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Adelaide Brighton

ASX:ABC
Snowflake Description

Mediocre balance sheet with moderate growth potential.

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

Adelaide Brighton Limited produces, imports, distributes, and markets construction materials in Australia. The last earnings update was 80 days ago. More info.


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ABC Share Price and Events
7 Day Returns
-4.2%
ASX:ABC
3.1%
AU Basic Materials
0%
AU Market
1 Year Returns
-40.4%
ASX:ABC
19.5%
AU Basic Materials
15.3%
AU Market
ABC Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Adelaide Brighton (ABC) -4.2% 5.6% 2.9% -40.4% -37.4% -4.4%
AU Basic Materials 3.1% 10.5% 15.8% 19.5% 9.4% 48.4%
AU Market 0% 0.5% 4.7% 15.3% 21.6% 20.7%
1 Year Return vs Industry and Market
  • ABC underperformed the Basic Materials industry which returned 19.5% over the past year.
  • ABC underperformed the Market in Australia which returned 15.3% over the past year.
Price Volatility
ABC
Industry
5yr Volatility vs Market

Value

 Is Adelaide Brighton 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 Adelaide Brighton 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 Adelaide Brighton.

ASX:ABC Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 10 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 8.7%
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:ABC
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year AU Govt Bond Rate 2.3%
Equity Risk Premium S&P Global 6%
Basic Materials Unlevered Beta Simply Wall St/ S&P Global 0.9
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.898 (1 + (1- 30%) (31.75%))
1.065
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.07
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.31% + (1.065 * 5.96%)
8.66%

Discounted Cash Flow Calculation for ASX:ABC using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Adelaide Brighton is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

Note: Free cash flow to equity valuations ignore the company's cash or debt.

ASX:ABC DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (AUD, Millions) Source Present Value
Discounted (@ 8.66%)
2020 121.40 Analyst x3 111.72
2021 128.35 Analyst x2 108.71
2022 133.50 Analyst x1 104.05
2023 137.81 Est @ 3.23% 98.85
2024 141.88 Est @ 2.95% 93.66
2025 145.80 Est @ 2.76% 88.58
2026 149.63 Est @ 2.63% 83.66
2027 153.41 Est @ 2.53% 78.94
2028 157.20 Est @ 2.47% 74.44
2029 161.00 Est @ 2.42% 70.16
Present value of next 10 years cash flows A$912.00
ASX:ABC DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= A$161.00 × (1 + 2.31%) ÷ (8.66% – 2.31%)
A$2,594.58
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= A$2,594.58 ÷ (1 + 8.66%)10
A$1,130.68
ASX:ABC Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= A$912.00 + A$1,130.68
A$2,042.68
Equity Value per Share
(AUD)
= Total value / Shares Outstanding
= A$2,042.68 / 651.72
A$3.13
ASX:ABC Discount to Share Price
Calculation Result
Value per share (AUD) From above. A$3.13
Current discount Discount to share price of A$3.23
= -1 x (A$3.23 - A$3.13) / A$3.13
-3.1%

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

  • The current share price of Adelaide Brighton 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 Adelaide Brighton's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Adelaide Brighton's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
ASX:ABC PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-06-30) in AUD A$0.13
ASX:ABC Share Price ** ASX (2019-11-15) in AUD A$3.23
Australia Basic Materials Industry PE Ratio Median Figure of 6 Publicly-Listed Basic Materials Companies 25.13x
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 Adelaide Brighton.

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

= ASX:ABC Share Price ÷ EPS (both in AUD)

= 3.23 ÷ 0.13

25.6x

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

  • Adelaide Brighton is overvalued based on earnings compared to the AU Basic Materials industry average.
  • Adelaide Brighton is overvalued based on earnings compared to the Australia market.
Price based on expected Growth
Does Adelaide Brighton's expected growth come at a high price?
Raw Data
ASX:ABC PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 25.6x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 10 Analysts
28.3%per year
Australia Basic Materials Industry PEG Ratio Median Figure of 6 Publicly-Listed Basic Materials Companies 1.11x
Australia Market PEG Ratio Median Figure of 346 Publicly-Listed Companies 1.59x

*Line of best fit is calculated by linear regression .

