis for Brambles How Do I Calculate Brambles's Price To Earnings Ratio? … The formula for P/E is: Price to Earnings Ratio = Share Price (in reporting currency) ÷ Earnings per Share (EPS) Or for Brambles: P/E of 21.72 = $8.94 (Note: this is the share price in the reporting currency, namely, USD ) ÷ $0.41 (Based on the trailing twelve months to December 2018.) Is A High P/E Ratio Good?

Simply Wall St -

Brambles Limited (ASX:BXB): Are Analysts Right About The Drop In Earnings?

After Brambles Limited's (ASX:BXB) recent earnings announcement in December 2018, the consensus outlook from analysts appear bearish, with profits predicted to drop by 3.6% next year against the past 5-year average growth rate of 3.5%. … To reduce the year-on-year volatility of analyst earnings forecast, I've inserted a line of best fit through the expected earnings figures to determine the annual growth rate from the slope of the line. … ASX:BXB Past and Future Earnings, June 3rd 2019 By 2022, BXB's earnings should reach US$867m, from current levels of US$774m, resulting in an annual growth rate of 5.9%.

Simply Wall St -

Should You Take Comfort From Insider Transactions At Brambles Limited (ASX:BXB)?

Check out our latest analysis for Brambles The Last 12 Months Of Insider Transactions At Brambles Over the last year, we can see that the biggest insider purchase was by Elizabeth Fagan for AU$218k worth of shares, at about AU$10.92 per share. … In the last twelve months Brambles insiders were buying shares, but not selling. … ASX:BXB Recent Insider Trading, May 21st 2019 Brambles is not the only stock that insiders are buying.

Simply Wall St -

Where Brambles Limited's (ASX:BXB) Earnings Growth Stands Against Its Industry

After looking at Brambles Limited's (ASX:BXB) latest earnings announcement (31 December 2018), I found it useful to revisit the company's performance in the past couple of years and assess this against the most recent figures. … View our latest analysis for Brambles How Did BXB's Recent Performance Stack Up Against Its Past? … Furthermore, this one-year growth rate has been lower than its average earnings growth rate over the past 5 years of 3.5%, indicating the rate at which BXB is growing has slowed down.

Simply Wall St -

Are Brambles Limited's (ASX:BXB) Interest Costs Too High?

the key to extending previous success is in the health of the company’s financials. … I will provide an overview of Brambles’s financial liquidity and leverage to give you an idea of Brambles’s position to take advantage of potential acquisitions or comfortably endure future downturns. … Remember this is a very top-level look that focuses exclusively on financial health, so I recommend a deeper analysis

Simply Wall St -

BXB Company Info

Description

Brambles Limited operates as a supply-chain logistics company. The company operates through CHEP North America and Latin America; CHEP Europe, Middle East, Africa and India; and CHEP Australia, New Zealand and Asia, excluding India segments. It engages in the pooling of unit-load equipment and associated services, focusing on the outsourced management of pallets, crates, and containers. The company serves customers in the fast-moving consumer goods, fresh produce, beverage, retail, and general manufacturing industries in the Americas, Europe, Australia, and internationally. Brambles Limited was founded in 1875 and is based in Sydney, Australia.

Details
Name: Brambles Limited
BXB
Exchange: ASX
Founded: 1875
A$19,333,719,478
1,557,914,543
Website: http://www.brambles.com
Address: Brambles Limited
Angel Place,
Level 10,
Sydney,
New South Wales, 2000,
Australia
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
ASX BXB Ordinary Shares Australian Securities Exchange AU AUD 01. Jan 1992
OTCPK BMBL.F Ordinary Shares Pink Sheets LLC US USD 01. Jan 1992
DB R1H Ordinary Shares Deutsche Boerse AG DE EUR 01. Jan 1992
CHIA BXB Ordinary Shares Chi-X Australia AU AUD 01. Jan 1992
OTCPK BXBL.Y SPONSORED ADR Pink Sheets LLC US USD 16. Oct 2008
Number of employees
Current staff
Staff numbers
11,000
Brambles employees.
Industry
Diversified Support Services
Commercial Services
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/11/15 10:34
End of day share price update: 2019/11/15 00:00
Last estimates confirmation: 2019/11/14
Last earnings filing: 2019/08/20
Last earnings reported: 2019/06/30
Last annual earnings reported: 2019/06/30


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.