Latest news with #BreedonGroup
Yahoo
01-06-2025
- Business
- Yahoo
Those who invested in Breedon Group (LON:BREE) three years ago are up 41%
By buying an index fund, you can roughly match the market return with ease. But if you choose individual stocks with prowess, you can make superior returns. For example, Breedon Group plc (LON:BREE) shareholders have seen the share price rise 28% over three years, well in excess of the market return (5.9%, not including dividends). However, more recent returns haven't been as impressive as that, with the stock returning just 22% in the last year, including dividends. With that in mind, it's worth seeing if the company's underlying fundamentals have been the driver of long term performance, or if there are some discrepancies. This technology could replace computers: discover the 20 stocks are working to make quantum computing a reality. While the efficient markets hypothesis continues to be taught by some, it has been proven that markets are over-reactive dynamic systems, and investors are not always rational. One flawed but reasonable way to assess how sentiment around a company has changed is to compare the earnings per share (EPS) with the share price. During three years of share price growth, Breedon Group achieved compound earnings per share growth of 6.1% per year. This EPS growth is lower than the 8% average annual increase in the share price. So it's fair to assume the market has a higher opinion of the business than it did three years ago. It's not unusual to see the market 're-rate' a stock, after a few years of growth. The graphic below depicts how EPS has changed over time (unveil the exact values by clicking on the image). We like that insiders have been buying shares in the last twelve months. Having said that, most people consider earnings and revenue growth trends to be a more meaningful guide to the business. It might be well worthwhile taking a look at our free report on Breedon Group's earnings, revenue and cash flow. It is important to consider the total shareholder return, as well as the share price return, for any given stock. The TSR is a return calculation that accounts for the value of cash dividends (assuming that any dividend received was reinvested) and the calculated value of any discounted capital raisings and spin-offs. Arguably, the TSR gives a more comprehensive picture of the return generated by a stock. We note that for Breedon Group the TSR over the last 3 years was 41%, which is better than the share price return mentioned above. And there's no prize for guessing that the dividend payments largely explain the divergence! We're pleased to report that Breedon Group shareholders have received a total shareholder return of 22% over one year. And that does include the dividend. That gain is better than the annual TSR over five years, which is 4%. Therefore it seems like sentiment around the company has been positive lately. In the best case scenario, this may hint at some real business momentum, implying that now could be a great time to delve deeper. I find it very interesting to look at share price over the long term as a proxy for business performance. But to truly gain insight, we need to consider other information, too. Take risks, for example - Breedon Group has 1 warning sign we think you should be aware of. Breedon Group is not the only stock insiders are buying. So take a peek at this free list of small cap companies at attractive valuations which insiders have been buying. Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on British exchanges. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Yahoo
14-04-2025
- Business
- Yahoo
3 UK Penny Stocks With Market Caps Under £2B To Consider
The UK market has recently experienced some turbulence, with the FTSE 100 and FTSE 250 indices declining amid concerns about weak trade data from China, which continues to impact global economic sentiment. For investors considering alternatives to large-cap stocks, penny stocks can present intriguing opportunities due to their potential for growth and value. Despite being a somewhat outdated term, penny stocks remain relevant as they often represent smaller or newer companies that might offer unexpected stability and financial strength in today's market climate. Name Share Price Market Cap Financial Health Rating Ultimate Products (LSE:ULTP) £0.64 £54.07M ★★★★★☆ Next 15 Group (AIM:NFG) £2.38 £236.71M ★★★★☆☆ Central Asia Metals (AIM:CAML) £1.52 £264.44M ★★★★★★ Warpaint London (AIM:W7L) £3.46 £279.52M ★★★★★★ Foresight Group Holdings (LSE:FSG) £3.28 £371.63M ★★★★★★ Polar Capital Holdings (AIM:POLR) £3.645 £351.37M ★★★★★★ Cairn Homes (LSE:CRN) £1.578 £978.75M ★★★★★☆ Begbies Traynor Group (AIM:BEG) £0.944 £150.56M ★★★★★★ QinetiQ Group (LSE:QQ.) £3.78 £2.08B ★★★★★☆ Van Elle Holdings (AIM:VANL) £0.332 £35.92M ★★★★★★ Click here to see the full list of 392 stocks from our UK Penny Stocks screener. Let's uncover some gems from our specialized screener. Simply Wall St Financial Health Rating: ★★★★★★ Overview: AJ Bell plc operates investment platforms in the United Kingdom and has a market capitalization of approximately £1.62 billion. Operations: The company's revenue primarily comes from its Investment Services segment, which generated £268.53 million. Market Cap: £1.62B AJ Bell plc, with a market capitalization of £1.62 billion, presents a mixed picture for penny stock investors. The company is debt-free and boasts strong financial health, with short-term assets (£257.3 million) comfortably covering both its short-term (£70.8 million) and long-term liabilities (£14.1 million). Recent earnings growth of 23.6% outpaces the industry average and reflects high-quality earnings, though profit margins have not improved from last year at 31.4%. Despite trading below estimated fair value by 12.6%, potential investors should note the board's relatively inexperienced tenure (2.8 years). Recent auditor changes may also warrant attention for due diligence purposes. Take a closer look at AJ Bell's potential here in our financial health report. Gain insights into AJ Bell's outlook and expected performance with our report on the company's earnings estimates. Simply Wall St Financial Health Rating: ★★★★☆☆ Overview: Breedon Group plc, with a market cap of £1.50 billion, operates in the quarrying, manufacture, and sale of construction materials and building products primarily in the United Kingdom and internationally. Operations: The company's revenue is primarily derived from its operations in Great Britain (£997.4 million), cement production (£309.2 million), and activities in Ireland (£233.4 million) and the United States (£132.5 million). Market Cap: £1.5B Breedon Group plc, with a market cap of £1.50 billion, offers a mixed profile for penny stock investors. The company's debt is well covered by operating cash flow (52.3%), and short-term assets (£427.1 million) exceed short-term liabilities (£322.3 million). However, long-term liabilities (£621.1 million) remain uncovered by these assets. Despite stable weekly volatility and high-quality earnings, Breedon's net profit margins have decreased from 7.1% to 6.1%. While trading at a significant discount to estimated fair value (44.7%), the company faces challenges with negative earnings growth over the past year and an unstable dividend track record. Jump into the full analysis health report here for a deeper understanding of Breedon Group. Assess Breedon Group's future earnings estimates with our detailed growth reports. Simply Wall St Financial Health Rating: ★★★★★★ Overview: IntegraFin Holdings plc, along with its subsidiaries, offers software and services to clients and UK financial advisers in the United Kingdom and Isle of Man, with a market cap of £980.71 million. Operations: The company's revenue is primarily derived from investment administration services (£71.7 million), insurance and life assurance business (£68.3 million), and adviser back-office technology (£4.9 million). Market Cap: £980.71M IntegraFin Holdings plc, with a market cap of £980.71 million, presents a mixed outlook for penny stock investors. The company is debt-free and boasts high-quality earnings with a strong Return on Equity at 25%. Its short-term assets (£29.1 billion) comfortably cover both short-term (£28.9 billion) and long-term liabilities (£46.8 million). Despite stable weekly volatility and an experienced management team, its net profit margins have slightly declined from 37% to 36%. While trading below estimated fair value by 17.9%, the company's dividend track record remains unstable, though earnings growth is forecasted at 9.05% per year. Unlock comprehensive insights into our analysis of IntegraFin Holdings stock in this financial health report. Examine IntegraFin Holdings' earnings growth report to understand how analysts expect it to perform. Explore the 392 names from our UK Penny Stocks screener here. Searching for a Fresh Perspective? Find companies with promising cash flow potential yet trading below their fair value. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include LSE:AJB LSE:BREE and LSE:IHP. Have feedback on this article? Concerned about the content? with us directly. Alternatively, email editorial-team@ Sign in to access your portfolio
Yahoo
12-03-2025
- Yahoo
Nature reserve churned up by would-be thieves
