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Brickworks Ltd (AU:BKW)
:BKW
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Brickworks Ltd (BKW) AI Stock Analysis

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AU:BKW

Brickworks Ltd

(OTC:BKW)

Rating:53Neutral
Price Target:
AU$36.00
▲(10.16%Upside)
The overall score is primarily impacted by financial performance challenges, including declining revenues and profitability. Despite technical indicators suggesting strong momentum, the high RSI warns of a potential correction. Valuation concerns due to a negative P/E ratio further weigh down the score.

Brickworks Ltd (BKW) vs. iShares MSCI Australia ETF (EWA)

Brickworks Ltd Business Overview & Revenue Model

Company DescriptionBrickworks Ltd (BKW) is a leading manufacturer and supplier in the building and construction industry, primarily operating in the sectors of building products, property, and investments. The company specializes in the production of clay bricks, concrete masonry, roof tiles, and precast concrete products. Brickworks Ltd serves a diverse range of markets, including residential, commercial, and industrial construction, with a strong presence in both Australia and North America.
How the Company Makes MoneyBrickworks Ltd makes money through several key revenue streams. The primary source of revenue is the sale of building products, including clay bricks, concrete masonry, and other related products, to construction companies, builders, and developers. Additionally, the company generates income from its property division through the leasing and sale of industrial properties and land development projects. Another significant source of revenue comes from its investment division, which includes a diversified portfolio of investments in various sectors, providing steady returns. Strategic partnerships and joint ventures also play a role in enhancing revenue through collaborative projects and expanded market reach. The company's strong brand reputation and extensive distribution network further contribute to its financial performance by ensuring a broad customer base and consistent demand for its products.

Brickworks Ltd Financial Statement Overview

Summary
Brickworks Ltd is facing financial challenges, with declining revenues and profitability affecting the income statement. The balance sheet shows moderate stability with a manageable debt-to-equity ratio, but the decline in stockholders' equity raises concerns. Cash flow shows some recovery with positive operating cash flow, though free cash flow growth is limited.
Income Statement
30
Negative
The income statement shows significant challenges, with notable decreases in revenue and profitability. Gross profit margin decreased from prior years, and the company incurred a negative EBIT and EBITDA, resulting in a net loss. Revenue declined by 8.1% compared to the previous year, indicating potential market challenges. The negative EBIT margin of -9.38% and EBITDA margin of -12.61% highlight operational inefficiencies and rising costs.
Balance Sheet
45
Neutral
The balance sheet reflects moderate financial stability. The debt-to-equity ratio of 0.40 indicates a manageable level of leverage, but the reduction in stockholders' equity and total assets suggests declining asset efficiency. The equity ratio of 57.88% indicates a solid equity position, offering some financial resilience despite recent losses.
Cash Flow
50
Neutral
The cash flow statement presents a mixed picture. Operating cash flow remained positive, improving slightly from the previous year, but free cash flow is limited, showing only marginal growth. The operating cash flow to net income ratio is distorted due to net losses, though free cash flow improved by turning positive from a negative position last year. This indicates some recovery in cash operations despite profitability setbacks.
BreakdownTTMSep 2024Sep 2023Sep 2022Sep 2021Sep 2020
Income Statement
Total Revenue1.06B1.08B1.18B1.09B887.98M948.64M
Gross Profit315.76M325.11M345.29M330.91M254.67M271.59M
EBITDA38.27M-136.50M625.20M1.37B66.68M487.86M
Net Income-45.47M-118.89M394.69M854.39M239.16M298.88M
Balance Sheet
Total Assets5.78B5.84B6.14B5.57B4.03B3.83B
Cash, Cash Equivalents and Short-Term Investments71.88M62.57M69.56M106.08M139.82M187.11M
Total Debt1.39B1.35B1.32B1.14B856.30M751.21M
Total Liabilities2.45B2.46B2.58B2.31B1.55B1.43B
Stockholders Equity3.34B3.38B3.56B3.26B2.48B2.40B
Cash Flow
Free Cash Flow51.55M29.17M-18.64M-8.86M19.89M-28.90M
Operating Cash Flow109.70M104.04M97.14M130.49M139.79M74.11M
Investing Cash Flow-41.44M32.44M-118.79M5.46M-113.73M-171.46M
Financing Cash Flow-130.21M-143.04M-16.76M-174.21M-72.89M212.16M

