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Breedon Group

AIM:BREE
Snowflake Description

Adequate balance sheet and fair value.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
BREE
AIM
£983M
Market Cap
  1. Home
  2. GB
  3. Materials
Company description

Breedon Group plc, through its subsidiaries, engages in the quarrying, production, and sale of aggregates and related activities in England and Scotland. The last earnings update was 109 days ago. More info.


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BREE Share Price and Events
7 Day Returns
-10.2%
AIM:BREE
0.9%
GB Basic Materials
0.5%
GB Market
1 Year Returns
-20.2%
AIM:BREE
8.3%
GB Basic Materials
2.8%
GB Market
BREE Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Breedon Group (BREE) -10.2% -10.2% -6.7% -20.2% -18.6% 37.4%
GB Basic Materials 0.9% -2.2% 6.3% 8.3% 27.6% 61.2%
GB Market 0.5% 1.7% 3.7% 2.8% 8.5% 4.3%
1 Year Return vs Industry and Market
  • BREE underperformed the Basic Materials industry which returned 8.3% over the past year.
  • BREE underperformed the Market in United Kingdom of Great Britain and Northern Ireland which returned 2.8% over the past year.
Price Volatility
BREE
Industry
5yr Volatility vs Market

BREE Value

 Is Breedon Group 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 Breedon Group 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 Breedon Group.

AIM:BREE Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 7 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 7.9%
Perpetual Growth Rate 10-Year GB Government Bond Rate 1.2%

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 AIM:BREE
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year GB Govt Bond Rate 1.2%
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- 20%) (37.36%))
1.111
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.11
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 1.23% + (1.111 * 5.96%)
7.85%

Discounted Cash Flow Calculation for AIM:BREE using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Breedon Group 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:BREE DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (GBP, Millions) Source Present Value
Discounted (@ 7.85%)
2020 85.25 Analyst x4 79.04
2021 99.25 Analyst x2 85.33
2022 100.83 Est @ 1.59% 80.37
2023 102.32 Est @ 1.48% 75.63
2024 103.76 Est @ 1.4% 71.11
2025 105.16 Est @ 1.35% 66.82
2026 106.54 Est @ 1.31% 62.77
2027 107.91 Est @ 1.29% 58.95
2028 109.28 Est @ 1.27% 55.35
2029 110.66 Est @ 1.26% 51.97
Present value of next 10 years cash flows £687.00
AIM:BREE DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= £110.66 × (1 + 1.23%) ÷ (7.85% – 1.23%)
£1,691.16
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= £1,691.16 ÷ (1 + 7.85%)10
£794.25
AIM:BREE Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= £687.00 + £794.25
£1,481.25
Equity Value per Share
(GBP)
= Total value / Shares Outstanding
= £1,481.25 / 1,682.83
£0.88
AIM:BREE Discount to Share Price
Calculation Result
Value per share (GBP) From above. £0.88
Current discount Discount to share price of £0.58
= -1 x (£0.58 - £0.88) / £0.88
33.7%

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

Current Discount
Amount off the current price Breedon Group is available for.
Intrinsic value
34%
Share price is £0.584 vs Future cash flow value of £0.88021
Current Discount Checks
For Breedon Group to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Breedon Group's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Breedon 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 Breedon Group's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Breedon Group's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
AIM:BREE PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-06-30) in GBP £0.04
AIM:BREE Share Price ** AIM (2019-11-11) in GBP £0.58
United Kingdom of Great Britain and Northern Ireland Basic Materials Industry PE Ratio Median Figure of 9 Publicly-Listed Basic Materials Companies 13.3x
United Kingdom of Great Britain and Northern Ireland Market PE Ratio Median Figure of 752 Publicly-Listed Companies 16.8x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Breedon Group.

AIM:BREE PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= AIM:BREE Share Price ÷ EPS (both in GBP)

= 0.58 ÷ 0.04

13.39x

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

  • Breedon Group is overvalued based on earnings compared to the GB Basic Materials industry average.
  • Breedon Group is good value based on earnings compared to the United Kingdom of Great Britain and Northern Ireland market.
Price based on expected Growth
Does Breedon Group's expected growth come at a high price?
Raw Data
AIM:BREE PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 13.39x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 7 Analysts
Not available
United Kingdom of Great Britain and Northern Ireland Basic Materials Industry PEG Ratio Median Figure of 6 Publicly-Listed Basic Materials Companies 2.33x
United Kingdom of Great Britain and Northern Ireland Market PEG Ratio Median Figure of 555 Publicly-Listed Companies 1.4x

*Line of best fit is calculated by linear regression .

