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Fletcher Building

NZSE:FBU
Snowflake Description

Excellent balance sheet and good value.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
FBU
NZSE
NZ$3B
Market Cap
  1. Home
  2. NZ
  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 46 days ago. More info.


Add to Portfolio Compare Print
  • Fletcher Building has significant price volatility in the past 3 months.
FBU Share Price and Events
7 Day Returns
5.2%
NZSE:FBU
5.1%
Oceania Basic Materials
3.5%
NZ Market
1 Year Returns
-31%
NZSE:FBU
-25.9%
Oceania Basic Materials
-5.1%
NZ Market
FBU Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Fletcher Building (FBU) 5.2% -31.7% -33.3% -31% -56.9% -58.2%
Oceania Basic Materials 5.1% -35.6% -37.6% -25.9% -39.5% -35.3%
NZ Market 3.5% -15.4% -17.3% -5.1% 14% 27%
1 Year Return vs Industry and Market
  • FBU underperformed the Basic Materials industry which returned -25.9% over the past year.
  • FBU underperformed the Market in New Zealand which returned -5.1% over the past year.
Price Volatility
FBU
Industry
5yr Volatility vs Market

FBU 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.

NZSE: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 8.4%
Perpetual Growth Rate 10-Year NZ Government Bond Rate 1.3%

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 NZSE:FBU
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year NZ Govt Bond Rate 1.3%
Equity Risk Premium S&P Global 5.4%
Basic Materials Unlevered Beta Simply Wall St/ S&P Global 0.81
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.813 (1 + (1- 28%) (109.81%))
1.305
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.31
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 1.32% + (1.305 * 5.44%)
8.42%

Discounted Cash Flow Calculation for NZSE: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.

NZSE:FBU DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (NZD, Millions) Source Present Value
Discounted (@ 8.42%)
2020 92.67 Analyst x3 85.47
2021 137.67 Analyst x3 117.11
2022 205.33 Analyst x3 161.11
2023 258.35 Est @ 25.82% 186.97
2024 306.07 Est @ 18.47% 204.30
2025 346.86 Est @ 13.33% 213.55
2026 380.58 Est @ 9.72% 216.11
2027 407.99 Est @ 7.2% 213.69
2028 430.18 Est @ 5.44% 207.81
2029 448.26 Est @ 4.2% 199.73
Present value of next 10 years cash flows NZ$1,805.00
NZSE:FBU DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= NZ$448.26 × (1 + 1.32%) ÷ (8.42% – 1.32%)
NZ$6,396.86
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= NZ$6,396.86 ÷ (1 + 8.42%)10
NZ$2,850.19
NZSE:FBU Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= NZ$1,805.00 + NZ$2,850.19
NZ$4,655.19
Equity Value per Share
(NZD)
= Total value / Shares Outstanding
= NZ$4,655.19 / 821.70
NZ$5.67
NZSE:FBU Discount to Share Price
Calculation Result
Value per share (NZD) From above. NZ$5.67
Current discount Discount to share price of NZ$3.45
= -1 x (NZ$3.45 - NZ$5.67) / NZ$5.67
39.1%

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
39%
Share price is NZ$3.45 vs Future cash flow value of NZ$5.67
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
NZSE:FBU PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-12-31) in NZD NZ$0.22
NZSE:FBU Share Price ** NZSE (2020-04-03) in NZD NZ$3.45
Oceania Basic Materials Industry PE Ratio Median Figure of 7 Publicly-Listed Basic Materials Companies 16.92x
New Zealand Market PE Ratio Median Figure of 85 Publicly-Listed Companies 15.62x

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

** Primary Listing of Fletcher Building.

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

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

= 3.45 ÷ 0.22

15.65x

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 Oceania Basic Materials industry average.
  • Fletcher Building is overvalued based on earnings compared to the New Zealand market.
Price based on expected Growth
Does Fletcher Building's expected growth come at a high price?
Raw Data
NZSE:FBU PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 15.65x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 11 Analysts
25.8%per year
Oceania Basic Materials Industry PEG Ratio Median Figure of 7 Publicly-Listed Basic Materials Companies 0.79x
New Zealand Market PEG Ratio Median Figure of 59 Publicly-Listed Companies 0.85x

*Line of best fit is calculated by linear regression .