Brickworks Ltd Technical Analysis

Technical Analysis Sentiment
Positive
Last Price32.68
Price Trends
50DMA
32.25
Positive
100DMA
28.50
Positive
200DMA
27.24
Positive
Market Momentum
MACD
0.10
Positive
RSI
44.19
Neutral
STOCH
16.45
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:BKW, the sentiment is Positive. The current price of 32.68 is below the 20-day moving average (MA) of 33.76, above the 50-day MA of 32.25, and above the 200-day MA of 27.24, indicating a neutral trend. The MACD of 0.10 indicates Positive momentum. The RSI at 44.19 is Neutral, neither overbought nor oversold. The STOCH value of 16.45 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AU:BKW.

Brickworks Ltd Peers Comparison

Overall Rating
UnderperformOutperform
Sector (44)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
74
Outperform
$23.81B27.5321.09%-0.65%-15.10%
71
Outperform
€417.77M21.0414.64%1.13%-14.99%195.52%
67
Neutral
AU$3.87B45.3318.02%6.31%301.01%
54
Neutral
AU$1.26B11.7414.70%861.38%
53
Neutral
AU$4.98B-1.34%2.81%-7.76%-123.85%
44
Neutral
AU$1.50B-6.23-41.37%3.85%-3.52%-43.04%
40
Underperform
AU$1.79M-165.55%-96.51%-251.72%
* Basic Materials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AU:BKW
Brickworks Ltd
32.68
4.70
16.79%
AU:WGN
Wagners Holding Co. Ltd.
2.22
1.32
145.58%
AU:BMH
Baumart Holdings Ltd
0.01
-0.03
-75.00%
AU:BGL
Bellevue Gold Limited
0.86
-0.54
-38.57%
AU:CMM
Capricorn Metals Ltd
8.98
3.68
69.43%
AU:JHX
James Hardie
41.13
-12.80
-23.73%

Brickworks Ltd Corporate Events

Brickworks Updates Securities Trading Policy
Jul 24, 2025

Brickworks Limited has announced an update to its Securities Trading Policy, effective from July 22, 2025. This update, lodged with the Australian Securities Exchange, reflects the company’s commitment to maintaining compliance with regulatory requirements, potentially impacting its governance practices and stakeholder relations.

The most recent analyst rating on (AU:BKW) stock is a Buy with a A$37.50 price target. To see the full list of analyst forecasts on Brickworks Ltd stock, see the AU:BKW Stock Forecast page.

Soul Patts and Brickworks Secure Full Funding for Merger into Topco
Jul 7, 2025

Washington H. Soul Pattinson and Company Limited and Brickworks Limited have announced the successful funding of their merger into a new ASX-listed entity, Topco. The merger, supported by strong investor demand, secures $1.4 billion in equity funding, which will address Brickworks’ debt and other liabilities, positioning the merged entity for strategic growth and operational efficiency.

The most recent analyst rating on (AU:BKW) stock is a Buy with a A$37.50 price target. To see the full list of analyst forecasts on Brickworks Ltd stock, see the AU:BKW Stock Forecast page.

Brickworks and Soul Pattinson Execute Major Convertible Notes Repurchase
Jul 1, 2025

Brickworks Limited, in collaboration with Washington H. Soul Pattinson and Company Limited, has announced the successful completion of a reverse bookbuilding process to repurchase approximately 97% of its outstanding $450 million Senior Unsecured Convertible Notes due 2030. This strategic move involves repurchasing the notes in two tranches, significantly reducing the outstanding debt and allowing Soul Pattinson the option to redeem the remaining notes, potentially strengthening its financial position and market standing.

