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Fletcher Building

ASX:FBU
Snowflake Description

Good value with adequate balance sheet and pays a dividend.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
FBU
ASX
NZ$4B
Market Cap
  1. Home
  2. AU
  3. Materials
Company description

Fletcher Building Limited, together with its subsidiaries, manufactures and distributes building products in New Zealand, Australia, North America, Asia, Europe, and internationally. The last earnings update was 86 days ago. More info.


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FBU Share Price and Events
7 Day Returns
5.7%
ASX:FBU
3.1%
AU Basic Materials
0%
AU Market
1 Year Returns
-6.2%
ASX:FBU
19.5%
AU Basic Materials
15.3%
AU Market
FBU Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Fletcher Building (FBU) 5.7% 13.5% 15.6% -6.2% -50.8% -34.8%
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
  • FBU underperformed the Basic Materials industry which returned 19.5% over the past year.
  • FBU underperformed the Market in Australia which returned 15.3% over the past year.
Price Volatility
FBU
Industry
5yr Volatility vs Market

Value

 Is Fletcher Building 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 Fletcher Building 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 Fletcher Building.

ASX:FBU Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 11 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:FBU
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- 28%) (38.39%))
1.098
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% + (1.098 * 5.96%)
8.85%

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

The calculations below outline how an intrinsic value for Fletcher Building 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:FBU DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (NZD, Millions) Source Present Value
Discounted (@ 8.85%)
2020 393.50 Analyst x2 361.49
2021 335.00 Analyst x3 282.71
2022 359.50 Analyst x2 278.71
2023 378.34 Est @ 5.24% 269.46
2024 394.84 Est @ 4.36% 258.33
2025 409.63 Est @ 3.75% 246.21
2026 423.22 Est @ 3.32% 233.68
2027 435.98 Est @ 3.02% 221.15
2028 448.20 Est @ 2.8% 208.85
2029 460.11 Est @ 2.66% 196.96
Present value of next 10 years cash flows NZ$2,557.00
ASX:FBU DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= NZ$460.11 × (1 + 2.31%) ÷ (8.85% – 2.31%)
NZ$7,194.70
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= NZ$7,194.70 ÷ (1 + 8.85%)10
NZ$3,079.85
ASX:FBU Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= NZ$2,557.00 + NZ$3,079.85
NZ$5,636.85
Equity Value per Share
(NZD)
= Total value / Shares Outstanding
= NZ$5,636.85 / 833.99
NZ$6.76
ASX:FBU Discount to Share Price
Calculation Result
Non-primary Listing Adjustment Factor 1 share in ASX:FBU represents 0.94666x of NZSE:FBU
(This could be a different class, a depositary receipt, a different currency, or all of these things.)
0.94666x
Value per Share
(Listing Adjusted, AUD)
= Value per Share (NZD) x Listing Adjustment Factor
= NZ$ 6.76 x 0.94666
A$6.40
Value per share (AUD) From above. A$6.40
Current discount Discount to share price of A$4.97
= -1 x (A$4.97 - A$6.40) / A$6.40
22.3%

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

Current Discount
Amount off the current price Fletcher Building is available for.
Intrinsic value
22%
Share price is A$4.97 vs Future cash flow value of A$6.4
Current Discount Checks
For Fletcher Building to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Fletcher Building's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Fletcher Building'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 Fletcher Building's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Fletcher Building's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
ASX:FBU PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-06-30) in NZD NZ$0.29
NZSE:FBU Share Price ** NZSE (2019-11-15) in NZD NZ$5.25
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 Fletcher Building.

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

= NZSE:FBU Share Price ÷ EPS (both in NZD)

= 5.25 ÷ 0.29

18.2x

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

  • Fletcher Building is good value based on earnings compared to the AU Basic Materials industry average.
  • Fletcher Building is good value based on earnings compared to the Australia market.
Price based on expected Growth
Does Fletcher Building's expected growth come at a high price?
Raw Data
ASX:FBU PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 18.2x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 11 Analysts
8.3%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:FBU PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 18.2x ÷ 8.3%

2.19x

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

  • Fletcher Building is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Fletcher Building's assets?
Raw Data
ASX:FBU PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-06-30) in NZD NZ$4.87
NZSE:FBU Share Price * NZSE (2019-11-15) in NZD NZ$5.25
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:FBU PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NZSE:FBU Share Price ÷ Book Value per Share (both in NZD)

= 5.25 ÷ 4.87

1.08x

* Primary Listing of Fletcher Building.

