Breedon (BREE) AI Stock Analysis

• Market Cap: £1.27B
• Dividend Yield: 3.92%
• Average Volume (3M): 1.52M
• Price to Earnings (P/E): 14.1
• Beta (1Y): 0.79
• Revenue Growth: 7.83%
• EPS Growth: -7.40%
• Country: UK
• Employees: 4,500
• Sector: Basic Materials
• Sector Strength: 57
• Industry: Construction Materials
• EPS (TTM): 0.11
• Shares Outstanding: 346,520,000
• 10 Day Avg. Volume: 1,155,073
• 30 Day Avg. Volume: 1,516,603
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: £494.67
• Price Target Upside: 32.34% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 9

• Rating: 77 Outperform
• Price Target: 407.00p ▲(8.88% Upside)

Breedon's strong financial performance and attractive valuation are key positives. Despite bearish technical signals, the internal confidence demonstrated by recent corporate events supports a favorable outlook. Investors should monitor technical trends closely while considering the stock's appealing valuation and growth potential.

Positive Factors

Environmental Sustainability

The group announced that its carbon reduction targets are now validated by SBTi.

Financial Performance

The group beat consensus at the underlying EBIT level, generated good cash and reduced debt to a very acceptable level.

Strategic Growth

The Lionmark deal for US$238m creates a business of scale and shows that the group is back in growth mode.

Negative Factors

Market Exposure

The group's high exposure to the UK should work in its favour over the medium term, with the new government set to drive housing and infrastructure.

Valuation Concerns

The current valuation fails to factor in the group's low carbon footprint, its US growth opportunity and a volume driven recovery.

Breedon Business Overview & Revenue Model

Company Description

Breedon Group plc, together with its subsidiaries, engages in the quarrying, manufacture, and sale of construction materials and building products in the United Kingdom and internationally. The company offers various aggregates, such as crushed rock, high polished stone value, sand and gravel, self-binding gravels, decorative aggregates, recycled aggregates, white limestone products, agricultural lime, granular mineral fillers, and welsh slates for use in the construction market. It also provides asphalt products for motorways, trunk roads, airport infrastructure, driveways, footpaths, farm roads, car parks, and recreational areas; and ready-mixed concrete, screeds, and mortar for various construction applications. In addition, the company offers concrete products, such as reconstructed stone walling, blocks, and other architectural masonry products; Portland cement; concrete roof tiles and ridge tiles; and clay bricks, as well as undertakes road surfacing and maintenance projects. Further, it provides traffic management services. The company was formerly known as Breedon Aggregates Limited and changed its name to Breedon Group plc in August 2016. The company was incorporated in 2007 and is based in Saint Helier, Jersey.

How the Company Makes Money

Breedon generates revenue primarily through the sale of construction materials such as aggregates, asphalt, and ready-mixed concrete. The company's revenue model is built on supplying these materials to a diverse customer base that includes contractors, construction companies, and local authorities, which are engaged in infrastructure and development projects. Key revenue streams include the sale of aggregates from quarries, production of ready-mixed concrete, and the manufacturing of asphalt. Additionally, Breedon benefits from strategic partnerships with construction firms and government contracts, which provide a stable demand for its products. The company also focuses on efficiency and cost management in its operations to enhance profitability.

Breedon Financial Statement Overview

Summary

Breedon demonstrates strong financial performance with consistent revenue growth and efficient operations. However, the increase in debt and slight decrease in net profit margin highlight areas for caution.

Income Statement

Breedon has shown a consistent increase in revenue over the years, with a notable growth rate of 6% from 2023 to 2024. The company also maintains strong gross and EBITDA margins, indicating efficient operations and profitability. However, the net profit margin slightly decreased from 2023 to 2024 due to a lower net income, which is a point of concern.

Balance Sheet

The company has a moderate debt-to-equity ratio, reflecting a balanced capital structure. The equity ratio remains robust, showcasing strong financial stability. However, the increase in total debt from 2023 to 2024 indicates a potential risk if not managed properly. The return on equity slightly decreased which indicates a need for better profitability.

