Latest news with #Ibstock
Yahoo
a day ago
- Business
- Yahoo
It Might Not Be A Great Idea To Buy Ibstock plc (LON:IBST) For Its Next Dividend
Some investors rely on dividends for growing their wealth, and if you're one of those dividend sleuths, you might be intrigued to know that Ibstock plc (LON:IBST) is about to go ex-dividend in just 3 days. The ex-dividend date is two business days before a company's record date in most cases, which is the date on which the company determines which shareholders are entitled to receive a dividend. The ex-dividend date is of consequence because whenever a stock is bought or sold, the trade can take two business days or more to settle. This means that investors who purchase Ibstock's shares on or after the 21st of August will not receive the dividend, which will be paid on the 15th of September. The company's next dividend payment will be UK£0.015 per share, on the back of last year when the company paid a total of UK£0.04 to shareholders. Calculating the last year's worth of payments shows that Ibstock has a trailing yield of 2.8% on the current share price of UK£1.436. We love seeing companies pay a dividend, but it's also important to be sure that laying the golden eggs isn't going to kill our golden goose! As a result, readers should always check whether Ibstock has been able to grow its dividends, or if the dividend might be cut. AI is about to change healthcare. These 20 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10bn in marketcap - there is still time to get in early. Dividends are typically paid out of company income, so if a company pays out more than it earned, its dividend is usually at a higher risk of being cut. Ibstock paid out 130% of profit in the past year, which we think is typically not sustainable unless there are mitigating characteristics such as unusually strong cash flow or a large cash balance. A useful secondary check can be to evaluate whether Ibstock generated enough free cash flow to afford its dividend. The company paid out 98% of its free cash flow over the last year, which we think is outside the ideal range for most businesses. Companies usually need cash more than they need earnings - expenses don't pay themselves - so it's not great to see it paying out so much of its cash flow. As Ibstock's dividend was not well covered by either earnings or cash flow, we would be concerned that this dividend could be at risk over the long term. See our latest analysis for Ibstock Click here to see the company's payout ratio, plus analyst estimates of its future dividends. Have Earnings And Dividends Been Growing? When earnings decline, dividend companies become much harder to analyse and own safely. Investors love dividends, so if earnings fall and the dividend is reduced, expect a stock to be sold off heavily at the same time. Ibstock's earnings per share have fallen at approximately 28% a year over the previous five years. Such a sharp decline casts doubt on the future sustainability of the dividend. Another key way to measure a company's dividend prospects is by measuring its historical rate of dividend growth. Ibstock has seen its dividend decline 1.1% per annum on average over the past nine years, which is not great to see. The Bottom Line Is Ibstock worth buying for its dividend? Not only are earnings per share declining, but Ibstock is paying out an uncomfortably high percentage of both its earnings and cashflow to shareholders as dividends. This is a clearly suboptimal combination that usually suggests the dividend is at risk of being cut. If not now, then perhaps in the future. With the way things are shaping up from a dividend perspective, we'd be inclined to steer clear of Ibstock. So if you're still interested in Ibstock despite it's poor dividend qualities, you should be well informed on some of the risks facing this stock. Every company has risks, and we've spotted 2 warning signs for Ibstock (of which 1 is a bit concerning!) you should know about. Generally, we wouldn't recommend just buying the first dividend stock you see. Here's a curated list of interesting stocks that are strong dividend payers. 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. 擷取數據時發生錯誤 登入存取你的投資組合 擷取數據時發生錯誤 擷取數據時發生錯誤 擷取數據時發生錯誤 擷取數據時發生錯誤
Business Insider
21-06-2025
- Business
- Business Insider
Ibstock (IBST) Gets a Buy from Jefferies
In a report released yesterday, Priyal Woolf from Jefferies maintained a Buy rating on Ibstock (IBST – Research Report), with a price target of £1.90. The company's shares closed yesterday at p151.40. Confident Investing Starts Here: According to TipRanks, Woolf is ranked #8378 out of 9595 analysts. Currently, the analyst consensus on Ibstock is a Strong Buy with an average price target of p213.20, which is a 40.82% upside from current levels. In a report released on June 12, Deutsche Bank also maintained a Buy rating on the stock with a £2.20 price target. Based on Ibstock's latest earnings release for the quarter ending December 31, the company reported a quarterly revenue of p188.02 million and a net profit of p6.5 million. In comparison, last year the company earned a revenue of p183.11 million and had a GAAP net loss of p1.34 million Based on the recent corporate insider activity of 6 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of IBST in relation to earlier this year.
Business Insider
18-06-2025
- Business
- Business Insider
Berenberg Bank Reaffirms Their Hold Rating on Ibstock (IBST)
Berenberg Bank analyst reiterated a Hold rating on Ibstock (IBST – Research Report) yesterday and set a price target of p200.00. The company's shares closed today at p157.00. Confident Investing Starts Here: Easily unpack a company's performance with TipRanks' new KPI Data for smart investment decisions Receive undervalued, market resilient stocks right to your inbox with TipRanks' Smart Value Newsletter The word on The Street in general, suggests a Strong Buy analyst consensus rating for Ibstock with a p213.20 average price target.