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

  • Fletcher Building is good value based on assets compared to the AU Basic Materials industry average.
X
Value checks
We assess Fletcher Building'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. Fletcher Building has a total score of 4/6, 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 Fletcher Building expected to perform in the next 1 to 3 years based on estimates from 11 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
8.3%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Fletcher Building expected to grow at an attractive rate?
  • Fletcher Building's earnings growth is expected to exceed the low risk savings rate of 2.3%.
Growth vs Market Checks
  • Fletcher Building's earnings growth is positive but not above the Australia market average.
  • Fletcher Building's revenues are expected to decrease over the next 1-3 years, this is below the Australia market average.
Annual Growth Rates Comparison
Raw Data
ASX:FBU Future Growth Rates Data Sources
Data Point Source Value (per year)
ASX:FBU Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 11 Analysts 8.3%
ASX:FBU Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 11 Analysts -1.5%
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:FBU Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (4 months ago) See Below
Future Estimates Average of up to 11 Analyst Estimates (S&P Global) See Below
All numbers in NZD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
ASX:FBU Future Estimates Data
Date (Data in NZD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2024-06-30 356
2023-06-30 343
2022-06-30 8,004 646 330 8
2021-06-30 7,846 632 320 11
2020-06-30 8,002 500 282 11
2019-11-15
ASX:FBU Past Financials Data
Date (Data in NZD Millions) Revenue Cash Flow Net Income *
2019-06-30 8,308 153 246
2019-03-31 8,186 163 219
2018-12-31 9,324 172 241
2018-09-30 9,398 284 26
2018-06-30 8,211 396 -239
2018-03-31 8,665 408 -305
2017-12-31 9,118 420 -371
2017-09-30 9,259 332 -139
2017-06-30 9,399 243 94
2017-03-31 9,291 333 280
2016-12-31 9,183 423 466
2016-09-30 9,094 542 464

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Fletcher Building's earnings are expected to grow by 8.3% yearly, however this is not considered high growth (20% yearly).
  • Fletcher Building's revenue is expected to decrease over the next 1-3 years, this is not considered high growth.
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:FBU 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 11 Analyst Estimates (S&P Global) See Below

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

ASX:FBU Future Estimates Data
Date (Data in NZD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2024-06-30 0.42 0.42 0.42 1.00
2023-06-30 0.40 0.40 0.40 1.00
2022-06-30 0.42 0.47 0.37 4.00
2021-06-30 0.39 0.43 0.35 6.00
2020-06-30 0.34 0.38 0.31 6.00
2019-11-15
ASX:FBU Past Financials Data
Date (Data in NZD Millions) EPS *
2019-06-30 0.29
2019-03-31 0.26
2018-12-31 0.29
2018-09-30 0.03
2018-06-30 -0.32
2018-03-31 -0.42
2017-12-31 -0.53
2017-09-30 -0.20
2017-06-30 0.14
2017-03-31 0.40
2016-12-31 0.67
2016-09-30 0.67

*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.
  • Fletcher Building is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Fletcher Building'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.
Fletcher Building has a total score of 1/6, 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 Fletcher Building 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 Fletcher Building'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.
  • Fletcher Building's year on year earnings growth rate was negative over the past 5 years, however the most recent earnings are above average.
  • Fletcher Building has become profitable in the last year making the earnings growth rate difficult to compare to the 5-year average.
  • Fletcher Building has become profitable in the last year making it difficult to compare the AU Basic Materials industry average.
Earnings and Revenue History
Fletcher Building'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 Fletcher Building Company Filings, last reported 4 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

ASX:FBU Past Revenue, Cash Flow and Net Income Data
Date (Data in NZD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-06-30 8,308.00 246.00 1,748.00
2019-03-31 8,186.00 219.00 1,698.00
2018-12-31 9,324.00 241.00 1,601.00
2018-09-30 9,397.50 25.50 1,622.50
2018-06-30 8,211.00 -239.00 1,691.00
2018-03-31 8,664.50 -305.00 1,767.50
2017-12-31 9,118.00 -371.00 1,844.00
2017-09-30 9,258.50 -138.50 1,713.50
2017-06-30 9,399.00 94.00 1,583.00
2017-03-31 9,291.00 280.00 1,574.00
2016-12-31 9,183.00 466.00 1,565.00
2016-09-30 9,093.50 464.00 1,567.00
2016-06-30 9,004.00 462.00 1,569.00
2016-03-31 8,886.00 395.00 1,545.50
2015-12-31 8,768.00 328.00 1,522.00
2015-09-30 8,714.50 299.00 1,504.00
2015-06-30 8,661.00 270.00 1,486.00
2015-03-31 8,558.00 284.50 1,484.00
2014-12-31 8,455.00 299.00 1,482.00
2014-09-30 8,428.00 319.00 1,487.00
2014-06-30 8,401.00 339.00 1,492.00
2014-03-31 8,405.50 336.50 1,537.00
2013-12-31 8,410.00 334.00 1,582.00
2013-09-30 8,463.50 330.00 1,603.50
2013-06-30 8,517.00 326.00 1,625.00
2013-03-31 8,621.00 256.50 1,642.50
2012-12-31 8,725.00 187.00 1,660.00

