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Boral

ASX:BLD
Snowflake Description

Moderate growth potential with mediocre balance sheet.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
BLD
ASX
A$6B
Market Cap
  1. Home
  2. AU
  3. Materials
Company description

Boral Limited manufactures and supplies building and construction materials in Australia, North America, Asia, and internationally. The last earnings update was 57 days ago. More info.


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BLD Share Price and Events
7 Day Returns
0.8%
ASX:BLD
3.1%
AU Basic Materials
0%
AU Market
1 Year Returns
-6.3%
ASX:BLD
19.5%
AU Basic Materials
15.3%
AU Market
BLD Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Boral (BLD) 0.8% 3.1% 0.8% -6.3% -18.4% 1.2%
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
  • BLD underperformed the Basic Materials industry which returned 19.5% over the past year.
  • BLD underperformed the Market in Australia which returned 15.3% over the past year.
Price Volatility
BLD
Industry
5yr Volatility vs Market

BLD Value

 Is Boral 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 Boral 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 Boral.

ASX:BLD Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 8 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 8.9%
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:BLD
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%) (40.8%))
1.103
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.1
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.31% + (1.103 * 5.96%)
8.89%

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

The calculations below outline how an intrinsic value for Boral 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:BLD DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (AUD, Millions) Source Present Value
Discounted (@ 8.89%)
2020 332.50 Analyst x2 305.36
2021 572.00 Analyst x2 482.45
2022 617.00 Analyst x1 477.93
2023 651.37 Est @ 5.57% 463.38
2024 681.29 Est @ 4.59% 445.11
2025 707.93 Est @ 3.91% 424.76
2026 732.21 Est @ 3.43% 403.48
2027 754.87 Est @ 3.09% 382.02
2028 776.45 Est @ 2.86% 360.87
2029 797.38 Est @ 2.7% 340.36
Present value of next 10 years cash flows A$4,085.00
ASX:BLD DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= A$797.38 × (1 + 2.31%) ÷ (8.89% – 2.31%)
A$12,409.18
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= A$12,409.18 ÷ (1 + 8.89%)10
A$5,296.76
ASX:BLD Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= A$4,085.00 + A$5,296.76
A$9,381.76
Equity Value per Share
(AUD)
= Total value / Shares Outstanding
= A$9,381.76 / 1,172.33
A$8
ASX:BLD Discount to Share Price
Calculation Result
Value per share (AUD) From above. A$8.00
Current discount Discount to share price of A$5.02
= -1 x (A$5.02 - A$8.00) / A$8.00
37.3%

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

Current Discount
Amount off the current price Boral is available for.
Intrinsic value
37%
Share price is A$5.02 vs Future cash flow value of A$8
Current Discount Checks
For Boral to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Boral's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Boral's share price is below the future cash flow value, but not at a substantial discount (< 40%).
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 Boral's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Boral's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
ASX:BLD PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-06-30) in AUD A$0.18
ASX:BLD Share Price ** ASX (2019-11-15) in AUD A$5.02
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 Boral.

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

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

= 5.02 ÷ 0.18

27.42x

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

  • Boral is overvalued based on earnings compared to the AU Basic Materials industry average.
  • Boral is overvalued based on earnings compared to the Australia market.
Price based on expected Growth
Does Boral's expected growth come at a high price?
Raw Data
ASX:BLD PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 27.42x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 8 Analysts
23%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:BLD PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 27.42x ÷ 23%

1.19x

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

  • Boral is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Boral's assets?
Raw Data
ASX:BLD PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-06-30) in AUD A$5.00
ASX:BLD Share Price * ASX (2019-11-15) in AUD A$5.02
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:BLD PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

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

= 5.02 ÷ 5.00

1x

* Primary Listing of Boral.

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

  • Boral is good value based on assets compared to the AU Basic Materials industry average.
X
Value checks
We assess Boral'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. Boral has a total score of 2/6, 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.

