Breedon Group PLC, trading under the ticker BREE.L, stands as a formidable presence in the Basic Materials sector, with a specific focus on building materials. Headquartered in Derby, United Kingdom, the company has carved out a significant niche in the industry, boasting a market capitalisation of $1.37 billion.
As of the latest trading data, Breedon Group’s stock is priced at 391.6 GBp, reflecting a modest increase of 5.60 GBp, or 0.01%. The stock has navigated a 52-week range between 377.80 GBp and 487.00 GBp, indicating both stability and potential volatility that investors should be mindful of.
Investors will notice that the trailing P/E ratio is not available, while the forward P/E ratio stands at a rather high 959.50. This suggests that the market may have high expectations for the company’s future earnings, although it also raises questions about how these expectations align with the company’s actual growth prospects.
Speaking of growth, Breedon has demonstrated a commendable revenue growth rate of 9.00%, accompanied by a positive EPS of 0.28. The company’s return on equity is 8.43%, which provides a respectable indicator of its profitability and efficiency in generating returns on shareholders’ investments. Moreover, the company has a significant free cash flow of £45,312,500, which is an encouraging sign of financial health that can support future expansions or debt reductions.
One of the key attractions for income-focused investors is Breedon’s dividend yield of 3.76%, with a payout ratio of 50.00%. This indicates a balanced approach to rewarding shareholders while retaining sufficient earnings to fuel further growth.
Breedon’s stock has garnered attention from analysts, receiving 11 buy ratings and 2 hold ratings, with no sell recommendations. The analysts’ target price range for the stock is between 440.00 GBp and 590.00 GBp, with an average target of 531.39 GBp. This suggests a potential upside of 35.70%, making it an enticing prospect for those seeking growth opportunities.
From a technical perspective, Breedon’s 50-day moving average is 436.99 GBp, and the 200-day moving average is 440.99 GBp. The RSI (14) is at 74.44, indicating that the stock is currently overbought, which might be a signal for cautious investors to consider. The MACD of -17.47 and the signal line of -14.91 further suggest that the stock may be experiencing a bearish trend in the short term.
Breedon Group’s extensive product portfolio includes aggregates, asphalt, concrete products, and more, serving a wide array of construction applications from motorways to recreational areas. Operating across Great Britain, Ireland, the United States, and within the Cement segment, Breedon’s diverse geographic footprint and product range provide a robust foundation for sustained growth.
Founded in 2007 and initially known as Breedon Aggregates Limited, the company rebranded to Breedon Group plc in 2016, reflecting its evolution and expanding operations. With its strategic positioning and comprehensive offerings, Breedon Group remains a key player within the building materials industry, offering potential opportunities for investors seeking exposure to a vital sector of the economy.
