Latest news with #GraftonGroup
Irish Times
16-07-2025
- Business
- Irish Times
Sandyford home of Grafton Group and Cubic Telecom seeking €24.2m
Agent HWBC has been engaged by Grant Thornton as receiver to find a buyer for The Hive, a fully refurbished office investment at the Sandyford Business District in south Dublin. The property – which was first put up for sale on behalf of Spectre, a joint venture involving U+I and US investor Colony Capital, for €34.4 million in 2022 – is being offered to the market now for €24.2 million. The Hive, which was known formerly as Ballymoss House, underwent a comprehensive refurbishment in 2019. The building comprises 6,785sq m (73,000sq ft) of grade A office space distributed over four floors, and comes with LEED Gold certification, an A3 Ber rating, and the highest WiredScore and CycleScore ratings. Located 500 metres from the Luas Green line stop at Sandyford and within a short drive of both the M50 motorway and the N11, the property also includes 114 car parking spaces, 96 cycle spaces and 12 EV charging stations. READ MORE The Hive is generating annual rental income of €1.95 million, with a weighted average unexpired lease term (WAULT) of 8.2 years to expiry, underpinned by a strong tenant line-up, which includes the global connectivity software specialist Cubic Telecom, the FTSE-listed Grafton Group, and the infrastructure investor and asset manager NTR plc. Should a sale of the property proceed at the guide price, the new owner would be in line for a net initial yield of about 7 per cent. [ French investor pays €47.2m for Smithfield office block Opens in new window ] Iain Sayer of HWBC says: 'The Hive is a prime example of the type of office investment attracting European capital today – long, secure income, blue-chip tenants, and best-in-class sustainability specifications. With strong occupier demand in Sandyford and an attractive yield profile, we expect interest from a wide range of investors.'
Yahoo
25-06-2025
- Business
- Yahoo
Estimating The Intrinsic Value Of Grafton Group plc (LON:GFTU)
Using the 2 Stage Free Cash Flow to Equity, Grafton Group fair value estimate is UK£11.45 Current share price of UK£9.95 suggests Grafton Group is potentially trading close to its fair value Analyst price target for GFTU is UK£11.89, which is 3.9% above our fair value estimate In this article we are going to estimate the intrinsic value of Grafton Group plc (LON:GFTU) by taking the expected future cash flows and discounting them to their present value. We will use the Discounted Cash Flow (DCF) model on this occasion. There's really not all that much to it, even though it might appear quite complex. Companies can be valued in a lot of ways, so we would point out that a DCF is not perfect for every situation. If you still have some burning questions about this type of valuation, take a look at the Simply Wall St analysis model. Trump has pledged to "unleash" American oil and gas and these 15 US stocks have developments that are poised to benefit. We use what is known as a 2-stage model, which simply means we have two different periods of growth rates for the company's cash flows. Generally the first stage is higher growth, and the second stage is a lower growth phase. To begin with, we have to get estimates of the next ten years of cash flows. Where possible we use analyst estimates, but when these aren't available we extrapolate the previous free cash flow (FCF) from the last estimate or reported value. We assume companies with shrinking free cash flow will slow their rate of shrinkage, and that companies with growing free cash flow will see their growth rate slow, over this period. We do this to reflect that growth tends to slow more in the early years than it does in later years. Generally we assume that a dollar today is more valuable than a dollar in the future, and so the sum of these future cash flows is then discounted to today's value: 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 Levered FCF (£, Millions) UK£122.0m UK£147.4m UK£167.8m UK£164.9m UK£164.2m UK£164.9m UK£166.7m UK£169.3m UK£172.4m UK£175.9m Growth Rate Estimate Source Analyst x4 Analyst x4 Analyst x4 Est @ -1.70% Est @ -0.43% Est @ 0.46% Est @ 1.08% Est @ 1.52% Est @ 1.83% Est @ 2.04% Present Value (£, Millions) Discounted @ 8.9% UK£112 UK£124 UK£130 UK£117 UK£107 UK£98.8 UK£91.7 UK£85.5 UK£79.9 UK£74.9 ("Est" = FCF growth rate estimated by Simply Wall St)Present Value of 10-year Cash Flow (PVCF) = UK£1.0b We now need to calculate the Terminal Value, which accounts for all the future cash flows after this ten year period. The Gordon Growth formula is used to calculate Terminal Value at a future annual growth rate equal to the 5-year average of the 10-year government bond yield of 2.5%. We discount the terminal cash flows to today's value at a cost of equity of 8.9%. Terminal Value (TV)= FCF2034 × (1 + g) ÷ (r – g) = UK£176m× (1 + 2.5%) ÷ (8.9%– 2.5%) = UK£2.8b Present Value of Terminal Value (PVTV)= TV / (1 + r)10= UK£2.8b÷ ( 1 + 8.9%)10= UK£1.2b The total value is the sum of cash flows for the next ten years plus the discounted terminal value, which results in the Total Equity Value, which in this case is UK£2.2b. The last step is to then divide the equity value by the number of shares outstanding. Relative to the current share price of UK£9.9, the company appears about fair value at a 13% discount to where the stock price trades currently. The assumptions in any calculation have a big impact on the valuation, so it is better to view this as a rough estimate, not