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

  • Unable to calculate PEG ratio for Breedon Group, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on Breedon Group's assets?
Raw Data
AIM:BREE PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-06-30) in GBP £0.48
AIM:BREE Share Price * AIM (2019-11-11) in GBP £0.58
United Kingdom of Great Britain and Northern Ireland Basic Materials Industry PB Ratio Median Figure of 10 Publicly-Listed Basic Materials Companies 1.46x
United Kingdom of Great Britain and Northern Ireland Market PB Ratio Median Figure of 1,305 Publicly-Listed Companies 1.5x
AIM:BREE PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= AIM:BREE Share Price ÷ Book Value per Share (both in GBP)

= 0.58 ÷ 0.48

1.22x

* Primary Listing of Breedon Group.

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

  • Breedon Group is good value based on assets compared to the GB Basic Materials industry average.
X
Value checks
We assess Breedon Group'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. Breedon Group 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.

BREE Future Performance

 How is Breedon Group expected to perform in the next 1 to 3 years based on estimates from 7 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
9.2%
Expected annual growth in earnings per share.
Earnings growth vs Low Risk Savings
Is Breedon Group expected to grow at an attractive rate?
  • Breedon Group's earnings growth is expected to exceed the low risk savings rate of 1.2%.
Growth vs Market Checks
  • Breedon Group's earnings growth is positive but not above the United Kingdom of Great Britain and Northern Ireland market average.
  • Breedon Group's revenue growth is expected to exceed the United Kingdom of Great Britain and Northern Ireland market average.
Annual Growth Rates Comparison
Raw Data
AIM:BREE Future Growth Rates Data Sources
Data Point Source Value (per year)
AIM:BREE Future Earnings per Share Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 7 Analysts 9.2%
AIM:BREE Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 7 Analysts 4%
United Kingdom of Great Britain and Northern Ireland Basic Materials Industry Earnings Growth Rate Market Cap Weighted Average 9.1%
United Kingdom of Great Britain and Northern Ireland Basic Materials Industry Revenue Growth Rate Market Cap Weighted Average 3.9%
United Kingdom of Great Britain and Northern Ireland Market Earnings Growth Rate Market Cap Weighted Average 12.6%
United Kingdom of Great Britain and Northern Ireland Market Revenue Growth Rate Market Cap Weighted Average 3.8%

*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
AIM:BREE Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (4 months ago) See Below
Future Estimates Average of up to 7 Analyst Estimates (S&P Global) See Below
All numbers in GBP Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
AIM:BREE Future Estimates Data
Date (Data in GBP Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2022-12-31 1,072 1
2021-12-31 1,025 5
2020-12-31 981 175 7
2019-12-31 945 165 85 7
2019-11-11
AIM:BREE Past Financials Data
Date (Data in GBP Millions) Revenue Cash Flow Net Income *
2019-06-30 932 148 73
2019-03-31 897 141 69
2018-12-31 863 135 65
2018-09-30 784 116 60
2018-06-30 705 97 55
2018-03-31 678 99 56
2017-12-31 652 101 57
2017-09-30 635 87 51
2017-06-30 618 73 45
2017-03-31 536 70 41
2016-12-31 455 68 37
2016-09-30 388 63 32

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Breedon Group's earnings are expected to grow by 9.2% yearly, however this is not considered high growth (20% yearly).
  • Breedon Group's revenue is expected to grow by 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.
Raw Data
AIM:BREE 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 7 Analyst Estimates (S&P Global) See Below

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

AIM:BREE Future Estimates Data
Date (Data in GBP Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2022-12-31
2021-12-31 0.06 0.06 0.06 2.00
2020-12-31 0.05 0.05 0.05 2.00
2019-12-31 0.05 0.05 0.05 3.00
2019-11-11
AIM:BREE Past Financials Data
Date (Data in GBP Millions) EPS *
2019-06-30 0.04
2019-03-31 0.04
2018-12-31 0.04
2018-09-30 0.04
2018-06-30 0.04
2018-03-31 0.04
2017-12-31 0.04
2017-09-30 0.04
2017-06-30 0.03
2017-03-31 0.03
2016-12-31 0.03
2016-09-30 0.03

*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.
  • Unable to establish if Breedon Group will efficiently use shareholders’ funds in the future without estimates of Return on Equity.
X
Future performance checks
We assess Breedon Group'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 United Kingdom of Great Britain and Northern Ireland market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United Kingdom of Great Britain and Northern Ireland 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.
Breedon Group has a total score of 2/6, 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.

