Breedon Group PLC (BREE.L), a key player in the Basic Materials sector, particularly within the Building Materials industry, is capturing investor interest with its promising 29% potential upside. Headquartered in Derby, United Kingdom, Breedon Group engages in the quarrying and production of construction materials, serving markets in Great Britain, Ireland, the United States, and beyond.
Currently trading at 349 GBp, Breedon’s stock price sits comfortably within its 52-week range of 310.00 to 487.00 GBp. The stock has seen a modest price change of 5.20 GBp, equating to a 0.02% increase. Despite the absence of a trailing P/E ratio, Breedon’s forward P/E of 1,095.38 suggests investor expectations for future earnings growth remain robust.
Breedon’s revenue growth of 6.70% reflects its solid market presence and operational efficiency. While specific net income figures are not available, the company boasts an EPS of 0.26 and a Return on Equity (ROE) of 7.89%, indicators of its ability to generate profits and return value to shareholders.
Free cash flow stands at a healthy £45.49 million, providing a buffer for operational needs and potential investment opportunities. Moreover, a dividend yield of 4.29% with a payout ratio of 55.77% underscores Breedon’s commitment to rewarding shareholders while maintaining financial flexibility.
Analyst sentiment towards Breedon is predominantly positive, with 10 buy ratings and 2 hold ratings. There are no sell ratings, indicating strong confidence from market experts. The stock’s target price range is between 340.00 and 525.00 GBp, with an average target of 451.50 GBp, suggesting a potential upside of 29.37% from current levels.
From a technical perspective, Breedon’s 50-day moving average of 330.48 GBp and a 200-day moving average of 370.11 GBp provide insight into its trading trends. The Relative Strength Index (RSI) at 54.46 indicates a neutral position, while a MACD of 3.82 versus a signal line of 2.89 suggests a bullish momentum may be building.
Breedon Group’s diverse portfolio, ranging from aggregates to ready-mixed concrete, positions the company well in various construction applications, from motorways to recreational areas. This versatility, coupled with its strategic international operations, enhances its growth potential.
For investors eyeing the Building Materials industry, Breedon Group PLC presents a compelling opportunity. With a market cap of $1.21 billion and a robust analyst outlook, Breedon appears well-positioned to capitalize on infrastructural demands and deliver shareholder value in the coming years.
