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Brickworks

ASX:BKW
Snowflake Description

Excellent balance sheet established dividend payer.

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

Brickworks Limited manufactures, sells, and distributes building products in Australia. The last earnings update was 58 days ago. More info.


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BKW Share Price and Events
7 Day Returns
-0.6%
ASX:BKW
3.1%
AU Basic Materials
0%
AU Market
1 Year Returns
9.5%
ASX:BKW
19.5%
AU Basic Materials
15.3%
AU Market
BKW Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Brickworks (BKW) -0.6% -2% 15.1% 9.5% 44.1% 40%
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
  • BKW underperformed the Basic Materials industry which returned 19.5% over the past year.
  • BKW underperformed the Market in Australia which returned 15.3% over the past year.
Price Volatility
BKW
Industry
5yr Volatility vs Market

Value

 Is Brickworks 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 Brickworks 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 Brickworks.

ASX:BKW Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 4 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 8.2%
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:BKW
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%) (12.06%))
0.982
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.98
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.31% + (0.982 * 5.96%)
8.17%

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

The calculations below outline how an intrinsic value for Brickworks 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:BKW DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (AUD, Millions) Source Present Value
Discounted (@ 8.17%)
2020 74.80 Analyst x3 69.15
2021 73.13 Analyst x3 62.51
2022 82.20 Analyst x2 64.95
2023 86.04 Est @ 4.67% 62.85
2024 89.45 Est @ 3.97% 60.41
2025 92.56 Est @ 3.47% 57.79
2026 95.45 Est @ 3.12% 55.10
2027 98.20 Est @ 2.88% 52.40
2028 100.86 Est @ 2.71% 49.76
2029 103.47 Est @ 2.59% 47.19
Present value of next 10 years cash flows A$582.00
ASX:BKW DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= A$103.47 × (1 + 2.31%) ÷ (8.17% – 2.31%)
A$1,808.15
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= A$1,808.15 ÷ (1 + 8.17%)10
A$824.71
ASX:BKW Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= A$582.00 + A$824.71
A$1,406.71
Equity Value per Share
(AUD)
= Total value / Shares Outstanding
= A$1,406.71 / 149.90
A$9.38
ASX:BKW Discount to Share Price
Calculation Result
Value per share (AUD) From above. A$9.38
Current discount Discount to share price of A$18.42
= -1 x (A$18.42 - A$9.38) / A$9.38
-96.3%

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

  • The current share price of Brickworks 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 Brickworks's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Brickworks's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
ASX:BKW PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-07-31) in AUD A$1.32
ASX:BKW Share Price ** ASX (2019-11-15) in AUD A$18.42
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 Brickworks.

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

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

= 18.42 ÷ 1.32

14x

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

  • Brickworks is good value based on earnings compared to the AU Basic Materials industry average.
  • Brickworks is good value based on earnings compared to the Australia market.
Price based on expected Growth
Does Brickworks's expected growth come at a high price?
Raw Data
ASX:BKW PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 14x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 4 Analysts
-6.2%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:BKW PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 14x ÷ -6.2%

-2.27x

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

  • Brickworks earnings are not expected to grow next year, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on Brickworks's assets?
Raw Data
ASX:BKW PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-07-31) in AUD A$14.47
ASX:BKW Share Price * ASX (2019-11-15) in AUD A$18.42
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:BKW PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

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

= 18.42 ÷ 14.47

1.27x

* Primary Listing of Brickworks.

