FLETCHER BUILDING LIMITED (FBU)
Share Price Analysis and Chart

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FBU - FLETCHER BUILDING LIMITED

FNArena Sector : Building Products & Services
Year End: June
GICS Industry Group : Materials
Debt/EBITDA: 3.1
Index: ASX200 | ASX300 | ALL-ORDS

Fletcher Building is a New Zealand construction & engineering company. It also manufactures and markets a range of building products in Australia and New Zealand. It was de-merged from Fletcher Challenge and listed on the ASX & NZX in 2001.

LAST PRICE CHANGE +/- CHANGE % VOLUME

$3.04

22 Jul
2024

0.060

OPEN

$2.96

2.01%

HIGH

$3.07

1,073,585

LOW

$2.94

TARGET
$2.77 -8.9% downside
Franking for last dividend paid out: 0%
OTHER COMPANIES IN THE SAME SECTOR
ACF . BKW . BRI . FBR . JHX . JLG . MGH . RWC . SFC . SRG . WGN .
FNARENA'S MARKET CONSENSUS FORECASTS
FBU: 1
Title FY24
Forecast		 FY25
Forecast
EPS (cps) 24.4 xxx
DPS (cps) 0.0 xxx
EPS Growth N/A xxx
DPS Growth N/A xxx
PE Ratio 12.4 xxx
Dividend Yield 0.0% xxx
Div Pay Ratio(%) N/A xxx
This company reports in NZD.
All estimates have been converted into AUD by FNArena at present FX values.

Dividend yield today if purchased 3 years ago: 4.38%

DIVIDEND YIELD CALCULATOR

Dividend Yield Today On Last Actual Payout :

 10.13

Estimated Dividend Growth
(Average Of Past Three Years)

  %

Amount Invested

 $ 

Tell Me The Dividend After This Many Years
Past performance is no guarantee for the future. Investors should take into account that heavy swings in share price or exceptional circumstances (a la 2009) can have a significant impact on short term calculations and averages

Last ex-div: 14/09 - ex-div 14.7c (franking 0%)

HISTORICAL DATA ARE ALL IN AUD
Copyright © 2024 FactSet UK Limited. All rights reserved
Title 201820192020202120222023
EPS Basic xxxxxxxxxxxxxxx27.5
DPS All xxxxxxxxxxxxxxx36.6
Sales/Revenue xxxxxxxxxxxxxxx7,749.3 M
Book Value Per Share xxxxxxxxxxxxxxx432.7
Net Operating Cash Flow xxxxxxxxxxxxxxx355.0 M
Net Profit Margin xxxxxxxxxxxxxxx2.77 %

EPS Basic

DPS All

Sales/Revenue

Book Value Per Share

Net Operating Cash Flow

Net Profit Margin

Title 201820192020202120222023
Return on Capital Employed xxxxxxxxxxxxxxx6.37 %
Return on Invested Capital xxxxxxxxxxxxxxx3.63 %
Return on Assets xxxxxxxxxxxxxxx2.69 %
Return on Equity xxxxxxxxxxxxxxx6.37 %
Return on Total Capital xxxxxxxxxxxxxxx11.04 %
Free Cash Flow ex dividends xxxxxxxxxxxxxxx-336.7 M

Return on Capital Employed

Return on Invested Capital

Return on Assets

Return on Equity

Return on Total Capital

Free Cash Flow ex dividends

Title 201820192020202120222023
Short-Term Debt xxxxxxxxxxxxxxx258 M
Long Term Debt xxxxxxxxxxxxxxx2,871 M
Total Debt xxxxxxxxxxxxxxx3,128 M
Goodwill - Gross xxxxxxxxxxxxxxx757 M
Cash & Equivalents - Generic xxxxxxxxxxxxxxx336 M
Price To Book Value xxxxxxxxxxxxxxx1.15