BLD Future Performance

 How is Boral expected to perform in the next 1 to 3 years based on estimates from 8 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
23%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Boral expected to grow at an attractive rate?
  • Boral's earnings growth is expected to exceed the low risk savings rate of 2.3%.
Growth vs Market Checks
  • Boral's earnings growth is expected to exceed the Australia market average.
  • Boral's revenue growth is positive but not above the Australia market average.
Annual Growth Rates Comparison
Raw Data
ASX:BLD Future Growth Rates Data Sources
Data Point Source Value (per year)
ASX:BLD Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 8 Analysts 23%
ASX:BLD Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 8 Analysts 3.1%
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:BLD Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (4 months ago) See Below
Future Estimates Average of up to 8 Analyst Estimates (S&P Global) See Below
All numbers in AUD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
ASX:BLD Future Estimates Data
Date (Data in AUD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2022-06-30 6,320 961 455 6
2021-06-30 6,211 898 425 8
2020-06-30 5,918 858 370 8
2019-11-15
ASX:BLD Past Financials Data
Date (Data in AUD Millions) Revenue Cash Flow Net Income *
2019-06-30 5,801 762 215
2018-12-31 5,861 615 455
2018-09-30 5,796 596 443
2018-06-30 5,579 578 424
2017-12-31 4,965 471 279
2017-09-30 4,547 442 262
2017-06-30 4,128 413 246
2017-03-31 4,138 468 251
2016-12-31 3,951 522 249
2016-09-30 3,948 500 247

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Boral's earnings are expected to grow significantly at over 20% yearly.
  • Boral's revenue is expected to grow by 3.1% 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:BLD 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 8 Analyst Estimates (S&P Global) See Below

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

ASX:BLD Future Estimates Data
Date (Data in AUD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2022-06-30 0.39 0.40 0.37 2.00
2021-06-30 0.36 0.37 0.35 5.00
2020-06-30 0.32 0.34 0.30 5.00
2019-11-15
ASX:BLD Past Financials Data
Date (Data in AUD Millions) EPS *
2019-06-30 0.18
2018-12-31 0.39
2018-09-30 0.38
2018-06-30 0.36
2017-12-31 0.24
2017-09-30 0.24
2017-06-30 0.24
2017-03-31 0.27
2016-12-31 0.30
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.
  • Boral is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Boral'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.
Boral 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.

BLD Past Performance

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

ASX:BLD 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 5,800.60 214.60 1,405.00
2018-12-31 5,861.20 454.50 1,403.80
2018-09-30 5,796.15 442.50 1,394.15
2018-06-30 5,579.30 424.10 1,369.50
2017-12-31 4,965.10 278.90 1,190.30
2017-09-30 4,546.55 262.30 1,115.30
2017-06-30 4,128.00 245.70 1,040.30
2017-03-31 4,138.35 250.85 1,051.85
2016-12-31 3,951.20 249.00 1,026.20
2016-09-30 3,948.20 247.25 1,014.15
2016-06-30 3,945.20 245.50 1,002.10
2016-03-31 3,992.90 258.85 1,003.95
2015-12-31 4,040.60 272.20 1,005.80
2015-09-30 4,169.10 257.80 1,021.75
2015-06-30 4,297.60 243.40 1,037.70
2015-03-31 4,310.20 196.40 1,028.70
2014-12-31 4,322.80 149.40 1,019.70
2014-09-30 4,324.25 126.30 1,020.50
2014-06-30 4,325.70 103.20 1,021.30
2014-03-31 4,265.40 -26.10 1,015.45
2013-12-31 4,205.10 -155.40 1,009.60
2013-09-30 4,184.25 -215.55 1,012.35
2013-06-30 4,163.40 -275.70 1,015.10
2013-03-31 5,212.80 -94.40 1,228.85
2012-12-31 4,639.40 -7.80 1,115.30

*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.
  • Boral has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Boral used its assets less efficiently than the AU Basic Materials industry average last year based on Return on Assets.
  • Boral has improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Boral'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.
Boral has a total score of 2/6, 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.