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

  • Brickworks is good value based on assets compared to the AU Basic Materials industry average.
X
Value checks
We assess Brickworks'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. Brickworks has a total score of 3/6, 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 Brickworks expected to perform in the next 1 to 3 years based on estimates from 4 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
-6.2%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Brickworks expected to grow at an attractive rate?
  • Brickworks's earnings are expected to decrease over the next 1-3 years, this is below the low risk savings rate of 2.3%.
Growth vs Market Checks
  • Brickworks's earnings are expected to decrease over the next 1-3 years, this is below the Australia market average.
  • Brickworks's revenue growth is positive but not above the Australia market average.
Annual Growth Rates Comparison
Raw Data
ASX:BKW Future Growth Rates Data Sources
Data Point Source Value (per year)
ASX:BKW Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 4 Analysts -6.2%
ASX:BKW Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 4 Analysts 3.3%
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:BKW Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 4 Analyst Estimates (S&P Global) See Below
All numbers in AUD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
ASX:BKW Future Estimates Data
Date (Data in AUD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2022-07-31 1,022 154 170 3
2021-07-31 988 131 157 4
2020-07-31 976 132 179 4
2019-11-15
ASX:BKW Past Financials Data
Date (Data in AUD Millions) Revenue Cash Flow Net Income *
2019-07-31 919 123 197
2019-04-30 885 142 213
2019-01-31 886 162 225
2018-10-31 854 166 200
2018-07-31 785 171 179
2018-04-30 788 155 180
2018-01-31 790 140 181
2017-10-31 816 128 183
2017-07-31 842 115 186
2017-04-30 831 111 146
2017-01-31 820 106 105
2016-10-31 785 127 92

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Brickworks's earnings are expected to decrease over the next 1-3 years, this is not considered high growth.
  • Brickworks's revenue is expected to grow by 3.3% 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:BKW Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 4 Analyst Estimates (S&P Global) See Below

All data from Brickworks Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

ASX:BKW Future Estimates Data
Date (Data in AUD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2022-07-31 1.13 1.38 0.89 2.00
2021-07-31 1.05 1.35 0.78 3.00
2020-07-31 1.19 1.29 1.04 3.00
2019-11-15
ASX:BKW Past Financials Data
Date (Data in AUD Millions) EPS *
2019-07-31 1.32
2019-04-30 1.42
2019-01-31 1.50
2018-10-31 1.34
2018-07-31 1.20
2018-04-30 1.20
2018-01-31 1.21
2017-10-31 1.23
2017-07-31 1.25
2017-04-30 0.98
2017-01-31 0.71
2016-10-31 0.62

*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.
  • Brickworks is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Brickworks'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.
Brickworks has a total score of 0/6, 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 Brickworks 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 Brickworks'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.
  • Brickworks has delivered over 20% year on year earnings growth in the past 5 years.
  • Brickworks's 1-year earnings growth is less than its 5-year average (10.1% vs 21.4%)
  • Brickworks's earnings growth has exceeded the AU Basic Materials industry average in the past year (10.1% vs -37%).
Earnings and Revenue History
Brickworks'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 Brickworks Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

ASX:BKW Past Revenue, Cash Flow and Net Income Data
Date (Data in AUD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-07-31 918.70 196.90 202.11
2019-04-30 884.58 212.61 196.88
2019-01-31 886.31 225.01 197.87
2018-10-31 853.70 200.22 193.48
2018-07-31 785.24 178.76 182.87
2018-04-30 787.71 179.74 179.48
2018-01-31 790.17 180.72 176.09
2017-10-31 816.00 183.47 174.27
2017-07-31 841.82 186.21 172.45
2017-04-30 830.85 145.77 169.84
2017-01-31 819.88 105.33 167.23
2016-10-31 785.43 91.76 164.47
2016-07-31 750.99 78.19 161.72
2016-04-30 742.48 95.50 158.84
2016-01-31 733.98 112.80 155.96
2015-10-31 728.80 95.45 154.05
2015-07-31 723.61 78.09 152.15
2015-04-30 708.94 83.37 150.23
2015-01-31 694.26 88.66 148.32
2014-10-31 682.27 95.71 144.34
2014-07-31 670.27 102.76 140.36
2014-04-30 645.56 94.07 137.06
2014-01-31 620.86 85.39 133.76
2013-10-31 613.68 85.28 132.65
2013-07-31 606.51 85.17 131.55
2013-04-30 601.65 65.24 130.96
2013-01-31 596.79 45.31 130.38

*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.
  • Brickworks has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Brickworks used its assets more efficiently than the AU Basic Materials industry average last year based on Return on Assets.
  • Brickworks has improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Brickworks'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.
Brickworks has a total score of 4/6, 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 Brickworks'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 Brickworks's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Brickworks is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Brickworks's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of Brickworks'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 1.5x 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 Brickworks Company Filings, last reported 3 months ago.