Would-be thieves targeting a quarry have churned up a nature reserve in Leicestershire for the second time in four months. Leicestershire and Rutland Wildlife Trust said its Cloud Wood site in Worthington, near Ashby-de-la-Zouch, was again used to attempt to access Breedon Group's Cloud Hill Quarry at the weekend. Access was not gained to the quarry, but the trust said about 550m of its trails had been "damaged by churning at rutting" at what it called "a crucial time of year". Leicestershire Police said the criminal damage was reported to have happened between 8 and 10 March and that no arrests had been made. The force added that a chain and padlock from a gated entrance were taken and damage was caused to the ground with "several small trees removed". The reserve was previously damaged in December when thieves broke in at the neighbouring quarry to steal tools and cabling, leading to fears it would be a "disaster" for rare orchids and wildflowers at the site. Cloud Wood is a designated site of special scientific interest and "supports some of the most botanically diverse rides in Leicestershire", according to the trust. Rare plants at Cloud Hill include the bee orchid, greater butterfly orchid, common-spotted orchid, early purple orchid, solomon's seal and herb-robert. Butterflies observed include the rare purple emperor, white-letter hairstreak and the silver-washed fritillary. The trust added it planned to work with neighbours on a "long-term solution" to the security issues at Cloud Wood. Breedon Group did not wish to comment when approached by the BBC. Follow BBC Leicester on Facebook, on X, or on Instagram. Send your story ideas to eastmidsnews@ or via WhatsApp on 0808 100 2210. Wildlife 'disaster' as reserve damaged in break-in Stuck lorry torched after botched theft Leicestershire and Rutland Wildlife Trust Breedon Group Leicestershire Police
Yahoo
07-03-2025
- Business
- Yahoo
Top UK Penny Stocks To Watch In March 2025
The UK market has been experiencing some turbulence, with the FTSE 100 index recently closing lower due to weak trade data from China, highlighting global economic challenges. Despite these broader market concerns, certain investment opportunities remain attractive for those willing to explore beyond the usual suspects. Penny stocks, although an older term, still signify potential in smaller or newer companies that can offer growth at lower price points when backed by strong financials. In this article, we examine a selection of penny stocks that stand out for their financial strength and potential for long-term success. Name Share Price Market Cap Financial Health Rating Warpaint London (AIM:W7L) £3.62 £292.45M ★★★★★★ Foresight Group Holdings (LSE:FSG) £3.73 £424.27M ★★★★★★ Next 15 Group (AIM:NFG) £2.965 £294.89M ★★★★☆☆ Begbies Traynor Group (AIM:BEG) £0.914 £145.66M ★★★★★★ Polar Capital Holdings (AIM:POLR) £4.355 £419.81M ★★★★★★ Ultimate Products (LSE:ULTP) £0.83 £70.45M ★★★★★★ Croma Security Solutions Group (AIM:CSSG) £0.865 £11.88M ★★★★★★ Van Elle Holdings (AIM:VANL) £0.39 £42.2M ★★★★★★ Luceco (LSE:LUCE) £1.38 £212.84M ★★★★★☆ Helios Underwriting (AIM:HUW) £2.17 £154.81M ★★★★★☆ Click here to see the full list of 441 stocks from our UK Penny Stocks screener. Let's dive into some prime choices out of the screener. Simply Wall St Financial Health Rating: ★★★★★★ Overview: Ashmore Group plc is a publicly owned investment manager with a market cap of £981.68 million. Operations: The company's revenue primarily comes from the provision of investment management services, totaling £172 million. Market Cap: £981.68M Ashmore Group, with a market cap of £981.68 million, faces challenges despite having no debt and experienced management. Recent earnings showed a decline in revenue to £81 million for H1 2025 from £94.5 million the previous year, alongside reduced net income and profit margins. While trading slightly below fair value, its dividend yield of 11.29% is not well covered by earnings or free cash flow, raising sustainability concerns. The company's short-term assets significantly exceed liabilities, but negative earnings growth and low return on equity highlight ongoing performance issues within the capital markets sector. Get an in-depth perspective on Ashmore Group's performance by reading our balance sheet health report here. Explore Ashmore Group's analyst forecasts in our growth report. Simply Wall St Financial Health Rating: ★★★★☆☆ Overview: Breedon Group plc operates in the quarrying, manufacturing, and sale of construction materials and building products across the UK, Republic of Ireland, and internationally, with a market capitalization of approximately £1.64 billion. Operations: Breedon Group plc has not reported specific revenue segments. Market Cap: £1.64B Breedon Group, with a market cap of £1.64 billion, recently reported