LSE:BDEV

Stock Analysis Report

Executive Summary

Barratt Developments PLC engages in the housebuilding and commercial development businesses in Great Britain.

Snowflake

Fundamentals

Flawless balance sheet, good value and pays a dividend.


Similar Companies

Share Price & News

How has Barratt Developments's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

-3.6%

BDEV

-0.4%

GB Consumer Durables

0.7%

GB Market


1 Year Return

31.5%

BDEV

17.1%

GB Consumer Durables

3.6%

GB Market

Return vs Industry: BDEV exceeded the UK Consumer Durables industry which returned 17.1% over the past year.

Return vs Market: BDEV exceeded the UK Market which returned 3.6% over the past year.


Shareholder returns

BDEVIndustryMarket
7 Day-3.6%-0.4%0.7%
30 Day0.9%4.5%-0.5%
90 Day-0.4%7.0%-1.8%
1 Year42.2%31.5%25.4%17.1%9.1%3.6%
3 Year80.6%37.1%67.6%39.0%19.3%4.2%
5 Year122.6%57.6%125.2%68.3%35.7%4.8%

Price Volatility Vs. Market

How volatile is Barratt Developments's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Barratt Developments undervalued compared to its fair value and its price relative to the market?

19.3%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: BDEV (£6.53) is trading below our estimate of fair value (£8.09)

Significantly Below Fair Value: BDEV is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: BDEV is good value based on its PE Ratio (8.9x) compared to the Consumer Durables industry average (10.4x).

PE vs Market: BDEV is good value based on its PE Ratio (8.9x) compared to the UK market (16.6x).


Price to Earnings Growth Ratio

PEG Ratio: BDEV is poor value based on its PEG Ratio (3.5x)


Price to Book Ratio

PB vs Industry: BDEV is good value based on its PB Ratio (1.4x) compared to the GB Consumer Durables industry average (1.4x).


Next Steps

Future Growth

How is Barratt Developments forecast to perform in the next 1 to 3 years based on estimates from 16 analysts?

2.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: BDEV's forecast earnings growth (2.6% per year) is above the savings rate (1.2%).

Earnings vs Market: BDEV's earnings (2.6% per year) are forecast to grow slower than the UK market (12.3% per year).

High Growth Earnings: BDEV's earnings are forecast to grow, but not significantly.

Revenue vs Market: BDEV's revenue (2.9% per year) is forecast to grow slower than the UK market (4% per year).

High Growth Revenue: BDEV's revenue (2.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: BDEV's Return on Equity is forecast to be low in 3 years time (14.9%).


Next Steps

Past Performance

How has Barratt Developments performed over the past 5 years?

14.5%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: BDEV's earnings have grown by 14.5% per year over the past 5 years.

Accelerating Growth: BDEV's earnings growth over the past year (10.2%) is below its 5-year average (14.5% per year).

Earnings vs Industry: BDEV earnings growth over the past year (10.2%) exceeded the Consumer Durables industry 5%.


Return on Equity

High ROE: BDEV's Return on Equity (15.2%) is considered low.


Return on Assets

ROA vs Industry: BDEV has a higher Return on Assets than the Consumer Durables industry average last year.


Return on Capital Employed

ROCE Improving: BDEV has improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is Barratt Developments's financial position?


Financial Position Analysis

Short Term Liabilities: BDEV's short term assets (£6.0B) exceeds its short term liabilities (£1.7B)

Long Term Liabilities: BDEV's short term assets (6.0B) exceeds its long term liabilities (631.1M)


Debt to Equity History and Analysis

Debt Level: BDEV's debt to equity ratio (4.1%) is considered satisfactory

Reducing Debt: BDEV's debt to equity ratio has reduced from 6.6% to 4.1% over the past 5 years.

Debt Coverage: BDEV's debt is well covered by operating cash flow (180.7%).

Interest Coverage: BDEV's interest payments on its debt are well covered by EBIT (29.4x coverage).


Balance Sheet

Inventory Level: BDEV has a high level of physical assets or inventory.

Debt Coverage by Assets: BDEV's debt is covered by short term assets (assets are 30x debt).


Next Steps

Dividend

What is Barratt Developments's current dividend yield, its reliability and sustainability?

7.11%

Current Dividend Yield


Dividend Yield vs Market

company7.1%marketbottom25%2.0%markettop25%5.3%industryaverage6.2%forecastin3Years7.3%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: BDEV's dividend (7.11%) is higher than the bottom 25% of dividend payers in the UK market (2%).

High Dividend: BDEV's dividend (7.11%) is in the top 25% of dividend payers in the UK market (5.33%)

Stable Dividend: Whilst dividend payments have been stable, BDEV has been paying a dividend for less than 10 years.

Growing Dividend: BDEV's dividend payments have increased, but the company has only paid a dividend for 6 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (39.7%), BDEV's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: BDEV's dividends in 3 years are forecast to be covered by earnings (62.8% payout ratio).


Next Steps

Management

What is the CEO of Barratt Developments's salary, the management and board of directors tenure and is there insider trading?

