Skip to Content

Breville Group Ltd BRG

Morningstar Rating
A$27.49 +0.21 (0.77%)
View Full Chart
Unlock our analysis with Morningstar Investor

Company Report

The Breville and Sage Brands Underpin the Company's Narrow Economic Moat

Breville's premium position in niche European and North American small appliances should continue to bear fruit, with strong earnings growth buoyed by continued global expansion. The company’s range of small electrical appliances has established significant brand strength, underpinning the firm's durable competitive advantages. This brand strength is particularly prominent in North America and Europe, where Breville is able to command a substantial price premium to competitors and where retail pricing is routinely 10% to 30% higher than in Australia. However, the small kitchen appliance industry remains competitive, and there are few significant long-term barriers to entry, limiting our economic moat rating to narrow.

Price vs Fair Value

BRG is trading at a 36% premium.
Price
A$27.15
Fair Value
A$38.00
Uncertainty
High
1-Star Price
A$71.00
5-Star Price
A$57.00
Economic Moat
Pvbszq
Capital Allocation
Bcqyxvqy

Bulls Say, Bears Say

Bulls

Breville enjoys significant brand equity through both its Breville and Sage brands, allowing the firm to enjoy pricing power and high returns on invested capital.

Bears

The implementation of further tariffs, such as those applied in the U.S. in 2018 and 2019, could hinder Breville's capacity to maintain margins, weighing on profitability.

Is it the right time to buy, sell, or hold?
Start a free trial of Morningstar Investor to unlock exclusive ratings and continuous analyst coverage to help you decide if BRG is a good fit for your portfolio.

Trading Information

Previous Close Price
A$27.28
Day Range
A$27.1227.58
52-Week Range
A$18.3828.77
Bid/Ask
A$26.95 / A$27.80
Market Cap
A$3.94 Bil
Volume/Avg
204,024 / 258,365

Key Statistics

Price/Earnings (Normalized)
33.40
Price/Sales
2.67
Dividend Yield (Trailing)
1.15%
Dividend Yield (Forward)
1.16%
Total Yield
1.15%

Company Profile

Breville designs and distributes small kitchen appliances globally. The vast majority of revenue is derived from the firm's global product segment, which distributes premium appliances under the Breville brand in Australia, New Zealand, and North America, and the Sage brand in the U.K. and Europe. The company's distribution segment sells products designed and developed by a third party under Breville-owned brands such as Breville, or third-party brands such as Nespresso.
Sector
Consumer Cyclical
Industry
Furnishings, Fixtures & Appliances
Stock Style Box
Mid Growth
Total Number of Employees
452

Comparables

Valuation

Metric
BRG
DDR
AFT
Price/Earnings (Normalized)
33.4023.4429.83
Price/Book Value
4.777.604.44
Price/Sales
2.670.861.89
Price/Cash Flow
17.8027.6734.02
Price/Earnings
BRG
DDR
AFT

Financial Strength

Metric
BRG
DDR
AFT
Quick Ratio
1.160.770.82
Current Ratio
1.931.111.97
Interest Coverage
7.376.655.61
Quick Ratio
BRG
DDR
AFT

Profitability

Metric
BRG
DDR
AFT
Return on Assets (Normalized)
7.77%8.06%8.04%
Return on Equity (Normalized)
14.85%33.72%16.95%
Return on Invested Capital (Normalized)
11.90%16.99%12.67%
Return on Assets
BRG
DDR
AFT
See how this stock stacks up to its competitors with Morningstar Investor

Furnishings, Fixtures & Appliances Industry Comparables

Ticker
Name
Morningstar Rating for Stocks
Capital Allocation
Economic Moat
Market Cap
HRSHF
Haier Smart Home Co Ltd Class HMbfvj$30.8 Bil
HSHCY
Haier Smart Home Co Ltd ADRHrwrh$30.8 Bil
NCLTF
Nitori Holdings Co LtdFwrfh$17.0 Bil
NCLTY
Nitori Holdings Co Ltd ADRRbrrgzb$17.0 Bil
TPX
Tempur Sealy International IncLgtfqm$9.9 Bil
SN
SharkNinja IncNpsqp$8.7 Bil
MHK
Mohawk Industries IncVqybnmsSqgrq$8.3 Bil
SEBYF
SEB SAZqf$7.0 Bil
WHR
Whirlpool CorpSyqfg$6.5 Bil
HWDJF
Howden Joinery Group PLCFgncdj$6.3 Bil

Sponsor Center