full-year sales of £1,576.3 million and net income of £96.2 million for 2024, indicating a slight decline in profitability compared to the previous year. Despite experiencing negative earnings growth over the past year and lower net profit margins (6.1%), Breedon maintains high-quality earnings and covers interest payments well with an EBIT coverage ratio of 6.5x. The company's debt levels are satisfactory with a net debt to equity ratio of 30.5%, though short-term assets do not cover long-term liabilities fully, posing potential financial challenges ahead. Click to explore a detailed breakdown of our findings in Breedon Group's financial health report. Evaluate Breedon Group's prospects by accessing our earnings growth report. Simply Wall St Financial Health Rating: ★★★★★★ Overview: Intuitive Investments Group Plc focuses on investing in early and later-stage life sciences businesses across the United Kingdom, continental Europe, and the United States, with a market cap of £245.20 million. Operations: The company currently reports no classified revenue segments. Market Cap: £245.2M Intuitive Investments Group Plc, with a market cap of £245.20 million, is pre-revenue and focuses on life sciences investments across multiple regions. The company recently completed a £1.56 million follow-on equity offering to bolster its financial position. Despite being debt-free and having short-term assets significantly exceeding short-term liabilities (£5.1M vs £82K), the firm remains unprofitable with negative revenue reported for the full year ending September 2024 (£-0.876M). While it has sufficient cash runway for nine months based on past free cash flow, management experience appears limited given an average board tenure of 1.6 years. Navigate through the intricacies of Intuitive Investments Group with our comprehensive balance sheet health report here. Understand Intuitive Investments Group's track record by examining our performance history report. Navigate through the entire inventory of 441 UK Penny Stocks here. Already own these companies? Bring clarity to your investment decisions by linking up your portfolio with Simply Wall St, where you can monitor all the vital signs of your stocks effortlessly. Simply Wall St is your key to unlocking global market trends, a free user-friendly app for forward-thinking investors. Explore high-performing small cap companies that haven't yet garnered significant analyst attention. Jump on the AI train with fast growing tech companies forging a new era of innovation. Find companies with promising cash flow potential yet trading below their fair value. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include LSE:ASHM LSE:BREE and LSE:IIG. Have feedback on this article? Concerned about the content? with us directly. Alternatively, email editorial-team@
Yahoo
17-02-2025
- Business
- Yahoo
Breedon Group plc's (LON:BREE) Intrinsic Value Is Potentially 65% Above Its Share Price
The projected fair value for Breedon Group is UK£7.37 based on 2 Stage Free Cash Flow to Equity Breedon Group's UK£4.48 share price signals that it might be 39% undervalued Our fair value estimate is 41% higher than Breedon Group's analyst price target of UK£5.25 How far off is Breedon Group plc (LON:BREE) from its intrinsic value? Using the most recent financial data, we'll take a look at whether the stock is fairly priced by taking the expected future cash flows and discounting them to their present value. One way to achieve this is by employing the Discounted Cash Flow (DCF) model. Believe it or not, it's not too difficult to follow, as you'll see from our example! Companies can be valued in a lot of ways, so we would point out that a DCF is not perfect for every situation. For those who are keen learners of equity analysis, the Simply Wall St analysis model here may be something of interest to you. View our latest analysis for Breedon Group We're using the 2-stage growth model, which simply means we take in account two stages of company's growth. In the initial period the company may have a higher growth rate and the second stage is usually assumed to have a stable growth rate. To start off with, we need to estimate the next ten years of cash flows. Where possible we use analyst estimates, but when these aren't available we extrapolate the previous free cash flow (FCF) from the last estimate or reported value. We assume companies with shrinking free cash flow will slow their rate of shrinkage, and that companies with growing free cash flow will see their growth rate slow, over this period. We do this to reflect that growth tends to slow more in the early years than it does in later years. Generally we assume that a dollar today is more valuable than a dollar