NZSE:FBU PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 15.65x ÷ 25.8%

0.61x

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

  • Fletcher Building is good 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
NZSE:FBU PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-12-31) in NZD NZ$4.51
NZSE:FBU Share Price * NZSE (2020-04-03) in NZD NZ$3.45
Oceania Basic Materials Industry PB Ratio Median Figure of 8 Publicly-Listed Basic Materials Companies 0.97x
New Zealand Market PB Ratio Median Figure of 118 Publicly-Listed Companies 1.26x
NZSE:FBU PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

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

= 3.45 ÷ 4.51

0.76x

* 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 Oceania 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.

FBU 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
25.8%
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 1.3%.
Growth vs Market Checks
  • Fletcher Building's earnings growth is expected to exceed the New Zealand market average.
  • Fletcher Building's revenue growth is positive but not above the New Zealand market average.
Annual Growth Rates Comparison
Raw Data
NZSE:FBU Future Growth Rates Data Sources
Data Point Source Value (per year)
NZSE:FBU Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 11 Analysts 25.8%
NZSE:FBU Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 11 Analysts 0.4%
Oceania Basic Materials Industry Earnings Growth Rate Market Cap Weighted Average 15.3%
Oceania Basic Materials Industry Revenue Growth Rate Market Cap Weighted Average 2.6%
New Zealand Market Earnings Growth Rate Market Cap Weighted Average 9.5%
New Zealand Market Revenue Growth Rate Market Cap Weighted Average 6.2%

*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
NZSE:FBU Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 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.
NZSE:FBU Future Estimates Data
Date (Data in NZD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2024-06-30 700
2023-06-30 688
2022-06-30 7,796 607 276 9
2021-06-30 7,519 570 251 11
2020-06-30 7,645 360 159 11
2020-04-05
NZSE:FBU Past Financials Data
Date (Data in NZD Millions) Revenue Cash Flow Net Income *
2019-12-31 8,084 262 186
2019-09-30 8,196 208 216
2019-06-30 8,308 153 246
2019-03-31 8,186 163 219
2018-12-31 8,064 172 192
2018-09-30 8,138 284 -24
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

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Fletcher Building's earnings are expected to grow significantly at over 20% yearly.
  • Fletcher Building's revenue is expected to grow by 0.4% 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
NZSE:FBU Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 11 Analyst Estimates (S&P Global) See Below

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

NZSE:FBU Future Estimates Data
Date (Data in NZD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2024-06-30
2023-06-30
2022-06-30 0.34 0.39 0.27 6.00
2021-06-30 0.31 0.39 0.19 7.00
2020-06-30 0.17 0.33 -0.03 7.00
2020-04-05
NZSE:FBU Past Financials Data
Date (Data in NZD Millions) EPS *
2019-12-31 0.22
2019-09-30 0.25
2019-06-30 0.29
2019-03-31 0.26
2018-12-31 0.23
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

*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 Oceania market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Oceania 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 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.

FBU 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 and the most recent earnings are below average.
  • Fletcher Building's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • Fletcher Building's 1-year earnings growth is negative, it can't be compared to the Oceania 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 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NZSE:FBU Past Revenue, Cash Flow and Net Income Data
Date (Data in NZD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-12-31 8,084.00 186.00 1,743.00
2019-09-30 8,196.00 216.00 1,745.50
2019-06-30 8,308.00 246.00 1,748.00
2019-03-31 8,186.00 219.00 1,568.00
2018-12-31 8,064.00 192.00 1,518.00
2018-09-30 8,137.50 -23.50 1,604.50
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

*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 Oceania 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.

FBU 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 3 months ago.