BREE Past Performance

  How has Breedon Group 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 Breedon Group'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.
  • Breedon Group has delivered over 20% year on year earnings growth in the past 5 years.
  • Breedon Group's 1-year earnings growth exceeds its 5-year average (33.2% vs 30.6%)
  • Breedon Group's earnings growth has exceeded the GB Basic Materials industry average in the past year (33.2% vs 30.3%).
Earnings and Revenue History
Breedon Group'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 Breedon Group Company Filings, last reported 4 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

AIM:BREE Past Revenue, Cash Flow and Net Income Data
Date (Data in GBP Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-06-30 931.70 73.30 223.40
2019-03-31 897.20 68.90 215.65
2018-12-31 862.70 64.50 207.90
2018-09-30 783.63 59.73 190.30
2018-06-30 704.51 55.01 172.68
2018-03-31 678.46 55.96 169.54
2017-12-31 652.40 56.90 166.40
2017-09-30 635.21 51.07 165.16
2017-06-30 618.02 45.25 163.92
2017-03-31 536.35 40.98 140.78
2016-12-31 454.69 36.72 117.63
2016-09-30 387.78 32.23 95.76
2016-06-30 320.88 27.74 73.88
2016-03-31 319.67 26.33 71.75
2015-12-31 318.45 24.91 69.61
2015-09-30 311.70 24.30 66.72
2015-06-30 304.95 23.70 63.82
2015-03-31 287.30 20.38 59.58
2014-12-31 269.66 17.07 55.34
2014-09-30 259.62 15.04 53.29
2014-06-30 249.58 13.00 51.24
2014-03-31 237.06 11.17 48.61
2013-12-31 224.55 9.35 45.98
2013-09-30 207.62 7.94 43.28
2013-06-30 190.69 6.52 40.57
2013-03-31 182.07 5.89 39.01
2012-12-31 173.46 5.26 37.45

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

BREE Health

 How is Breedon Group'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 Breedon Group's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Breedon Group is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Breedon Group's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of Breedon 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 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 0.9x 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 Breedon Group Company Filings, last reported 4 months ago.

AIM:BREE Past Debt and Equity Data
Date (Data in GBP Millions) Total Equity Total Debt Cash & Short Term Investments
2019-06-30 805.90 313.10 23.50
2019-03-31 805.90 313.10 23.50
2018-12-31 773.30 336.90 37.60
2018-09-30 773.30 336.90 37.60
2018-06-30 724.24 401.28 33.14
2018-03-31 724.24 401.28 33.14
2017-12-31 528.10 124.20 23.90
2017-09-30 528.10 124.20 23.90
2017-06-30 494.05 148.17 13.17
2017-03-31 494.05 148.17 13.17
2016-12-31 467.54 149.12 5.09
2016-09-30 467.54 149.12 5.09
2016-06-30 251.15 0.49 33.02
2016-03-31 251.15 0.49 33.02
2015-12-31 233.24 0.36 23.53
2015-09-30 233.24 0.36 23.53
2015-06-30 181.67 54.23 9.72
2015-03-31 181.67 54.23 9.72
2014-12-31 167.17 69.10 15.79
2014-09-30 167.17 69.10 15.79
2014-06-30 156.66 59.58 9.43
2014-03-31 156.66 59.58 9.43
2013-12-31 148.99 59.83 17.47
2013-09-30 148.99 59.83 17.47
2013-06-30 142.79 62.73 4.82
2013-03-31 142.79 62.73 4.82
2012-12-31 79.35 62.82 5.07
  • Breedon Group's level of debt (38.9%) compared to net worth is satisfactory (less than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (38.1% vs 38.9% today).
  • Debt is well covered by operating cash flow (47.3%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 8x coverage).
X
Financial health checks
We assess Breedon Group'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. Breedon Group 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.