ASX:BKW Past Debt and Equity Data
Date (Data in AUD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-07-31 2,167.36 333.08 74.88
2019-04-30 2,167.36 333.08 74.88
2019-01-31 2,133.55 333.21 87.57
2018-10-31 2,133.55 333.21 87.57
2018-07-31 2,071.08 326.53 21.17
2018-04-30 2,071.08 326.53 21.17
2018-01-31 2,013.77 337.73 17.67
2017-10-31 2,013.77 337.73 17.67
2017-07-31 1,967.84 315.53 19.64
2017-04-30 1,967.84 315.53 19.64
2017-01-31 1,903.51 335.79 26.81
2016-10-31 1,903.51 335.79 26.81
2016-07-31 1,838.49 305.04 30.78
2016-04-30 1,838.49 305.04 30.78
2016-01-31 1,851.95 304.14 35.67
2015-10-31 1,851.95 304.14 35.67
2015-07-31 1,824.25 329.07 23.05
2015-04-30 1,824.25 329.07 23.05
2015-01-31 1,797.41 338.35 19.60
2014-10-31 1,797.41 338.35 19.60
2014-07-31 1,796.50 328.56 21.21
2014-04-30 1,796.50 328.56 21.21
2014-01-31 1,755.47 332.06 16.11
2013-10-31 1,755.47 332.06 16.11
2013-07-31 1,719.90 342.50 19.15
2013-04-30 1,719.90 342.50 19.15
2013-01-31 1,707.68 318.48 11.18
  • Brickworks's level of debt (15.4%) compared to net worth is satisfactory (less than 40%).
  • The level of debt compared to net worth has been reduced over the past 5 years (18.3% vs 15.4% today).
  • Debt is well covered by operating cash flow (37%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 3.4x coverage).
X
Financial health checks
We assess Brickworks'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. Brickworks 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.

Dividends

 What is Brickworks'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
3.09%
Current annual income from Brickworks dividends. Estimated to be 3.17% next year.
If you bought A$2,000 of Brickworks shares you are expected to receive A$62 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?
  • Brickworks's pays a higher dividend yield than the bottom 25% of dividend payers in Australia (2.36%).
  • Brickworks'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:BKW 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 4 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:BKW Future Dividends Estimate Data
Date (Data in A$) Dividend per Share (annual) Avg. No. Analysts
2022-07-31 0.62 4.00
2021-07-31 0.58 5.00
2020-07-31 0.56 5.00
2019-11-15
ASX:BKW Past Annualized Dividends Data
Date (Data in A$) Dividend per share (annual) Avg. Yield (%)
2019-09-18 0.570 3.161
2018-09-19 0.540 3.218
2018-03-21 0.520 3.264
2017-09-20 0.510 3.567
2017-03-22 0.490 3.504
2016-09-21 0.480 3.653
2015-09-23 0.450 3.016
2014-09-24 0.420 3.070
2013-09-18 0.405 2.907
2012-09-19 0.405 3.382
2011-09-22 0.405 3.876
2011-09-21 0.405 4.341
2011-03-24 0.405 4.051
2010-09-23 0.400 3.560
2010-03-25 0.395 3.247
2009-09-24 0.390 3.051
2009-03-26 0.390 3.240

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

  • Dividends per share have been stable in the past 10 years.
  • Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of Brickworks's earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by earnings (2.3x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be covered by earnings (1.9x coverage).
X
Income/ dividend checks
We assess Brickworks'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 Brickworks afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Brickworks has a total score of 5/6, 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 Brickworks'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
Lindsay Partridge
COMPENSATION A$3,249,816
AGE 64
CEO Bio