NZSE:FBU Past Debt and Equity Data
Date (Data in NZD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-12-31 3,796.00 1,336.00 570.00
2019-09-30 3,796.00 1,336.00 570.00
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
  • Fletcher Building's level of debt (35.2%) compared to net worth is satisfactory (less than 40%).
  • The level of debt compared to net worth has been reduced over the past 5 years (55.2% vs 35.2% today).
  • Debt is not well covered by operating cash flow (19.6%, less than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 4.4x 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 5/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


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

FBU 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
0%
Current annual income from Fletcher Building dividends. Estimated to be 5.7% next year.
If you bought NZ$2,000 of Fletcher Building shares you are expected to receive NZ$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 Fletcher Building's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
  • Unable to evaluate Fletcher Building'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
NZSE: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 4.8%
New Zealand Market Average Dividend Yield Market Cap Weighted Average of 62 Stocks 3.8%
New Zealand Minimum Threshold Dividend Yield 10th Percentile 2.4%
New Zealand Bottom 25% Dividend Yield 25th Percentile 3.4%
New Zealand Top 25% Dividend Yield 75th Percentile 7.7%

Industry and Market average data is calculated daily.

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

NZSE:FBU Future Dividends Estimate Data
Date (Data in NZ$) Dividend per Share (annual) Avg. No. Analysts
2024-06-30 0.29 1.00
2023-06-30 0.28 1.00
2022-06-30 0.23 10.00
2021-06-30 0.21 12.00
2020-06-30 0.15 12.00
2020-04-05
NZSE:FBU Past Annualized Dividends Data
Date (Data in NZ$) Dividend per share (annual) Avg. Yield (%)
2020-03-24 0.000 0.000
2019-08-20 0.300 6.072
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

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

  • Unable to perform a dividend volatility check as Fletcher Building has not reported any payouts.
  • Unable to verify if Fletcher Building's dividend has been increasing as the company has not reported any payouts.
Current Payout to shareholders
What portion of Fletcher Building's earnings are paid to the shareholders as a dividend.
  • Unable to calculate sustainability of dividends as Fletcher Building has not reported any payouts.
Future Payout to shareholders
  • Dividends after 3 years are expected to be covered by earnings (1.3x 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 2.4%) - 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 1/6, see the detailed checks below.


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

FBU 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 2.4 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 New Zealand.
Management Team Tenure

Average tenure of the Fletcher Building management team in years:

2.1
Average Tenure
  • The tenure for the Fletcher Building management team is about average.
Management Team

Ross Taylor

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

Bevan McKenzie

TITLE
Chief Financial Officer
TENURE
3.4 yrs

Dan Beecham

TITLE
Chief Information Officer
TENURE
0.2 yrs

Aleida White

TITLE
Head of Investor Relations

Andrew Clarke

TITLE
Group General Counsel & Company Secretary
TENURE
0.6 yrs

Leela Gantman

TITLE
Head of Communications

Claire Carroll

TITLE
Chief People & Communications Officer
TENURE
1.8 yrs

Dean Fradgley

TITLE
Chief Executive of Australian Division
TENURE
4.7 yrs

Steve Evans

TITLE
Chief Executive of Residential & Development
TENURE
5.3 yrs

Wendi Croft

TITLE
Chief Health & Safety Officer
TENURE
1.8 yrs
Board of Directors Tenure

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

1.6
Average Tenure
63
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
1.6 yrs

Barbara Chapman

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

Rob McDonald

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

Doug McKay

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

Cathy Quinn

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

Martin Brydon

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

Peter Crowley

TITLE
Independent Non-Executive Director
TENURE
0.5 yrs
Who owns this company?
Recent Insider Trading
  • More shares have been bought than sold by Fletcher Building individual insiders in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (NZ$) Value (NZ$)
18. Mar 20 Sell BlackRock Investment Management (UK) Limited Company 13. Mar 20 13. Mar 20 -136,481 NZ$4.31 NZ$-588,881
18. Mar 20 Buy BlackRock Investment Management (UK) Limited Company 13. Mar 20 17. Mar 20 12,175 NZ$4.09 NZ$0
30. Mar 20 Buy BlackRock International Limited Company 25. Mar 20 25. Mar 20 7,295 NZ$3.38 NZ$24,657
30. Mar 20 Sell BlackRock Advisors (UK) Limited Company 23. Mar 20 25. Mar 20 -19,155 NZ$3.49 NZ$0
30. Mar 20 Buy BlackRock Advisors (UK) Limited Company 23. Mar 20 27. Mar 20 48,336 NZ$3.40 NZ$0
18. Mar 20 Sell BlackRock Advisors (UK) Limited Company 13. Mar 20 17. Mar 20 -20,011 NZ$4.25 NZ$0
18. Mar 20 Buy BlackRock Advisors (UK) Limited Company 13. Mar 20 17. Mar 20 10,287 NZ$4.25 NZ$0
18. Mar 20 Buy BlackRock International Limited Company 17. Mar 20 17. Mar 20 1,187 NZ$3.90 NZ$4,628
23. Mar 20 Sell BlackRock Advisors (UK) Limited Company 18. Mar 20 20. Mar 20 -9,471 NZ$3.81 NZ$0
23. Mar 20 Buy BlackRock Advisors (UK) Limited Company 18. Mar 20 20. Mar 20 19,802 NZ$3.72 NZ$0
23. Mar 20 Buy BlackRock Investment Management (UK) Limited Company 20. Mar 20 20. Mar 20 84,889 NZ$3.60 NZ$305,503
30. Mar 20 Sell BlackRock Investment Management (UK) Limited Company 25. Mar 20 25. Mar 20 -31,625 NZ$3.44 NZ$-108,790
30. Mar 20 Buy BlackRock Investment Management (UK) Limited Company 24. Mar 20 25. Mar 20 15,217 NZ$3.53 NZ$0
31. Mar 20 Sell Perpetual Limited Company 20. Feb 20 30. Mar 20 -10,065,234 NZ$4.41 NZ$-44,379,980
31. Mar 20 Buy Perpetual Limited Company 27. Feb 20 30. Mar 20 887,325 NZ$4.78 NZ$4,243,649
30. Mar 20 Sell BlackRock, Inc. Company 24. Mar 20 24. Mar 20 -118,917 NZ$3.40 NZ$-403,038
30. Mar 20 Buy BlackRock, Inc. Company 23. Mar 20 27. Mar 20 192,529 NZ$3.39 NZ$316,338
18. Mar 20 Sell BlackRock, Inc. Company 16. Mar 20 17. Mar 20 -156,972 NZ$3.99 NZ$-608,233
18. Mar 20 Buy BlackRock, Inc. Company 13. Mar 20 17. Mar 20 254,363 NZ$4.42 NZ$171,638
24. Mar 20 Buy Claire Carroll Individual 20. Mar 20 20. Mar 20 15,000 NZ$3.42 NZ$51,300
