Brickworks Ltd (BKW) AI Stock Analysis

• Market Cap: $4.22B
• Dividend Yield: 2.54%
• Average Volume (3M): 207.67K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.81
• Revenue Growth: -7.76%
• EPS Growth: -123.85%
• Country: AU
• Employees: 1,803
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Construction Materials
• EPS (TTM): 0.56
• Shares Outstanding: 152,944,920
• 10 Day Avg. Volume: 170,760
• 30 Day Avg. Volume: 207,671
• PEG Ratio: -1.31
• Price to Book (P/B): 1.11
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 80.66
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $28.01
• Price Target Upside: 1.21% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 6

Brickworks Ltd faces significant financial challenges with declining revenues and profitability, impacting its overall score. The technical analysis offers some short-term momentum, but valuation metrics are concerning due to a negative P/E ratio. The company's moderate balance sheet stability and positive cash flow provide some resilience, yet operational inefficiencies remain a critical risk.

Brickworks Ltd Business Overview & Revenue Model

Company Description

Brickworks Limited manufactures, sells, and distributes building products for the residential and commercial markets in Australia and North America. It operates through Building Products Australia, Building Products North America, Property, and Investments segments. The company's building products comprise clay bricks and pavers, cement, masonry blocks, retaining wall systems, concrete and terracotta roof tiles, timber battens, and terracotta façades systems. In addition, the company offers precast products consisting of walling, flooring, stairs, columns, beams, decking, noise barriers, retaining walls, and balcony related products. Further, the company specializes in selling properties, as well as invests in companies. Brickworks Limited was founded in 1930 and is headquartered in Horsley Park, Australia.

How the Company Makes Money

Brickworks Ltd generates revenue through the sale of its diverse range of building products, including clay bricks, masonry, cement, and precast concrete panels. The company's primary revenue streams come from its extensive network of manufacturing facilities and distribution channels, which allow it to supply products to builders, contractors, and developers across various construction segments. Brickworks Ltd leverages economies of scale and its strong brand reputation to maintain competitive pricing and secure long-term contracts with major construction firms. Additionally, strategic partnerships and joint ventures in both domestic and international markets contribute to its revenue, enabling the company to expand its reach and access new customer bases. The company also benefits from its focus on innovation and sustainability, which enhances its product offerings and aligns with the growing demand for environmentally friendly building solutions.

Brickworks Ltd Financial Statement Overview

Summary

Brickworks Ltd is facing financial challenges with declining revenues and profitability, as evidenced by a negative EBIT and EBITDA, and an 8.1% revenue decline. The balance sheet shows moderate stability with a manageable debt-to-equity ratio, but declining asset efficiency. Cash flow remains positive, offering some recovery potential despite profitability setbacks.

Income Statement

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

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

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.

Breakdown
TTM	Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Income Statement		Total Revenue
1.06B	1.08B	1.18B	1.09B	849.22M	948.64M
	Gross Profit
315.76M	334.41M	345.29M	343.51M	254.67M	280.30M
	EBIT
33.73M	54.32M	40.58M	59.66M	44.37M	65.35M
	EBITDA
38.27M	-136.50M	246.23M	552.53M	66.68M	140.25M
	Net Income Common Stockholders
-45.47M	-118.89M	394.69M	854.39M	239.16M	298.88M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
71.88M	62.57M	69.56M	106.08M	139.82M	187.11M
	Total Assets
5.78B	5.84B	6.14B	5.57B	4.03B	3.83B
	Total Debt
1.39B	1.35B	1.32B	1.14B	856.30M	751.21M
	Net Debt
1.32B	1.29B	1.25B	1.03B	716.48M	564.10M
	Total Liabilities
2.45B	2.46B	2.58B	2.31B	1.55B	1.43B
	Stockholders Equity
3.34B	3.38B	3.56B	3.26B	2.48B	2.40B
Cash Flow		Free Cash Flow
51.55M	29.17M	-18.64M	-8.86M	19.89M	-28.90M
	Operating Cash Flow
109.70M	104.04M	97.14M	130.49M	139.79M	74.11M
	Investing Cash Flow
-41.44M	32.44M	-118.79M	5.46M	-113.73M	-171.46M
	Financing Cash Flow
-130.21M	-143.04M	-16.76M	-174.21M	-72.89M	212.16M

Brickworks Ltd Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 27.68
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

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 27.68 is above the 20-day moving average (MA) of 26.01, above the 50-day MA of 24.79, and above the 200-day MA of 25.75, indicating a bullish trend. The MACD of 0.86 indicates Negative momentum. The RSI at 74.13 is Negative, neither overbought nor oversold. The STOCH value of 83.58 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AU:BKW.

