Ibstock Share Discussion Threads

[tole] 05/11/2021 07:32

Ibstock looking to a green future, says HargreavesBrick manufacturer Ibstock (IBST) continued to benefit from strong demand in the latest quarter but supply chain problems are beginning to bite. Hargreaves Lansdown, on the other hand, is looking at the benefits of its long-term strategy.Ibstock said performance in the third quarter was held back by supply chain disruption but not enough to derail guidance of full year underlying cash profits coming in above £93m. It also announced plans for Ibstock Futures, a new division that will focus on growth initiatives, including a £50m new factory to manufacturer brick slips, a special tile with the appearance and texture of real clay brick.Analyst Laura Hoy said management had successfully navigated a 'challenging' few months, passing inflation costs on to customers through price rises that have 'left the group in a position to focus on growth with a new segment dubbed Ibstock Futures'.'If Ibstock can execute successfully, it would put the group in a strong position to capitalise on a shift towards more sustainable building materials,' she said.'While brick homes have appeal in the UK market, these thinner, lighter, lookalikes come with a lower carbon footprint.'The shares closed flat on Thursday at just over 206p.

[m12rtn] 04/11/2021 17:14

Construction Enquirer headlineConstruction "powers ahead" as supply shortages ease

[npp62] 04/11/2021 16:18

Chunky order to fill at 200p maybe?

[npp62] 04/11/2021 13:21

Added another 50% to my holding today. Happy with the RNS this week.. Good confidence builder.

[readdin] 04/11/2021 13:12

good solid company with great future growth and demand for the products, read well on paper not taking into account some purchasers who imported will now be looking closer to home now, great entry price, share price should steadily climb from here imo, all good so fill your boots.

[m12rtn] 04/11/2021 11:49

This now has huge potential on the share price front, as bad and sad as the pandemic is and has been, this company has leaned itself to be more efficient and the maximum the share price has been at 3.20 ish, should be exceeded over the next 12 months. All bodes well for a 12 to 24 month hold in my portfolio.

[wad collector] 04/11/2021 10:20

Thanks for that link.
If EPS returns back to pre-covid 18p or so , this is undervalued in the long run. Happy to hold.

[km18] 03/11/2021 17:01

Ibstock plc issued a Q3 trading update this morning. The company enjoyed strong Q3 performance supported by continued robust demand in core markets. Supply chain issues are being managed, expectations for adjusted EBITDA for FY21 remain unchanged, a little ahead of previous expectations of £93m. A new business unit, Ibstock Futures, has been established to capture growth opportunities in new, fast growth sectors of the UK construction market. Valuation is reasonable, forward PE ratio around 12, and the company is reasonably high quality, net debt of £81m. Business is not yet fully back to pre-Covid levels, but it has recovered more than the share price which is roughly flat through 2021 so far. Not a bad recovery story to monitor, but no share price momentum and so no compelling reason to buy at present. But not a bad company to monitor for now...more from WealthOracleAM

[km18] 03/11/2021 16:45

Ibstock plc issued a Q3 trading update this morning. The company enjoyed strong Q3 performance supported by continued robust demand in core markets. Supply chain issues are being managed, expectations for adjusted EBITDA for FY21 remain unchanged, a little ahead of previous expectations of £93m. A new business unit, Ibstock Futures, has been established to capture growth opportunities in new, fast growth sectors of the UK construction market...keep up to date with stocks with WealthOracle AM

[edmundshaw] 03/11/2021 13:16

The growth strategy is really appealing now.

Originally bought these for the apparent undervaluation and the good prospects for the relevant construction markets. But come 2023/24/25 production is looking very positive and the improved carbon footprint will be putting this firmly in the ESG crosshairs...

Pleased with the update. I hope they are underpromising! :))

[m12rtn] 03/11/2021 11:16

I make it that we should be close to pre pandemic levels or at least just shy of them. Which we will over the next 6 to 9 months if we hold I believe.

[theoriginalwonderstuff] 03/11/2021 10:01

What do others make of the trading update today??

[wad collector] 02/11/2021 15:00

Good to see the share price heading North a bit , ahead of tomorrow TU. Not that there could be any leaking of course...

[edmundshaw] 31/10/2021 10:54

Yup. Roll on Wednesday!! :))

[tole] 30/10/2021 20:27

On the lookout for dirt-cheap UK shares? Here are two I'd buy for next month and aim to hold for years to come.Forecast-beaterI think Ibstock (LSE: IBST) could be a great UK share to buy right now. In fact, I own shares in the brickmaker and believe the next trading statement on 3 November could be another barnstormer.Ibstock said in August's most recent update that it expected full-year EBIDTA to be "modestly" above expectations after announcing a 54% rise in revenues between January and June. Sales have been fast approaching pre-pandemic levels of late, it said, thanks to the strength of the UK's housebuilding sector and robust spending on home improvements.I'm convinced demand for Ibstock's bricks will remain robust too. The colossal level of savings accrued during Covid-19 lockdowns means that DIY-related expenditure should remain favourable. And a mix of historically-low interest rates, an ultra-competitive mortgage market, and ongoing government support for first-time buyers should provide plenty of incentive for the housebuilders to keep building too.Ibstock could experience a sales dip if broader economic conditions continue to worsen. This could deal a blow to housebuyer confidence and prompt consumers to tighten their purse strings. But to my mind these problems are more than reflected in the brick manufacturer's ultra-low share price.City analysts think the company's earnings will soar 25% in 2022, leaving it trading on a price-to-earnings growth (PEG) ratio of 0.5 for next year.A reminder that a reading below 1 suggests a UK share could be undervalued. Another forecast-beating update then could well help Ibstock's share price rise sharply again in November following recent weakness.

