BRG - Breville

 BRG - Breville

05/07/26

......................

Over the last 5 years, Breville Group (ASX:BRG) has demonstrated strong, steady growth. Revenue nearly doubled from $0.98B in FY21 to $1.70B in FY25, pushing net profit up to $135.9M. The balance sheet has remained exceptionally healthy, with the Debt-to-Equity ratio shrinking to (0.12) in FY25 and hovering around (0.28) as of early 2026. Return on Equity (ROE) has stayed consistently robust, averaging 16.8% between 2021 and 2025. [1, 2, 3, 4, 5]

Financial Snapshot

• Profit (NPAT): Grew reliably over the last five years, climbing from $91M in FY21 to $135.9M in FY25. This upward trend continued into the first half of FY26, where revenue hit a record $1.10B with a net income of $98.2M. [1, 2, 3, 4, 5]

• Debt: The company maintains a very safe and conservative balance sheet. While long-term debt was around $257.5M in 2023, the company successfully paid it down, recording a net cash position of $48.5M at the end of FY25. By 1H26, net debt sat at a comfortable $43.6M. [1, 2, 3, 4, 5]
• ROE (Return on Equity): Peaked at 19.7% in 2021 and stabilized between 13.5% and 15.9% from 2022 to 2026. This continues to track well above the global industry average. [1, 2, 3]

• Dividends: Supported by reliable free cash flow, the board maintained a targeted ~40% payout ratio, offering fully franked dividends that grew to 37.0 cents per share in FY25. [1, 2, 3]

It's a steady dividend payer. Though the dividends haven't quite recovered to the levels of 2020 when the craze for making coffee at home during COVID was at it's height.

Current Valuation & Forecast

Recently, BRG has been trading at a Price-to-Earnings (P/E) ratio near 33.8. While the stock price has seen some volatility—falling roughly 14% over a 90-day period in early 2026—analysts forecast continued revenue growth of 7.5% annually over the coming years, outpacing the broader global consumer durables sector

PE Ratios

The mean historical Price-to-Earnings (P/E) ratio for Breville Group Limited (ASX: BRG) over the last 10 years is 30.54, with a historical range swinging between a minimum of 19.21 and a maximum of 49.70. [1, 2, 3]

Historical P/E Ratio Data (10-Year Breakdown)

The table below tracks Breville's annual fiscal P/E ratios over the last decade, showing a clear contraction during 2022 followed by an upward re-rating through 2025 and 2026: [1, 2, 3]

Year / Period [1, 2, 3, 4, 5, 6]	P/E Ratio	Key Market Drivers
Current (Mid-2026)	34.24	Valuation premium sustained by steady international sales.
2025	31.71	Normalizing premium over peer averages.
2024	33.18	Upward valuation correction as margins steadied.
2023	26.20	Partial recovery post-rate hike shocks.
2022	23.60	10-year low due to global supply chain pressures.
2021	49.70	Historical peak driven by the work-from-home appliance boom.
2020	45.68	Initial pandemic-induced demand spike for kitchen premium goods.
2019	28.63	Solid trading history aligned with long-term median.
2018	24.50	Baseline valuation reflecting steady global expansion.
2017	21.80	Moderate growth multiple prior to aggressive scaling.
2016	19.21	Period low reflecting more localized APAC operations.

Core Valuation Insights

• Premium Over Peers: Breville traditionally commands a higher trading multiple compared to the broader ASX Consumer Durables industry average, which historically hovers around 13.8x. [1]
• Growth Expectations: Investors pay a higher multiple due to the company's strong brand equity and its track record of expanding premium product lines into global regions like Europe and the Americas. [1, 2, 3]

share price

I think its a bit expensive at the moment July 2026.

Buy below $26.50

..........................