precise down to the last cent. The calculation above is very dependent on two assumptions. The first is the discount rate and the other is the cash flows. You don't have to agree with these inputs, I recommend redoing the calculations yourself and playing with them. The DCF also does not consider the possible cyclicality of an industry, or a company's future capital requirements, so it does not give a full picture of a company's potential performance. Given that we are looking at Grafton Group as potential shareholders, the cost of equity is used as the discount rate, rather than the cost of capital (or weighted average cost of capital, WACC) which accounts for debt. In this calculation we've used 8.9%, which is based on a levered beta of 1.242. Beta is a measure of a stock's volatility, compared to the market as a whole. We get our beta from the industry average beta of globally comparable companies, with an imposed limit between 0.8 and 2.0, which is a reasonable range for a stable business. Check out our latest analysis for Grafton Group Strength Debt is not viewed as a risk. Dividends are covered by earnings and cash flows. Weakness Earnings declined over the past year. Dividend is low compared to the top 25% of dividend payers in the Trade Distributors market. Opportunity Annual revenue is forecast to grow faster than the British market. Good value based on P/E ratio and estimated fair value. Threat Annual earnings are forecast to grow slower than the British market. Although the valuation of a company is important, it shouldn't be the only metric you look at when researching a company. The DCF model is not a perfect stock valuation tool. Instead the best use for a DCF model is to test certain assumptions and theories to see if they would lead to the company being undervalued or overvalued. If a company grows at a different rate, or if its cost of equity or risk free rate changes sharply, the output can look very different. For Grafton Group, there are three important elements you should consider: Financial Health: Does GFTU have a healthy balance sheet? Take a look at our free balance sheet analysis with six simple checks on key factors like leverage and risk. Management:Have insiders been ramping up their shares to take advantage of the market's sentiment for GFTU's future outlook? Check out our management and board analysis with insights on CEO compensation and governance factors. Other High Quality Alternatives: Do you like a good all-rounder? Explore our interactive list of high quality stocks to get an idea of what else is out there you may be missing! PS. Simply Wall St updates its DCF calculation for every British stock every day, so if you want to find the intrinsic value of any other stock just search here. — Investing narratives with Fair Values A case for TSXV:USA to reach USD $5.00 - $9.00 (CAD $7.30–$12.29) by 2029. By Agricola – Community Contributor Fair Value Estimated: CA$12.29 · 0.9% Overvalued DLocal's Future Growth Fueled by 35% Revenue and Profit Margin Boosts By WynnLevi – Community Contributor Fair Value Estimated: $195.39 · 0.9% Overvalued Historically Cheap, but the Margin of Safety Is Still Thin By Mandelman – Community Contributor Fair Value Estimated: SEK232.58 · 0.2% Overvalued View more featured narratives — 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. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Irish Examiner
08-05-2025
- Business
- Irish Examiner
Woodie's 'strong' start to 2025 sees revenue at owner Grafton Group rise by 7.6%
Woodie's owner Grafton Group saw its revenue grow to £773m (€909.5m) in the first four months of the year, reflecting a 7.6% rise on the same period of 2024. In a trading update on Thursday, the group said it was up 9% in constant currency, which discounts fluctuations from foreign currency prices. The company said it remained 'cognisant of the potential risks arising from the imposition of US tariffs on the broader Irish economy and future investment decisions'. Group average daily like-for-like revenue for the period was 2.7% higher than in the same period last year, while in Ireland, the average daily like-for-like revenue, in constant currency, rose 3.5% on the same period in 2024. "The outlook for growth in construction remains positive with strong support and policy continuity from the new Government to increase housing completions and infrastructure investment,' the group said. Woodie's business in Ireland had a 'very strong' start to the year, with like-for-like revenue up 10%. "Well set-up and merchandised stores and favourable weather conditions, combined with strong consumer spending in Ireland, resulted in excellent growth across the business with a particularly strong performance in plants and garden related products," the company said. In Ireland, Chadwicks delivered like-for-like revenue growth of 3.5% in the period as trading activity recovered strongly from the impact of Storm Éowyn. The company said the group revenue had also benefited from the acquisition of Salvador Escoda, a distributor of heating, ventilation, air conditioning, water and renewable products in Spain, which was completed in October 2024. 'After a relatively subdued start to the year, and with the more material trading period lying ahead, we were pleased that our performance in the period was in line with our expectations, and we remain on track for the full year," said CEO Eric Born. 'We continue to prioritise meeting our customers' needs and expectations and strive to operate as efficiently as possible.'