BLD Health

 How is Boral'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 Boral's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Boral is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Boral's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of Boral'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 Boral Company Filings, last reported 4 months ago.

ASX:BLD Past Debt and Equity Data
Date (Data in AUD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-06-30 5,858.90 2,395.00 211.00
2018-12-31 5,943.30 2,374.00 93.40
2018-09-30 5,943.30 2,374.00 93.40
2018-06-30 5,730.80 2,510.00 85.50
2017-12-31 5,438.40 2,500.90 155.60
2017-09-30 5,438.40 2,500.90 155.60
2017-06-30 5,440.50 2,555.50 241.60
2017-03-31 5,440.50 2,555.50 241.60
2016-12-31 5,603.60 1,356.90 2,588.60
2016-09-30 5,603.60 1,356.90 2,588.60
2016-06-30 3,506.30 1,341.10 471.00
2016-03-31 3,506.30 1,341.10 471.00
2015-12-31 3,476.10 1,365.10 351.50
2015-09-30 3,476.10 1,365.10 351.50
2015-06-30 3,524.10 1,317.50 515.40
2015-03-31 3,524.10 1,317.50 515.40
2014-12-31 3,491.50 1,238.20 356.80
2014-09-30 3,491.50 1,238.20 356.80
2014-06-30 3,348.10 1,096.30 391.50
2014-03-31 3,348.10 1,096.30 391.50
2013-12-31 3,402.90 1,644.50 262.90
2013-09-30 3,402.90 1,644.50 262.90
2013-06-30 3,393.50 1,660.80 243.70
2013-03-31 3,393.50 1,658.70 232.10
2012-12-31 3,398.90 1,643.40 186.40
  • Boral's level of debt (40.9%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (32.8% vs 40.9% today).
  • Debt is well covered by operating cash flow (31.8%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 5.3x coverage).
X
Financial health checks
We assess Boral'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. Boral 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.

BLD Dividends

 What is Boral'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
5.28%
Current annual income from Boral dividends. Estimated to be 4.72% next year.
If you bought A$2,000 of Boral shares you are expected to receive A$106 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?
  • Boral's pays a higher dividend yield than the bottom 25% of dividend payers in Australia (2.36%).
  • Boral'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:BLD 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 8 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:BLD Future Dividends Estimate Data
Date (Data in A$) Dividend per Share (annual) Avg. No. Analysts
2022-06-30 0.26 7.00
2021-06-30 0.24 9.00
2020-06-30 0.22 9.00
2019-11-15
ASX:BLD Past Annualized Dividends Data
Date (Data in A$) Dividend per share (annual) Avg. Yield (%)
2019-08-26 0.265 5.625
2019-02-25 0.270 5.364
2018-09-17 0.280 5.196
2018-08-28 0.280 4.037
2018-02-12 0.250 3.655
2017-08-29 0.240 3.291
2017-02-14 0.240 3.714
2016-09-16 0.230 3.928
2016-08-23 0.230 3.520
2016-02-09 0.220 3.451
2015-08-26 0.190 3.455
2015-02-10 0.170 2.726
2014-09-17 0.160 3.113
2014-08-26 0.160 2.989
2014-02-11 0.140 2.568
2013-08-20 0.110 2.318
2013-02-12 0.085 1.863
2012-09-20 0.110 2.684
2012-08-21 0.110 3.130
2011-09-21 0.145 3.985
2011-08-17 0.145 4.106
2010-08-18 0.135 2.913
2009-08-19 0.110 2.019
2009-02-11 0.150 3.928

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 increased over the past 10 years.
Current Payout to shareholders
What portion of Boral's earnings are paid to the shareholders as a dividend.
  • Dividends paid are not well covered by earnings (0.7x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be covered by earnings (1.6x coverage).
X
Income/ dividend checks
We assess Boral'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 Boral afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Boral has a total score of 3/6, see the detailed checks below.