Mr. Lindsay R. Partridge, AM; BSc. Hons.Ceramic Eng; SFCDA; Dip.CD has been the Managing Director of Brickworks Ltd. since 2000 and joined since 1985. Mr. Partridge served as the Chief Executive Officer of Brickworks Ltd. since 1999. In 1987, he was appointed as a NSW Operations Manager and in 1989 NSW General Manager. He is a ceramic engineer who has worked extensively in all facets of the Building and Construction industry in Australia and the United States prior to joining the Austral Bricks division of Brickworks Ltd in 1985. He has also had extensive industry body involvement and was the Founding Chairman of the Australian Brick and Blocklaying Training Foundation and is a Director of Think Brick Australia. He has been a Director of Brickworks Ltd. since 2000. He serves as a Director of Children’s Cancer Institute Australia. He served as a Non-Executive Director of Bristile Pty Ltd. from September 1, 2001 to 2003. Previously, he was a Director of HIA (Housing Industry Association) Youthbuild and was elected HIA State Councillor. He is a Member of the Business Council of Australia. On 11 June 2012, Mr. Partridge was awarded a Member (AM) of the Order of Australia in the Queens Diamond Jubilee Birthday Honours List, for services to the Building and Construction Industry, particularly in the areas of industry training and career development and to the community. Mr. Partridge has a Bachelor of Science (Honours) majoring in Ceramic Engineering from the University of New South Wales. He has completed the Stanford University Executive Development Program and has a Diploma in Corporate Directorship from the Corporate Directors Association. He is a Fellow of the Australian Institute of Company Directors.

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

Average tenure of the Brickworks management team in years:

4.6
Average Tenure
  • The tenure for the Brickworks management team is about average.
Management Team

Lindsay Partridge

TITLE
MD & Executive Director
COMPENSATION
A$3M
AGE
64

Robert Bakewell

TITLE
Chief Financial Officer
COMPENSATION
A$1M
AGE
54
TENURE
3.4 yrs

Mark Ellenor

TITLE
President of Brickworks Building Products North America
COMPENSATION
A$382K
TENURE
0.8 yrs

Megan Kublins

TITLE
Executive General Manager of Land & Development
COMPENSATION
A$1M
TENURE
13.8 yrs

P. Scott

TITLE
Group General Manager of Operations
COMPENSATION
A$251K
TENURE
2.8 yrs

Susan Leppinus

TITLE
Company Secretary & General Counsel
TENURE
4.6 yrs

David Fitzharris

TITLE
Group General Manager of Sales & Export
COMPENSATION
A$460K
TENURE
16.8 yrs

Mark Callagher

TITLE
General Manager of Corporate Development

David Millington

TITLE
General Manager of Austral Masonry
COMPENSATION
A$184K
TENURE
4.8 yrs
Board of Directors Tenure

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

11.4
Average Tenure
66
Average Age
  • The average tenure for the Brickworks board of directors is over 10 years, this suggests they are a seasoned and experienced board.
Board of Directors

Rob Millner

TITLE
Non Executive Chairman
COMPENSATION
A$256K
AGE
68
TENURE
20.8 yrs

Lindsay Partridge

TITLE
MD & Executive Director
COMPENSATION
A$3M
AGE
64
TENURE
19.8 yrs

Michael Millner

TITLE
Deputy Chairman
COMPENSATION
A$128K
AGE
66

Robert Webster

TITLE
Lead Independent Director
COMPENSATION
A$136K
AGE
67

Brendan Crotty

TITLE
Independent Non-Executive Director
COMPENSATION
A$141K
AGE
72
TENURE
11.4 yrs

Debbie Page

TITLE
Independent Non-Executive Director
COMPENSATION
A$141K
AGE
61
TENURE
5.3 yrs