Yahoo
30-04-2025
- Business
- Yahoo
3 UK Dividend Stocks Yielding Up To 6.6%
The United Kingdom's market landscape has recently been influenced by global economic challenges, with the FTSE 100 and FTSE 250 indices experiencing declines due to weak trade data from China and other international pressures. In such an environment, dividend stocks can offer a measure of stability and income for investors seeking to navigate the volatility, making them an attractive option amid uncertain market conditions. Name Dividend Yield Dividend Rating WPP (LSE:WPP) 6.92% ★★★★★★ Man Group (LSE:EMG) 7.78% ★★★★★☆ Keller Group (LSE:KLR) 3.53% ★★★★★☆ Treatt (LSE:TET) 3.25% ★★★★★☆ 4imprint Group (LSE:FOUR) 5.24% ★★★★★☆ Grafton Group (LSE:GFTU) 4.11% ★★★★★☆ OSB Group (LSE:OSB) 7.17% ★★★★★☆ NWF Group (AIM:NWF) 4.67% ★★★★★☆ Big Yellow Group (LSE:BYG) 4.56% ★★★★★☆ James Latham (AIM:LTHM) 7.70% ★★★★★☆ Click here to see the full list of 62 stocks from our Top UK Dividend Stocks screener. Let's uncover some gems from our specialized screener. Simply Wall St Dividend Rating: ★★★★★☆ Overview: Grafton Group plc is a distributor and seller of building materials and construction-related products operating in Ireland, the United Kingdom, the Netherlands, Finland, and Spain with a market cap of £1.76 billion. Operations: Grafton Group's revenue segments include UK Distribution (£780.78 million), Ireland Distribution (£632.81 million), Netherlands Distribution (£337.58 million), Retailing (£261.06 million), Finland Distribution (£131.76 million), Manufacturing (£122.16 million), and Spain Distribution (£29.66 million). Dividend Yield: 4.1% Grafton Group has demonstrated a commitment to its progressive dividend policy, recently recommending a final dividend increase for 2024. The company's dividends are well-covered by both earnings and cash flows, with payout ratios of 60.8% and 36.2%, respectively. Despite a slight decline in net income to £122 million, the firm's share buyback program aims to enhance shareholder value by reducing share capital. However, its current dividend yield of 4.11% is below top-tier UK payers. Click here and access our complete dividend analysis report to understand the dynamics of Grafton Group. Our valuation report here indicates Grafton Group may be undervalued. Simply Wall St Dividend Rating: ★★★★★☆ Overview: Seplat Energy Plc is an independent energy company involved in oil and gas exploration, production, and gas processing across Nigeria, Bahamas, Italy, Switzerland, England, and Singapore with a market cap of £1.17 billion. Operations: Seplat Energy Plc's revenue segments include oil and gas exploration, production, and gas processing across multiple regions. Dividend Yield: 6.7% Seplat Energy offers a dividend yield of 6.66%, placing it among the top 25% of UK dividend payers. Despite a low cash payout ratio of 33.6%, indicating strong coverage by cash flows, its dividends have been volatile over the past decade, with periods of significant fluctuation. Recently, Seplat reported substantial revenue growth for Q1 2025 at US$809.27 million and announced both final and special dividends to be paid in May, highlighting ongoing shareholder returns amidst financial volatility. Click to explore a detailed breakdown of our findings in Seplat Energy's dividend report. In light of our recent valuation report, it seems possible that Seplat Energy is trading beyond its estimated value. Simply Wall St Dividend Rating: ★★★★☆☆ Overview: SThree plc is a recruitment company specializing in the sciences, technology, engineering, and mathematics sectors across various countries including the UK, Europe, the US, and parts of Asia and the Middle East with a market cap of £308.97 million. Operations: SThree plc's revenue segments are distributed as follows: £299.23 million from the USA, £456.05 million from DACH, £353.15 million from the Rest of Europe, £40.91 million from the Middle East & Asia, and £343.57 million from the Netherlands (including Spain). Dividend Yield: 5.9% SThree's dividends are well-covered by earnings and cash flows, with a payout ratio of 38.2% and a cash payout ratio of 68.4%. However, its dividend yield of 5.87% falls short compared to the top UK payers, and its dividend history is marked by volatility over the past decade. Recently dropped from major FTSE indices, SThree trades below fair value estimates but faces forecasted earnings declines, potentially impacting future dividends' sustainability. Delve into the full analysis dividend report here for a deeper understanding of SThree. Our valuation report unveils the possibility SThree's shares may be trading at a discount. Take a closer look at our Top UK Dividend Stocks list of 62 companies by clicking here. Have you diversified into these companies? Leverage the power of Simply Wall St's portfolio to keep a