23. Mar 20 Sell BlackRock, Inc. Company 18. Mar 20 20. Mar 20 -32,816 NZ$4.02 NZ$-10,424
23. Mar 20 Buy BlackRock, Inc. Company 18. Mar 20 20. Mar 20 248,964 NZ$4.49 NZ$21,610
15. Mar 20 Sell BlackRock Advisors (UK) Limited Company 09. Mar 20 12. Mar 20 -18,002 NZ$4.70 NZ$0
15. Mar 20 Buy BlackRock Advisors (UK) Limited Company 09. Mar 20 12. Mar 20 17,670 NZ$4.70 NZ$0
15. Mar 20 Buy BlackRock Investment Management (UK) Limited Company 11. Mar 20 11. Mar 20 9,712 NZ$4.60 NZ$44,675
15. Mar 20 Sell BlackRock, Inc. Company 10. Mar 20 12. Mar 20 -83,587 NZ$4.75 NZ$-156,315
15. Mar 20 Buy BlackRock, Inc. Company 11. Mar 20 12. Mar 20 153,840 NZ$4.81 NZ$732,155
06. Feb 20 Buy BlackRock Advisors (UK) Limited Company 31. Jan 20 05. Feb 20 14,186 NZ$5.55 NZ$0
02. Feb 20 Sell BlackRock Investment Management (UK) Limited Company 13. Jan 20 13. Jan 20 -10,329 NZ$5.15 NZ$-53,194
02. Feb 20 Buy BlackRock Investment Management (UK) Limited Company 11. Dec 19 17. Jan 20 39,494 NZ$5.26 NZ$0
27. Nov 19 Buy BlackRock Investment Management (UK) Limited Company 26. Nov 19 26. Nov 19 9,790 NZ$5.35 NZ$52,376
06. Feb 20 Sell BlackRock Investment Management (UK) Limited Company 31. Jan 20 31. Jan 20 -5,902 NZ$5.55 NZ$-32,756
06. Feb 20 Buy BlackRock Investment Management (UK) Limited Company 04. Feb 20 04. Feb 20 21,086 NZ$5.48 NZ$115,551
21. Nov 19 Sell BlackRock Investment Management (UK) Limited Company 23. Jul 19 12. Nov 19 -55,527 NZ$5.20 NZ$0
21. Nov 19 Buy BlackRock Investment Management (UK) Limited Company 25. Sep 19 06. Nov 19 334,592 NZ$5.18 NZ$0
02. Mar 20 Sell BlackRock Advisors (UK) Limited Company 25. Feb 20 28. Feb 20 -95,619 NZ$5.63 NZ$0
02. Mar 20 Buy BlackRock Advisors (UK) Limited Company 21. Feb 20 27. Feb 20 26,637 NZ$5.68 NZ$0
21. Nov 19 Sell BlackRock International Limited Company 06. Aug 19 18. Nov 19 -3,000 NZ$5.30 NZ$0
21. Nov 19 Buy BlackRock International Limited Company 01. Nov 19 01. Nov 19 1,175 NZ$4.58 NZ$5,382
23. Feb 20 Sell BlackRock Investment Management (UK) Limited Company 20. Feb 20 20. Feb 20 -12,204 NZ$5.84 NZ$-71,243
23. Feb 20 Buy BlackRock Investment Management (UK) Limited Company 20. Feb 20 20. Feb 20 3,326 NZ$5.84 NZ$19,416
10. Feb 20 Sell BlackRock Advisors (UK) Limited Company 07. Feb 20 07. Feb 20 -1,493 NZ$5.41 NZ$-8,077
02. Feb 20 Sell BlackRock Advisors (UK) Limited Company 04. Dec 19 29. Jan 20 -34,574 NZ$5.57 NZ$0
02. Feb 20 Buy BlackRock Advisors (UK) Limited Company 29. Nov 19 30. Jan 20 207,828 NZ$5.64 NZ$0
21. Nov 19 Sell BlackRock Advisors (UK) Limited Company 01. Aug 19 11. Nov 19 -247,944 NZ$5.19 NZ$0
21. Nov 19 Buy BlackRock Advisors (UK) Limited Company 22. Jul 19 20. Nov 19 227,206 NZ$5.31 NZ$0
09. Mar 20 Sell BlackRock Advisors (UK) Limited Company 06. Mar 20 06. Mar 20 -578 NZ$5.05 NZ$-2,919
09. Mar 20 Buy BlackRock Advisors (UK) Limited Company 06. Mar 20 06. Mar 20 6,342 NZ$5.05 NZ$32,027
20. Feb 20 Sell BlackRock Advisors (UK) Limited Company 11. Feb 20 14. Feb 20 -18,871 NZ$5.34 NZ$0
20. Feb 20 Buy BlackRock Advisors (UK) Limited Company 11. Feb 20 19. Feb 20 148,933 NZ$5.41 NZ$0
27. Nov 19 Buy BlackRock Advisors (UK) Limited Company 21. Nov 19 26. Nov 19 5,293 NZ$5.35 NZ$0
04. Mar 20 Sell BlackRock Advisors (UK) Limited Company 02. Mar 20 03. Mar 20 -11,096 NZ$5.17 NZ$0
04. Mar 20 Buy BlackRock Advisors (UK) Limited Company 03. Mar 20 03. Mar 20 2,124 NZ$5.16 NZ$10,960
11. Feb 20 Sell BlackRock Advisors (UK) Limited Company 10. Feb 20 10. Feb 20 -3,382 NZ$5.28 NZ$-17,857
11. Feb 20 Buy BlackRock Advisors (UK) Limited Company 10. Feb 20 10. Feb 20 1,400 NZ$5.28 NZ$7,392