BREE Dividends

 What is Breedon Group's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0%
Current annual income from Breedon Group dividends. Estimated to be 0.51% next year.
If you bought £2,000 of Breedon Group shares you are expected to receive £0 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Unable to evaluate Breedon Group's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
  • Unable to evaluate Breedon Group's dividend against the top 25% market benchmark as the company has not reported any payouts.
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
AIM:BREE 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 7 Analyst Estimates (S&P Global) See Below
United Kingdom of Great Britain and Northern Ireland Basic Materials Industry Average Dividend Yield Market Cap Weighted Average of 6 Stocks 2.7%
United Kingdom of Great Britain and Northern Ireland Market Average Dividend Yield Market Cap Weighted Average of 679 Stocks 4.5%
United Kingdom of Great Britain and Northern Ireland Minimum Threshold Dividend Yield 10th Percentile 1%
United Kingdom of Great Britain and Northern Ireland Bottom 25% Dividend Yield 25th Percentile 1.9%
United Kingdom of Great Britain and Northern Ireland Top 25% Dividend Yield 75th Percentile 5.3%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

AIM:BREE Future Dividends Estimate Data
Date (Data in £) Dividend per Share (annual) Avg. No. Analysts
2022-12-31 0.00 1.00
2021-12-31 0.01 3.00
2020-12-31 0.01 3.00
2019-12-31 0.00 3.00
2019-11-11

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

  • Unable to perform a dividend volatility check as Breedon Group has not reported any payouts.
  • Unable to verify if Breedon Group's dividend has been increasing as the company has not reported any payouts.
Current Payout to shareholders
What portion of Breedon Group's earnings are paid to the shareholders as a dividend.
  • Unable to calculate sustainability of dividends as Breedon Group has not reported any payouts.
Future Payout to shareholders
  • No need to calculate the sustainability of Breedon Group's dividends in 3 years as they are not expected to pay a notable one for United Kingdom of Great Britain and Northern Ireland.
X
Income/ dividend checks
We assess Breedon Group's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1%) - 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 Breedon Group afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Breedon Group has a total score of 0/6, see the detailed checks below.


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

BREE Management

 What is the CEO of Breedon Group'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
Pat Ward
COMPENSATION £1,141,373
TENURE AS CEO 3.8 years
CEO Bio

Mr. Patrick Ward, also known as Pat, has been Group Chief Executive of Breedon Group plc since January 20, 2016 and its Director since March 8, 2016. Mr. Ward served as the Chief Executive Officer of Aggregate Industries Limited since April 1, 2014. He has over 30 years’ experience in the aggregates and construction industries in the UK, US and Middle East. He held a variety of roles with ARC/Hanson, he joined Aggregate Industries (“AI”) in 1995. He served as several general management positions in AI UK’s aggregates and asphalt divisions. He served as Vice President of AI USA’s West Central Region at Denver since 1999 and served as its Senior Vice President of that region, which in 2007 expanded to become the Western and Mid-Atlantic Region, employing over 2,000 people. Mr. Ward served as Senior Vice President of Southwest Region at Meyer Material Company, LLC and Aggregate Industries US. He has been with Aggregate Industries for nearly 20 years in various roles across UK and US businesses. He was Senior Vice President of the Western and Mid-Atlantic Region in the US for parent company Holcim Ltd. Having joined AIUK in 1995 as a General Manager, working in both Aggregates and Asphalt businesses, Mr. Ward served as Director at Aggregate Industries Limited.

CEO Compensation
  • Pat's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Pat's remuneration is about average for companies of similar size in United Kingdom of Great Britain and Northern Ireland.
Management Team Tenure

Average tenure of the Breedon Group management team in years:

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

Pat Ward

TITLE
Group Chief Executive & Director
COMPENSATION
£1M
TENURE
3.8 yrs

Rob Wood

TITLE
Group Finance Director & Director
COMPENSATION
£818K
AGE
52
TENURE
5.8 yrs

Steve Jacobs

TITLE
Head of Communications & Marketing
TENURE
9.8 yrs

Steve Tagg

TITLE
Group Human Resources Director
TENURE
3.5 yrs

Alan MacKenzie

TITLE
Managing Director of Breedon Northern

Mike Pearce

TITLE
Managing Director of Breedon Southern
TENURE
1.7 yrs

Jude Lagan

TITLE
Managing Director of Breedon Cement
TENURE
1.5 yrs

Terry Lagan

TITLE
Managing Director of Breedon Republic of Ireland
TENURE
1.5 yrs

Aidan Mullan

TITLE
Managing Director of Breedon Northern Ireland
TENURE
0.8 yrs

Nigel Clamp

TITLE
Group Head of Health
TENURE
0.3 yrs
Board of Directors Tenure

Average tenure and age of the Breedon Group board of directors in years:

3.7
Average Tenure
60
Average Age
  • The tenure for the Breedon Group board of directors is about average.
Board of Directors