The most recent analyst rating on (AU:BKW) stock is a Buy with a A$37.50 price target. To see the full list of analyst forecasts on Brickworks Ltd stock, see the AU:BKW Stock Forecast page.

Brickworks and Soul Patts Announce Strategic Financial Transactions
Jul 1, 2025

Brickworks Limited and Washington H. Soul Pattinson and Company Limited have announced a significant financial maneuver involving a conditional forward share purchase transaction with UBS AG, Australia Branch, and a repurchase of up to 100% of outstanding $450 million Senior Unsecured Convertible Notes due 2030. This move is part of a broader strategy to implement a merger between the two companies, creating a newly capitalized ASX-listed entity. The transaction is expected to enhance the companies’ market positioning and provide financial flexibility, potentially impacting stakeholders positively by aligning with their long-term growth strategies.

The most recent analyst rating on (AU:BKW) stock is a Buy with a A$37.50 price target. To see the full list of analyst forecasts on Brickworks Ltd stock, see the AU:BKW Stock Forecast page.

Brickworks Ltd Reports Mixed 2H25 Financial Outlook Amid Market Challenges
Jun 29, 2025

Brickworks Ltd anticipates higher Property EBITDA in 2H25 due to revaluation gains and development profits, particularly from Oakdale East Stage 2. However, Building Products North America faces challenges with a non-cash impairment charge of approximately A$75 million due to subdued market conditions, elevated interest rates, and high construction costs. The company’s full-year results remain under finalization, and the proposed merger with Soul Patts is unaffected by these updates.

The most recent analyst rating on (AU:BKW) stock is a Buy with a A$37.50 price target. To see the full list of analyst forecasts on Brickworks Ltd stock, see the AU:BKW Stock Forecast page.

Brickworks Limited Ceases Substantial Holding in AMA Group
Jun 23, 2025

Brickworks Limited has announced that it has ceased to be a substantial holder in AMA Group Limited as of June 19, 2025. This change is due to Brickworks’ voting power in Washington H. Soul Pattinson & Company Limited, which has a 25.6% shareholding. The announcement signifies a shift in Brickworks’ investment strategy and could impact its influence in the market, particularly concerning its association with WHSP.

The most recent analyst rating on (AU:BKW) stock is a Buy with a A$37.50 price target. To see the full list of analyst forecasts on Brickworks Ltd stock, see the AU:BKW Stock Forecast page.

Brickworks Limited Ceases Substantial Holding in Enlitic Inc.
Jun 17, 2025

Brickworks Limited has announced that it has ceased to be a substantial holder in Enlitic Inc. This change is due to Brickworks’ 25.6% shareholding in Washington H. Soul Pattinson & Company Limited, which previously granted it a deemed relevant interest in Enlitic Inc.’s securities. The announcement indicates a shift in Brickworks’ investment strategy, potentially impacting its market positioning and stakeholder interests.

The most recent analyst rating on (AU:BKW) stock is a Buy with a A$37.50 price target. To see the full list of analyst forecasts on Brickworks Ltd stock, see the AU:BKW Stock Forecast page.

Brickworks Ltd Updates Registry Address for Computershare Investor Services
Jun 12, 2025

Brickworks Ltd announced a change in the registry address for Computershare Investor Services’ Sydney office, effective from June 10, 2025. This update is in compliance with ASX Listing Rule 3.15.1. The change is administrative, with no alterations to telephone numbers or postal addresses, and is unlikely to impact the company’s operations or stakeholder relations significantly.

The most recent analyst rating on (AU:BKW) stock is a Buy with a A$37.50 price target. To see the full list of analyst forecasts on Brickworks Ltd stock, see the AU:BKW Stock Forecast page.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jun 03, 2025