Daily Mail
11-06-2025
- Business
- Daily Mail
Shares in brickmaker Ibstock tumble as housing market recovery leads to higher costs
Shares in Ibstock fell sharply on Wednesday after the brickmaker flagged a spike in fixed costs and weaker than expected selling prices. The FTSE 250 firm, the UK's largest brick manufacturer, cut annual earnings expectations in an unscheduled trading update that warned a 'more competitive market backdrop' has made passing on the 'full impact of cost inflation more challenging'. Ibstock has been boosting productive capacity at several of its clay factories in anticipation of much higher demand and a UK housing market recovery, which is set to drive revenues 'materially' ahead of this time last year. But Ibstock said these efforts have also led to 'higher than expected incremental fixed costs' as productivity and operational efficiency 'ramp up from initial lower levels at these factories'. Average selling prices have also been 'adversely impacted by sales mix', meaning Ibstock expects sales prices in both clay and concrete to be 'broadly in line' with last year's levels in the first half. Ibstock's adjusted earnings before nasties plummeted 26 per cent to £79million in 2024 following a 'significant' drop in sales volumes. The group told shareholders it now expects 2025 EBITDA to come in at £77million to £82million, which is roughly 14 per cent below current market consensus of £92million, according to analysts at UBS. The investment bank assumes a £6million to £8million headwind from pricing not offsetting cost inflation, with cost inflation of 3 to 4 per cent expected for the year, and a £5million to £6million incremental cost from adding back productive capacity. Ibstock shares slumped 14.1 per cent to 166p by mid morning. They remain 13 per cent higher over the last 12 months. The group told investors its key organic growth projects remain on track, which combined with 'significant investment in our core business' it said leaves Ibstock 'well positioned to support the significant unmet demand for new build housing in the UK'. Boss Joe Hudson added: 'Despite ongoing uncertainty, we are encouraged by signs of recovery in the UK housing market. 'Notwithstanding the margin headwinds encountered in 2025, we remain confident that our recent actions alongside our strategic investments leave us well positioned as activity levels continue to pick up.' Equity analyst at Hargreaves Lansdown Aarin Chiekrie, said: 'Ibstock's been firing up the kilns used to make the bricks and adding back capacity at several of its factories, [but] its fixed costs have soared. 'Until demand and production ramp up further, operations won't be as efficient as the group would like, and profitability is getting squeezed in the meantime. 'On top of that, average selling prices have been hurt by a shift in mix towards newbuild markets, which have recovered quicker than the broader construction market.'
Yahoo
08-06-2025
- Business
- Yahoo
Would investors be mad to consider these UK shares at P/E ratios above 30?
Despite a reputation for trading at a discount to their US counterparts, some UK shares trade at very high price-to-earnings (P/E) multiples. But these can often be better value than they look. There are a couple of stocks from the FTSE 100 and the FTSE 250 that currently trade at P/E ratios above 30. But – for different reasons – I think both are worth considering. Informa's (LSE:INF) in the business of running trade shows and conferences. Its biggest competitive strength is the popularity of its events, which are leaders in their various industries. The firm also leases – rather than owns – the venues that host its events. As a result, it has relatively little in the way of physical assets, which makes for low maintenance costs. A consequence of this is that Informa's free cash flow is consistently higher than its net income. In 2024, net income was around £407m, while free cash flow was £771m. The company's cash flow statement indicates that a lot of the difference is due to amortisation costs. Some of these relate to the firm's acquisition of Ascential in 2024. There are some important risks to consider. One of the most obvious is the possibility of a trade war, which is especially live at the moment and could be significant. Importantly though, I don't think the stock's as expensive as its P/E multiple suggests. On a free cash flow basis, it trades at a multiple of 13 and this seems much more reasonable. Shares in FTSE 250 brick manufacturer Ibstock (LSE:IBST) currently trade at a P/E ratio of almost 50. But there's a very clear reason for this. According to the Office for National Statistics (ONS) the number of housing completions has been falling since 2021. And that has been weighing on demand for bricks. There's reason to believe though, that the long-term picture's much more positive. The UK has a shortage of housing that might well lead to strong demand over the next decade and beyond. If this causes Ibstock's earnings to get back to where they were at their peak, the current share price implies a P/E ratio of around 8. I think that means the stock might not be as expensive as it looks. Ongoing developments in housing construction are a potential risk for the firm. Some new building techniques require fewer bricks than traditional ones and this is worth paying attention to. Investors therefore shouldn't be complacent when it comes to the stock. But they also shouldn't take a high P/E ratio at face value as a sign the company's shares are overvalued. Valuing a stock isn't just about looking at the multiples it trades at. A high P/E ratio says more about investor expectations than the underlying business. With Informa, the business generates more cash than its net income indicates. And Ibstock's profits should gather momentum in the event of UK housebuilding picking up in the future. I don't think investors would be mad to consider buying either at today's prices. I see both as reasons to look past the headline multiples when it comes to evaluating stocks. The post Would investors be mad to consider these UK shares at P/E ratios above 30? appeared first on The Motley Fool UK. More reading 5 Stocks For Trying To Build Wealth After 50 One Top Growth Stock from the Motley Fool Stephen Wright has no position in any of the shares mentioned. The Motley Fool UK has recommended Ibstock Plc. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. Motley Fool UK 2025 Se produjo un error al recuperar la información Inicia sesión para acceder a tu portafolio Se produjo un error al recuperar la información Se produjo un error al recuperar la información Se produjo un error al recuperar la información Se produjo un error al recuperar la información