in the future, so we discount the value of these future cash flows to their estimated value in today's dollars: 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 Levered FCF (£, Millions) UK£95.3m UK£117.6m UK£134.3m UK£148.5m UK£160.6m UK£170.8m UK£179.6m UK£187.4m UK£194.3m UK£200.7m Growth Rate Estimate Source Analyst x6 Analyst x6 Est @ 14.19% Est @ 10.63% Est @ 8.13% Est @ 6.38% Est @ 5.16% Est @ 4.30% Est @ 3.70% Est @ 3.28% Present Value (£, Millions) Discounted @ 8.3% UK£87.9 UK£100 UK£106 UK£108 UK£108 UK£106 UK£103 UK£98.8 UK£94.6 UK£90.2 ("Est" = FCF growth rate estimated by Simply Wall St)Present Value of 10-year Cash Flow (PVCF) = UK£1.0b After calculating the present value of future cash flows in the initial 10-year period, we need to calculate the Terminal Value, which accounts for all future cash flows beyond the first stage. For a number of reasons a very conservative growth rate is used that cannot exceed that of a country's GDP growth. In this case we have used the 5-year average of the 10-year government bond yield (2.3%) to estimate future growth. In the same way as with the 10-year 'growth' period, we discount future cash flows to today's value, using a cost of equity of 8.3%. Terminal Value (TV)= FCF2034 × (1 + g) ÷ (r – g) = UK£201m× (1 + 2.3%) ÷ (8.3%– 2.3%) = UK£3.4b Present Value of Terminal Value (PVTV)= TV / (1 + r)10= UK£3.4b÷ ( 1 + 8.3%)10= UK£1.5b The total value, or equity value, is then the sum of the present value of the future cash flows, which in this case is UK£2.5b. In the final step we divide the equity value by the number of shares outstanding. Relative to the current share price of UK£4.5, the company appears quite undervalued at a 39% discount to where the stock price trades currently. Remember though, that this is just an approximate valuation, and like any complex formula - garbage in, garbage out. The calculation above is very dependent on two assumptions. The first is the discount rate and the other is the cash flows. You don't have to agree with these inputs, I recommend redoing the calculations yourself and playing with them. The DCF also does not consider the possible cyclicality of an industry, or a company's future capital requirements, so it does not give a full picture of a company's potential performance. Given that we are looking at Breedon Group as potential shareholders, the cost of equity is used as the discount rate, rather than the cost of capital (or weighted average cost of capital, WACC) which accounts for debt. In this calculation we've used 8.3%, which is based on a levered beta of 1.174. Beta is a measure of a stock's volatility, compared to the market as a whole. We get our beta from the industry average beta of globally comparable companies, with an imposed limit between 0.8 and 2.0, which is a reasonable range for a stable business. Strength Debt is not viewed as a risk. Weakness Earnings declined over the past year. Dividend is low compared to the top 25% of dividend payers in the Basic Materials market. Opportunity Annual revenue is forecast to grow faster than the British market. Trading below our estimate of fair value by more than 20%. Threat Dividends are not covered by cash flow. Annual earnings are forecast to grow slower than the British market. Valuation is only one side of the coin in terms of building your investment thesis, and it shouldn't be the only metric you look at when researching a company. It's not possible to obtain a foolproof valuation with a DCF model. Preferably you'd apply different cases and assumptions and see how they would impact the company's valuation. If a company grows at a different rate, or if its cost of equity or risk free rate changes sharply, the output can look very different. Can we work out why the company is trading at a discount to intrinsic value? For Breedon Group, we've compiled three essential factors you should look at: Risks: Take risks, for example - Breedon Group has 1 warning sign we think you should be aware of. Future Earnings: How does BREE's growth rate compare to its peers and the wider market? Dig deeper into the analyst consensus number for the upcoming years by interacting with our free analyst growth expectation chart. Other Solid Businesses: Low debt, high returns on equity and good past performance are fundamental to a strong business. Why not explore our interactive list of stocks with solid business fundamentals to see if there are other companies you may not have considered! PS. Simply Wall St updates its DCF calculation for every British stock every day, so if you want to find the intrinsic value of any other stock just search here. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Sign in to access your portfolio