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

= PE Ratio ÷ Net Income Annual Growth Rate

= 25.6x ÷ 28.3%

0.91x

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

  • Adelaide Brighton is good value based on expected growth next year.
Price based on value of assets
What value do investors place on Adelaide Brighton's assets?
Raw Data
ASX:ABC PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-06-30) in AUD A$1.70
ASX:ABC Share Price * ASX (2019-11-15) in AUD A$3.23
Australia Basic Materials Industry PB Ratio Median Figure of 7 Publicly-Listed Basic Materials Companies 1.86x
Australia Market PB Ratio Median Figure of 1,585 Publicly-Listed Companies 1.71x
ASX:ABC PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= ASX:ABC Share Price ÷ Book Value per Share (both in AUD)

= 3.23 ÷ 1.70

1.9x

* Primary Listing of Adelaide Brighton.

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

  • Adelaide Brighton is overvalued based on assets compared to the AU Basic Materials industry average.
X
Value checks
We assess Adelaide Brighton'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 Basic Materials 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 Basic Materials industry average (and greater than 0)? (1 check)
  5. Adelaide Brighton has a total score of 1/6, 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.

Future Performance

 How is Adelaide Brighton 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
28.3%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Adelaide Brighton expected to grow at an attractive rate?
  • Adelaide Brighton's earnings growth is expected to exceed the low risk savings rate of 2.3%.
Growth vs Market Checks
  • Adelaide Brighton's earnings growth is expected to exceed the Australia market average.
  • Adelaide Brighton's revenue growth is positive but not above the Australia market average.
Annual Growth Rates Comparison
Raw Data
ASX:ABC Future Growth Rates Data Sources
Data Point Source Value (per year)
ASX:ABC Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 10 Analysts 28.3%
ASX:ABC Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 10 Analysts 0.7%
Australia Basic Materials Industry Earnings Growth Rate Market Cap Weighted Average 14.8%
Australia Basic Materials Industry Revenue Growth Rate Market Cap Weighted Average 5.4%
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:ABC 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 AUD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
ASX:ABC Future Estimates Data
Date (Data in AUD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2022-12-31 1,560 224 167 3
2021-12-31 1,526 208 139 6
2020-12-31 1,493 202 127 9
2019-12-31 1,506 207 50 8
2019-11-15
ASX:ABC Past Financials Data
Date (Data in AUD Millions) Revenue Cash Flow Net Income *
2019-06-30 1,580 182 83
2019-03-31 1,605 213 134
2018-12-31 1,631 245 185
2018-09-30 1,636 190
2018-06-30 1,643 255 195
2018-03-31 1,601 239 189
2017-12-31 1,560 224 183
2017-09-30 1,496 182
2017-06-30 1,433 228 181
2017-03-31 1,415 238 184
2016-12-31 1,396 248 186
2016-09-30 1,409 246 194

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Adelaide Brighton's earnings are expected to grow significantly at over 20% yearly.
  • Adelaide Brighton's revenue is expected to grow by 0.7% 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:ABC 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 Adelaide Brighton Company Filings, last reported 4 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

ASX:ABC Future Estimates Data
Date (Data in AUD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2022-12-31 0.26 0.26 0.26 1.00
2021-12-31 0.21 0.23 0.19 4.00
2020-12-31 0.19 0.23 0.17 6.00
2019-12-31 0.08 0.08 0.07 3.00
2019-11-15
ASX:ABC Past Financials Data
Date (Data in AUD Millions) EPS *
2019-06-30 0.13
2019-03-31 0.21
2018-12-31 0.28
2018-09-30 0.29
2018-06-30 0.30
2018-03-31 0.29
2017-12-31 0.28
2017-09-30 0.28
2017-06-30 0.28
2017-03-31 0.28
2016-12-31 0.29
2016-09-30 0.30

*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.
  • Adelaide Brighton is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Adelaide Brighton'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.
Adelaide Brighton 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.