Cash Flow

Breedon demonstrates strong operating cash flow, which is higher than net income, indicating good cash management. The free cash flow growth rate is slightly negative from 2023 to 2024, suggesting increased capital expenditures. The free cash flow to net income ratio remains healthy, showcasing efficient use of cash.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.58B	1.49B	1.40B	1.23B	928.70M
Gross Profit	1.27B	1.22B	486.20M	428.40M	297.90M
EBITDA	262.10M	241.90M	230.90M	214.60M	137.70M
Net Income	96.20M	105.50M	112.50M	78.50M	33.60M
Balance Sheet
Total Assets	2.11B	1.87B	1.79B	1.67B	1.62B
Cash, Cash Equivalents and Short-Term Investments	28.90M	126.90M	101.70M	83.90M	31.70M
Total Debt	434.20M	296.80M	299.40M	296.40M	350.00M
Total Liabilities	943.40M	762.10M	742.00M	719.70M	730.90M
Stockholders Equity	1.17B	1.11B	1.04B	949.60M	888.30M
Cash Flow
Free Cash Flow	70.40M	86.90M	61.20M	117.20M	130.30M
Operating Cash Flow	201.70M	193.70M	168.00M	194.10M	168.40M
Investing Cash Flow	-296.20M	-120.40M	-112.90M	-75.50M	-177.80M
Financing Cash Flow	-3.00M	-46.60M	-38.00M	-65.90M	16.90M

Breedon Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 373.80
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:BREE, the sentiment is Neutral. The current price of 373.8 is above the 20-day moving average (MA) of 368.12, below the 50-day MA of 379.61, and below the 200-day MA of 425.56, indicating a neutral trend. The MACD of -2.80 indicates Negative momentum. The RSI at 49.82 is Neutral, neither overbought nor oversold. The STOCH value of 40.78 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for GB:BREE.

Breedon Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BREE	77 Outperform	£1.27B	14.07	7.90%	3.92%	7.83%	-7.40%
SRC	76 Outperform	£1.33B	57.42	3.68%	―	65.87%	3.47%
Sector *	70 Outperform	¥183.51B	11.39	5.69%	3.04%	2.62%	-12.22%
MBH	70 Outperform	£94.91M	15.63	6.47%	4.03%	-9.35%	-35.39%
MSLH	67 Neutral	£481.71M	20.34	3.57%	3.88%	1.31%	10.19%
IBST	59 Neutral	£564.37M	46.43	3.10%	2.34%	5.58%	66.49%
FORT	57 Neutral	£406.06M	25.88	7.03%	1.55%	15.99%	96.05%

Breedon Corporate Events

Breedon Group Director Acquires Shares, Reinforcing Stakeholder Confidence

Breedon Group PLC announced that Clive Watson, a Non-executive Director and Person Discharging Managerial Responsibilities (PDMR), purchased 1,223 ordinary shares at a price of £3.712 each. This transaction, conducted on the London Stock Exchange, is reported in compliance with the UK Market Abuse Regulation, reflecting the company’s commitment to transparency in managerial dealings.

The most recent analyst rating on (GB:BREE) stock is a Buy with a £5.90 price target. To see the full list of analyst forecasts on Breedon stock, see the GB:BREE Stock Forecast page.

Breedon Group Announces Total Voting Rights

Breedon Group PLC has announced its total voting rights in accordance with the Financial Conduct Authority’s Disclosure Guidance and Transparency Rules. The company’s issued share capital consists of 346,519,984 ordinary shares, all of which have voting rights. This information is crucial for shareholders to determine their interests or any changes in their interests in the company.

The most recent analyst rating on (GB:BREE) stock is a Buy with a £540.00 price target. To see the full list of analyst forecasts on Breedon stock, see the GB:BREE Stock Forecast page.

Breedon Group Directors Increase Shareholdings, Signaling Confidence

Breedon Group PLC announced that its directors, Rob Wood and James Brotherton, have purchased additional ordinary shares in the company, reflecting their confidence in its future prospects. This move, disclosed in compliance with the UK Market Abuse Regulation, may bolster investor confidence and indicates strong internal belief in the company’s strategic direction.

The most recent analyst rating on (GB:BREE) stock is a Buy with a £460.00 price target. To see the full list of analyst forecasts on Breedon stock, see the GB:BREE Stock Forecast page.

Breedon Group Director-Linked Share Purchase Highlights Market Confidence

Breedon Group PLC announced a transaction involving Mary Watson, closely associated with Clive Watson, a Non-executive Director of the company. On 23 July 2025, Mary Watson purchased a total of 7,325 ordinary shares at prices of £3.536 and £3.591 per share. This transaction, disclosed under the UK Market Abuse Regulation, reflects ongoing investment interest and confidence in the company’s market position.

