Ibstock (IBST) AI Stock Analysis

• Market Cap: £512.32M
• Dividend Yield: 2.39%
• Average Volume (3M): 1.29M
• Price to Earnings (P/E): 41.9
• Beta (1Y): 1.31
• Revenue Growth: 5.58%
• EPS Growth: 66.49%
• Country: UK
• Employees: 1,949
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Construction Materials
• EPS (TTM): 0.03
• Shares Outstanding: 394,703,300
• 10 Day Avg. Volume: 1,487,422
• 30 Day Avg. Volume: 1,285,310
• PEG Ratio: -1.58
• Price to Book (P/B): 1.77
• Price to Sales (P/S): 1.91
• P/FCF Ratio: 83.02
• 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: £148.80
• Price Target Upside: 14.64% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 5
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 67 Neutral
• Price Target: 145.00p ▲(11.71% Upside)

Ibstock's overall stock score reflects a balanced view of its financial stability and technical indicators, offset by high valuation concerns. Positive corporate events enhance its financial flexibility and strategic direction, while challenges in revenue growth and free cash flow remain areas to watch.

Positive Factors

Market Position

Ibstock's strong market position in the UK construction materials sector supports its revenue stability and growth potential, leveraging ongoing housing and infrastructure development.

Sustainability Focus

Ibstock's commitment to sustainability aligns with industry trends towards eco-friendly construction, potentially enhancing brand value and customer loyalty over time.

Financial Stability

Ibstock's strong equity base and manageable debt levels provide financial resilience, supporting long-term operational and strategic flexibility.

Negative Factors

Declining Revenue

Declining revenue growth poses challenges to Ibstock's top-line expansion, potentially affecting its ability to invest in growth initiatives and maintain competitive positioning.

Free Cash Flow Decline

The decline in free cash flow growth due to capital expenditures may constrain Ibstock's liquidity, impacting its ability to fund operations and strategic investments.

Low Return on Equity

Low ROE indicates limited efficiency in generating returns from equity, which may affect investor confidence and the company's ability to attract capital for growth.

Ibstock Business Overview & Revenue Model

Company Description

Ibstock plc manufactures and sells clay and concrete building products and solutions primarily in the United Kingdom. Its principal products include clay bricks, brick components, concrete roof tiles, concrete stone masonry substitutes, concrete fencing, pre-stressed concrete, and concrete rail products. The company provides facing bricks, special bricks, walling stones, architectural masonry products, facade systems, retaining walls, sills and arches, and padstones, as well as lintels, sills, and arches; cladding solutions; roof tiles, roof window systems, chimneys, soffits, and roofing accessories; and fencings, caps and copings, bollards, balustrades, path edgings, and urban landscaping products. It also offers floor beams, door steps, gully surrounds, screed rails, insulated floorings, and hollowcore products; and rail and infrastructure products, such as troughing, cable theft protection, boards, blocks, bases, catchpits, and inspection chambers. In addition, the company offers engraving, cutting, and bonding services; floor beam and block design, supply, and fitting solutions; bespoke concrete products; and staircases and lift shafts services. Its products are used in new build housing; repair, maintenance, and improvement; and infrastructure markets. The company sells its products under the Forticrete, Supreme, Anderton, and Longley brands to customers in the construction industry. Ibstock plc was founded in 1825 and is headquartered in Ibstock, the United Kingdom.

How the Company Makes Money

Ibstock generates revenue through the sale of its core building products, which include a diverse range of bricks and concrete solutions. The company's primary revenue streams come from direct sales to builders, construction firms, and distributors. Additionally, Ibstock benefits from various partnerships with construction companies and architects, allowing it to secure significant contracts for large-scale projects. The company's focus on sustainability and eco-friendly products also positions it favorably in a market increasingly demanding green building solutions, potentially enhancing its revenue through premium pricing for such offerings. Ibstock’s strategic investments in manufacturing technology and operational efficiency further contribute to its profitability by reducing costs and increasing production capacity.

Ibstock Financial Statement Overview

Summary

Ibstock's financial performance is moderate, with stable profitability and operational efficiency. However, challenges in revenue growth and declining free cash flow are notable concerns. The balance sheet remains strong with manageable leverage and a solid equity base.