08. Mar 20 Buy BlackRock Advisors (UK) Limited Company 04. Mar 20 05. Mar 20 30,336 NZ$5.19 NZ$0
08. Mar 20 Buy BlackRock, Inc. Company 05. Mar 20 05. Mar 20 68,405 NZ$5.16 NZ$352,970
09. Mar 20 Sell BlackRock, Inc. Company 06. Mar 20 06. Mar 20 -152,422 NZ$5.06 NZ$-770,862
04. Mar 20 Sell BlackRock, Inc. Company 02. Mar 20 03. Mar 20 -71,509 NZ$5.19 NZ$-369,149
02. Mar 20 Sell BlackRock, Inc. Company 21. Feb 20 28. Feb 20 -103,709 NZ$5.76 NZ$-520,240
02. Mar 20 Buy BlackRock, Inc. Company 25. Feb 20 28. Feb 20 332,742 NZ$5.63 NZ$1,737,374
23. Feb 20 Buy BlackRock, Inc. Company 20. Feb 20 20. Feb 20 64,349 NZ$5.85 NZ$376,319
20. Feb 20 Sell BlackRock, Inc. Company 14. Feb 20 19. Feb 20 -31,772 NZ$5.31 NZ$-168,407
20. Feb 20 Buy BlackRock, Inc. Company 13. Feb 20 17. Feb 20 49,305 NZ$5.33 NZ$258,066
20. Feb 20 Sell Perpetual Limited Company 17. Jun 19 19. Feb 20 -32,000,615 NZ$5.07 NZ$-162,096,635
20. Feb 20 Buy Perpetual Limited Company 29. May 19 20. Jan 20 19,225,601 NZ$4.65 NZ$89,346,851
11. Feb 20 Buy BlackRock, Inc. Company 10. Feb 20 10. Feb 20 3,537 NZ$5.26 NZ$18,605
10. Feb 20 Buy BlackRock, Inc. Company 07. Feb 20 07. Feb 20 1,572 NZ$5.43 NZ$8,536
28. Aug 19 Buy Steve Evans Individual 26. Aug 19 26. Aug 19 30,000 NZ$4.54 NZ$136,116
20. Nov 19 Sell Michele Kernahan Individual 31. Oct 19 31. Oct 19 -166 NZ$4.58 NZ$-760
22. Jul 19 Sell Ellerston Capital Limited Company 01. Jun 18 18. Jul 19 -14,441,975 NZ$5.74 NZ$-82,858,265
27. Nov 19 Sell BlackRock, Inc. Company 26. Nov 19 26. Nov 19 -586,118 NZ$5.35 NZ$-2,191,430
27. Nov 19 Buy BlackRock, Inc. Company 21. Nov 19 26. Nov 19 33,535 NZ$5.35 NZ$59,036
21. Nov 19 Sell BlackRock, Inc. Company 25. Jul 19 18. Nov 19 -444,493 NZ$5.30 NZ$0
21. Nov 19 Buy BlackRock, Inc. Company 24. Jul 19 20. Nov 19 1,315,184 NZ$5.29 NZ$283,757
20. Nov 19 Sell Francisco Irazusta Individual 31. Oct 19 31. Oct 19 -3,716 NZ$4.24 NZ$-15,772
20. Nov 19 Buy Francisco Irazusta Individual 29. Oct 19 29. Oct 19 25,000 NZ$4.59 NZ$114,717
28. Aug 19 Buy Robert McDonald Individual 23. Aug 19 23. Aug 19 20,000 NZ$4.70 NZ$93,950
28. Jan 20 Sell John Bell Individual 30. Dec 19 30. Dec 19 -3,601 NZ$5.16 NZ$-18,569
28. Aug 19 Buy Cathy Quinn Individual 23. Aug 19 23. Aug 19 10,000 NZ$4.70 NZ$46,975
02. Feb 20 Sell BlackRock, Inc. Company 27. Nov 19 20. Jan 20 -282,179 NZ$5.30 NZ$-514,739
02. Feb 20 Buy BlackRock, Inc. Company 27. Nov 19 29. Jan 20 320,834 NZ$5.64 NZ$364,118
06. Feb 20 Sell BlackRock, Inc. Company 31. Jan 20 05. Feb 20 -170,610 NZ$5.42 NZ$-27,691
06. Feb 20 Buy BlackRock, Inc. Company 03. Feb 20 04. Feb 20 44,746 NZ$5.50 NZ$163,977
06. Sep 19 Buy Claire Carroll Individual 05. Sep 19 05. Sep 19 11,000 NZ$4.69 NZ$51,561
10. Feb 20 Buy Schroder Investment Management (Singapore) Ltd Company 01. Dec 18 10. Feb 20 3,176,563 NZ$5.66 NZ$17,979,802
10. Feb 20 Sell Schroder Investment Management Limited Company 01. Dec 18 10. Feb 20 -524,894 NZ$5.29 NZ$-2,778,833
10. Feb 20 Buy Schroder Investment Management Limited Company 01. Dec 18 10. Feb 20 14,677,320 NZ$5.19 NZ$69,157,102
10. Feb 20 Sell Schroder Investment Management North America Inc. Company 01. Dec 18 10. Feb 20 -441,126 NZ$5.31 NZ$-2,343,480
10. Feb 20 Buy Schroder Investment Management North America Inc. Company 01. Dec 18 10. Feb 20 872,703 NZ$5.22 NZ$4,554,840
27. May 19 Sell Perpetual Limited Company 04. Mar 19 24. May 19 -16,295,196 NZ$5.11 NZ$-83,322,813
27. May 19 Buy Perpetual Limited Company 01. Feb 19 23. May 19 7,043,676 NZ$5.02 NZ$35,368,373
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.

