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Breedon Group (BREE) Fair Value & Analysis

Basic Materials · GB · Market cap 1.1B GBX

BG Breedon Group BREE · LSE
Price£3.10
Fair Value£4.10
Upside+32.1%
Quality52/100
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Healthy Growth
Thin margins · 4.9% net margin
Low debt · generates free cash flow
4.93% dividend yield
Mixed vs. peers (8/14)
Narrow moat 41/100
Evidence: High Range £2.64 – £5.13 Share as image

Fair value as of: Jul 20, 2026

From 26 valuation models · updated 21 days ago

Fair value updated Jul 20, 2026, revised from £4.11 to £4.10 (−0.2%) since Jul 15, 2026. Share price +21.0% over the past month.

A solid business, screening 32% undervalued on our models.

What matters now

  • Solid quality (52/100) at a price below fair value, the discount is the argument here, not the business quality.
  • A fairly wide model range (£2.64 to £5.13) leaves room in how you read the outcome.
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Price vs Fair Value (5 years)

£4.19 £1.92 Fair Value £4.10 May 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Jul 20, 2026.

How to read this chart

60‑month range £1.92 – £4.19 · fair‑value band £2.64 – £5.13 · the £3.10 price screens below the £4.10 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Jul 20, 2026.

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Analysis

Breedon Group (BREE) currently trades at £3.10, while our model-based Fair Value estimate is £4.10, implying the stock looks roughly 32.1% undervalued today. The Quality Score stands at 52/100 (solid quality), in the Basic Materials sector. Bull case: trading below our estimate, it may offer upside if the fundamentals hold. Bear case: a low price can be a value trap when quality is weak or the data is thin (evidence: high), always confirm before acting.

Over the trailing twelve months, Breedon Group generated revenue of £1.7B at a net margin of 4.9%. Revenue grew 10.6% year over year. It earns a return on equity of 7.1%. Net debt stands at £527M. Fundamentals as of Jul 20, 2026

Our scenario range runs from £2.64 (bear case) to £5.13 (bull case); at £3.10, the current price sits within that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. For context, the median of 10 Basic Materials peers we cover trades at -59% fair-value upside, at 32%, BREE screens cheaper than that median.

Fair Value models

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small.

Model BearBaseBull Evidence
Highest evidence
Growth DCF £2.26 £4.71 £8.43 80
Residual Income £2.65 £2.75 £2.75 76
Rev-Margin DCF £2.39 £5.32 £9.33 74
All 26 models by family
DCF Models
FCF DCF £2.36 £5.09 £10.09 38
Owner Earnings £2.08 £4.76 £9.19 31
5Y Revenue Exit £2.39 £5.43 £9.70 39
5Y EBITDA Exit £3.63 £8.13 £14.03 41
5Y P/E Exit £1.87 £4.31 £7.19 38
10Y Revenue Exit £2.21 £5.00 £9.54 36
10Y EBITDA Exit £3.10 £6.86 £13.02 37
10Y P/E Exit £2.00 £4.23 £7.52 35
Earnings-Based
Graham-Dodd £1.64 £9.03 £12.53 54
Lynch FV £2.51 £3.59 £4.67 50
PEG = 1.0 £2.51 £3.59 £4.67 46
EPV £1.48 £1.85 £2.17 59
Dividend Discount
Gordon GGM £1.15 £2.08 £2.86 70
DDM Multi-Stage £1.15 £1.90 £2.22 61
Multiples
P/E Multiple £3.08 £4.10 £5.13 63
P/S Multiple £3.08 £4.10 £5.13 58
P/B Multiple £3.08 £4.10 £5.13 55
EV/EBIT £2.98 £4.40 £5.81 53
EV/EBITDA £4.76 £6.77 £8.78 54
EV/Revenue £2.42 £4.00 £5.57 43
Asset-Based
NCAV (Graham) £1.72 £2.31 £3.45 50
Growth DCF
Growth DCF £2.26 £4.71 £8.43 80
Rev-Margin DCF £2.39 £5.32 £9.33 74
Economic Profit
Residual Income £2.65 £2.75 £2.75 76
ROIC Compounder £1.48 £1.85 £2.17 72
Growth Earnings
Growth-Adj P/E £3.30 £4.71 £6.13 68

Widest divergence: DCF Models (£5.00) versus Economic Profit (£1.85). Highest evidence: Growth DCF (80).

Key figures & financial health

Revenue (TTM) 1.7B GBX
Revenue growth (YoY) +10.6%
Net margin 4.9%
Return on equity 7.1%
Free cash flow 111M GBX FY2025
P/E ratio 12.9
More key figures
Operating margin 9.0%
EPS (TTM) £0.2400
Dividend yield 4.9%
EPS growth (YoY) -9.9%
Net debt 527M GBX FY2025

Figures from reported company fundamentals · as of Jul 20, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 52/100

Of which business quality 51 · Market factors (momentum, volatility) 54

Profitability 32
Margins and returns on capital today
Quality Growth 35
Are margins and returns improving?
Cashflow 53
Earnings quality: real cash, not paper profit
Fin. Strength 55
Balance sheet, leverage, solvency risk
Investment 67
Disciplined investing over empire-building
Low Volatility 63
Calm price path (market factor)
Momentum 47
Price trend over the last 3–12 months (market factor)
52W Momentum 56
Distance to the 52-week high (market factor)
Net Issuance 75
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

About the company

Breedon Group plc, together with its subsidiaries, engages in the quarrying, manufacture, and sale of construction materials and building products in the Great Britain, Ireland, and the United States. The company offers aggregates, asphalt, cement, clay bricks, concrete blocks, roof and ridge tiles, ready-mixed concrete, screed, and trowel-ready mortar.

