tiprankstipranks
Trending News
More News >
Breedon Group PLC (GB:BREE)
LSE:BREE

Breedon (BREE) AI Stock Analysis

Compare
58 Followers

Top Page

GB

Breedon

(LSE:BREE)

Rating:76Outperform
Price Target:
501.00p
▲(13.14%Upside)
The overall score reflects strong financial performance and positive corporate events. However, technical analysis suggests caution with current trading momentum. The valuation is fair, with a good dividend yield supporting the stock's appeal.
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 (BREE) vs. iShares MSCI United Kingdom ETF (EWC)

Breedon Business Overview & Revenue Model

Company DescriptionBreedon Group plc is a leading construction materials company in the UK and Ireland. It operates in the building materials sector, focusing on the production of aggregates, asphalt, cement, and ready-mixed concrete. Breedon also offers a range of contracting services, including road surfacing and maintenance. With a strong presence in the construction industry, Breedon serves a diverse clientele, ranging from large-scale infrastructure projects to smaller local developments.
How the Company Makes MoneyBreedon Group makes money primarily through the sale of its construction materials, including aggregates, asphalt, cement, and ready-mixed concrete. These products are essential for a variety of construction projects, from residential and commercial buildings to major infrastructure developments. The company operates numerous quarries and production sites, ensuring a steady supply of raw materials and finished products. Additionally, Breedon generates revenue from its contracting services, which include road surfacing and maintenance, offering integrated solutions to clients. Strategic partnerships with construction firms and government contracts also contribute to its earnings, providing a stable and diverse revenue stream.

Breedon Financial Statement Overview

Summary
Breedon has shown a consistent increase in revenue and maintains strong gross and EBITDA margins. However, the decrease in net profit margin and increase in total debt are areas of concern that need monitoring.
Income Statement
85
Very Positive
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
78
Positive
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
80
Positive
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 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
1.58B1.49B1.40B1.23B928.70M
Gross Profit
1.27B1.22B486.20M428.40M297.90M
EBIT
146.10M143.10M148.00M127.40M61.60M
EBITDA
262.10M241.90M230.90M214.60M137.70M
Net Income Common Stockholders
96.20M105.50M112.50M78.50M33.60M
Balance SheetCash, Cash Equivalents and Short-Term Investments
28.90M126.90M101.70M83.90M31.70M
Total Assets
2.11B1.87B1.79B1.67B1.62B
Total Debt
434.20M296.80M299.40M296.40M350.00M
Net Debt
405.30M169.90M197.70M212.50M318.30M
Total Liabilities
943.40M762.10M742.00M719.70M730.90M
Stockholders Equity
1.17B1.11B1.04B949.60M888.30M
Cash FlowFree Cash Flow
70.40M86.90M61.20M117.20M130.30M
Operating Cash Flow
201.70M193.70M168.00M194.10M168.40M
Investing Cash Flow
-296.20M-120.40M-112.90M-75.50M-177.80M
Financing Cash Flow
-3.00M-46.60M-38.00M-65.90M16.90M

Breedon Technical Analysis

Technical Analysis Sentiment
Negative
Last Price442.80
Price Trends
50DMA
446.07
Negative
100DMA
442.70
Positive
200DMA
433.68
Positive
Market Momentum
MACD
-0.68
Positive
RSI
42.69
Neutral
STOCH
36.75
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:BREE, the sentiment is Negative. The current price of 442.8 is below the 20-day moving average (MA) of 455.16, below the 50-day MA of 446.07, and above the 200-day MA of 433.68, indicating a neutral trend. The MACD of -0.68 indicates Positive momentum. The RSI at 42.69 is Neutral, neither overbought nor oversold. The STOCH value of 36.75 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:BREE.