FBU News

Simply Wall St News

Fletcher Building Limited (NZSE:FBU): A Fundamentally Attractive Investment

By this I mean, I look at stocks holistically, from their financial health to their future outlook. … If you're interested in understanding beyond my broad commentary, take a look at the report on Fletcher Building here.Good value with adequate balance sheet and pays a dividend FBU's strong financial health means that all of its upcoming liability payments are able to be met by its current cash and short-term investment holdings. … NZSE:FBU Historical Dividend Yield, September 1st 2019 Next Steps: For Fletcher Building, I've put together three relevant aspects you should look at: Future Outlook: What are well-informed industry analysts predicting for FBU’s future growth?

Simply Wall St -

What Do Analysts Think About Fletcher Building Limited's (NZSE:FBU) Growth?

Looking at Fletcher Building Limited's (NZSE:FBU) earnings update on 30 June 2019, analysts seem cautiously optimistic, as a 16% increase in profits is expected in the upcoming year, against the past 5-year average growth rate of -27%. … Below is a brief commentary around Fletcher Building's earnings outlook going forward, which may give you a sense of market sentiment for the company. … NZSE:FBU Past and Future Earnings, August 21st 2019 From the current net income level of NZ$246m and the final forecast of NZ$353m by 2022, the annual rate of growth for FBU’s earnings is 9.7%.

Simply Wall St -

Estimating The Intrinsic Value Of Fletcher Building Limited (NZSE:FBU)

Today we'll do a simple run through of a valuation method used to estimate the attractiveness of Fletcher Building Limited (NZSE:FBU) as an investment opportunity by taking the expected future cash flows and discounting them to today's value. … Value Per Share = Expected Dividend Per Share / (Discount Rate - Perpetual Growth Rate) = NZ$0.28 / (8.9% – 2.4%) = NZ$4.30 NZSE:FBU Intrinsic value, August 12th 2019 The assumptions Now the most important inputs to a discounted cash flow are the discount rate, and of course, the actual cash flows. … Given that we are looking at Fletcher Building as potential shareholders, the cost of equity is used as the discount rate, rather than the cost of capital (or weighted average cost of capital, WACC) which accounts for debt.

Simply Wall St -

Do You Know About Fletcher Building Limited’s (NZSE:FBU) ROCE?

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 Fletcher Building: 0.12 = NZ$708m ÷ (NZ$8.0b - NZ$2.4b) (Based on the trailing twelve months to December 2018.) So, Fletcher Building has an ROCE of 12%. … Do Fletcher Building's Current Liabilities Skew Its ROCE? … 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 -

Some Fletcher Building (NZSE:FBU) Shareholders Are Down 39%

Fletcher Building Limited (NZSE:FBU) shareholders should be happy to see the share price up 11% in the last quarter. … During five years of share price growth, Fletcher Building moved from a loss to profitability. … As it happens, Fletcher Building's TSR for the last 5 years was -22%, which exceeds the share price return mentioned earlier.

