Brickworks Ltd (BKW) AI Stock Analysis

• Market Cap: $5.32B
• Dividend Yield: 2.23%
• Average Volume (3M): 374.33K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.92
• Revenue Growth: -7.76%
• EPS Growth: -123.85%
• Country: AU
• Employees: 1,803
• Sector: Basic Materials
• Sector Strength: 70
• Industry: Construction Materials
• EPS (TTM): 0.56
• Shares Outstanding: 152,944,920
• 10 Day Avg. Volume: 207,700
• 30 Day Avg. Volume: 374,333
• PEG Ratio: -1.35
• Price to Book (P/B): 1.16
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 33.89
• 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: $31.79
• Price Target Upside: -8.92% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 4

• Rating: 53 Neutral
• Price Target: AU$36.00 ▲(3.15%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 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 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

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	887.98M	948.64M
Gross Profit	315.76M	325.11M	345.29M	330.91M	254.67M	271.59M
EBITDA	38.27M	-136.50M	625.20M	1.37B	66.68M	487.86M
Net Income	-45.47M	-118.89M	394.69M	854.39M	239.16M	298.88M
Balance Sheet
Total Assets	5.78B	5.84B	6.14B	5.57B	4.03B	3.83B
Cash, Cash Equivalents and Short-Term Investments	71.88M	62.57M	69.56M	106.08M	139.82M	187.11M
Total Debt	1.39B	1.35B	1.32B	1.14B	856.30M	751.21M
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: 34.90
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Negative
• STOCH: Neutral

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 34.9 is above the 20-day moving average (MA) of 33.58, above the 50-day MA of 30.11, and above the 200-day MA of 26.77, indicating a bullish trend. The MACD of 1.33 indicates Positive momentum. The RSI at 74.84 is Negative, neither overbought nor oversold. The STOCH value of 68.55 is Neutral, 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
BKW	53 Neutral	$5.32B	―	-1.34%	2.23%	-7.76%	-123.85%
Sector *	44 Neutral	C$979.74M	-6.70	-13.35%	2.68%	17.20%	-32.62%
JHIUF		$12.21B	28.59	21.09%	―	―	―
0W7		€235.37M	18.97	14.64%	1.25%	―	―
CMM	73 Outperform	AU$4.05B	47.40	18.02%	―	6.31%	301.01%
BGL	54 Neutral	AU$1.37B	12.71	14.70%	―	861.38%	―
BMH	40 Underperform	AU$1.63M	―	-165.55%	―	-96.51%	-251.72%

Brickworks Ltd Corporate Events

Brickworks and Soul Pattinson Execute Major Convertible Notes Repurchase

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

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

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

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.

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

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.