Breedon Peers Comparison

Overall Rating
UnderperformOutperform
Sector (51)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
GBMBH
78
Outperform
£106.10M17.456.47%5.22%-9.35%-35.39%
76
Outperform
£1.56B16.098.44%4.43%5.97%-9.81%
GBSRC
73
Outperform
£1.20B51.483.68%65.87%3.47%
69
Neutral
£424.39M24.258.09%0.50%-0.61%34.19%
69
Neutral
£692.12M22.434.76%3.05%-7.75%66.58%
58
Neutral
£762.47M50.313.80%2.59%-9.77%-28.49%
51
Neutral
$2.04B-1.15-21.24%3.95%2.91%-30.44%
* Basic Materials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
GB:BREE
Breedon
442.80
61.19
16.03%
GB:IBST
Ibstock
163.00
7.18
4.61%
GB:SRC
SigmaRoc
107.60
39.60
58.24%
GB:MSLH
Marshalls
274.00
-25.78
-8.60%
GB:FORT
Forterra
196.80
33.74
20.69%
GB:MBH
Michelmersh Brick Holdings
112.00
18.97
20.39%

Breedon Corporate Events

Regulatory Filings and Compliance
Breedon Group Announces Total Voting Rights Update
Neutral
May 30, 2025

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.

Other
Lansdowne Partners Increases Stake in Breedon Group
Positive
May 6, 2025

Breedon Group PLC, a company in the construction materials industry, has announced a change in its major shareholders. Lansdowne Partners (UK) LLP has increased its voting rights in Breedon Group to 5.086521% from a previous 4.980784%. This change in shareholding indicates a growing interest and confidence in Breedon Group’s market position and future prospects by Lansdowne Partners.

Regulatory Filings and Compliance
Breedon Group Director Acquires Shares, Signaling Confidence
Positive
May 2, 2025

Breedon Group PLC announced that Clive Watson, a Non-executive Director and Person Discharging Managerial Responsibility, purchased 3,223 ordinary shares at a price of £4.50 each. This transaction, conducted outside a trading venue, aligns with the UK Market Abuse Regulation requirements, indicating a potential vote of confidence in the company’s future prospects.

Regulatory Filings and Compliance
Breedon Group Announces Total Voting Rights
Neutral
Apr 30, 2025

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 346,298,542 ordinary shares, all of which have voting rights. This information is crucial for shareholders to determine their interest in the company and any changes to it.

Shareholder MeetingsBusiness Operations and Strategy
Breedon Group PLC Announces Successful AGM Resolutions
Positive
Apr 29, 2025

Breedon Group PLC announced the successful passage of all resolutions at its Annual General Meeting held on April 29, 2025. The resolutions, which included both ordinary and special resolutions, were approved by shareholders via a poll. This outcome reflects strong shareholder support and positions the company to continue its strategic initiatives, potentially impacting its operational efficiency and market competitiveness.

M&A TransactionsBusiness Operations and StrategyFinancial Disclosures
Breedon Group Reports Revenue Growth Amidst Challenging Conditions
Positive
Apr 29, 2025

Breedon Group plc reported a 9% increase in revenue for Q1 2025, attributed to acquisitions and stable pricing, despite weather challenges impacting operations, particularly in the USA. The company continues to focus on strategic objectives, enhancing operational efficiencies, and expanding its US infrastructure exposure through acquisitions like Lionmark. Breedon remains well-positioned to benefit from improvements in construction market activity, with ongoing projects in cement and alternative fuels nearing completion.

Business Operations and Strategy
Breedon Group PLC Announces Change in Major Shareholder Voting Rights
Neutral
Apr 17, 2025

Breedon Group PLC has announced a notification of major holdings, indicating that GLG Partners LP has adjusted its voting rights in the company to a level of 5.028264%. This change in voting rights, resulting from financial instruments, reflects a strategic move by GLG Partners LP, potentially impacting Breedon’s shareholder structure and market perception.

Executive/Board ChangesBusiness Operations and Strategy
Breedon Group PLC Allots Shares to Executives Under Performance Plan
Neutral
Apr 15, 2025

Breedon Group PLC has announced the allotment of 494,854 ordinary shares to participants of its Performance Share Plan, following the vesting of awards made in 2022. This transaction reflects the company’s commitment to rewarding its executives, with shares being sold to cover tax liabilities and the remainder retained, impacting the shareholding of key executives and aligning their interests with the company’s performance.