Short-Term Debt

Long Term Debt

Total Debt

Goodwill - Gross

Cash & Equivalents - Generic

Price To Book Value

Title 201820192020202120222023
Capex xxxxxxxxxxxxxxx407.2 M
Capex % of Sales xxxxxxxxxxxxxxx5.25 %
Cost of Goods Sold xxxxxxxxxxxxxxx5,342 M
Selling, General & Admin. Exp & Other xxxxxxxxxxxxxxx1,726 M
Research & Development xxxxxxxxxxxxxxx5 M
Investments - Total xxxxxxxxxxxxxxx301 M

Capex

Capex % of Sales

Cost of Goods Sold

Selling, General & Admin. Exp & Other

Research & Development

Investments - Total

EXPERT VIEWS
Display All Commentary

Sentiment Indicator

-0.5

No. Of Recommendations

4
BROKER DATE RATING RECOMMENDATION TARGET PRICE % TO REACH TARGET COMMENTARY

Ord Minnett

xx/xx/xxxx

3

xxxx

$xx.xx

xx.xx%

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Citi

xx/xx/xxxx

5

xxxx

-

xx.xx%

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Morgan Stanley

14/05/2024

3

Equal-weight

$2.84

-6.58%

Yesterday's trading update by Fletcher Building provided evidence to Morgan Stanley that softening macroeconomic conditions in both Australia and New Zealand are materially impacting the company's earnings.

While a backlog has helped support construction activity, the update highlighted a -10% decline compared to the 2Q in market volumes in Australia (-5% for NZ), suggesting to the analysts the backlog is finally starting to erode.

Management lowered FY24 EBIT guidance by -13% at the mid point to NZ$500-530m from NZ$540m-640m.

Morgan Stanley's target drops to $2.84 from $3.67 and the Equal-weight rating is maintained as the broker sees further macro risk in both of the company's key construction markets. Industry View: In-Line.

FORECAST
Morgan Stanley forecasts a full year FY24 dividend of 0.00 cents and EPS of 24.38 cents.
Morgan Stanley forecasts a full year FY25 dividend of 0.00 cents and EPS of 19.86 cents.

Macquarie

xx/xx/xxxx

5

xxxxxxxxxxxx

-

xx.xx%

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EXTRA COVERAGE
Display All Commentary

No. Of Recommendations

2

Please note: unlike Broker Call Report, BC Extra is not updated daily. The info you see might not be the latest. FNArena does its best to update ASAP.

BROKER DATE RATING RECOMMENDATION TARGET PRICE % TO REACH TARGET COMMENTARY

Goldman Sachs

xx/xx/xxxx

3

xxxxxxx

$xx.xx

xx.xx%

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Jarden

14/03/2024

1

Buy

-

-

Fletcher Building's share price hit a three-year low in mid-February, although has recovered 15% since then. 

The weeks prior saw the company increase write-downs on legacy contracts, increase its exposure to the Iplex burst pipe issue, materially downgrade full year earnings, and announce the exit of its Tradelink business and the stepping down of both the CEO and Chair.

Jarden sees ongoing operational issues for Fletcher Building, and feels the departure of the CEO and Chair heightens the challenge to navigate through these.

The broker expects the company's diversification should allow it to outperform single-sector companies, but the company may need to consider a slimmed down organisation. 

The Buy rating and target price of NZ$4.61 are retained.

FORECAST
Jarden forecasts a full year FY24 dividend of 8.31 cents and EPS of 32.23 cents.
Jarden forecasts a full year FY25 dividend of 22.17 cents and EPS of 35.93 cents.
Access Stockbroker Research History >

FBU STOCK CHART

FNArena News on FBU

1
Rudi’s View: Diverging Risks In A Polarised Market

Jul 03 2024 - Rudi's View
2
Reece: Stellar Business, Priced For Perfection

Jul 01 2024 - Australia
3
Australian Broker Call *Extra* Edition – Jun 12, 2024

Jun 12 2024 - Daily Market Reports
4
Weekly Ratings, Targets, Forecast Changes – 24-05-24

May 27 2024 - Weekly Reports
5
Australian Broker Call *Extra* Edition – May 21, 2024

May 21 2024 - Daily Market Reports

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