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Fletcher Building has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Fletcher Building used its assets less efficiently than the AU Basic Materials industry average last year based on Return on Assets.
  • Fletcher Building's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Fletcher Building'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.
Fletcher Building 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 Fletcher Building'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 Fletcher Building's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Fletcher Building is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Fletcher Building's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Fletcher Building'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 2.4x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

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

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

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

ASX:FBU Past Debt and Equity Data
Date (Data in NZD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-06-30 4,173.00 1,697.00 1,372.00
2019-03-31 4,173.00 1,697.00 1,372.00
2018-12-31 4,171.00 1,788.00 284.00
2018-09-30 4,171.00 1,788.00 284.00
2018-06-30 4,142.00 1,938.00 665.00
2018-03-31 4,142.00 1,938.00 665.00
2017-12-31 3,295.00 2,308.00 190.00
2017-09-30 3,295.00 2,308.00 190.00
2017-06-30 3,580.00 2,172.00 219.00
2017-03-31 3,580.00 2,172.00 219.00
2016-12-31 3,728.00 2,270.00 229.00
2016-09-30 3,728.00 2,270.00 229.00
2016-06-30 3,713.00 1,752.00 356.00
2016-03-31 3,713.00 1,752.00 356.00
2015-12-31 3,639.00 1,998.00 221.00
2015-09-30 3,639.00 1,998.00 221.00
2015-06-30 3,710.00 1,954.00 228.00
2015-03-31 3,710.00 1,954.00 228.00
2014-12-31 3,463.00 1,914.00 124.00
2014-09-30 3,463.00 1,914.00 124.00
2014-06-30 3,454.00 1,782.00 134.00
2014-03-31 3,454.00 1,782.00 134.00
2013-12-31 3,454.00 1,851.00 145.00
2013-09-30 3,454.00 1,851.00 145.00
2013-06-30 3,554.00 1,912.00 123.00
2013-03-31 3,554.00 1,912.00 123.00
2012-12-31 3,608.00 2,137.00 163.00
  • Fletcher Building's level of debt (40.7%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has been reduced over the past 5 years (51.6% vs 40.7% today).
  • Debt is not well covered by operating cash flow (9%, less than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 5x coverage).
X
Financial health checks
We assess Fletcher Building'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. Fletcher Building has a total score of 4/6, 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 Fletcher Building'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
5.71%
Current annual income from Fletcher Building dividends. Estimated to be 4.97% next year.
If you bought A$2,000 of Fletcher Building shares you are expected to receive A$114 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?
  • Fletcher Building's pays a higher dividend yield than the bottom 25% of dividend payers in Australia (2.36%).
  • Fletcher Building's dividend is above 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:FBU 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 11 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:FBU Future Dividends Estimate Data
Date (Data in NZ$) Dividend per Share (annual) Avg. No. Analysts
2024-06-30 0.29 1.00
2023-06-30 0.28 1.00
2022-06-30 0.28 9.00
2021-06-30 0.26 12.00
2020-06-30 0.24 11.00
2019-11-15
ASX:FBU Past Annualized Dividends Data
Date (Data in NZ$) Dividend per share (annual) Avg. Yield (%)
2019-08-20 0.300 6.255
2019-02-19 0.160 3.185
2018-08-22 0.000 0.000
2018-02-21 0.000 0.000
2017-08-15 0.390 5.141
2017-02-22 0.400 4.890
2016-08-17 0.400 3.839
2016-02-16 0.380 4.593
2015-08-18 0.380 5.322
2015-02-18 0.360 4.324
2014-08-20 0.360 4.216
2014-02-20 0.360 3.890
2013-09-18 0.340 3.696
2013-08-20 0.340 3.747
2013-02-20 0.340 3.993
2013-02-19 0.340 3.741
2012-09-24 0.340 4.265
2012-08-21 0.340 5.101
2012-02-22 0.340 5.400
2011-08-17 0.340 5.120
2011-02-16 0.320 3.704
2011-02-15 0.320 3.893
2010-08-18 0.290 3.633
2010-04-26 0.280 3.556
2009-08-31 0.380 4.715
2009-08-12 0.380 4.870
2009-02-12 0.485 7.668

