LSE:BDEV

Stock Analysis Report

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Market Cap

UK£7.2b

Last Updated

2021/08/03 20:48 UTC

Data Sources

Company Financials +

Executive Summary

Barratt Developments plc engages in the housebuilding and commercial development businesses in Great Britain. More Details


Snowflake Analysis

Flawless balance sheet and undervalued.


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 is less volatile than 75% of UK stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: BDEV's weekly volatility (3%) has been stable over the past year.


Market Performance


7 Day Return

0.5%

BDEV

0.7%

GB Consumer Durables

1.6%

GB Market


1 Year Return

37.1%

BDEV

36.6%

GB Consumer Durables

21.5%

GB Market

Return vs Industry: BDEV exceeded the UK Consumer Durables industry which returned 35.2% over the past year.

Return vs Market: BDEV exceeded the UK Market which returned 25.9% over the past year.


Shareholder returns

BDEVIndustryMarket
7 Day0.5%0.7%1.6%
30 Day-0.9%-0.5%0.2%
90 Day-7.7%-4.4%1.9%
1 Year38.4%37.1%42.3%36.6%26.8%21.5%
3 Year52.2%30.6%32.0%15.9%13.9%1.4%
5 Year116.5%62.8%96.6%54.1%39.7%14.7%

Long-Term 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?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: BDEV (£7.07) is trading below our estimate of fair value (£20.36)

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 (17.7x) compared to the UK Consumer Durables industry average (24.4x).

PE vs Market: BDEV is good value based on its PE Ratio (17.7x) compared to the UK market (23.6x).


Price to Earnings Growth Ratio

PEG Ratio: BDEV is poor value based on its PEG Ratio (1.8x)


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 (1.5x).


Future Growth

How is Barratt Developments forecast to perform in the next 1 to 3 years based on estimates from 19 analysts?

9.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: BDEV's forecast earnings growth (9.9% per year) is above the savings rate (0.9%).

Earnings vs Market: BDEV's earnings (9.9% per year) are forecast to grow slower than the UK market (27.7% per year).

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

Revenue vs Market: BDEV's revenue (6.1% per year) is forecast to grow faster than the UK market (-149.2% per year).

High Growth Revenue: BDEV's revenue (6.1% 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 (13%).


Past Performance

How has Barratt Developments performed over the past 5 years?

-0.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: BDEV has high quality earnings.

Growing Profit Margin: BDEV's current net profit margins (11.1%) are lower than last year (15.3%).


Past Earnings Growth Analysis

Earnings Trend: BDEV's earnings have declined by 0.5% per year over the past 5 years.

Accelerating Growth: BDEV's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: BDEV had negative earnings growth (-45.9%) over the past year, making it difficult to compare to the Consumer Durables industry average (-45.1%).


Return on Equity

High ROE: BDEV's Return on Equity (7.8%) is considered low.


Financial Health

How is Barratt Developments's financial position?


Financial Position Analysis

Short Term Liabilities: BDEV's short term assets (£5.9B) exceed its short term liabilities (£1.3B).

Long Term Liabilities: BDEV's short term assets (£5.9B) exceed its long term liabilities (£508.8M).


Debt to Equity History and Analysis

Debt Level: BDEV's debt to equity ratio (3.9%) is considered satisfactory.

Reducing Debt: BDEV's debt to equity ratio has reduced from 5.1% to 3.9% over the past 5 years.

Debt Coverage: BDEV's debt is well covered by operating cash flow (330.1%).

Interest Coverage: BDEV's interest payments on its debt are well covered by EBIT (19.5x coverage).


Balance Sheet


Dividend

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

2.12%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: BDEV's dividend (2.12%) is higher than the bottom 25% of dividend payers in the UK market (1.32%).

High Dividend: BDEV's dividend (2.12%) is low compared to the top 25% of dividend payers in the UK market (3.91%).


Stability and Growth of Payments

Stable Dividend: BDEV has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: BDEV's dividend payments have increased, but the company has only paid a dividend for 8 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (18.8%), 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 (59.2% payout ratio).


Next Steps

Management

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

11.3yrs

Average management tenure


CEO

David Thomas (58 yo)

6.08yrs

Tenure

UK£1,226,000

Compensation

Mr. David Fraser Thomas has been Group Chief Executive Officer of Barratt Developments plc since July 1, 2015 and serves as Chief Financial Officer since July 1, 2021. Mr. Thomas served as a Group Finance ...


CEO Compensation Analysis

Compensation vs Market: David's total compensation ($USD1.70M) is below average for companies of similar size in the UK market ($USD3.63M).

Compensation vs Earnings: David's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: BDEV's management team is seasoned and experienced (11.3 years average tenure).


Board Members

Experienced Board: BDEV's board of directors are considered experienced (5.2 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.


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£7.238b
  • Shares outstanding: 1.02b
  • Website: https://www.barrattdevelopments.co.uk

Number of Employees


Location

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

Listings


Biography

Barratt Developments plc engages in the housebuilding and commercial development businesses in Great Britain. It acquires and develops land; plans, designs, and constructs homes, apartments, penthouses, an...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/08/03 20:48
End of Day Share Price2021/08/03 00:00
Earnings2020/12/31
Annual Earnings2020/06/30


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.