[edmundshaw] 30/10/2021 13:30

Added capacity is looking tardy. I wonder if there is a profitble way of accelerating the new brick plant builds?

[m12rtn] 29/10/2021 19:12

Construction enquirer news:Manufacturing capacity for bricks is at its maximum and some brickmakers are investing in expansion, but exceptional demand has depleted current stock to a low level and the gap is being bridged with imported products.Extended lead times are predicted to continue at least until the second half of next year. In the longer term, the outlook is far better with additional capacity due to come on stream in 2023.

[daneswooddynamo] 22/10/2021 10:30

Looks like Vulcan has turned buyer from seller

[cerrito] 13/10/2021 09:28

Llef
I listened a couple of days back to the August earnings call.
Too bad I did not listen to it at the time because listening now with the benefit of hindsight you can see how the price has fallen in the two months plus since then.
Basically they can and do lock in input costs in the clay business but very hard to do in the concrete side.
I will do a small top up today encouraged by the BDEV AGM statement.

[tole] 11/10/2021 19:17

https://www.fool.co.uk/investing/2021/10/11/500-to-invest-2-dirt-cheap-uk-shares-id-buy-right-now/£500 to invest? 2 dirt-cheap UK shares I'd buy right nowRoyston Wild | Monday, 11th October, 2021 | More on: BWY IBSTImage of person checking their shares portfolio on mobile phone and computer Image source: Getty Images.The Ibstock (LSE: IBST) share price has fallen off a cliff. Down 22% since the beginning of September, investors have trembled over the potential impact of soaring inflation on Bank of England policy and fretted how this could damage demand for the brickmaker's products.Naturally, rising interest rates would make it more challenging for potential homebuyers to afford to buy. Comments coming from key Bank of England personnel seems to suggest that rate hikes could be coming very soon.Michael Saunders, a member of the rate-setting Monetary Policy Committee, said over the weekend that "markets have priced in over the last few months an earlier rise in Bank rate than previously and I think that's appropriate."Market-beating valueIbstock's recent fall means it continues to trade on a forward price-to-earnings growth (PEG) ratio of 0.1. A reminder that any reading below 1 suggests a stock is undervalued by the market. The firm doesn't just look like a dirt-cheap UK share from an earnings point of view either.For 2021 and 2022, the FTSE 250 share carries dividend yields of 3.3% and 4.4% respectively. This beats the broader FTSE 250 forward average of 1.9% by a decent margin.Another cheap UK share on my radarWorries over possible Bank of England rate hikes (along with fears over rising building material costs) have also shaken the share prices of many housebuilders.FTSE 250-quoted Bellway (LSE: BWY) is one of these recent casualties, down 13% since the beginning of September. But at current prices I think this is another UK share that offers brilliant all-round value. As well as also trading on a PEG ratio of 0.1 for 2021, Bellway's dividend yields clock in at 3.5% for this year and 4% for 2021.I thought both Bellway and Ibstock offered excellent value before the September and October sell-offs. And following those, falls I believe these dirt-cheap UK shares could now be considered too cheap for me to miss. I certainly think their recent share price drops more than reflect the threat of sooner-than-expected interest rate rises.Still looking goodFrom a long-term perspective both these companies still have terrific profits potential. Sure, Bank of England rates may rise from their record lows of 0.1% very soon. But I still expect them to remain well below their historic lows. Otherwise it could strangle the economic recovery as Britain copes with the twin problems of Covid-19 and Brexit.On top of this, homebuyer affordability should remain well supported by the intensifying mortgage product war. Lenders are bending over backwards with low rates, cashback and other perks to win business in an ever-more-crowded market.There simply aren't enough homes to go around in Britain. Therefore government will have no choice but to continue building to solve the crisis (the housing ministry has its sights set on 300,000 new homes a year in the next few years). All things considered, I think the future still looks bright for cheap UK shares Ibstock and Bellway. And I think they're great value buys for me following those recent share price falls.

[llef] 11/10/2021 12:37

I read the annual report, and they say they hedge their energy costs, so it might not be an issue for this financial year. But renewable or not, they will still have to pay the going rate next year, which will cost a lot more.

The solar panels will obvisouly be helpful tho - might prompt them to add more where they can
"Ibstock’s first solar park was installed at our head office in Leicestershire.
With three manufacturing facilities based here, the solar farm provides
between 20-30% of the site’s normal electricity demand. The solar park
went live in Q2 2020 and generated circa 2.1MWh. "

[m12rtn] 11/10/2021 12:13

Check their website, 100% renewable energy and some solar panels at their plants?

[llef] 11/10/2021 11:37

Im just wondering if higher energy costs are a factor in the fall here?

[castleford tiger] 08/10/2021 16:37

paid 190p for a long term hold.
crazy valuation
tiger

[daneswooddynamo] 08/10/2021 15:24

Must be Vulcan causing an overhang?