Amit Bhatia

TITLE
Non-Executive Chairman
COMPENSATION
£38K
AGE
39
TENURE
0.5 yrs

Pat Ward

TITLE
Group Chief Executive & Director
COMPENSATION
£1M
TENURE
3.7 yrs

Rob Wood

TITLE
Group Finance Director & Director
COMPENSATION
£818K
AGE
52
TENURE
5.8 yrs

David Williams

TITLE
Non-Executive Director
COMPENSATION
£58K
AGE
67
TENURE
11.4 yrs

Susie Farnon

TITLE
Senior Independent Director
COMPENSATION
£59K
AGE
59
TENURE
7.8 yrs

Peter C. Cornell

TITLE
Independent Non-Executive Director
COMPENSATION
£13K
AGE
66
TENURE
1.1 yrs

Clive Watson

TITLE
Non-Executive Director
AGE
61
TENURE
0.2 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 (£) Value (£)
14. Dec 18 Buy Jude Lagan Individual 13. Dec 18 14. Dec 18 175,000 £0.56 £98,123
14. Dec 18 Buy Amit Bhatia Individual 13. Dec 18 13. Dec 18 100,000 £0.56 £56,000
12. Dec 18 Buy Stephen Tagg Individual 11. Dec 18 11. Dec 18 35,085 £0.57 £19,998
12. Dec 18 Buy David Warr Individual 11. Dec 18 11. Dec 18 250,000 £0.57 £142,000
06. Dec 18 Buy Rob Wood Individual 06. Dec 18 06. Dec 18 37,000 £0.59 £21,639
06. Dec 18 Buy Patrick Ward Individual 06. Dec 18 06. Dec 18 85,743 £0.58 £49,988
06. Dec 18 Buy Ross McDonald Individual 06. Dec 18 06. Dec 18 34,000 £0.58 £19,822
06. Dec 18 Buy Peter W. Tom Individual 06. Dec 18 06. Dec 18 300,000 £0.59 £175,800
X
Management checks
We assess Breedon Group'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. Breedon Group 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.

BREE News

Simply Wall St News

What Kind Of Shareholders Own Breedon Group plc (LON:BREE)?

Insider Ownership Of Breedon Group The definition of an insider can differ slightly between different countries, but members of the board of directors always count. … However, high insider ownership can also give immense power to a small group within the company. … Sometimes insiders or other related parties have an interest in shares in a public company through a separate private company.

Simply Wall St -

Who Has Been Buying Breedon Group plc (LON:BREE) Shares?

So shareholders might well want to know whether insiders have been buying or selling shares in Breedon Group plc (LON:BREE). … In the last twelve months Breedon Group insiders were buying shares, but not selling. … AIM:BREE Recent Insider Trading, August 12th 2019 Insider Ownership of Breedon Group I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders.

Simply Wall St -

Does Breedon Group's (LON:BREE) Share Price Gain of 52% Match Its Business Performance?

While Breedon Group plc (LON:BREE) shareholders are probably generally happy, the stock hasn't had particularly good run recently, with the share price falling 17% in the last quarter. … During five years of share price growth, Breedon Group achieved compound earnings per share (EPS) growth of 27% per year. … Breedon Group is not the only stock insiders are buying.

Simply Wall St -

How Do Analysts See Breedon Group plc (LON:BREE) Performing In The Years Ahead?

The latest earnings update Breedon Group plc (LON:BREE) released in March 2019 confirmed that the business benefited from a robust tailwind, eventuating to a double-digit earnings growth of 13%. … Investors may find it useful to understand how market analysts view Breedon Group's earnings growth trajectory over the next few years and whether the future looks even brighter than the past. … Check out our latest analysis for Breedon Group Analysts' expectations for the coming year seems buoyant, with earnings increasing by a robust 32%.

Simply Wall St -

Is Breedon Group (LON:BREE) Using Too Much Debt?

AIM:BREE Historical Debt, July 15th 2019 How Healthy Is Breedon Group's Balance Sheet? … Because it carries more debt than cash, we think it's worth watching Breedon Group's balance sheet over time. … Our View The good news is that Breedon Group's demonstrated ability to convert EBIT to free cash flow delights us like a fluffy puppy does a toddler.

Simply Wall St -

Does Breedon Group plc's (LON:BREE) CEO Salary Compare Well With Others?

