Breedon (BREE) AI Stock Analysis

• Market Cap: £1.20B
• Dividend Yield: 4.18%
• Average Volume (3M): 1.17M
• Price to Earnings (P/E): 13.4
• Beta (1Y): 0.85
• 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: 346,531,280
• 10 Day Avg. Volume: 1,364,167
• 30 Day Avg. Volume: 1,172,635
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: £488.86
• Price Target Upside: 40.88% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 7

• Rating: 70 Outperform
• Price Target: 397.00p ▲(14.41% Upside)

Breedon's strong financial performance and reasonable valuation are offset by weak technical indicators. The company is fundamentally sound but faces short-term market challenges. Monitoring debt levels and market trends is advised.

Positive Factors

Revenue Growth

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

Operational Efficiency

Strong operational efficiency and margins suggest effective cost management and competitive positioning, enhancing profitability and resilience.

Cash Flow Management

Effective cash flow management ensures liquidity and financial flexibility, enabling investment in growth opportunities and debt management.

Negative Factors

Debt Levels

Rising debt levels can strain financial resources and limit strategic options, posing risks to long-term financial health if not controlled.

Net Profit Margin Decline

A declining net profit margin may signal challenges in cost control or pricing power, potentially impacting future profitability.

Free Cash Flow Growth

Negative free cash flow growth could indicate higher capital needs, affecting cash reserves and limiting financial flexibility.

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 solid financial performance with strong revenue growth and efficient operations. The balance sheet indicates financial stability, but increasing debt requires monitoring. Cash flow management is robust, supporting growth despite a slight dip in free cash flow.

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: Negative
• Last Price: 347.00
• 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 347 is below the 20-day moving average (MA) of 361.89, below the 50-day MA of 366.97, and below the 200-day MA of 416.08, indicating a bearish trend. The MACD of -5.06 indicates Positive momentum. The RSI at 37.95 is Neutral, neither overbought nor oversold. The STOCH value of 27.04 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
SRC	76 Outperform	1.31B	29.33	3.21%	―	32.27%	―
BREE	70 Outperform	£1.20B	13.36	7.90%	4.18%	7.83%	-7.40%
MBH	70 Outperform	88.26M	16.84	6.36%	4.36%	-0.29%	-33.41%
MSLH	67 Neutral	429.87M	18.26	4.69%	4.28%	1.31%	10.19%
FORT	60 Neutral	386.69M	24.51	7.78%	2.12%	15.99%	96.05%
IBST	59 Neutral	535.95M	44.55	3.82%	2.46%	5.58%	66.49%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%

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’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.

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.