Brickworks isn’t really a brick business. Bricks, along with masonry products, roofing and precast concrete, generate only about a quarter of profits. Property development and the sale of surplus land contribute another third but the largest part of Brickworks is its 42.7% stake in sister company Soul Pattinson.
This stake accounts for the overwhelming bulk of the stock’s valuation. Yet understanding the building materials business is useful to gain an information edge.