Past Performance

  How has Adelaide Brighton 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 Adelaide Brighton's growth in the last year to its industry (Basic Materials).
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.
  • Adelaide Brighton's year on year earnings growth rate was negative over the past 5 years and the most recent earnings are below average.
  • Adelaide Brighton's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • Adelaide Brighton's 1-year earnings growth is negative, it can't be compared to the AU Basic Materials industry average.
Earnings and Revenue History
Adelaide Brighton'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 Adelaide Brighton Company Filings, last reported 4 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

ASX:ABC Past Revenue, Cash Flow and Net Income Data
Date (Data in AUD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-06-30 1,580.00 82.90 92.50
2019-03-31 1,605.30 134.10 91.95
2018-12-31 1,630.60 185.30 91.40
2018-09-30 1,636.35 190.35 94.85
2018-06-30 1,643.00 195.40 98.30
2018-03-31 1,601.30 189.05 95.65
2017-12-31 1,559.60 182.70 93.00
2017-09-30 1,496.35 181.85 90.75
2017-06-30 1,433.10 181.00 88.50
2017-03-31 1,414.65 183.65 89.40
2016-12-31 1,396.20 186.30 90.30
2016-09-30 1,408.60 194.35 90.20
2016-06-30 1,421.00 202.40 90.10
2016-03-31 1,417.05 205.15 89.45
2015-12-31 1,413.10 207.90 88.80
2015-09-30 1,413.50 206.00 90.75
2015-06-30 1,413.90 204.10 92.70
2015-03-31 1,375.85 188.40 94.25
2014-12-31 1,337.80 172.70 95.80
2014-09-30 1,294.25 157.05 95.10
2014-06-30 1,250.70 141.40 94.40
2014-03-31 1,239.35 146.25 92.55
2013-12-31 1,228.00 151.10 90.70
2013-09-30 1,217.95 149.10 88.45
2013-06-30 1,207.90 147.10 86.20
2013-03-31 1,195.50 150.05 87.20
2012-12-31 1,183.10 153.00 88.20

*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.
  • Adelaide Brighton has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Adelaide Brighton used its assets less efficiently than the AU Basic Materials industry average last year based on Return on Assets.
  • Adelaide Brighton's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Adelaide Brighton'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 Basic Materials 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.
Adelaide Brighton has a total score of 0/6, 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.

Health

 How is Adelaide Brighton'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 Adelaide Brighton's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Adelaide Brighton is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Adelaide Brighton's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of Adelaide Brighton'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 not covered by short term assets, assets are 0.8x 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 Adelaide Brighton Company Filings, last reported 4 months ago.

ASX:ABC Past Debt and Equity Data
Date (Data in AUD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-06-30 1,132.20 579.00 59.80
2019-03-31 1,132.20 579.00 59.80
2018-12-31 1,245.60 518.70 93.90
2018-09-30 1,245.60 518.70 93.90
2018-06-30 1,229.80 329.20 94.70
2018-03-31 1,229.80 329.20 94.70
2017-12-31 1,245.80 428.90 57.60
2017-09-30 1,245.80 428.90 57.60
2017-06-30 1,187.90 468.70 61.80
2017-03-31 1,187.90 468.70 61.80
2016-12-31 1,220.10 309.30 21.50
2016-09-30 1,220.10 309.30 21.50
2016-06-30 1,187.60 389.00 45.00
2016-03-31 1,187.60 389.00 45.00
2015-12-31 1,207.30 328.80 33.30
2015-09-30 1,207.30 328.80 33.30
2015-06-30 1,162.70 389.90 44.90
2015-03-31 1,162.70 389.90 44.90
2014-12-31 1,136.70 388.30 31.80
2014-09-30 1,136.70 388.30 31.80
2014-06-30 1,036.80 379.30 46.30
2014-03-31 1,036.80 379.30 46.30
2013-12-31 1,061.80 259.10 11.10
2013-09-30 1,061.80 259.10 11.10
2013-06-30 1,015.70 358.80 48.60
2013-03-31 1,015.70 358.80 48.60
2012-12-31 1,005.90 319.30 8.80
  • Adelaide Brighton's level of debt (51.1%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (36.6% vs 51.1% today).
  • Debt is well covered by operating cash flow (31.4%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 9.8x coverage).
X
Financial health checks
We assess Adelaide Brighton'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. Adelaide Brighton has a total score of 3/6, 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.