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

BLD Management

 What is the CEO of Boral'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
Mike Kane
COMPENSATION A$3,842,000
AGE 68
TENURE AS CEO 7.1 years
CEO Bio

Mr. Michael Kane, also known as Mike, BA, JD, MS, has been the Chief Executive Officer and Managing Director of Boral Limited since October 1, 2012. Mr. Kane served as the President of Boral Industries, Inc (Boral USA ) at Boral Ltd. from February 2010 to September 2012. Mr. Kane served as the President of United States Operations at Boral Ltd. since March 1, 2010. He has a deep knowledge of the US building and construction materials industry. His experience spans a broad range of geographies across America, Europe and the Asia Pacific, and his portfolio of responsibilities has included cement, aggregate, concrete, plasterboard, bricks and roof tile businesses. Mr Kane has extensive experience in the building and construction industry. He has also worked for US Gypsum, Hanson Building Materials and Holcim. Mr. Kane served as the Chief Executive Officer of CalStar Products, Inc. since 2009. Mr. Kane joined CalStar Products, Inc. in 2009. At Berkshire Hathaway's Johns Manville Corporation, Mr. Kane introduced the first formaldehyde-free fiberglass wall insulation-by removing phenol formaldehyde from the resin binder. He served as Senior Vice President of Southeast Region of Holcim (US) Inc. Prior, Mr. Kane served as the President and Chief Executive Officer of Pioneer USA. An attorney by training, Mr. Kane started his career in product and environmental safety at USG. He has been a Director of Boral Limited since October 1, 2012. He served as a Director of CalStar Products, Inc. He was Director of the Harvard Joint Center for Housing Studies Advisory Board, the National Ready Mix Concrete Association and the Alliance to Save Energy. Mr. Kane is credited with helping to revolutionize the insulation business. He served as Independent Non-Executive Director at Sims Metal Management Limited since March 20, 2019 until November 4, 2019. He holds a Masters in Science from Creighton University, School of Law in Nebraska. He holds a BA in Sociology from Southern Illinois University and a JD from DePaul University's School of Law in Illinois.

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

Average tenure of the Boral management team in years:

6
Average Tenure
  • The average tenure for the Boral management team is over 5 years, this suggests they are a seasoned and experienced team.
Management Team

