LSE:BDEV

Stock Analysis Report

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Executive Summary

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


Snowflake Analysis

Flawless balance sheet and good value.


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

Stable Share Price: BDEV's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

1.1%

BDEV

5.6%

GB Consumer Durables

3.7%

GB Market


1 Year Return

-4.3%

BDEV

-1.6%

GB Consumer Durables

-9.5%

GB Market

Return vs Industry: BDEV underperformed the UK Consumer Durables industry which returned -1.6% over the past year.

Return vs Market: BDEV exceeded the UK Market which returned -9.5% over the past year.


Shareholder returns

BDEVIndustryMarket
7 Day1.1%5.6%3.7%
30 Day3.9%3.4%10.8%
90 Day-26.6%-22.9%-5.0%
1 Year1.8%-4.3%3.0%-1.6%-5.1%-9.5%
3 Year12.4%-8.9%9.1%-7.0%-1.7%-13.7%
5 Year20.1%-12.7%32.9%2.6%16.4%-9.7%

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?

33.0%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: BDEV (£5.38) is trading below our estimate of fair value (£8.02)

Significantly Below Fair Value: BDEV is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: BDEV is good value based on its PE Ratio (7.2x) compared to the Consumer Durables industry average (9.1x).

PE vs Market: BDEV is good value based on its PE Ratio (7.2x) compared to the UK market (15x).


Price to Earnings Growth Ratio

PEG Ratio: BDEV is poor value based on its PEG Ratio (1.1x)


Price to Book Ratio

PB vs Industry: BDEV is overvalued based on its PB Ratio (1.1x) compared to the GB Consumer Durables industry average (1.1x).


Next Steps

Future Growth

How is Barratt Developments forecast to perform in the next 1 to 3 years based on estimates from 15 analysts?

6.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: BDEV's forecast earnings growth (6.6% per year) is above the savings rate (1.2%).

Earnings vs Market: BDEV's earnings (6.6% per year) are forecast to grow slower than the UK market (20.9% per year).

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

Revenue vs Market: BDEV's revenue (7.2% per year) is forecast to grow faster than the UK market (3.5% per year).

High Growth Revenue: BDEV's revenue (7.2% 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 (11.5%).


Next Steps

Past Performance

How has Barratt Developments performed over the past 5 years?

11.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: BDEV has high quality earnings.

Growing Profit Margin: BDEV's current net profit margins (15.4%) are higher than last year (14.5%).


Past Earnings Growth Analysis

Earnings Trend: BDEV's earnings have grown by 11.9% per year over the past 5 years.

Accelerating Growth: BDEV's earnings growth over the past year (3.1%) is below its 5-year average (11.9% per year).

Earnings vs Industry: BDEV earnings growth over the past year (3.1%) exceeded the Consumer Durables industry -6.6%.


Return on Equity

High ROE: BDEV's Return on Equity (15.5%) is considered low.


Next Steps

Financial Health

How is Barratt Developments's financial position?


Financial Position Analysis

Short Term Liabilities: BDEV's short term assets (£5.8B) exceed its short term liabilities (£1.5B).

Long Term Liabilities: BDEV's short term assets (£5.8B) exceed its long term liabilities (£621.6M).


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 5.7% to 4.1% over the past 5 years.

Debt Coverage: BDEV's debt is well covered by operating cash flow (200.8%).

Interest Coverage: BDEV's interest payments on its debt are well covered by EBIT (30.9x coverage).


Balance Sheet


Next Steps

Dividend

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

4.91%

Forecast Dividend Yield


Dividend Yield vs Market

Notable Dividend: Unable to evaluate BDEV's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate BDEV's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if BDEV's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if BDEV's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: BDEV is not paying a notable dividend for the UK market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of BDEV's dividend in 3 years as they are not forecast to pay a notable one for the UK market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

6.4yrs

Average management tenure


CEO

David Thomas (56yo)

4.92yrs

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 ($USD4.55M) is above average for companies of similar size in the UK market ($USD3.41M).

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


Leadership Team

NamePositionTenureCompensationOwnership
David Thomas
Group Chief Executive & Executive Director4.92yrsUK£3.61m0.099% £5.4m
Jessica White
CFO & Executive Director3yrsUK£1.20m0.0067% £364.4k
Steven Boyes
COO, Deputy CEO & Executive Director18.92yrsUK£2.92m0.045% £2.5m
Michael Finn
Group Design & Technical Directorno datano datano data
Jenny Matthews
Interim Head of Investor Relations1.75yrsno datano data
Tim Collins
Head of Corporate Communicationsno datano datano data
Jeremy Hipkiss
Group Sales & Marketing Directorno datano datano data
Robert Tansey
Group Human Resources Director7.83yrsno datano data
Gary Ennis
Regional Managing Director of London & Southern14.42yrsno datano data
Nicholas Richardson
Managing Director of Wilson Bowden Developmentsno datano datano data

6.4yrs

Average Tenure

56yo

Average Age

Experienced Management: BDEV's management team is seasoned and experienced (6.4 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
David Thomas
Group Chief Executive & Executive Director4.92yrsUK£3.61m0.099% £5.4m
Jessica White
CFO & Executive Director3yrsUK£1.20m0.0067% £364.4k
Steven Boyes
COO, Deputy CEO & Executive Director18.92yrsUK£2.92m0.045% £2.5m
John Allan
Independent Non-Executive Chairman5.58yrsUK£327.00k0.0076% £412.4k
Richard Akers
Senior Independent Director3.58yrsUK£88.00k0.0059% £322.4k
Nina Bibby
Independent Non-Executive Director7.5yrsUK£62.00k0.00084% £45.8k
John Lennox
Non-Executive Director3.92yrsUK£74.00k0.00099% £54.0k
Sharon White
Independent Non-Executive Director2.42yrsUK£62.00kno data

4.8yrs

Average Tenure

59yo

Average Age

Experienced Board: BDEV's board of directors are considered experienced (4.8 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

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£5.455b
  • 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 apartments, penthouses, and communities; and develops and sells homes. The company offers homes under the Barratt Homes, David Wilson Homes, and Barratt London brands. It is also involved in the commercial development activities under the Wilson Bowden Developments brand. The company was founded in 1958 and is headquartered in Coalville, the United Kingdom. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/06/04 08:16
End of Day Share Price2020/06/03 00:00
Earnings2019/12/31
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.