Dividends

 What is Adelaide Brighton'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
0%
Current annual income from Adelaide Brighton dividends. Estimated to be 3.95% next year.
If you bought A$2,000 of Adelaide Brighton shares you are expected to receive A$0 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?
  • Unable to evaluate Adelaide Brighton's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
  • Unable to evaluate Adelaide Brighton's dividend against the top 25% market benchmark as the company has not reported any payouts.
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:ABC 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
Oceania Basic Materials Industry Average Dividend Yield Market Cap Weighted Average of 5 Stocks 3.5%
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:ABC Future Dividends Estimate Data
Date (Data in A$) Dividend per Share (annual) Avg. No. Analysts
2022-12-31 0.18 3.00
2021-12-31 0.14 9.00
2020-12-31 0.14 10.00
2019-12-31 0.07 7.00
2019-11-15
ASX:ABC Past Annualized Dividends Data
Date (Data in A$) Dividend per share (annual) Avg. Yield (%)
2019-08-27 0.000 0.000
2019-02-27 0.280 6.914
2018-08-21 0.250 4.791
2018-02-27 0.245 3.675
2017-08-16 0.240 3.866
2017-02-22 0.280 4.978
2016-08-30 0.275 5.210
2016-03-17 0.190 3.490
2016-02-24 0.190 3.846
2015-03-12 0.170 3.797
2015-02-25 0.170 3.923
2014-03-05 0.165 4.613
2014-02-19 0.165 3.890
2013-03-07 0.165 4.704
2013-02-20 0.165 4.642
2012-02-16 0.165 5.349
2011-08-18 0.165 5.773
2011-03-03 0.165 5.476
2010-02-17 0.135 4.433
2009-08-20 0.140 5.263
2009-02-19 0.150 7.175

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

  • Unable to perform a dividend volatility check as Adelaide Brighton has not reported any payouts.
  • Unable to verify if Adelaide Brighton's dividend has been increasing as the company has not reported any payouts.
Current Payout to shareholders
What portion of Adelaide Brighton's earnings are paid to the shareholders as a dividend.
  • Unable to calculate sustainability of dividends as Adelaide Brighton has not reported any payouts.
Future Payout to shareholders
  • Dividends after 3 years are expected to be covered by earnings (1.4x coverage).
X
Income/ dividend checks
We assess Adelaide Brighton'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 Adelaide Brighton afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Adelaide Brighton has a total score of 1/6, see the detailed checks below.


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

Management

 What is the CEO of Adelaide Brighton'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
Nick Miller
TENURE AS CEO 0.8 years
CEO Bio

Mr. Nicholas D. Miller, also known as Nick, NZCE(Civil), BE(Hons), FIPENZ, GAICD, has been Chief Executive Officer of Adelaide Brighton Limited since January 30, 2019. He is a Board member of the Australian Contractors Association (ACA). Mr. Miller was Managing Director and Chief Executive Officer at Broadspectrum since May 2018 until November, 2018 and was its Director since 2018 until November, 2018. He served as the Managing Director of Fulton Hogan Limited since January 2010 until September 2017 and also served as Managing Director of Fulton Hogan Construction Pty Ltd., and Fulton Hogan Industries Pty Ltd. Mr. Miller served as Managing Director and Director of Fulton Hogan Australia Pty. Ltd. Mr. Miller served as Chief Executive of Fulton Hogan Pty Ltd. He was a Director of a number of Fulton Hogan subsidiaries and joint ventures, including Blackhead Quarries Ltd, Allied FH Ltd, WFH Properties Ltd., and Pokeno Village Holdings Ltd. He has over 20 years experience in various civil engineering and management roles, including as Chief Executive of Isaac Construction. He served as Deputy Managing Director of Fulton Hogan Limited. Mr. Miller served as the Chairman of Orion New Zealand Ltd. since February, 2017 until April, 2018 and also served as its Director since September 15, 2016. He served as a Director of Fulton Hogan Construction Pty Ltd. He served as an Executive Director of Fulton Hogan Limited until October 31, 2017. His qualifications include a BE in Civil Engineering (Hons) from Canterbury University and a New Zealand Certificate of Engineering.