Mike Kane

TITLE
CEO, MD & Director
COMPENSATION
A$4M
AGE
68
TENURE
7.1 yrs

Rosaline Ng

TITLE
Group President Ventures & CFO
COMPENSATION
A$1M

Ross Harper

TITLE
Group President of Operations
COMPENSATION
A$1M
TENURE
0.8 yrs

David Mariner

TITLE
President & CEO of North America
COMPENSATION
A$1M
TENURE
3.3 yrs

Wayne Manners

TITLE
President & CEO of Boral Australia
COMPENSATION
A$324K
TENURE
0.8 yrs

Kylie FitzGerald

TITLE
Group Communications & Investor Relations Director

Damien Sullivan

TITLE
Group General Counsel
TENURE
6.3 yrs

Linda Coates

TITLE
Group Human Resources Director
TENURE
6 yrs

Dominic Millgate

TITLE
Company Secretary
AGE
44
TENURE
6.4 yrs

Frederic Rougemont

TITLE
Chief Executive Officer of USG Boral
Board of Directors Tenure

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

7.1
Average Tenure
64
Average Age
  • The tenure for the Boral board of directors is about average.
Board of Directors

Kathryn Fagg

TITLE
Non-Executive Chairman
COMPENSATION
A$466K
AGE
58
TENURE
1.3 yrs

Mike Kane

TITLE
CEO, MD & Director
COMPENSATION
A$4M
AGE
68
TENURE
7.1 yrs

Paul Rayner

TITLE
Non-Executive Director
COMPENSATION
A$197K
AGE
65
TENURE
11.2 yrs

John Marlay

TITLE
Non-Executive Director
COMPENSATION
A$197K
AGE
70
TENURE
9.9 yrs

Eileen Doyle

TITLE
Non-Executive Director
COMPENSATION
A$208K
AGE
64
TENURE
9.7 yrs

Karen Moses

TITLE
Non-Executive Director
COMPENSATION
A$192K
AGE
61
TENURE
3.7 yrs

Peter Alexander

TITLE
Non-Executive Director
COMPENSATION
A$147K
AGE
62
TENURE
1.2 yrs
Who owns this company?
Recent Insider Trading
  • More shares have been bought than sold by Boral individual insiders in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (A$) Value (A$)
04. Sep 19 Sell Capital Research and Management Company Company 27. Aug 19 30. Aug 19 -57,961,722 A$4.27 A$-247,392,247
04. Sep 19 Buy Peter Alexander Individual 28. Aug 19 28. Aug 19 14,300 A$4.17 A$59,631
29. Aug 19 Buy Kathryn Fagg Individual 28. Aug 19 28. Aug 19 23,783 A$4.15 A$98,699
29. Aug 19 Buy Karen Moses Individual 28. Aug 19 28. Aug 19 13,825 A$4.39 A$60,692
29. Aug 19 Buy Paul Rayner Individual 27. Aug 19 27. Aug 19 48,780 A$4.10 A$199,998
28. Aug 19 Sell Capital Research and Management Company Company 02. Dec 16 26. Aug 19 -12,665,445 A$2.74 A$-34,726,113
15. Aug 19 Sell BlackRock, Inc. Company 17. May 19 14. Aug 19 -18,603,842 A$5.68 A$-109,800
15. Aug 19 Buy BlackRock, Inc. Company 17. May 19 14. Aug 19 3,700,899 A$5.74 A$74,189
09. Aug 19 Buy Sumitomo Mitsui Trust Asset Management Co., Ltd. Company 07. Apr 19 07. Aug 19 87,109 A$5.19 A$451,677
09. Aug 19 Buy Nikko Asset Management Co., Ltd. Company 07. Apr 19 07. Aug 19 11,341,278 A$5.41 A$57,561,410
19. May 19 Sell BlackRock, Inc. Company 06. Sep 18 16. May 19 -8,728,291 A$7.05 A$-4,532,983
19. May 19 Buy BlackRock, Inc. Company 06. Sep 18 16. May 19 19,551,183 A$7.05 A$78,312
05. Mar 19 Buy Peter Alexander Individual 28. Feb 19 28. Feb 19 8,571 A$4.93 A$42,255
20. Feb 19 Buy Sumitomo Mitsui Trust Asset Management Co., Ltd. Company 20. Dec 18 15. Feb 19 654,258 A$4.95 A$3,240,711
20. Feb 19 Sell Nikko Asset Management Co., Ltd. Company 20. Dec 18 15. Feb 19 -1,215,896 A$4.87 A$-5,567,863
20. Feb 19 Buy Nikko Asset Management Co., Ltd. Company 20. Dec 18 15. Feb 19 175,726 A$5.07 A$890,106
23. Dec 18 Buy Sumitomo Mitsui Trust Asset Management Co., Ltd. Company 19. Aug 18 19. Dec 18 97,916 A$5.04 A$493,834
23. Dec 18 Buy Nikko Asset Management Co., Ltd. Company 19. Aug 18 19. Dec 18 11,305,337 A$6.99 A$64,965,257
X
Management checks
We assess Boral'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. Boral 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.

BLD News

Simply Wall St News

Trade Alert: The Non-Executive Director Of Boral Limited (ASX:BLD), Paul Rayner, Has Just Spent AU$200k Buying Shares

View our latest analysis for Boral Boral Insider Transactions Over The Last Year Non-Executive Chairman Kathryn Fagg made the biggest insider purchase in the last 12 months. … ASX:BLD Recent Insider Trading, August 30th 2019 Insider Ownership of Boral Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. … We would certainly prefer see higher levels of insider ownership but analysis of the insider transactions suggests that Boral insiders are expecting a bright future.