7.2yrs

Average management tenure


CEO

David Thomas (56yo)

4.3yrs

Tenure

UK£3,613,000

Compensation

Mr. David Fraser Thomas has been Group Chief Executive Officer of Barratt Developments plc since July 1, 2015. Mr. Thomas served as a Group Finance Director at Barratt Developments plc from July 21, 2009 t ...


CEO Compensation Analysis

Compensation vs. Market: David's total compensation ($USD4.66M) is about average for companies of similar size in the UK market ($USD3.59M).

Compensation vs Earnings: David's compensation has increased by more than 20% in the past year.


Management Age and Tenure

7.2yrs

Average Tenure

56yo

Average Age

Experienced Management: BDEV's management team is seasoned and experienced (7.2 years average tenure).


Board Age and Tenure

4.1yrs

Average Tenure

59yo

Average Age

Experienced Board: BDEV's board of directors are considered experienced (4.1 years average tenure).


Insider Trading

Insider Buying: BDEV insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUK£3,298,90031 Jul 19
David Thomas
EntityIndividual
Role
Chief Executive Officer
Group Chief Executive & Executive Director
Shares500,000
Max PriceUK£6.60
BuyUK£43,69017 Dec 18
Jessica White
EntityIndividual
Role
Member of the Board of Directors
CFO & Executive Director
Shares10,000
Max PriceUK£4.37
BuyUK£47,98820 Nov 18
John Allan
EntityIndividual
Role
Chairman of the Board
Non-Executive Chairman
Shares10,000
Max PriceUK£4.80

Ownership Breakdown


Management Team

  • Nick Richardson (56yo)

    Managing Director of Wilson Bowden Developments

    • Tenure: 0yrs
  • Steven Boyes (59yo)

    COO, Deputy CEO & Executive Director

    • Tenure: 18.3yrs
    • Compensation: UK£2.92m
  • Jeremy Hipkiss

    Group Sales & Marketing Director

    • Tenure: 0yrs
  • Gary Ennis (50yo)

    Regional Managing Director of London & Southern

    • Tenure: 13.8yrs
  • David Thomas (56yo)

    Group Chief Executive & Executive Director

    • Tenure: 4.3yrs
    • Compensation: UK£3.61m
  • Rob Tansey

    Group Human Resources Director

    • Tenure: 7.2yrs
  • Michael Finn

    Group Design & Technical Director

    • Tenure: 0yrs
  • Chloé Barnes

    Head of Investor Relations

    • Tenure: 0yrs
  • Tim Collins

    Head of Corporate Communications

    • Tenure: 0yrs
  • Jessica White

    CFO & Executive Director

    • Tenure: 2.3yrs
    • Compensation: UK£1.20m

Board Members

  • John Allan (70yo)

    Non-Executive Chairman

    • Tenure: 4.9yrs
    • Compensation: UK£327.00k
  • Richard Akers (58yo)

    Senior Independent Director

    • Tenure: 2.9yrs
    • Compensation: UK£88.00k
  • Steven Boyes (59yo)

    COO, Deputy CEO & Executive Director

    • Tenure: 18.3yrs
    • Compensation: UK£2.92m
  • Nina Bibby

    Non-Executive Director

    • Tenure: 6.8yrs
    • Compensation: UK£62.00k
  • Jock Lennox (63yo)

    Non-Executive Director

    • Tenure: 3.3yrs
    • Compensation: UK£74.00k
  • David Thomas (56yo)

    Group Chief Executive & Executive Director

    • Tenure: 4.3yrs
    • Compensation: UK£3.61m
  • Sharon White

    Independent Non-Executive Director

    • Tenure: 1.8yrs
    • Compensation: UK£62.00k
  • Jessica White

    CFO & Executive Director

    • Tenure: 2.3yrs
    • Compensation: UK£1.20m

Company Information

Barratt Developments PLC's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Barratt Developments PLC
  • Ticker: BDEV
  • Exchange: LSE
  • Founded: 1958
  • Industry: Homebuilding
  • Sector: Consumer Durables
  • Market Cap: UK£6.604b
  • Shares outstanding: 1.01b
  • Website: https://www.barrattdevelopments.co.uk

Number of Employees


Location

  • Barratt Developments PLC
  • Barratt House
  • Cartwright Way
  • Coalville
  • Leicestershire
  • LE67 1UF
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
BTDP.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJan 1992
BDEVLSE (London Stock Exchange)YesOrdinary SharesGBGBPJan 1992
3BADB (Deutsche Boerse AG)YesOrdinary SharesDEEURJan 1992
BDEVLBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBGBPJan 1992
BTDP.YOTCPK (Pink Sheets LLC)ADRUSUSDApr 2011

Biography

Barratt Developments PLC engages in the housebuilding and commercial development businesses in Great Britain. It acquires and develops land; plans, designs, and constructs residential properties, including ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/23 20:34
End of Day Share Price2019/10/23 00:00
Earnings2019/06/30
Annual Earnings2019/06/30


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.