Breedon Share Price (BREE)

I agree. I think the market is assuming that they won’t be able to pass on price increases and that volumes will decline in the coming recession.
My investment strategy will be based on whether the market is right or wrong and it’s probably going to be 18 months or so before the answer is clear.

I thought this would grow slowly post-100p (and paying a divi), but it seems to be returning to its old form (i.e. bouncing around in the 60-70p range. Pity, but can't say I'm entirely surprised. Breedon probably needs to make the leap into the main index for the sp to gain any long-term stability.

Hi Londoner7,
Thank you for sharing your thoughts and analysis.
I am surprised the SP is drifting lower and lower. Hard to think this will not deliver good EBIT in H1 and also in H2. They have market power so easier for them to pass cost increases onyo their customers.
ATB,
L3

...from last year...

Breedon Group plc issued a trading update for the 10 months to 31st October 2021 a couple of weeks ago. Group revenue was up 31% on equivalent levels in FY19, i.e., pre-Covid. Margin performance was positive and driven by dynamic pricing and cost recovery actions. Underlying EBIT performance for the 2021 full year will now be stronger than previously expected and slightly above the upper end of the range of market expectations. The business has been growing solidly for a number of years now and is reasonably profitable. Valuation may be a bit of a headwind, forward PE ratio near 16 is ranked 11th out of 12 in the construction materials sector. And the share price is still in a multi-month correction, albeit a shallow one. Certainly a solid company to monitor for now, but there is no rush to buy here....

...from WealthOracleAM

https://wealthoracle.co.uk/detailed-result-full/BREE/269

A continuation of my last post. I also see the links didn't work so I'll try them again.

With just 7 weeks to the end of H1 I suspect Breedon will report a very good H1, on both revenue and margin. But it will be the commentary that accompanies the release on the 17th July that will be most interesting. If the house builders come under pressure, they will be resistant to price increases in materials, which will then pressure Breedon’s margins. That said, I suspect Breedon are better placed than most in the aggregate materials supply to manage any pressures.

https://www.theconstructionindex.co.uk/news/view/output-growth-reaches-record-heights

https://www.mineralproducts.org/News-CEO-Blog/2022/release14.aspx