close eye on market movements affecting your investments. Join a community of smart investors by using Simply Wall St. It's free and delivers expert-level analysis on worldwide markets. Explore high-performing small cap companies that haven't yet garnered significant analyst attention. Fuel your portfolio with companies showing strong growth potential, backed by optimistic outlooks both from analysts and management. Find companies with promising cash flow potential yet trading below their fair value. This 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. Companies discussed in this article include LSE:GFTU LSE:SEPL and LSE:STEM. Have feedback on this article? Concerned about the content? with us directly. Alternatively, email editorial-team@
Yahoo
18-04-2025
- Business
- Yahoo
Grafton Group plc (LON:GFTU) Has Fared Decently But Fundamentals Look Uncertain: What Lies Ahead For The Stock?
Grafton Group's (LON:GFTU) stock up by 4.1% over the past week. Given that the stock prices usually follow long-term business performance, we wonder if the company's mixed financials could have any adverse effect on its current price price movement Specifically, we decided to study Grafton Group's ROE in this article. Return on Equity or ROE is a test of how effectively a company is growing its value and managing investors' money. In simpler terms, it measures the profitability of a company in relation to shareholder's equity. We've found 21 US stocks that are forecast to pay a dividend yield of over 6% next year. See the full list for free. The formula for return on equity is: Return on Equity = Net Profit (from continuing operations) ÷ Shareholders' Equity So, based on the above formula, the ROE for Grafton Group is: 7.6% = UK£122m ÷ UK£1.6b (Based on the trailing twelve months to December 2024). The 'return' is the income the business earned over the last year. One way to conceptualize this is that for each £1 of shareholders' capital it has, the company made £0.08 in profit. See our latest analysis for Grafton Group So far, we've learned that ROE is a measure of a company's profitability. Based on how much of its profits the company chooses to reinvest or "retain", we are then able to evaluate a company's future ability to generate profits. Assuming all else is equal, companies that have both a higher return on equity and higher profit retention are usually the ones that have a higher growth rate when compared to companies that don't have the same features. When you first look at it, Grafton Group's ROE doesn't look that attractive. A quick further study shows that the company's ROE doesn't compare favorably to the industry average of 13% either. As a result, Grafton Group's flat net income growth over the past five years doesn't come as a surprise given its lower ROE. As a next step, we compared Grafton Group's net income growth with the industry and were disappointed to see that the company's growth is lower than the industry average growth of 14% in the same period. Earnings growth is an important metric to consider when valuing a stock. The investor should try to establish if the expected growth or decline in earnings, whichever the case may be, is priced in. Doing so will help them establish if the stock's future looks promising or ominous. Has the market priced in the future outlook for GFTU? You can find out in our latest intrinsic value infographic research report. Despite having a moderate three-year median payout ratio of 43% (meaning the company retains57% of profits) in the last three-year period, Grafton Group's earnings growth was more or les flat. So there could be some other explanation in that regard. For instance, the company's business may be deteriorating. Additionally, Grafton Group has paid dividends over a period of at least ten years, which means that the company's management is determined to pay dividends even if it means little to no earnings growth. Based on the latest analysts' estimates, we found that the company's future payout ratio over the next three years is expected to hold steady at 47%. Regardless, the future ROE for Grafton Group is predicted to rise to 9.7% despite there being not much change expected in its payout ratio. Overall, we have mixed feelings about Grafton Group. While the company does have a high rate of reinvestment, the low ROE means that all that reinvestment is not reaping any benefit to its investors, and moreover, its having a negative impact on the earnings growth. With that said, the latest industry analyst forecasts reveal that the company's earnings are expected to accelerate. To know more about the company's future earnings growth forecasts take a look at this free report on analyst forecasts for the company to find out more. 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. Sign in to access your portfolio