Full company description

Breedon Group plc, together with its subsidiaries, engages in the quarrying, manufacture, and sale of construction materials and building products in the Great Britain, Ireland, and the United States. The company offers aggregates, asphalt, cement, clay bricks, concrete blocks, roof and ridge tiles, ready-mixed concrete, screed, and trowel-ready mortar. In addition, the company provides minimix, on-site batching, surfacing, and waste recovery solutions. It serves a network of customers across the infrastructure, housebuilding and industrial end-markets. The company was formerly known as Breedon Aggregates Limited and changed its name to Breedon Group plc in August 2016. Breedon Group plc was incorporated in 2007 and is headquartered in Derby, the United Kingdom.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Breedon Group reported revenue of £1.7B in FY2025 versus £1.2B in FY2021, a compound +8.6%/yr. Reported net income was £83.8M in FY2025, compounding +1.6%/yr from FY2021.

Growth Quality 83/100
Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Latest Revenue (FY 2025)
£1.7B
Latest YoY
+8.7%
Avg. growth/yr (3Y)
+7.1%
Avg. growth/yr (5Y)
+13.0%
Avg. growth/yr (15Y)
+27.9%
Revenue +8.6%/yr
FY21 £1.2B
FY22 £1.4B
FY23 £1.5B
FY24 £1.6B
FY25 £1.7B
Net income +1.6%/yr
FY21 £78.5M
FY22 £113M
FY23 £106M
FY24 £96.2M
FY25 £83.8M

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Cite: Fair Value Calculator (2026). "Breedon Group Fair Value". https://www.fairvalue-calculator.com/stock/BREE

Peer Group

Building Materials · 254 stocks

How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.

Quality Score 52 · Below median
Fair Value upside +32% · Top 25%
Return on equity (TTM) 7% · Above median
Return on assets 4% · Above median
Net margin (TTM) 5% · Above median
Operating margin (TTM) 9% · Above median
Revenue growth 11% · Above median
Dividend yield (TTM) 4.9% · Top 25%
Debt / equity 0.46× · Higher than 75% of peers

Valuation Multiples vs Building Materials median · lower = cheaper

P/E (TTM) 12.9× · Cheaper than median
P/B 1.21× · Pricier than median
P/S (TTM) 0.85× · Pricier than median
P/FCF 13.1× · Pricier than 75% of peers
EV/EBITDA 7.2× · Pricier than median

Snowflake

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

VALUE 76 · sector 28
FUTURE 53 · sector 2
PAST 28 · sector 15
HEALTH 77 · sector 92
DIVIDEND 99 · sector 42

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

None of the checked exposures detected

ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.

Similar stocks

10 more Building Materials stocks, each showing price versus our Fair Value estimate (as of Jul 20, 2026).

Stock Price Fair Value vs Fair Value
CRH plc CRH $102.92 $70.57 -31%
UltraTech Cement Limited ULTRACEMCO ₹11,711 ₹4,719 -60%
China Jushi Co 600176 ¥54.52 ¥13.95 -74%
Grasim Industries Limited GRASIM ₹3,073 ₹1,245 -59%
CEMEX, S.A. CEMEXCPO 21.71 MXN 15.42 MXN -29%
Anhui Conch Cement Company 600585 ¥16.99 ¥26.14 +54%
Ambuja Cements Limited AMBUJACEM ₹435.25 ₹227.96 -48%
Shree Cement Limited SHREECEM ₹26,930 ₹8,215 -69%
TCC Group 1101B 43.70 TWD 10.48 TWD -76%
Taiwan Glass Ind. Corp 1802 53.30 TWD 13.98 TWD -74%

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Frequently asked questions

Is Breedon Group (BREE) overvalued or undervalued?
As of Jul 20, 2026, our model estimates a fair value of £4.10 versus a price of £3.10, about +32% (undervalued).
What is the fair value of BREE?
Our model-based fair value for Breedon Group is £4.10 (as of Jul 20, 2026), built from audited fundamentals. The current price is £3.10.
What is the quality score of BREE?
Breedon Group has a Quality Score of 52/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the revenue of Breedon Group (BREE)?
Breedon Group reported trailing-twelve-month revenue of about £1.7B (latest available figure, as of Jul 20, 2026).
What is the net profit margin of BREE?
The net profit margin of Breedon Group is about 4.9%, meaning it keeps roughly 4.9% of revenue as net income. Based on the latest reported figures.
Does Breedon Group pay a dividend?
Breedon Group currently shows a dividend yield of about 5.29% relative to its recent price (as of Jul 20, 2026).

How we calculate Fair Value

Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.

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