The Brickworks (ASX:BKW) share price hit an all-time high today. Here’s why

Brickworks hit a new all-time high today…

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The Brickworks Limited (ASX: BKW) share price was on fire today. Brickworks shares managed to climb a hefty 11.32% today to close at $23.40 a share. During intra-day trading, Brickworks shares hit a high of $23.54. That’s both a new 52-week and all-time high for the company.

Why are the shares at an all-time high?

As we covered this morning, today’s share price rise seems to be a response to the company’s trading update that it released to investors before market open today. In this release, Brickworks informed the market that it has enjoyed a $100 million boost to its profits as the result of a revaluation of some of its property assets.

As a result, the company is now expecting to bring in a record $240 million to $260 million in earnings before interest and tax (EBIT) from its property portfolio in FY2021. That’s up from $129 million a year ago.

About the Brickworks share price

Brickworks is a building materials company at its core, but (as you may have gathered) it also has a large portfolio of land assets that it derives income from as well. The company has a large presence in the Australian building materials market and has been expanding into the US markets in recent years as well. In addition to these two income streams, the company also has another large asset on its books – a significant shareholding of 39.4% in Washington H. Soul Pattinson & Co. Ltd (ASX: SOL). In turn, Soul Patts also has a commensurate stake in Brickworks shares.

Today’s share price move has capped off what has been a threat year for the company. Brickworks shares are now up 11.4% in the past month, 19.7% year to date in 2021, and up 45.7% in the past 12 months. At the current share price, Brickworks has a market capitalisation of $3.53 billion and a price-to-earnings (P/E) ratio of 11.2. Brickworks is also well known for its track record of delivering steady or rising dividends every year for more than four decades. It currently has a trailing dividend yield of 2.57%.

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Motley Fool contributor Sebastian Bowen owns shares of Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Brickworks and Washington H. Soul Pattinson and Company Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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