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

  • Dividends per share have been volatile in the past 10 years (annual drop of over 20%).
  • Dividends per share have fallen over the past 10 years.
Current Payout to shareholders
What portion of Fletcher Building's earnings are paid to the shareholders as a dividend.
  • Dividends paid are covered by earnings (1.3x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be covered by earnings (1.5x coverage).
X
Income/ dividend checks
We assess Fletcher Building'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 Fletcher Building afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Fletcher Building has a total score of 4/6, 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 Fletcher Building'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
Ross Taylor
COMPENSATION NZ$5,302,570
AGE 57
TENURE AS CEO 2 years
CEO Bio

Mr. Ross H. Taylor has been the Chief Executive Officer at Fletcher Building Limited since November 22, 2017. Mr. Taylor joined the Board as an Executive Director in December 2004 of Lend Lease Corp. Ltd. and served as Global Chief Operating Officer until December 2008. Previously, Ross was CEO of UGL. Prior to this he was managing director and CEO of Tenix. He has resigned from the Lend Lease Board as an Executive Director. Mr. Taylor joined Lend Lease in 1985 as an engineer and held several positions in Australia and Asia before being appointed Managing Director of the Project Management and Construction business of Lend Lease in 1995. Following the acquisition of the Bovis Group in 1999 he was appointed Global Chief Executive Officer of the combined Bovis Lend Lease businesses based in London and in 2001 his responsibilities were expanded to include the development activities of Lend Lease. In 2003 he returned to Australia to take up the role of Chief Executive Officer Asia Pacific and in July 2005 was appointed Chief Executive Officer Retail and Communities. He has proven experience leading business turnarounds and improving performance and shareholder returns and has direct experience across a range of Fletcher Building’s core sectors, including housing, manufacturing and construction. On 21 May 2007 he was appointed to the newly created role of Global Chief Operating Officer. He has served as Director of UGL (NZ) Ltd since April 2, 2015 until January 3, 2017. Mr. Taylor holds a Bachelor of Civil Engineering (Honours) from the University of Queensland.

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

Average tenure of the Fletcher Building management team in years:

1.7
Average Tenure
  • The average tenure for the Fletcher Building management team is less than 2 years, this suggests a new team.
Management Team

Ross Taylor

TITLE
Chief Executive Officer
COMPENSATION
NZ$5M
AGE
57
TENURE
2 yrs

Bevan McKenzie

TITLE
Chief Financial Officer
TENURE
3 yrs

David Moss

TITLE
Chief Information Officer
TENURE
0.2 yrs

Aleida White

TITLE
Head of Investor Relations

Leela Gantman

TITLE
Head of Communications

Claire Carroll

TITLE
Chief People & Communications Officer
TENURE
1.3 yrs

Dean Fradgley

TITLE
Chief Executive of Australian Division
TENURE
4.3 yrs

Steve Evans

TITLE
Chief Executive of Residential & Development
TENURE
4.8 yrs

Wendi Croft

TITLE
Chief Health & Safety Officer
TENURE
1.3 yrs

Ian Jones

TITLE
Chief Executive of Concrete Division
TENURE
1.3 yrs
Board of Directors Tenure

Average tenure and age of the Fletcher Building board of directors in years:

1.2
Average Tenure
61
Average Age
  • The average tenure for the Fletcher Building board of directors is less than 3 years, this suggests a new board.
Board of Directors

Bruce Hassall

TITLE
Independent Non-Executive Chairman
COMPENSATION
NZ$333K
TENURE
1.2 yrs

Barbara Chapman

TITLE
Independent Non-Executive Director
COMPENSATION
NZ$147K
AGE
59
TENURE
1.2 yrs

Rob McDonald

TITLE
Independent Non-Executive Director
COMPENSATION
NZ$157K
TENURE
1.2 yrs

Tony Carter

TITLE
Independent Non-Executive Director
COMPENSATION
NZ$184K
AGE
61
TENURE
9.2 yrs

