Building products

Time to take a walk on the lightside

  • Sectors : Building products
  • Companies : Forterra plc | Marshalls | Howden Joinery | Kingspan Group | Grafton Group | Tyman | Genuit Group | Volution | Travis Perkins plc | Ibstock plc


Ratings and price correct at time of issue

Company Rating Date Previous Rating Date Closing Price
Forterra plc NEUTRAL 19/08/16 N/A N/A 200p
Genuit Group NEUTRAL 05/11/21 N/A N/A 330p
Grafton Group OUTPERFORM 07/10/20 Neutral 21/05/20 898p
Howden Joinery OUTPERFORM 31/03/22 Neutral 26/09/19 659p
Ibstock plc NEUTRAL 04/08/17 Outperform 19/08/16 164p
Kingspan Group OUTPERFORM 12/05/11 Neutral 30/06/09 5834c
Marshalls NEUTRAL 10/11/21 N/A N/A 320p
Travis Perkins plc NEUTRAL 28/05/20 Underperform 01/07/16 1021p
Tyman OUTPERFORM 24/03/21 N/A N/A 261p
Volution OUTPERFORM 31/03/21 N/A N/A 399p


2022 was, to put it mildly, a year best forgotten for our building materials lightside coverage list. The steep drop in equity values essentially pre-empts this year’s operational hurdles. Our universe screens very well from a valuation perspective should existing forecasts hold up. The jury is out on this. Our instinct is that, notwithstanding the near-term cyclical downturn risk, investors should focus on those businesses best placed to snap back quickly, that can take advantage of any industry dislocation and that offer structurally through-the-cycle advantaged propositions. Fasten seatbelts, but we gravitate towards the established quality of Howdens and Kingspan. Deep value is another consideration, with Grafton and Tyman standing out.

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Jan 16 2023, 07:00 GMT