Simply Wall St -

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

The formula for calculating the return on capital employed is: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) Or for Boral: 0.06 = AU$489m ÷ (AU$9.5b - AU$1.4b) (Based on the trailing twelve months to June 2019.) So, Boral has an ROCE of 6.0%. … How Boral's Current Liabilities Impact Its ROCE Current liabilities include invoices, such as supplier payments, short-term debt, or a tax bill, that 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 -

Why Boral Limited (ASX:BLD) Could Be Your Next Investment

Excellent balance sheet, good value and pays a dividend In the previous year, BLD has ramped up its bottom line by 63%, with its latest earnings level surpassing its average level over the last five years. … BLD's ability to maintain an adequate level of cash to meet upcoming liabilities is a good sign for its financial health. … Also, relative to the rest of its peers with similar levels of earnings, BLD's share price is trading below the group's average.

Simply Wall St -

An Intrinsic Calculation For Boral Limited (ASX:BLD) Suggests It's 31% Undervalued

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 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 Levered FCF (A$, Millions) A$501.0m A$536.0m A$565.1m A$590.4m A$613.1m A$633.8m A$653.2m A$671.7m A$689.7m A$707.4m Growth Rate Estimate Source Analyst x1 Analyst x1 Est @ 5.42% Est @ 4.49% Est @ 3.84% Est @ 3.38% Est @ 3.06% Est @ 2.83% Est @ 2.68% Est @ 2.57% Present Value (A$, Millions) Discounted @ 8.86% A$460.2 A$452.3 A$438.0 A$420.4 A$401.0 A$380.8 A$360.5 A$340.6 A$321.2 A$302.6 ("Est" = FCF growth rate estimated by Simply Wall St) Present Value of 10-year Cash Flow (PVCF)= A$3.9b The second stage is also known as Terminal Value, this is the business's cash flow after the first stage. … In the same way as with the 10-year 'growth' period, we discount future cash flows to today's value, using a cost of equity of 8.9%. … ASX:BLD Intrinsic value, August 13th 2019 Important 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 -

Who Has Been Buying Boral Limited (ASX:BLD) Shares?

So before you buy or sell Boral Limited (ASX:BLD), you may well want to know whether insiders have been buying or selling. … 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.' Check out our latest analysis for Boral The Last 12 Months Of Insider Transactions At Boral Non-Executive Chairman Kathryn Fagg made the biggest insider purchase in the last 12 months. … Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term.

Simply Wall St -

Boral (ASX:BLD) Has A Pretty Healthy Balance Sheet

We note that Boral Limited (ASX:BLD) does have debt on its balance sheet. … ASX:BLD Historical Debt, July 29th 2019 How Strong Is Boral's Balance Sheet? … There's no doubt that we learn most about debt from the balance sheet.

Simply Wall St -

Here's How We Evaluate Boral Limited's (ASX:BLD) Dividend

Could Boral Limited (ASX:BLD) be an attractive dividend share to own for the long haul? Investors are often drawn to strong companies with the idea of reinvesting the dividends. On the other hand, investors have been known to buy a stock because of its yield, and then lose money if the company's dividend doesn't live up to expectations. In this case, Boral likely looks attractive to investors, given its 4.9% dividend yield and a payment history of over ten years. It would not be a surprise to discover that many investors buy it for the dividends. Some simple analysis can offer a lot of insights when buying a company for its dividend, and we'll go through this below. Explore this interactive chart for our latest analysis on Boral! ASX:BLD Historical Dividend Yield, July 5th 2019 Payout ratios Dividends are typically paid from company earnings. If a company pays more in dividends than it earned, then the dividend might become unsustainable - hardly an ideal situation. So we need to form a view on if a company's dividend is sustainable, relative to its net profit after tax. Boral paid out 70% of its profit as dividends, over the trailing twelve month period. A payout ratio above 50% generally implies a business is reaching maturity, although it is still possible to reinvest in the business or increase the dividend over time. We also measure dividends paid against a company's levered free cash flow, to see if enough cash was generated to cover the dividend. Boral paid out 182% of its free cash flow last year, suggesting the dividend is poorly covered by cash flow. Paying out more than 100% of your free cash flow in dividends is generally not a long-term, sustainable state of affairs, so we think shareholders should watch this metric closely. Boral paid out less in dividends than it reported in profits, but unfortunately it didn't generate enough free cash flow to cover the dividend. Were it to repeatedly pay dividends that were not well covered by cash flow, this could be a risk to Boral's ability to maintain its dividend. Is Boral's Balance Sheet Risky? As Boral has a meaningful amount of debt, we need to check its balance sheet to see if the company might have debt risks. A rough way to check this is with these two simple ratios: a) net debt divided by EBITDA (earnings before interest, tax, depreciation and amortisation), and b) net interest cover. … Strong earnings per share (EPS) growth might encourage our interest in the company despite fluctuating dividends, which is why it's great to see Boral has grown its earnings per share at 24% per annum over the past five years. … First, the company has a payout ratio that was within an average range for most dividend stocks, but it paid out virtually all of its generated cash flow.