CEO Compensation
  • Insufficient data for Nick to compare compensation growth.
  • Insufficient data for Nick to establish whether their remuneration is reasonable compared to companies of similar size in Australia.
Management Team Tenure

Average tenure of the Adelaide Brighton management team in years:

5.1
Average Tenure
  • The average tenure for the Adelaide Brighton management team is over 5 years, this suggests they are a seasoned and experienced team.
Management Team

George Agriogiannis

TITLE
Executive General Manager of Concrete & Aggregates
COMPENSATION
A$786K
TENURE
8.7 yrs

Andrew Dell

TITLE
Executive General Manager of Concrete Products
COMPENSATION
A$619K
TENURE
4.5 yrs

Brad Lemmon

TITLE
Executive General Manager of Cement and Lime
COMPENSATION
A$860K
TENURE
5.8 yrs

Nick Miller

TITLE
Chief Executive Officer
TENURE
0.8 yrs

Theresa Mlikota

TITLE
Chief Financial Officer
TENURE
0.6 yrs

Marcus R. Clayton

TITLE
General Counsel & Company Secretary
COMPENSATION
A$926K
TENURE
16.8 yrs

Dimity Smith

TITLE
Executive General Manager of Human Resources
TENURE
3.8 yrs

Michael Miller

TITLE
Executive General Manager of Marketing & International Trade
COMPENSATION
A$288K
TENURE
5.8 yrs

Luba Alexander

TITLE
Group Corporate Affairs Adviser
Board of Directors Tenure

Average tenure and age of the Adelaide Brighton board of directors in years:

0.5
Average Tenure
58
Average Age
  • The average tenure for the Adelaide Brighton board of directors is less than 3 years, this suggests a new board.
Board of Directors

Raymond Barro

TITLE
Chairman
COMPENSATION
A$158K
AGE
58
TENURE
0.5 yrs

Zlatko Todorcevski

TITLE
Deputy Chairman & Lead Independent Director
COMPENSATION
A$317K
AGE
51
TENURE
0.5 yrs

Ken Scott-Mackenzie

TITLE
Independent Non-Executive Director
COMPENSATION
A$190K
AGE
68
TENURE
9.3 yrs

Vanessa Guthrie

TITLE
Independent Non-Executive Director
COMPENSATION
A$155K
AGE
57
TENURE
1.8 yrs

Geoffrey Tarrant

TITLE
Non-Executive Director
COMPENSATION
A$135K
AGE
50
TENURE
1.8 yrs

Rhonda Barro

TITLE
Director
AGE
65
TENURE
0.5 yrs

Emma Stein

TITLE
Independent Non-Executive Director
AGE
58
TENURE
0.1 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month open market individual insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (A$) Value (A$)
17. May 19 Buy Vanessa Guthrie Individual 14. May 19 16. May 19 5,000 A$3.62 A$17,726
17. May 19 Buy Zlatko Todorcevski Individual 14. May 19 14. May 19 30,000 A$3.50 A$105,000
15. May 19 Buy Kenneth Scott-Mackenzie Individual 14. May 19 14. May 19 15,000 A$3.46 A$51,900
X
Management checks
We assess Adelaide Brighton'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. Adelaide Brighton 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.

News

Simply Wall St News

How Does Adelaide Brighton's (ASX:ABC) P/E Compare To Its Industry, After The Share Price Drop?

ASX:ABC Price Estimation Relative to Market, August 26th 2019 Its relatively low P/E ratio indicates that Adelaide Brighton shareholders think it will struggle to do as well as other companies in its industry classification. … The exact same company would hypothetically deserve a higher P/E ratio if it had a strong balance sheet, than if it had a weak one with lots of debt, because a cashed up company can spend on growth. … The Verdict On Adelaide Brighton's P/E Ratio Adelaide Brighton has a P/E of 10.6.

