Ibstock (IBST) AI Stock Analysis

• Market Cap: £548.60M
• Dividend Yield: 2.39%
• Average Volume (3M): 1.29M
• Price to Earnings (P/E): 45.1
• Beta (1Y): 1.37
• 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: 394,679,500
• 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: £177.00
• Price Target Upside: 27.34% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 67 Neutral
• Price Target: 145.00p ▲(4.32% 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 is a leading manufacturer of clay and concrete building products in the United Kingdom, primarily serving the construction and infrastructure sectors. The company offers a wide range of products, including bricks, brick slips, concrete blocks, and other masonry products, catering to both residential and commercial construction markets. With a strong focus on innovation and sustainability, Ibstock also engages in the production of bespoke building solutions, leveraging advanced manufacturing technologies to meet evolving customer needs.

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 mixed, with moderate profitability and operational efficiency. The income statement shows declining revenue and free cash flow, while the balance sheet indicates financial stability with manageable leverage and a strong 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: Positive
• Last Price: 139.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:IBST, the sentiment is Positive. The current price of 139 is above the 20-day moving average (MA) of 134.58, above the 50-day MA of 132.90, and below the 200-day MA of 150.53, indicating a neutral trend. The MACD of 1.74 indicates Negative momentum. The RSI at 61.05 is Neutral, neither overbought nor oversold. The STOCH value of 84.62 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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	£1.14B	12.68	7.90%	4.47%	7.83%	-7.40%
SRC	74 Outperform	£1.44B	31.82	6.07%	―	32.27%	―
MBH	72 Outperform	£78.03M	15.09	5.71%	5.35%	-0.29%	-33.41%
FORT	69 Neutral	£386.27M	24.62	7.03%	2.13%	15.99%	96.05%
MSLH	68 Neutral	£458.06M	19.34	3.57%	4.18%	1.31%	10.19%
IBST	67 Neutral	£548.60M	45.13	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.

Ibstock Plc Faces Weaker Demand but Maintains Market Share and Strategic Progress

Ibstock Plc reported a weaker than expected demand in its core construction markets during the third quarter of 2025, impacting revenues from its clay and concrete businesses. Despite this, the company maintained its market share and achieved higher productivity and operational efficiency. The company is focusing on cash management and strategic growth projects, including the development of new products and facilities, to position itself for future market recovery. While the near-term outlook remains uncertain, Ibstock continues to progress with its long-term strategic initiatives, expecting to benefit from recent investments as market conditions improve.

Ibstock Plc Appoints Simon Bedford as Interim CFO Amid Strategic Growth

Ibstock Plc has announced the appointment of Simon Bedford as Interim Chief Financial Officer following Chris McLeish’s departure. Bedford, who has been with Ibstock since 2020 and has extensive experience from Rolls Royce, will serve until a permanent successor is found. This leadership change occurs as Ibstock continues its strategic focus on sustainability and growth in the UK construction market.

Ibstock Plc Announces Share Capital and Voting Rights Update

Ibstock Plc announced its total voting rights and share capital as of September 30, 2025. The company’s issued share capital consists of 409,631,594 ordinary shares, with 14,952,092 held as treasury shares, resulting in 394,679,502 shares with voting rights. This information is crucial for shareholders and others with notification obligations under the Disclosure Guidance and Transparency Rules.

Ibstock plc Announces Sharesave Plan Awards

Ibstock plc has announced the grant of awards under its Sharesave Plan, which is an all-employee savings-related share option plan. The plan includes an option for the CEO, Joe Hudson, to purchase 8,048 ordinary shares at an exercise price of 114p per share, reflecting the company’s commitment to employee investment and engagement.