Regulatory Filings and Compliance
Breedon Group PLC Announces Changes in Major Holdings
Neutral
Apr 15, 2025

Breedon Group PLC has announced a change in its major holdings, as BlackRock, Inc. has adjusted its voting rights in the company. The adjustment, which was notified on April 14, 2025, reflects BlackRock’s current position of 7.97% in voting rights, maintaining its previous level. This update is significant for stakeholders as it highlights BlackRock’s continued substantial interest in Breedon, potentially impacting future corporate decisions and shareholder dynamics.

Business Operations and Strategy
Breedon Group PLC Announces Change in Major Holdings
Neutral
Apr 15, 2025

Breedon Group PLC has announced a change in its major holdings, with Lansdowne Partners (UK) LLP acquiring a 4.98% voting rights stake in the company. This acquisition may influence Breedon’s strategic decisions and market positioning, potentially impacting stakeholders and the company’s future operations.

Business Operations and StrategyRegulatory Filings and Compliance
Breedon Group Announces Change in Voting Rights Structure
Neutral
Apr 9, 2025

Breedon Group PLC has announced a change in its voting rights structure following an acquisition or disposal by BlackRock, Inc., which now holds a 7.97% stake in the company. This adjustment in voting rights could influence Breedon’s decision-making processes and potentially impact its strategic direction, reflecting the dynamic nature of shareholder influence in the construction materials sector.

Executive/Board ChangesBusiness Operations and Strategy
Breedon Group Grants Performance Share Awards to Executives
Positive
Apr 8, 2025

Breedon Group PLC announced the granting of conditional awards under its Performance Share Plan to key executives, CEO Rob Wood and CFO James Brotherton, for a three-year performance period from 2025 to 2027. This move, part of their strategic incentive plan, aligns the interests of management with shareholders and underscores the company’s commitment to performance-driven growth.

Executive/Board ChangesBusiness Operations and Strategy
Breedon Group Announces Deferred Share Bonus Awards for Executives
Positive
Apr 8, 2025

Breedon Group PLC announced that its CEO, Rob Wood, and CFO, James Brotherton, have been granted conditional awards under the company’s Deferred Share Bonus Plan. These awards, linked to the deferral of one-third of their annual bonuses for the financial year ending December 2024, will vest on April 8, 2027, contingent upon continued employment. This move aligns with Breedon’s strategic compensation practices, potentially impacting stakeholder perceptions positively by demonstrating a commitment to long-term company performance and executive retention.

Regulatory Filings and Compliance
Breedon Group Announces Total Voting Rights Update
Neutral
Mar 31, 2025

Breedon Group PLC announced that its issued share capital consists of 345,803,688 ordinary shares, all of which have voting rights. This information is crucial for shareholders to determine their notification requirements under the Financial Conduct Authority’s Disclosure Guidance and Transparency Rules.

Business Operations and StrategyRegulatory Filings and Compliance
Breedon Group’s Major Holdings Shift as BlackRock Adjusts Stake
Neutral
Mar 26, 2025

Breedon Group PLC, a UK-based company, has announced a change in its major holdings due to BlackRock, Inc.’s acquisition or disposal of voting rights. As of March 25, 2025, BlackRock’s total voting rights in Breedon decreased from 9.76% to 8.08%, indicating a shift in stakeholder influence. This adjustment in holdings could impact Breedon’s market positioning and influence future strategic decisions.

Shareholder MeetingsFinancial DisclosuresRegulatory Filings and Compliance
Breedon Group Releases 2024 Annual Report and AGM Notice
Neutral
Mar 17, 2025

Breedon Group plc, a leading construction materials company, has released its 2024 Annual Report and Accounts along with the notice for its 2025 Annual General Meeting (AGM). The documents have been made available on the company’s website and submitted to the Financial Conduct Authority’s Electronic Submission Service. The AGM is scheduled to take place on April 29, 2025, at Pinnacle House, Breedon Quarry, Derby.

Delistings and Listing ChangesM&A Transactions
Breedon Group Expands with New Share Admission Following Acquisition
Positive
Mar 12, 2025

Breedon Group PLC has announced the application for admission of 2,146,402 new ordinary shares on the London Stock Exchange as part of its acquisition of Lionmark Construction Companies LLC. This move is expected to enhance Breedon’s market position by expanding its operational footprint and offering in the construction materials sector, potentially benefiting stakeholders through increased market share and operational capabilities.

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.