Simply Wall St -

Are Dividend Investors Making A Mistake With Adelaide Brighton Limited (ASX:ABC)?

Yet sometimes, investors buy a stock for its dividend and lose money because the share price falls by more than they earned in dividend payments. … With a cash payout ratio of 103%, Adelaide Brighton's dividend payments are poorly covered by cash flow. … Dividend Growth Potential With a relatively unstable dividend, it's even more important to see if earnings per share (EPS) are growing. Why take the risk of a dividend getting cut, unless there's a good chance of bigger dividends in future? Earnings have grown at around 3.8% a year for the past five years, which is better than seeing them shrink! 3.8% per annum is not a particularly high rate of growth, which we find curious. When a business is not growing, it often makes more sense to pay higher dividends to shareholders rather than retain the cash with no way to utilise it. Conclusion Dividend investors should always want to know if a) a company's dividends are affordable, b) if there is a track record of consistent payments, and c) if the dividend is capable of growing.

Simply Wall St -

Is Adelaide Brighton (ASX:ABC) Using Too Much Debt?

See our latest analysis for Adelaide Brighton What Is Adelaide Brighton's Debt? … ASX:ABC Historical Debt, August 7th 2019 How Healthy Is Adelaide Brighton's Balance Sheet? … During the last three years, Adelaide Brighton produced sturdy free cash flow equating to 66% of its EBIT, about what we'd expect.

Simply Wall St -

Here's What Adelaide Brighton Limited's (ASX:ABC) P/E Is Telling Us

Adelaide Brighton has a price to earnings ratio of 15.41, based on the last twelve months. … The formula for P/E is: Price to Earnings Ratio = Price per Share ÷ Earnings per Share (EPS) Or for Adelaide Brighton: P/E of 15.41 = A$4.39 ÷ A$0.28 (Based on the year to December 2018.) Is A High Price-to-Earnings Ratio Good? … ASX:ABC Price Estimation Relative to Market, July 25th 2019 Its P/E ratio suggests that Adelaide Brighton shareholders think that in the future it will perform about the same as other companies in its industry classification.

Simply Wall St -

Introducing Adelaide Brighton (ASX:ABC), The Stock That Dropped 39% In The Last Year

For example, the Adelaide Brighton Limited (ASX:ABC) share price is down 39% in the last year. … Even though the Adelaide Brighton share price is down over the year, its EPS actually improved. … A Different Perspective While the broader market gained around 11% in the last year, Adelaide Brighton shareholders lost 36% (even including dividends).

Simply Wall St -

What Kind Of Shareholders Own Adelaide Brighton Limited (ASX:ABC)?

Check out our latest analysis for Adelaide Brighton ASX:ABC Ownership Summary, June 28th 2019 What Does The Institutional Ownership Tell Us About Adelaide Brighton? … Insider Ownership Of Adelaide Brighton The definition of company insiders can be subjective, and does vary between jurisdictions. … Private Company Ownership We can see that Private Companies own 42%, of the shares on issue.

Simply Wall St -

How Much Of Adelaide Brighton Limited (ASX:ABC) Do Institutions Own?

Our analysis of the ownership of the company, below, shows that institutional investors have bought into the company. … View our latest analysis for Adelaide Brighton ASX:ABC Ownership Summary, June 28th 2019 What Does The Institutional Ownership Tell Us About Adelaide Brighton? … As you can see, institutional investors own 16% of Adelaide Brighton.