Mal Bundey

TITLE
Independent Non-Executive Director
AGE
57
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$) Value (A$)
18. Apr 19 Sell Lindsay Partridge Individual 16. Apr 19 17. Apr 19 -30,000 A$16.46 A$-493,156
29. Mar 19 Buy Deborah Page Individual 29. Mar 19 29. Mar 19 1,110 A$17.54 A$19,469
27. Mar 19 Sell Brendan Crotty Individual 26. Mar 19 26. Mar 19 -12,000 A$17.84 A$-214,030
05. Dec 18 Sell Lindsay Partridge Individual 05. Dec 18 05. Dec 18 -40,000 A$16.95 A$-677,900
05. Dec 18 Buy Lindsay Partridge Individual 05. Dec 18 05. Dec 18 40,000 A$16.95 A$678,129
X
Management checks
We assess Brickworks'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. Brickworks 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 Many Brickworks Limited (ASX:BKW) Shares Did Insiders Buy, In The Last Year?

So shareholders might well want to know whether insiders have been buying or selling shares in Brickworks Limited (ASX:BKW). … As Peter Lynch said, 'insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise.' View our latest analysis for Brickworks Brickworks Insider Transactions Over The Last Year In the last twelve months, the biggest single purchase by an insider was when MD & Executive Director Lindsay Partridge bought AU$915k worth of shares at a price of AU$16.92 per share. … Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price.

Simply Wall St -

Why You Should Care About Brickworks Limited’s (ASX:BKW) Low Return On Capital

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 Brickworks: 0.029 = AU$76m ÷ (AU$3.0b - AU$411m) (Based on the trailing twelve months to January 2019.) So, Brickworks has an ROCE of 2.9%. … How Brickworks's Current Liabilities Impact Its ROCE Liabilities, such as supplier bills and bank overdrafts, are referred to as current liabilities if they need to be paid within 12 months. … The ROCE equation subtracts current liabilities from capital employed, so a company with a lot of current liabilities appears to have less capital employed, and a higher ROCE than otherwise.

Simply Wall St -

Should You Be Adding Brickworks (ASX:BKW) To Your Watchlist Today?

That's because insider buying often indicates that those closest to the company have confidence that the share price will perform well. … The good news, alongside the insider buying, for Brickworks bulls is that insiders (collectively) have a meaningful investment in the stock. … So if you like the sound of Brickworks, you'll probably love this free list of growing companies that insiders are buying.

Simply Wall St -

Is Brickworks (ASX:BKW) Using Too Much Debt?

The first step when considering a company's debt levels is to consider its cash and debt together. … Finally, a business needs free cash flow to pay off debt; accounting profits just don't cut it. … Our View Happily, Brickworks's impressive conversion of EBIT to free cash flow implies it has the upper hand on its debt.

Simply Wall St -

Should You Worry About Brickworks Limited's (ASX:BKW) CEO Salary Level?

See our latest analysis for Brickworks How Does Lindsay Partridge's Compensation Compare With Similar Sized Companies? … It would therefore appear that Brickworks Limited pays Lindsay Partridge more than the median CEO remuneration at companies of a similar size, in the same market. … We compared total CEO remuneration at Brickworks Limited with the amount paid at companies with a similar market capitalization.

Simply Wall St -

Do You Like Brickworks Limited (ASX:BKW) At This P/E Ratio?

The formula for P/E is: Price to Earnings Ratio = Price per Share ÷ Earnings per Share (EPS) Or for Brickworks: P/E of 11.12 = A$16.74 ÷ A$1.5 (Based on the year to January 2019.) Is A High P/E Ratio Good? … The higher the P/E ratio, the higher the price tag of a business, relative to its trailing earnings. … ASX:BKW Price Estimation Relative to Market, July 17th 2019 Its relatively low P/E ratio indicates that Brickworks shareholders think it will struggle to do as well as other companies in its industry classification.