Brickworks Ltd Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	50 Neutral	$1.98B	-1.06	-21.29%	3.61%	1.95%	-30.60%
BKW	47 Neutral	$4.22B	―	-1.34%	2.54%	-7.76%	-123.85%

Brickworks Ltd Corporate Events

Brickworks Ltd’s Voting Power Diminished in FBR Ltd

Brickworks Ltd, along with Horsley Park Holdings Pty Ltd, has experienced a dilution in its voting power in FBR Ltd due to the issuance of new shares. On April 2, 2025, FBR Ltd issued 574,500,000 new fully paid ordinary shares, resulting in a decrease in the substantial holders’ voting power from 15.27% to 12.99%. This change reflects a strategic move by FBR Ltd that impacts the voting influence of its substantial holders, potentially affecting their control and decision-making power within the company.

Brickworks Ltd Settles Litigation with BGC

Brickworks Ltd has announced the settlement of litigation with BGC (Australia) Pty Ltd and Midland Brick Pty Ltd, with both parties agreeing to dismiss proceedings without liability. This resolution removes a potential legal hurdle for Brickworks, allowing it to focus on its core operations and strategic growth initiatives, thereby reinforcing its market position and providing reassurance to stakeholders.

Brickworks Ltd Announces Half-Year Financial Results

Brickworks Ltd has released its financial results for the half year ending January 31, 2025. The announcement, approved by the Board of Directors, is aimed at informing stakeholders about the company’s performance and financial health. This release is significant as it provides insights into the company’s operational efficiency and market positioning, potentially impacting investor confidence and strategic planning.

Brickworks Limited Releases Half-Year Financial Results

Brickworks Limited has released its financial results for the half-year ending January 31, 2025, which were presented to analysts. The announcement, authorized by the Board of Directors, is expected to provide insights into the company’s financial health and operational performance, potentially impacting its market positioning and stakeholder interests.

Brickworks Ltd Reports Strong Financial Performance Amid Market Challenges

Brickworks Ltd announced a significant improvement in its financial performance for the first half of 2025, with a 141% increase in statutory net profit after tax to $21 million and a 308% rise in underlying net profit after tax to $76 million. Despite challenging market conditions, particularly in North America, the company managed to increase its interim dividend for the 11th consecutive year to 25 cents per share. The company’s property segment saw a substantial rise in EBITDA, while the building products segment in Australia maintained its margins through price increases and cost control measures. However, the North American operations faced difficulties due to market declines and disruptions, leading to an EBITDA loss. Brickworks continues to focus on operational efficiencies and product innovation to navigate the challenging market environment.

Brickworks Limited Reports Strong Earnings and Dividend Increase for 1H 2025

Brickworks Limited reported improved underlying earnings for the first half of 2025, despite a slight decline in total revenue to $516 million. The company saw a significant turnaround in its property segment, contributing to a 472% increase in total underlying EBITDA. The interim ordinary dividend per share was increased by 4%, reflecting the company’s strong financial performance. This improvement in earnings and dividend increase signals a positive outlook for stakeholders, despite challenges in the North American market.

Brickworks Ltd Declares AUD 0.25 Dividend for Shareholders

Brickworks Ltd has announced a new dividend distribution of AUD 0.25 per share for its ordinary fully paid securities, covering the six-month period ending January 31, 2025. The ex-dividend date is set for April 8, 2025, with a record date of April 9, 2025, and payment scheduled for May 1, 2025. This announcement reflects the company’s ongoing commitment to returning value to its shareholders and may positively impact investor sentiment and market positioning.

Brickworks Limited Reports Strong Financial Performance for Half-Year 2025

Brickworks Limited reported a substantial improvement in its financial performance for the half-year ended January 31, 2025, despite a slight decline in revenue. The company achieved a 141% increase in statutory net profit after tax to $21 million and a 308% rise in underlying net profit before significant items to $76 million. The results were driven by strong property earnings and a notable increase in operating cash flow, although the North American building products segment faced challenges. The interim dividend was increased by 4% to 25 cents per share, reflecting the company’s robust financial position.

Brickworks Limited Announces 2025 Half-Year Results and Key Financial Dates

Brickworks Limited announced its 2025 half-year results presentation scheduled for 20 March 2025, along with key financial dates including the interim dividend announcement and payment schedule. This announcement reflects the company’s ongoing commitment to transparency and shareholder value, as it continues to leverage its diversified portfolio for stability and growth. The webcast will provide insights into the company’s performance and strategic direction, potentially impacting its market positioning and stakeholder interests.

Brickworks Ltd Faces AUD 55 Million Impairment in North America Amid Market Challenges

Brickworks Ltd has announced a post-tax non-cash impairment charge of approximately AUD 55 million for its North American operations due to declining market conditions, reduced demand, and competitive pressures. This has led to plant shutdowns, reduced efficiency, and a significant decline in EBITDA margin. Despite these challenges, Brickworks’ Property EBITDA is expected to be higher due to stable capitalisation rates, while Building Products Australia maintains steady performance. However, Building Products North America’s EBITDA will be significantly lower, impacted by extreme weather and market conditions.