Simply Wall St -

A Look At The Fair Value Of Adelaide Brighton Limited (ASX:ABC)

A DCF is all about the idea that a dollar in the future is less valuable than a dollar today, so we discount the value of these future cash flows to their estimated value in today's dollars: 10-year free cash flow (FCF) forecast 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 Levered FCF (A$, Millions) A$138.22 A$163.36 A$157.18 A$154.02 A$152.92 A$153.22 A$154.49 A$156.46 A$158.94 A$161.80 Growth Rate Estimate Source Analyst x5 Analyst x5 Analyst x4 Est @ -2.01% Est @ -0.71% Est @ 0.19% Est @ 0.83% Est @ 1.27% Est @ 1.59% Est @ 1.8% Present Value (A$, Millions) Discounted @ 8.23% A$127.70 A$139.45 A$123.96 A$112.23 A$102.95 A$95.30 A$88.78 A$83.07 A$77.97 A$73.34 Present Value of 10-year Cash Flow (PVCF)= A$1.02b "Est" = FCF growth rate estimated by Simply Wall St After calculating the present value of future cash flows in the intial 10-year period, we need to calculate the Terminal Value, which accounts for all future cash flows beyond the first stage. … The Gordon Growth formula is used to calculate Terminal Value at a future annual growth rate equal to the 10-year government bond rate of 2.3%. … ASX:ABC Intrinsic value, June 17th 2019 The assumptions Now the most important inputs to a discounted cash flow are the discount rate, and of course, the actual cash flows.

Simply Wall St -

Will Adelaide Brighton Limited's (ASX:ABC) Earnings Grow In The Next Couple Of Years?

Investors may find it useful to understand how market analysts predict Adelaide Brighton's earnings growth trajectory over the next couple of years and whether the future looks even brighter than the past. … See our latest analysis for Adelaide Brighton Market analysts' consensus outlook for the coming year seems pessimistic, with earnings falling by a double-digit -10%. … ASX:ABC Past and Future Earnings, June 7th 2019 Although it is useful to understand the growth rate year by year relative to today’s figure, it may be more valuable to analyze the rate at which the business is rising or falling on average every year.

Simply Wall St -

Is Adelaide Brighton Limited (ASX:ABC) A High Quality Stock To Own?

See our latest analysis for Adelaide Brighton How Do I Calculate Return On Equity? … The formula for return on equity is: Return on Equity = Net Profit ÷ Shareholders' Equity Or for Adelaide Brighton: 15% = AU$185m ÷ AU$1.2b (Based on the trailing twelve months to December 2018.) Most know that net profit is the total earnings after all expenses, but the concept of shareholders' equity is a little more complicated. … 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 -

Company Info

Description

Adelaide Brighton Limited produces, imports, distributes, and markets construction materials in Australia. The company operates in two segments, Cement, Lime, Concrete and Aggregates; and Concrete Products. It offers cement, cementitious products, lime, premixed concrete, aggregates, and sand, as well as concrete bricks, blocks, pavers, retaining walls, erosion control products, architectural masonry products, and reconstituted stone veneers. The company offers its products to residential and non-residential construction, engineering construction, alumina production, and mining markets. Adelaide Brighton Limited was founded in 1882 and is headquartered in Adelaide, Australia.

Details
Name: Adelaide Brighton Limited
ABC
Exchange: ASX
Founded: 1882
A$2,105,065,700
651,723,127
Website: http://www.adbri.com.au
Address: Adelaide Brighton Limited
157 Grenfell Street,
Level 1,
Adelaide,
South Australia, 5000,
Australia
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
ASX ABC Ordinary Shares Australian Securities Exchange AU AUD 02. Jan 1992
OTCPK ADBC.F Ordinary Shares Pink Sheets LLC US USD 02. Jan 1992
DB GHO Ordinary Shares Deutsche Boerse AG DE EUR 02. Jan 1992
CHIA ABC Ordinary Shares Chi-X Australia AU AUD 02. Jan 1992
OTCPK ADLD.Y UNSPONSORD ADR Pink Sheets LLC US USD 28. Jul 2015
Number of employees
Current staff
Staff numbers
1,568
Adelaide Brighton employees.
Industry
Construction Materials
Materials
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/11/15 10:33
End of day share price update: 2019/11/15 00:00
Last estimates confirmation: 2019/10/31
Last earnings filing: 2019/08/27
Last earnings reported: 2019/06/30
Last annual earnings reported: 2018/12/31


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.