Simply Wall St -

Fletcher Building Limited (NZSE:FBU) Delivered A Weaker ROE Than Its Industry

The formula for return on equity is: Return on Equity = Net Profit ÷ Shareholders' Equity Or for Fletcher Building: 6.0% = NZ$241m ÷ NZ$4.2b (Based on the trailing twelve months to December 2018.) Most readers would understand what net profit is, but it’s worth explaining the concept of shareholders’ equity. … Does Fletcher Building Have A Good Return On Equity? … Combining Fletcher Building's Debt And Its 6.0% Return On Equity While Fletcher Building does have some debt, with debt to equity of just 0.43, we wouldn't say debt is excessive.

Simply Wall St -

You Might Like Fletcher Building Limited (NZSE:FBU) But Do You Like Its Debt?

FBU’s Debt (And Cash Flows) FBU's debt levels have fallen from NZ$2.3b to NZ$1.8b over the last 12 months , which includes long-term debt. … Moreover, FBU has produced NZ$172m in operating cash flow in the last twelve months, leading to an operating cash to total debt ratio of 9.6%, meaning that FBU’s debt is not covered by operating cash. … Next Steps: FBU’s high cash coverage means that, although its debt levels are high, the company is able to utilise its borrowings efficiently in order to generate cash flow.

Simply Wall St -

Calculating The Intrinsic Value Of Fletcher Building Limited (NZSE:FBU)

Using the most recent financial data, we'll take a look at whether the stock is fairly priced by taking the expected future cash flows and discounting them to their present value. … Where possible we use analyst estimates, but when these aren't available we extrapolate the previous free cash flow (FCF) from the last estimate or reported value. … A DCF is all about the idea that a dollar in the future is less valuable than a dollar today, so we need to discount the sum of these future cash flows to arrive at a present value estimate: 10-year free cash flow (FCF) estimate 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 Levered FCF (NZ$, Millions) NZ$1.02k NZ$541.51 NZ$325.56 NZ$296.32 NZ$278.91 NZ$269.42 NZ$264.92 NZ$263.71 NZ$264.74 NZ$267.34 Growth Rate Estimate Source Analyst x3 Analyst x3 Analyst x3 Analyst x1 Est @ -5.88% Est @ -3.4% Est @ -1.67% Est @ -0.46% Est @ 0.39% Est @ 0.98% Present Value (NZ$, Millions) Discounted @ 9.01% NZ$935.40 NZ$455.70 NZ$251.33 NZ$209.85 NZ$181.20 NZ$160.57 NZ$144.84 NZ$132.26 NZ$121.80 NZ$112.84 Present Value of 10-year Cash Flow (PVCF)= NZ$2.71b "Est" = FCF growth rate estimated by Simply Wall St After calculating the present value of future cash flows in the intial 10-year period, we need to calculate the Terminal Value, which accounts for all future cash flows beyond the first stage.

Simply Wall St -

Is Fletcher Building Limited's (NZSE:FBU) Balance Sheet Strong Enough To Weather A Storm?

This article will examine FBU’s financial liquidity and debt levels to get an idea of whether the company can deal with cyclical downturns and maintain funds to accommodate strategic spending for future growth. … Remember this is a very top-level look that focuses exclusively on financial health, so I recommend a deeper analysis. … See our latest analysis for Fletcher Building

Simply Wall St -

Is Fletcher Building Limited’s (NZSE:FBU) 12% Return On Capital Employed Good News?

In particular, we'll consider its Return On Capital Employed (ROCE), as that can give us insight into how profitably the company is able to employ capital in its business. … Return On Capital Employed (ROCE): What is it? … ROCE is a measure of a company's yearly pre-tax profit (its return), relative to the capital employed in the business.

Simply Wall St -

FBU 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: NZSE
Founded: 1909
NZ$2,834,865,796
821,700,231
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: 2020/04/05 10:33
End of day share price update: 2020/04/03 00:00
Last estimates confirmation: 2020/04/03
Last earnings filing: 2020/02/19
Last earnings reported: 2019/12/31
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.