We place no-moat Fletcher Building under review with yet another disappointing trading downgrade, as we assess what this means for our future assumptions and, ultimately, our fair value estimate.
An improvement in the Australia business is likely to lift ROIC and increase shareholder value.
Fletcher operates in cyclical and competitive markets with minimal differentiation and is prone to periods of operating deleverage and structural margin compression
|
Metric
|
FBU
|
BLD
|
HOLN
|
|---|---|---|---|
Price/Earnings (Normalized) | 13.66 | 31.92 | 13.45 |
Price/Book Value | 0.67 | 3.02 | 1.70 |
Price/Sales | 0.28 | 1.79 | 1.65 |
Price/Cash Flow | 5.03 | 10.72 | 8.44 |
|
Metric
|
FBU
|
BLD
|
HOLN
|
|---|---|---|---|
Quick Ratio | 0.64 | 2.03 | 1.08 |
Current Ratio | 1.69 | 2.49 | 1.44 |
Interest Coverage | 0.39 | 5.97 | 8.05 |
|
Metric
|
FBU
|
BLD
|
HOLN
|
|---|---|---|---|
Return on Assets (Normalized) | 0.40% | 5.74% | 5.64% |
Return on Equity (Normalized) | 1.02% | 10.99% | 11.43% |
Return on Invested Capital (Normalized) | 0.46% | 8.04% | 8.99% |
|
Ticker
|
Name
|
Morningstar Rating for Stocks
|
Capital Allocation
|
Economic Moat
|
Market Cap
|
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