Breedon (BREE) AI Stock Analysis

• Market Cap: £1.16B
• Dividend Yield: 4.43%
• Average Volume (3M): 1.30M
• Price to Earnings (P/E): 12.9
• Beta (1Y): 0.98
• Revenue Growth: 7.83%
• EPS Growth: -7.40%
• Country: UK
• Employees: 4,500
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Construction Materials
• EPS (TTM): 0.11
• Shares Outstanding: 346,545,260
• 10 Day Avg. Volume: 1,251,320
• 30 Day Avg. Volume: 1,303,759
• PEG Ratio: -1.64
• Price to Book (P/B): 1.30
• Price to Sales (P/S): 0.97
• P/FCF Ratio: 21.69
• 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: £487.00
• Price Target Upside: 46.16% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 72 Outperform
• Price Target: 383.00p ▲(14.95% Upside)

Breedon's strong financial performance, characterized by revenue growth and operational efficiency, is the most significant factor driving the score. The technical analysis indicates a bearish trend, which is a concern. Valuation metrics are favorable, with a reasonable P/E ratio and attractive dividend yield, providing a balanced investment case.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand and effective sales strategies, supporting long-term business expansion.

Operational Efficiency

High margins reflect effective cost management and operational efficiency, enhancing profitability and competitive positioning.

Cash Flow Management

Robust cash flow management ensures liquidity and financial flexibility, enabling strategic investments and debt servicing.

Negative Factors

Net Profit Margin Decline

A declining net profit margin may indicate rising costs or pricing pressures, potentially impacting long-term profitability.

Rising Debt Levels

Increasing debt levels can strain financial resources, limit strategic flexibility, and increase interest obligations.

Free Cash Flow Decline

Declining free cash flow may limit the company's ability to fund new projects or return capital to shareholders.

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 through multiple key streams, primarily from the sale of construction materials such as aggregates, asphalt, and ready-mixed concrete. The company operates numerous quarries and plants across the UK, enabling it to produce and supply these essential materials to various construction projects. Significant revenue is derived from long-term contracts with local authorities and large construction firms, which provide stable income. Additionally, Breedon benefits from a growing demand for infrastructure projects, driven by government investments in public works. The company's focus on operational efficiency and strategic acquisitions further bolsters its revenue potential, allowing it to expand its market reach and product offerings. Partnerships with major construction companies and participation in large-scale projects also contribute to Breedon's earnings, enhancing its position in the competitive construction materials market.

Breedon Financial Statement Overview

Summary

Breedon demonstrates solid revenue growth and operational efficiency with strong gross and EBITDA margins. However, the slight decrease in net profit margin and increase in debt are concerns that need monitoring.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.63B	1.58B	1.49B	1.40B	1.23B	928.70M
Gross Profit	1.12B	1.27B	1.22B	486.20M	428.40M	297.90M
EBITDA	263.90M	262.10M	241.90M	230.90M	214.60M	137.70M
Net Income	89.60M	96.20M	105.50M	112.50M	78.50M	33.60M
Balance Sheet
Total Assets	2.35B	2.11B	1.87B	1.79B	1.67B	1.62B
Cash, Cash Equivalents and Short-Term Investments	20.80M	28.90M	126.90M	101.70M	83.90M	31.70M
Total Debt	668.90M	434.20M	296.80M	299.40M	296.40M	350.00M
Total Liabilities	1.21B	943.40M	762.10M	742.00M	719.70M	730.90M
Stockholders Equity	1.15B	1.17B	1.11B	1.04B	949.60M	888.30M
Cash Flow
Free Cash Flow	58.30M	70.40M	86.90M	61.20M	117.20M	130.30M
Operating Cash Flow	193.20M	201.70M	193.70M	168.00M	194.10M	168.40M
Investing Cash Flow	-300.90M	-296.20M	-120.40M	-112.90M	-75.50M	-177.80M
Financing Cash Flow	98.10M	-3.00M	-46.60M	-38.00M	-65.90M	16.90M

Breedon Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 333.20
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• 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 Negative. The current price of 333.2 is below the 20-day moving average (MA) of 338.90, below the 50-day MA of 345.67, and below the 200-day MA of 396.65, indicating a bearish trend. The MACD of -3.94 indicates Positive momentum. The RSI at 43.03 is Neutral, neither overbought nor oversold. The STOCH value of 38.11 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BREE	72 Outperform	£1.16B	12.86	7.90%	4.43%	7.83%	-7.40%
SRC	69 Neutral	£1.25B	28.03	6.07%	―	32.27%	―
MSLH	65 Neutral	£426.34M	18.00	3.57%	4.40%	1.31%	10.19%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
MBH	61 Neutral	£79.26M	15.26	5.71%	4.92%	-0.29%	-33.41%
FORT	60 Neutral	£383.32M	24.43	7.03%	2.11%	15.99%	96.05%
IBST	57 Neutral	£535.97M	44.09	3.10%	2.48%	5.58%	66.49%

Breedon Corporate Events

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 has an issued share capital consisting of 346,545,248 ordinary shares, all of which have voting rights, providing shareholders with the denominator needed to assess their interests in the company.

The most recent analyst rating on (GB:BREE) stock is a Buy with a £393.00 price target. To see the full list of analyst forecasts on Breedon stock, see the GB:BREE Stock Forecast page.

Breedon Group PLC Announces Total Voting Rights Update

Breedon Group PLC announced that its issued share capital comprises 346,538,326 ordinary shares, with none held in treasury, which defines the total number of shares with voting rights. This announcement is in line with the Financial Conduct Authority’s Disclosure Guidance and Transparency Rules, providing shareholders with the necessary information to assess their interests in the company.

The most recent analyst rating on (GB:BREE) stock is a Buy with a £397.00 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

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 346,531,291 ordinary shares, all of which have voting rights. This information is crucial for shareholders as it determines their obligation to notify any changes in their interest in the company.

The most recent analyst rating on (GB:BREE) stock is a Buy with a £5.17 price target. To see the full list of analyst forecasts on Breedon stock, see the GB:BREE Stock Forecast page.

Breedon Group’s Major Share Acquisition by Abicad Holding

Breedon Group PLC announced that Abicad Holding Limited, closely associated with Non-executive Chair Amit Bhatia, acquired 300,000 ordinary shares through option agreements at a price of 392.745 pence per share. This acquisition increases Abicad’s holdings to approximately 19.00% of Breedon’s total issued share capital, with potential to rise to 19.35% if further options are exercised. This move aligns with Abicad’s ongoing strategy to increase its market share in Breedon, potentially impacting the company’s shareholder dynamics and market positioning.

The most recent analyst rating on (GB:BREE) stock is a Buy with a £5.17 price target. To see the full list of analyst forecasts on Breedon stock, see the GB:BREE Stock Forecast page.

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.