BRI is looking quite interesting at these levels. I wanted to...

BRI is looking quite interesting at these levels. I wanted to assess how much of the increase in profit since 2019 was structural step-wise changes from acquisitions / efficiencies, versus how much was cyclical and perhaps not very durable. I was pleasently surprised in my back of the envelope assessment to find that most of the EPS accretion is from acquisitions, some from Wagga/Grafton, and some from organic growth during the cycle.



Seems if you are willing to underwrite the outlook that commercial construction is strong and residential construction is only temporarily soft, then I reckon this is not a bad entry point for BRI. Valuation of ~8.5x earnings with 7.9% dividends (68% payout) and EPS growth targets of 10% (but likely only 2-3% organic and relying on the rest being acquisitions). Could get a re-rate if interest rates stop going up and construction comes back.