The most recent analyst rating on (GB:BREE) stock is a Buy with a £460.00 price target. To see the full list of analyst forecasts on Breedon stock, see the GB:BREE Stock Forecast page.

Breedon Group Reports Resilient H1 2025 Performance Amid Market Challenges

Breedon Group PLC reported a resilient performance for the first half of 2025 despite challenging market conditions. The company’s revenue increased by 7% due to the acquisition of Lionmark, which diversified its US end-market exposure. However, like-for-like revenue decreased by 3% due to adverse conditions in Great Britain and the US, and project delays in Ireland. The company’s EBITDA margin slightly decreased, reflecting market challenges, but disciplined cost management helped mitigate the impact. Breedon increased its interim dividend, showing confidence in future prospects, and expects full-year results to be at the lower end of market expectations. The company remains optimistic about its medium-term prospects, supported by strong order backlogs and government infrastructure investments.

The most recent analyst rating on (GB:BREE) stock is a Buy with a £460.00 price target. To see the full list of analyst forecasts on Breedon stock, see the GB:BREE Stock Forecast page.

Breedon Group to Host Live Investor Presentation

Breedon Group plc has announced a live interactive presentation for shareholders and investors on the Engage Investor platform, scheduled for July 23, 2025. This event aims to engage stakeholders by allowing them to submit questions and learn more about the company’s operations and strategies. The presentation reflects Breedon’s commitment to transparency and investor relations, potentially strengthening its position in the construction materials industry.

The most recent analyst rating on (GB:BREE) stock is a Buy with a £460.00 price target. To see the full list of analyst forecasts on Breedon stock, see the GB:BREE Stock Forecast page.

Breedon Group Announces Total Voting Rights Update

Breedon Group PLC announced that its total issued share capital consists of 346,497,565 ordinary shares, all of which carry voting rights. This information is crucial for shareholders to determine their notification requirements under the Financial Conduct Authority’s Disclosure Guidance and Transparency Rules.

The most recent analyst rating on (GB:BREE) stock is a Buy with a £460.00 price target. To see the full list of analyst forecasts on Breedon stock, see the GB:BREE Stock Forecast page.

Breedon Group’s Major Holdings Update: BlackRock Adjusts Voting Rights

Breedon Group PLC, a UK-based company, has announced a change in its major holdings. BlackRock, Inc., a significant shareholder, has adjusted its voting rights in the company. The notification indicates that BlackRock’s total voting rights have decreased from 7.97% to 7.25%, reflecting a shift in their financial instrument holdings. This change could influence Breedon’s shareholder dynamics and potentially impact its strategic decisions moving forward.

The most recent analyst rating on (GB:BREE) stock is a Buy with a £460.00 price target. To see the full list of analyst forecasts on Breedon stock, see the GB:BREE Stock Forecast page.

Breedon Group to Announce Interim Results and Host Investor Presentation

Breedon Group plc announced that it will release its interim results for the half year ended 30 June 2025 on 23 July 2025. The company will host an in-person earnings presentation for analysts and investors at the London Stock Exchange, which will also be webcast live. This announcement highlights Breedon’s commitment to transparency and engagement with stakeholders, potentially impacting its market positioning and investor relations positively.

The most recent analyst rating on (GB:BREE) stock is a Buy with a £5.00 price target. To see the full list of analyst forecasts on Breedon stock, see the GB:BREE Stock Forecast page.

Breedon Director Increases Stake Through Dividend Reinvestment

Breedon Group plc announced that Clive Watson, a Non-executive Director and Person Discharging Managerial Responsibilities, acquired 621 ordinary shares of the company through a dividend reinvestment plan. This transaction, conducted on the London Stock Exchange, reflects the director’s continued confidence in the company’s financial performance and strategic direction.

The most recent analyst rating on (GB:BREE) stock is a Buy with a £460.00 price target. To see the full list of analyst forecasts on Breedon stock, see the GB:BREE Stock Forecast page.

Breedon Group Announces Total Voting Rights Update

Breedon Group PLC has announced that its issued share capital consists of 346,473,017 ordinary shares, all of which carry voting rights. This information is crucial for shareholders as it determines the denominator for calculating any changes in their shareholding interests under the Financial Conduct Authority’s Disclosure Guidance and Transparency Rules.

The most recent analyst rating on (GB:BREE) stock is a Buy with a £460.00 price target. To see the full list of analyst forecasts on Breedon stock, see the GB:BREE Stock Forecast page.