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Brickworks Ltd BKW

Morningstar Rating
A$26.32 +0.01 (0.04%)
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Company Report

Price vs Fair Value

BKW is trading within a range we consider fairly valued.
Price
A$26.31
Fair Value
A$69.00
Uncertainty
Medium
1-Star Price
A$52.49
5-Star Price
A$26.60
Economic Moat
Vvxb
Capital Allocation
Mkbqmphm

Bulls Say, Bears Say

Bulls

State and federal government policy to increase supply of Australian housing over the coming years supports near-term demand for brick volumes.

Bears

Brick use is expected to decline due to a greater range of alternative building materials, smaller house sizes, and a change in design preferences and building types.

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Trading Information

Previous Close Price
A$26.31
Day Range
A$26.0326.49
52-Week Range
A$22.7231.37
Bid/Ask
A$26.32 / A$26.34
Market Cap
A$4.02 Bil
Volume/Avg
152,242 / 192,529

Key Statistics

Price/Earnings (Normalized)
35.02
Price/Sales
3.32
Dividend Yield (Trailing)
2.51%
Dividend Yield (Forward)
2.51%
Total Yield
2.50%

Company Profile

Brickworks is a conglomerate consisting of brickmaking operations, industrial property management, and a cross-shareholding in investment firm, Washington H. Soul Pattinson, or Soul Patts (ASX: SOL). Brickworks’ operating business manufactures brick products for the Australian and North American markets. However, most earnings are from the property and investment segments. The property segment principally redevelops warehouses on industrial land, with joint venture partner narrow-moat Goodman Group. The investment segment represents a cross-shareholding in Soul Patts, an investment firm with a portfolio encompassing diversified investments, including large holdings in no-moat coal miner New Hope and narrow-moat TPG Telecom.
Sector
Basic Materials
Industry
Building Materials
Stock Style Box
Mid Core
Total Number of Employees
2,100

Competitors

Valuation

Metric
BKW
JHX
BLD
Price/Earnings (Normalized)
35.0220.0331.81
Price/Book Value
1.157.193.01
Price/Sales
3.323.471.78
Price/Cash Flow
36.1815.6910.69
Price/Earnings
BKW
JHX
BLD

Financial Strength

Metric
BKW
JHX
BLD
Quick Ratio
0.890.922.03
Current Ratio
2.311.792.49
Interest Coverage
−0.3921.165.97
Quick Ratio
BKW
JHX
BLD

Profitability

Metric
BKW
JHX
BLD
Return on Assets (Normalized)
1.01%15.30%5.74%
Return on Equity (Normalized)
1.74%39.87%10.99%
Return on Invested Capital (Normalized)
2.30%24.70%8.04%
Return on Assets
BKW
JHX
BLD
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