Simply Wall St -

Brickworks (ASX:BKW) Shareholders Booked A 15% Gain In The Last Five Years

For example, the Brickworks Limited (ASX:BKW) share price is up 15% in the last five years, slightly above the market return. … One imperfect but simple way to consider how the market perception of a company has shifted is to compare the change in the earnings per share (EPS) with the share price movement. … ASX:BKW Past and Future Earnings, July 9th 2019 We like that insiders have been buying shares in the last twelve months.

Simply Wall St -

Brickworks Limited's (ASX:BKW) Earnings Grew 25%, Did It Beat Long-Term Trend?

In this article, I will take a look at Brickworks Limited's (ASX:BKW) most recent earnings update (31 January 2019) and compare these latest figures against its performance over the past few years, along with how the rest of BKW's industry performed. … Check out our latest analysis for Brickworks Were BKW's earnings stronger than its past performances and the industry? … You should continue to research Brickworks to get a better picture of the stock by looking at: Future Outlook: What are well-informed industry analysts predicting for BKW’s future growth?

Simply Wall St -

What Brickworks Limited's (ASX:BKW) ROE Can Tell Us

The formula for return on equity is: Return on Equity = Net Profit ÷ Shareholders' Equity Or for Brickworks: 11% = AU$225m ÷ AU$2.1b (Based on the trailing twelve months to January 2019.) Most know that net profit is the total earnings after all expenses, but the concept of shareholders' equity is a little more complicated. … Conservative use of debt to boost returns is usually a good move for shareholders, though it does leave the company more exposed to interest rate rises. … 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 -

Is Brickworks Limited's (ASX:BKW) ROE Of 11% Impressive?

The formula for return on equity is: Return on Equity = Net Profit ÷ Shareholders' Equity Or for Brickworks: 11% = AU$225m ÷ AU$2.1b (Based on the trailing twelve months to January 2019.) It's easy to understand the 'net profit' part of that equation, but 'shareholders' equity' requires further explanation. … A company that can achieve a high return on equity without debt could be considered a high quality business. … 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

Brickworks Limited manufactures, sells, and distributes building products in Australia. It operates through Building Products Australia, Building Products North America, Property, and Investments segments. The company manufactures vitrified clay, concrete, and timber products for use in the building industry. Its products primarily include bricks, masonry blocks, pavers, roof tiles, floor tiles, precast walling and flooring panels, and fiber cement walling panels, as well as retaining wall systems, precast concrete panels, concrete and terracotta roof tiles, and specialized façade systems. The company offers its building products under the Austral Bricks, Austral Masonry, Austral Precast, Bristile Roofing, Auswest Timber, Pronto Panel, Daniel Robertson, Nubrik, Bowral Bricks, Terracade, INEX, and NZ Brick Distributors brands. It also exports its products. In addition, the company develops and sells residential and industrial land; and invests in property trusts and the Australian share market. Brickworks Limited was founded in 1934 and is headquartered in Horsley Park, Australia.

Details
Name: Brickworks Limited
BKW
Exchange: ASX
Founded: 1934
A$2,761,118,194
149,897,839
Website: http://www.brickworks.com.au
Address: Brickworks Limited
738 - 780 Wallgrove Road,
Horsley Park,
New South Wales, 2175,
Australia
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
ASX BKW Ordinary Shares Australian Securities Exchange AU AUD 02. Jan 1992
OTCPK BRKW.F Ordinary Shares Pink Sheets LLC US USD 02. Jan 1992
CHIA BKW Ordinary Shares Chi-X Australia AU AUD 02. Jan 1992
Number of employees
Current staff
Staff numbers
2,111
Brickworks employees.
Industry
Construction Materials
Materials
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/11/15 10:32
End of day share price update: 2019/11/15 00:00
Last estimates confirmation: 2019/11/06
Last earnings filing: 2019/09/18
Last earnings reported: 2019/07/31
Last annual earnings reported: 2019/07/31


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.