Analyzing Fletcher Building (FRCEF) & Its Peers

Fletcher Building (OTCMKTS:FRCEF) is one of 74 public companies in the “Construction Materials” industry, but how does it contrast to its peers? We will compare Fletcher Building to similar businesses based on the strength of its risk, profitability, earnings, analyst recommendations, institutional ownership, dividends and valuation.

Insider and Institutional Ownership

23.8% of Fletcher Building shares are owned by institutional investors. Comparatively, 46.5% of shares of all “Construction Materials” companies are owned by institutional investors. 9.9% of shares of all “Construction Materials” companies are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of recent ratings for Fletcher Building and its peers, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Fletcher Building	1	0	0	0	1.00
Fletcher Building Competitors	403	2047	2828	83	2.48

As a group, “Construction Materials” companies have a potential upside of 402.00%. Given Fletcher Building’s peers stronger consensus rating and higher probable upside, analysts clearly believe Fletcher Building has less favorable growth aspects than its peers.

Profitability

This table compares Fletcher Building and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Fletcher Building	N/A	N/A	N/A
Fletcher Building Competitors	4.74%	8.27%	5.01%

Earnings & Valuation

This table compares Fletcher Building and its peers gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Fletcher Building	N/A	N/A	4.27
Fletcher Building Competitors	$6.82 billion	$651.37 million	32.70

Fletcher Building’s peers have higher revenue and earnings than Fletcher Building. Fletcher Building is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Summary

Fletcher Building peers beat Fletcher Building on 11 of the 11 factors compared.

Fletcher Building Company Profile

Fletcher Building Limited, together with its subsidiaries, manufactures and distributes building products in New Zealand, Australia, and internationally. It operates through Building Products, Distribution, Concrete, Residential and Development, Construction, and Australia segments. The Building Products segment manufactures, markets, and distributes building products used to build homes; and buildings and infrastructure, including insulations, plasterboards, laminate surfaces, and plastic and concrete piping for the commercial and residential markets. The Distribution segment distributes building, plumbing, and pipeline products under the PlaceMakers, Mico, and TUMU brands. The Concrete segment engages in the extraction of aggregates, and production of cement and concrete. The Residential and Development segment builds residential homes and apartments; and develops and sells residential and commercial land. The Construction segment builds and maintains public and commercial buildings, transport and utilities infrastructure, and buildings and infrastructure, as well as designs, constructs, and maintains roads and civil infrastructure. The Australia segment manufactures and distributes building materials, such as insulation, plasterboard, laminate surfaces, steel roofing, and plastic and concrete piping for a range of industries across Australia. The company was founded in 1909 and is headquartered in Auckland, New Zealand.