Steve Vamos

TITLE
Independent Non-Executive Director
COMPENSATION
NZ$181K
AGE
61
TENURE
4.3 yrs

Doug McKay

TITLE
Independent Non-Executive Director
COMPENSATION
NZ$166K
AGE
64
TENURE
1.2 yrs

Cathy Quinn

TITLE
Independent Non-Executive Director
COMPENSATION
NZ$154K
TENURE
1.2 yrs

Martin Brydon

TITLE
Independent Non-Executive Director
COMPENSATION
NZ$153K
AGE
63
TENURE
1.2 yrs

Peter Crowley

TITLE
Independent Non-Executive Director
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$) Value (A$)
27. May 19 Sell Perpetual Limited Company 04. Mar 19 24. May 19 -16,295,196 A$4.84 A$-78,918,155
27. May 19 Buy Perpetual Limited Company 01. Feb 19 23. May 19 7,043,676 A$4.75 A$33,444,724
31. Jan 19 Sell Perpetual Limited Company 21. Dec 18 04. Jan 19 -239,942 A$4.39 A$-1,053,318
31. Jan 19 Buy Perpetual Limited Company 11. Dec 18 30. Jan 19 10,664,673 A$4.45 A$47,504,774
18. Dec 18 Sell The Vanguard Group, Inc. Company 15. Aug 18 30. Nov 18 -489,528 A$6.39 A$-3,125,676
30. Nov 18 Sell Schroder Investment Management Limited Company 29. Nov 17 30. Nov 18 -3,378,662 A$5.83 A$-19,699,273
30. Nov 18 Buy Schroder Investment Management Limited Company 29. Nov 17 30. Nov 18 21,715,893 A$4.55 A$95,953,906
30. Nov 18 Sell Schroder Investment Management North America Inc. Company 29. Nov 17 30. Nov 18 -195,372 A$6.14 A$-1,200,018
30. Nov 18 Buy Schroder Investment Management North America Inc. Company 29. Nov 17 30. Nov 18 1,564,579 A$5.89 A$9,213,061
X
Management checks
We assess Fletcher Building'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. Fletcher Building 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

Company Info

Description

Fletcher Building Limited, together with its subsidiaries, manufactures and distributes building products in New Zealand, Australia, North America, Asia, Europe, and internationally. It operates through Building Products, Distribution, Steel, Concrete, Residential and Development, Construction, and Australia segments. The Building Products segment manufactures, markets, distributes, and sells building products used to build homes, buildings, and infrastructure, including insulations, plasterboards, laminate surfaces, and plastic and concrete piping for the commercial and residential markets. The Distribution segment distributes building, plumbing, and pipeline products under the PlaceMakers, Mico, Forman Building Systems, and Snappy brands. The Steel segment manufactures and distributes steel products. The Concrete segment engages in the extraction of aggregates, and production of cement and concrete. The Residential and Development segment builds residential homes; and develops and sells primarily commercial sites. The Construction segment builds and maintains public and commercial buildings, transport and utilities infrastructure, and buildings and infrastructure, as well as designs, constructs, and maintains roads and civil infrastructure. The Australia segment manufactures and distributes building materials, such as insulation, plasterboard, laminate surfaces, steel roofing, and plastic and concrete piping for a range of industries across Australia. It also operates approximately 225 retail sites. The company was founded in 1909 and is headquartered in Auckland, New Zealand.

Details
Name: Fletcher Building Limited
FBU
Exchange: ASX
Founded: 1909
NZ$4,157,022,106
833,989,843
Website: http://fletcherbuilding.com
Address: Fletcher Building Limited
810 Great South Road,
Penrose,
Auckland,
1061,
New Zealand
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NZSE FBU Ordinary Shares New Zealand Stock Exchange NZ NZD 27. Mar 2001
OTCPK FRCE.F Ordinary Shares Pink Sheets LLC US USD 27. Mar 2001
DB FLQ Ordinary Shares Deutsche Boerse AG DE EUR 27. Mar 2001
ASX FBU Ordinary Shares Australian Securities Exchange AU AUD 27. Mar 2001
CHIA FBU Ordinary Shares Chi-X Australia AU AUD 27. Mar 2001
OTCPK FCRE.Y SPONS ADR NEW Pink Sheets LLC US USD 16. Nov 2010
Number of employees
Current staff
Staff numbers
16,825
Fletcher Building 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: 2019/10/14
Last earnings filing: 2019/08/21
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.