No glamour in cement but we think the market is being too harsh on Adelaide Brighton (ABC)

CCZ Statton Equities

Stockbroker

No glamour in cement but we think the market is being too harsh on Adelaide Brighton (ABC). ABC rarely finds favour among broking analysts, but with the stock currently trading at less than 13 times 1 year forward PE (well below all of its peers), we think the market has been much too harsh. The company is highly cash generative and pays a consistently solid dividend (currently 5% yield). The market hardly applauded recent acquisitions which were well planned. The long term strategic positioning is just further evidence of good management which a decade ago put in place a comprehensive clinker import strategy which now leaves the company in a sound competitive position as the $A weakens. The balance sheet has capacity for further such clever strategic moves which will enable price expansion as well as volume gains. Sure there's no glam in cement, but this stock can perform.


1 topic

CCZ Statton Equities
CCZ Statton Equities
Stockbroker
Stockbroker

CCZ offers a comprehensive range of services covering: Equity research; Institutional research sales; Institutional sales and trading; Private client advice and trading; Corporate finance advice. The group specialises in numerous ASX stock sectors...

Expertise

No areas of expertise

I would like to

Only to be used for sending genuine email enquiries to the Contributor. Livewire Markets Pty Ltd reserves its right to take any legal or other appropriate action in relation to misuse of this service.

Personal Information Collection Statement
Your personal information will be passed to the Contributor and/or its authorised service provider to assist the Contributor to contact you about your investment enquiry. They are required not to use your information for any other purpose. Our privacy policy explains how we store personal information and how you may access, correct or complain about the handling of personal information.