Bought $IBST.L (Ibstock PLC) in July last year, and added to the position just over a week ago. I see this as a nice long-term position. The UK-based company makes clay bricks and concrete products. According to some researchers, the UK needs about 4 million homes, and to build homes you need bricks, roof tiles and fence posts, and Ibstock makes all those things.
Yes, the housebuilder stocks are in the doldrums because the industry is, and yes mortgage rates are high. But, one thing is sure, the UK needs more houses built. Eventually, Ibstock will be selling more bricks than it does today.
In the meantime, the business has a debt-to-equity ratio of 0.83, has no trouble meeting its interest obligations from operating profits (assuming we don't see another $MSLH.L (Marshalls PLC) has recovered its revenues well following the pandemic, and generates good amounts of operating cash flow. All looks very solid and the stock is cheap with a P/E ratio of 7.94, and P/S ratio 1.14, plus there is a dividend yield of 5.76%.... Show More
