Discounted Cash Flow Calculation for AIM:BRCK using 2 Stage Free Cash Flow to Equity Model
The calculations below outline how an intrinsic value for
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.
AIM:BRCK DCF 1st Stage: Next 10 year cash flow forecast
Amount off the current price
is available for.
Share price is
vs Future cash flow value of
Current Discount Checks
to be considered undervalued it must be available for at least 20% below the
current price. Less than 40% is even better.
Brickability Group's share price is below the future cash flow value, and at a moderate discount (> 20%).
Brickability Group'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
is considered below, and whether this is a fair price.
Price based on past earnings
Brickability Group's earnings available for a low price, and how does
this compare to other companies in the same industry?
Brickability Group's earnings are expected to grow significantly at over 20% yearly.
Brickability Group's revenue is expected to grow by 7.4% 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.
Brickability Group's performance over the past 5 years by checking for:
Has earnings increased in past 5 years? (1 check)
Has the earnings growth in the last year exceeded that of the
industry? (1 check)
Is the recent earnings growth over the last year higher than the average annual growth over the
past 5 years? (1 check)
Is the Return on Equity (ROE) higher than 20%? (1 check)
Is the Return on Assets (ROA) above industry average? (1 check)
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.
has a total score of
1/6, see the detailed checks below.
Note: We use GAAP Net Income excluding extraordinary items in all our calculations.
A company's financial position is much like your own financial position,
it includes everything you own
The boxes below represent the relative size of what makes up
Brickability Group's finances.
The net worth of a company is the difference between its assets and liabilities.
Brickability Group is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
Brickability Group's long term commitments exceed its cash and other short term assets.
This treemap shows a more detailed breakdown of
Brickability Group'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
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
Low level of unsold assets.
Debt is not covered by short term assets, assets are 0.9x debt.
Nearly all companies have debt. Debt in itself isn’t
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.
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.
Mr. Alan Jonathan Simpson serves as Chief Executive Officer and Director at Brickability Group Plc. He became sales director and a shareholder, graduating to the position of managing director. He founded Towelrads, Frazer Simpson and FSN Doors, all of which are now part of the Group. Mr. Alan became a director in 1996. current director ships.
Brick Services Limited
Brickability Enterprises Holding
Brickability Group Limited
Brickability Holdings Limited
Brickability UK Holdings Limited
Bricklink (Holdings) Limited
Brooklands House Property Ltd
Brox Road Developments Limited
Cook and Simpson Developments
CPG Building Supplies Limited
Crest Brick Slate & Tile Limited
Crest Roofing Limited
Crown Roofing (Centres) Limited
DSH Flooring Limited
Excel Roofing Services Limited
F – S Windows Limited
Frazer Simpson Limited
FSN Doors Limited
Hamilton Heating Group Limited
HS Heating Supplies Limited
LBT Brick & Facades Limited
Mcmichael & Simpson Limited
Milco Holdings Limited
Milton & Simpson Property
P V H Holdings Limited
Plansure Building Products
Queensgate Bracknell Ltd
Sinclair Simpson Ltd
The Bespoke Brick Company
The Brick Slip Business Limited
The Matching Brick Company
The Matching Holding Company
Insufficient data for Alan to compare compensation growth.
Insufficient data for Alan to establish whether their remuneration is reasonable compared to companies of similar size in United Kingdom of Great Britain and Northern Ireland.
CEO & Director
CFO & Director
Board of Directors Tenure
Average tenure and age of the
board of directors in years:
The average tenure for the Brickability Group board of directors is less than 3 years, this suggests a new board.
Board of Directors
CEO & Director
CFO & Director
Independent Non-Executive Director
Arnold Van Huet
Who owns this company?
Recent Insider Trading
More shares have been bought than sold by Brickability Group individual insiders in the past 3 months.
Brickability Group Plc, together with its subsidiaries, supplies building products in the United Kingdom. It offers facing bricks, blocks, rainscreen cladding systems, architectural masonry, roofing tiles, and slates. The company also supplies bathroom towel rails, radiators, interior doors, and windows. It serves construction industry, including house builders, developers, contractors, general builders, and retail. Brickability Group Plc was incorporated in 2017 and headquartered in Bridgend, the United Kingdom.
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