Income Statement

Ibstock's income statement shows moderate profitability and mixed growth trends. Gross Profit Margin stands at 31.2%, and Net Profit Margin at 4.1% for 2024, indicating operational efficiency but lower net results. The Revenue Growth Rate has been negative recently, suggesting challenges in top-line growth, and both EBIT Margin (7.4%) and EBITDA Margin (21.6%) reflect reasonable operational performance but with potential room for improvement.

Balance Sheet

The balance sheet for Ibstock demonstrates financial stability with a Debt-to-Equity Ratio of 0.42, indicating manageable leverage. Return on Equity (ROE) is relatively low at 3.8%, pointing to moderate shareholder returns. The Equity Ratio of 52.5% signifies a strong equity buffer supporting asset base, suggesting financial resilience.

Cash Flow

Cash flow analysis highlights a recent decline in Free Cash Flow Growth Rate due to capital expenditures, impacting liquidity. The Operating Cash Flow to Net Income Ratio of 3.55 shows strong cash generation from operations relative to net income, while Free Cash Flow to Net Income Ratio at 0.56 suggests moderate conversion of profits to free cash.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	381.46M	366.21M	405.84M	512.89M	408.66M	316.17M
Gross Profit	113.24M	114.33M	143.75M	196.61M	140.83M	79.94M
EBITDA	75.36M	69.52M	77.56M	148.27M	109.24M	17.53M
Net Income	12.15M	15.09M	21.06M	86.91M	31.81M	-28.02M
Balance Sheet
Total Assets	786.62M	752.11M	754.23M	762.78M	756.14M	679.82M
Cash, Cash Equivalents and Short-Term Investments	22.59M	9.29M	23.87M	54.28M	61.20M	19.55M
Total Debt	199.54M	165.93M	168.32M	133.31M	127.25M	117.81M
Total Liabilities	395.74M	356.84M	354.36M	346.57M	332.91M	281.95M
Stockholders Equity	390.89M	395.26M	399.87M	416.16M	423.23M	397.87M
Cash Flow
Free Cash Flow	16.09M	8.42M	-9.82M	58.10M	55.14M	20.49M
Operating Cash Flow	57.85M	53.66M	58.25M	122.03M	86.50M	44.56M
Investing Cash Flow	-38.52M	-44.55M	-68.50M	-57.00M	-28.02M	-20.10M
Financing Cash Flow	-3.44M	-23.68M	-20.14M	-71.97M	-16.80M	-23.94M

Ibstock Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 129.80
• 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:IBST, the sentiment is Negative. The current price of 129.8 is below the 20-day moving average (MA) of 132.21, below the 50-day MA of 134.33, and below the 200-day MA of 145.99, indicating a bearish trend. The MACD of -1.89 indicates Positive momentum. The RSI at 43.15 is Neutral, neither overbought nor oversold. The STOCH value of 47.08 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:IBST.

Ibstock Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BREE	75 Outperform	£1.20B	13.41	7.90%	4.47%	7.83%	-7.40%
SRC	74 Outperform	£1.59B	35.66	6.07%	―	32.27%	―
MBH	72 Outperform	£78.72M	14.91	5.71%	5.35%	-0.29%	-33.41%
FORT	69 Neutral	£389.64M	24.38	7.03%	2.13%	15.99%	96.05%
MSLH	68 Neutral	£418.79M	17.00	3.57%	4.18%	1.31%	10.19%
IBST	67 Neutral	£512.32M	41.88	3.10%	2.39%	5.58%	66.49%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%

Ibstock Corporate Events

Ibstock Plc Secures Improved Terms in £125 Million Credit Facility Refinancing

Ibstock Plc has successfully refinanced its £125 million revolving credit facility, which was set to mature in November 2026. The renewed facility offers improved pricing and includes an option to extend for an additional year, as well as an accordion feature allowing for a potential increase of up to £50 million. This move reflects strong lender support for Ibstock’s strategic direction and enhances its financial flexibility.

The most recent analyst rating on (GB:IBST) stock is a Hold with a £143.00 price target. To see the full list of analyst forecasts on Ibstock stock, see the GB:IBST Stock Forecast page.