See our latest analysis for Breedon Group How Does Pat Ward's Compensation Compare With Similar Sized Companies? … According to our data, Breedon Group plc has a market capitalization of UK£1.0b, and pays its CEO total annual compensation worth UK£1.1m. … Given the total loss of 2.3% over three years, many shareholders in Breedon Group plc are probably rather dissatisfied, to say the least.

Simply Wall St -

How Do Analysts See Breedon Group plc (LON:BREE) Performing In The Year Ahead?

After Breedon Group plc's (LON:BREE) earnings announcement in December 2018, analyst consensus outlook appear cautiously optimistic, as upcoming earnings growth is expected to be 32% next year, similar to the range of average earnings growth for the past five years of 33% per year. … Check out our latest analysis for Breedon Group How is Breedon Group going to perform in the near future? … AIM:BREE Past and Future Earnings, June 21st 2019 From the current net income level of UK£65m and the final forecast of UK£100m by 2022, the annual rate of growth for BREE’s earnings is 12%.

Simply Wall St -

With A 8.4% Return On Equity, Is Breedon Group plc (LON:BREE) A Quality Stock?

The formula for return on equity is: Return on Equity = Net Profit ÷ Shareholders' Equity Or for Breedon Group: 8.4% = UK£65m ÷ UK£773m (Based on the trailing twelve months to December 2018.) It's easy to understand the 'net profit' part of that equation, but 'shareholders' equity' requires further explanation. … Does Breedon Group Have A Good Return On Equity? … Combining Breedon Group's Debt And Its 8.4% Return On Equity While Breedon Group does have some debt, with debt to equity of just 0.45, we wouldn't say debt is excessive.

Simply Wall St -

Is It Too Late To Buy Breedon Group plc (LON:BREE) At Its June Price?

BREE is trading at price-to-earnings (PE) ratio of 17.89x, which suggests that Breedon Group is overvalued based on current earnings compared to the Basic Materials industry average of 16.04x , and overvalued compared to the GB market average ratio of 15.96x. … AIM:BREE Price Estimation Relative to Market, June 4th 2019 We understand BREE seems to be overvalued based on its current earnings, compared to its industry peers. … So, when we include the growth factor in our analysis, Breedon Group appears slightly overvalued , based on its fundamentals.

Simply Wall St -

Examining Breedon Group plc’s (LON:BREE) Weak Return On Capital Employed

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 Breedon Group: 0.083 = UK£98m ÷ (UK£1.4b - UK£218m) (Based on the trailing twelve months to December 2018.) Therefore, Breedon Group has an ROCE of 8.3%. … What Are Current Liabilities, And How Do They Affect Breedon Group's ROCE? … Due to the way ROCE is calculated, a high level of current liabilities makes a company look as though it has less capital employed, and thus can (sometimes unfairly) boost the ROCE.

Simply Wall St -

BREE Company Info

Description

Breedon Group plc, through its subsidiaries, engages in the quarrying, production, and sale of aggregates and related activities in England and Scotland. The company offers various aggregates, such as crushed rock, sand and gravel, decorative aggregates, agricultural lime, high polished stone value stone, granular mineral fillers, recycled aggregates, and white limestone products for use in the construction market. It also provides a range of surfacing materials, including specialist asphalt products for motorways, trunk roads, airport infrastructure, driveways, footpaths, farm roads, car parks, and recreational areas; and ready-mixed concrete, screeds, and mortar for various construction applications. In addition, the company offers concrete products, such as reconstructed stone walling, blocks, and other architectural masonry products; and Portland cement, as well as undertakes road surfacing and maintenance projects. Further, it provides traffic management services. The company was formerly known as Breedon Aggregates Limited and changed its name to Breedon Group plc in August 2016. Breedon Group plc was incorporated in 2007 and is based in Saint Helier, Jersey.

Details
Name: Breedon Group plc
BREE
Exchange: AIM
Founded: 2007
£982,775,338
1,682,834,483
Website: http://www.breedongroup.com
Address: Breedon Group plc
28 Esplanade,
Saint Helier,
JE2 3QA,
Jersey
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
AIM BREE Ordinary Shares London Stock Exchange AIM Market GB GBP 12. Jun 2008
DB CQB Ordinary Shares Deutsche Boerse AG DE EUR 12. Jun 2008
Number of employees
Current staff
Staff numbers
3,000
Breedon Group employees.
Industry
Construction Materials
Materials
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/11/11 21:04
End of day share price update: 2019/11/11 00:00
Last estimates confirmation: 2019/11/11
Last earnings filing: 2019/07/25
Last earnings reported: 2019/06/30
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.