Fletcher Building (FCREY) AI Stock Analysis

• Market Cap: $2.00B
• Dividend Yield: N/A
• Average Volume (3M): 2.00
• Price to Earnings (P/E): ―
• Beta (1Y): 0.72
• Revenue Growth: -17.99%
• EPS Growth: -871.13%
• Country: US
• Employees: 12,500
• Sector: Basic Materials
• Sector Strength: 64
• Industry: Construction Materials
• EPS (TTM): -0.33
• Shares Outstanding: 537,448,670
• 10 Day Avg. Volume: 7
• 30 Day Avg. Volume: 2
• PEG Ratio: -0.86
• Price to Book (P/B): 1.05
• Price to Sales (P/S): 0.43
• P/FCF Ratio: 24.72
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 47 Neutral
• Price Target: ―

Fletcher Building's overall stock score reflects significant operational and financial challenges. Key issues include declining revenue, negative net income, and considerable leverage, which together impact financial health. Technically, the stock is in a bearish trend, trading below major moving averages, and lacks momentum indicators, adding to the negative outlook. Valuation concerns are heightened by a negative P/E ratio, reflecting the company's unprofitability.

Fletcher Building Business Overview & Revenue Model

Company Description

Fletcher Building Limited (FCREY) is a New Zealand-based company that operates in the building and construction industries. The company is involved in the manufacturing and distribution of building materials and construction products, as well as providing construction services. Its operations are divided into several sectors, including Building Products, Distribution, Concrete, Residential and Development, and Construction. Fletcher Building's core products include plasterboard, insulation, laminates, steel roofing, and cement, and it serves a wide range of customers across New Zealand, Australia, and the South Pacific region.

How the Company Makes Money

Fletcher Building makes money primarily through the sale of building materials and construction products, as well as through its construction services. The company's revenue streams are diversified across several sectors: 1) Building Products: selling manufactured materials like plasterboard, insulation, and laminates; 2) Distribution: operating a network of building materials distribution outlets; 3) Concrete: producing and supplying concrete and related products; 4) Residential and Development: developing and selling residential properties; 5) Construction: providing construction services for commercial and infrastructure projects. Key partnerships with suppliers and contractors, as well as its strong market presence in New Zealand and Australia, contribute to its financial performance.

Fletcher Building Financial Statement Overview

Summary

Fletcher Building faces significant challenges with declining revenue and profitability, reflected in the negative net income and diminishing margins. The company's balance sheet shows considerable leverage, which may pose risks in financial flexibility. Cash flow remains positive from operations, but free cash flow is negative, indicating potential liquidity constraints. The company needs to address these operational and financial hurdles to improve its financial health.

Income Statement

The income statement reveals a concerning trend with declining revenue from $8.469B in 2023 to $7.683B in 2024. The gross profit margin decreased slightly to 28.15%, and the net profit margin has turned negative at -2.96%, indicating operational challenges. The EBIT margin improved to 6.47%, but the EBITDA margin remained relatively stable at 10.85%.

Balance Sheet

The balance sheet shows a moderate debt-to-equity ratio of 1.07, indicating considerable leverage. The return on equity is negative at -6.84%, reflecting recent losses. The equity ratio is relatively stable at 37.39%, suggesting a decent proportion of the company's assets are financed by equity.

Cash Flow

Cash flow analysis indicates a challenging period with negative free cash flow of -$4M in 2024, although operating cash flow remains positive at $398M. The free cash flow to net income ratio is negative, aligning with the net income loss, while the operating cash flow to net income ratio is -1.75, highlighting cash generation despite profitability issues.

Breakdown
TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement		Total Revenue
7.02B	7.68B	8.47B	8.50B	8.12B	7.31B
	Gross Profit
1.94B	2.16B	2.63B	2.51B	2.34B	1.81B
	EBIT
402.00M	497.00M	441.00M	657.00M	603.00M	20.00M
	EBITDA
659.00M	834.00M	799.00M	1.03B	881.00M	194.00M
	Net Income Common Stockholders
-241.00M	-227.00M	235.00M	432.00M	305.00M	-196.00M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
202.00M	311.00M	365.00M	351.00M	666.00M	1.10B
	Total Assets
8.41B	8.87B	9.08B	8.42B	8.01B	8.78B
	Total Debt
2.91B	3.54B	3.40B	2.69B	2.55B	3.51B
	Net Debt
2.71B	3.23B	3.03B	2.34B	1.89B	2.41B
	Total Liabilities
4.49B	5.55B	5.40B	4.66B	4.24B	5.24B
	Stockholders Equity
3.92B	3.32B	3.65B	3.75B	3.75B	3.50B
Cash Flow		Free Cash Flow
139.00M	-4.00M	-57.00M	195.00M	648.00M	170.00M
	Operating Cash Flow
519.00M	398.00M	388.00M	594.00M	879.00M	410.00M
	Investing Cash Flow
-159.00M	-426.00M	-641.00M	-356.00M	-211.00M	-234.00M
	Financing Cash Flow
-381.00M	-26.00M	269.00M	-557.00M	-1.11B	-443.00M

Fletcher Building Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3.87
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FCREY, the sentiment is Positive. The current price of 3.87 is above the 20-day moving average (MA) of 3.69, above the 50-day MA of 3.70, and above the 200-day MA of 3.62, indicating a bullish trend. The MACD of 0.03 indicates Negative momentum. The RSI at 59.61 is Neutral, neither overbought nor oversold. The STOCH value of 100.13 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for FCREY.

Fletcher Building Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
USLM	78 Outperform	$2.94B	24.49	25.44%	0.21%	17.83%	50.28%
EXP	76 Outperform	$6.61B	14.68	33.52%	0.49%	0.64%	-1.15%
LOMA	76 Outperform	$1.54B	15.01	14.05%	―	-37.30%	32.91%
CX	73 Outperform	$10.36B	7.10	6.58%	1.21%	-8.41%	570.14%
JHX	68 Neutral	$10.01B	24.47	21.05%	―	1.26%	-17.38%
Sector *	50 Neutral	$2.01B	-1.12	-21.15%	3.68%	2.69%	-30.65%
FCREY	47 Neutral	$2.00B	―	-1.32%	―	-17.99%	-871.13%