Simply Wall St -

Do Institutions Own Boral Limited (ASX:BLD) Shares?

If you want to know who really controls Boral Limited (ASX:BLD), then you'll have to look at the makeup of its share registry. … Check out our latest analysis for Boral ASX:BLD Ownership Summary, June 28th 2019 What Does The Institutional Ownership Tell Us About Boral? … Insider Ownership Of Boral The definition of an insider can differ slightly between different countries, but members of the board of directors always count.

Simply Wall St -

How Much Did Boral Limited's (ASX:BLD) CEO Pocket Last Year?

Thus we can conclude that Mike Kane receives more in total compensation than the median of a group of companies in the same market, and of similar size to Boral Limited. … Given the total loss of 2.1% over three years, many shareholders in Boral Limited are probably rather dissatisfied, to say the least. … We compared total CEO remuneration at Boral Limited with the amount paid at companies with a similar market capitalization.

Simply Wall St -

Should You Investigate Boral Limited (ASX:BLD) At AU$5.28?

Boral Limited (ASX:BLD), which is in the basic materials business, and is based in Australia, saw a decent share price growth in the teens level on the ASX over the last few months. … What’s more interesting is that, Boral’s share price is quite volatile, which gives us more chances to buy since the share price could sink lower (or rise higher) in the future. … Its prosperous future outlook isn’t fully reflected in the current share price yet, which means it’s not too late to buy BLD.

Simply Wall St -

BLD Company Info

Description

Boral Limited manufactures and supplies building and construction materials in Australia, North America, Asia, and internationally. It offers asphalt, blocks, bricks, cement materials, concrete, pavers and retaining walls, plasterboards, quarry materials, roof tiles, fly ash, light building products and windows, and stones, as well as roofing and masonry, and timber products. The company also provides asphalt laying/spray sealing, concrete placing, roof tile installation, material technical, and empty pallet collection services. In addition, it engages in the transport, landfill, and property activities. The company serves residential and non-residential construction, and the engineering and infrastructure markets. Boral Limited was founded in 1946 and is headquartered in North Sydney, Australia.

Details
Name: Boral Limited
BLD
Exchange: ASX
Founded: 1946
A$5,885,106,258
1,172,331,924
Website: http://www.boral.com.au
Address: Boral Limited
15 Blue Street,
Level 18,
North Sydney,
New South Wales, 2060,
Australia
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
ASX BLD Ordinary Shares Australian Securities Exchange AU AUD 22. Feb 2000
OTCPK BOAL.F Ordinary Shares Pink Sheets LLC US USD 22. Feb 2000
DB HQK Ordinary Shares Deutsche Boerse AG DE EUR 22. Feb 2000
CHIA BLD Ordinary Shares Chi-X Australia AU AUD 22. Feb 2000
OTCPK BOAL.Y SPONSORED ADR Pink Sheets LLC US USD 04. Aug 2000
Number of employees
Current staff
Staff numbers
11,916
Boral employees.
Industry
Construction Materials
Materials
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/11/15 10:31
End of day share price update: 2019/11/15 00:00
Last estimates confirmation: 2019/11/10
Last earnings filing: 2019/09/19
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.