Breedon Group PLC (BREE.L), a prominent player in the Basic Materials sector, is a leading force in the Building Materials industry, boasting a market capitalisation of $1.26 billion. Headquartered in Derby, UK, the company is renowned for its comprehensive range of construction materials and building products that cater to a diverse array of infrastructure needs. The company’s operations span across Great Britain, Ireland, the United States, and beyond, making it a significant entity in the international construction landscape.
Currently trading at 363.8 GBp, Breedon Group’s stock has experienced a slight decrease, marking a price change of -2.20 GBp (-0.01%). This positions the stock near the lower bound of its 52-week range of 358.80 – 487.00 GBp. While the trailing P/E ratio is not applicable, the forward P/E stands at a notably high 962.00, suggesting that the market may have high expectations for the company’s future earnings growth.
Revenue growth for Breedon Group has been relatively robust at 6.70%, indicating steady commercial momentum. However, specific figures for net income remain undisclosed. The company’s Earnings Per Share (EPS) of 0.26 and Return on Equity (ROE) of 7.89% provide a glimpse into its profitability and efficiency in generating returns on shareholders’ equity.
From a cash flow perspective, Breedon Group demonstrates financial resilience with a free cash flow of £45.49 million. This liquidity positions the company well for reinvestment into business operations or potential acquisitions, aligning with its strategic growth objectives.
Breedon Group appeals to income-focused investors with a dividend yield of 4.03% and a payout ratio of 55.77%, reflecting a balanced approach to rewarding shareholders while retaining capital for growth. This dividend strategy highlights the company’s commitment to delivering consistent returns to its investors.
Analyst sentiment towards Breedon Group is largely positive, with 11 ‘Buy’ ratings, 2 ‘Hold’ ratings, and no ‘Sell’ ratings. The average target price of 502.23 GBp suggests a potential upside of 38.05%, offering a compelling case for investors considering an entry point at the current price level.
Technically, the stock’s 50-day and 200-day moving averages are 399.74 GBp and 434.97 GBp respectively, with the current price indicating a period of relative weakness. The RSI (14) of 64.08 suggests the stock is nearing overbought territory, while the MACD and Signal Line indicators suggest a bearish momentum, with values of -10.19 and -10.87 respectively.
Breedon Group’s diverse product portfolio, which includes aggregates, asphalt, cement, and various concrete products, positions it strategically within the construction supply chain. The company’s ability to provide mobile concrete and surfacing solutions for a range of infrastructure projects, from motorways and airports to recreational areas, underscores its operational versatility and market reach.
As Breedon Group navigates the evolving dynamics of the building materials sector, its strategic focus on diversified operations and international market penetration positions the company well for potential growth. Investors intrigued by the building materials industry may find Breedon Group a company worthy of consideration, given its established market presence and strategic growth outlook.
