We maintain our fair value estimates for Brickworks and Soul Patts of AUD 32 per share and AUD 34 per share, respectively. At current prices, shares in Brickworks trade at an 11% discount to our fair value estimate, while Soul Patts trades at a 2% premium.
State and federal government policy to increase supply of Australian housing over the coming years supports near-term demand for brick volumes.
Brick use is expected to decline due to a greater range of alternative building materials, smaller house sizes, and a change in design preferences and building types.
|
Metric
|
BKW
|
BSL
|
JHX
|
|---|---|---|---|
Price/Earnings (Normalized) | 38.33 | 10.84 | 22.79 |
Price/Book Value | 1.30 | 0.91 | 8.25 |
Price/Sales | 3.57 | 0.59 | 4.00 |
Price/Cash Flow | 37.31 | 7.07 | 17.83 |
|
Metric
|
BKW
|
BSL
|
JHX
|
|---|---|---|---|
Quick Ratio | 0.89 | 0.87 | 0.98 |
Current Ratio | 2.31 | 1.97 | 1.94 |
Interest Coverage | −0.39 | 19.80 | 23.89 |
|
Metric
|
BKW
|
BSL
|
JHX
|
|---|---|---|---|
Return on Assets (Normalized) | 1.01% | 5.51% | 15.08% |
Return on Equity (Normalized) | 1.74% | 8.16% | 38.63% |
Return on Invested Capital (Normalized) | 2.30% | 7.30% | 24.07% |
|
1-Day Chart
|
Name
|
Price
|
Morningstar Rating for Stocks
|
Capital Allocation
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Market Cap
|
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United States