Barratt Developments (LSE:BDEV) - Share price, News & Analysis

BDEV fundamental analysis
Snowflake Score
Valuation	5/6
Future Growth	2/6
Past Performance	3/6
Financial Health	6/6
Dividends	3/6

BDEV Stock Overview

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

Rewards

Trading at 60.4% below our estimate of its fair value

Earnings are forecast to grow 6.4% per year

Risk Analysis

Dividend of 6.7% is not well covered by earnings

Barratt Developments Competitors

Persimmon

LSE:PSN

UK£6.9b

Berkeley Group Holdings

LSE:BKG

UK£4.6b

Taylor Wimpey

LSE:TW.

UK£4.5b

Bellway

LSE:BWY

UK£2.8b

Price History & Performance

Summary of all time highs, changes and price drops for Barratt Developments
Historical stock prices
Current Share Price	UK£4.94
52 Week High	UK£7.79
52 Week Low	UK£4.58
Beta	1.56
1 Month Change	-3.14%
3 Month Change	-11.43%
1 Year Change	-34.84%
3 Year Change	-12.44%
5 Year Change	-19.31%
Change since IPO	850.40%

Recent News & Updates

May 08

Why Barratt Developments plc (LON:BDEV) Could Be Worth Watching

While Barratt Developments plc ( LON:BDEV ) might not be the most widely known stock at the moment, it saw significant...

Apr 07

Barratt Developments (LON:BDEV) Seems To Use Debt Rather Sparingly

Howard Marks put it nicely when he said that, rather than worrying about share price volatility, 'The possibility of...

Mar 10

Estimating The Intrinsic Value Of Barratt Developments plc (LON:BDEV)

Does the March share price for Barratt Developments plc ( LON:BDEV ) reflect what it's really worth? Today, we will...

Feb 25

Barratt Developments (LON:BDEV) Has Some Way To Go To Become A Multi-Bagger

Finding a business that has the potential to grow substantially is not easy, but it is possible if we look at a few key...

Shareholder Returns

	BDEV	GB Consumer Durables	GB Market
7D	1.7%	0.9%	-0.4%
1Y	-34.8%	-16.0%	-3.0%

Return vs Industry: BDEV underperformed the UK Consumer Durables industry which returned -16% over the past year.

Return vs Market: BDEV underperformed the UK Market which returned -3% over the past year.

Price Volatility

Is BDEV's price volatile compared to industry and market?
BDEV volatility
BDEV Average Weekly Movement	5.0%
Consumer Durables Industry Average Movement	5.4%
Market Average Movement	6.0%
10% most volatile stocks in GB Market	11.6%
10% least volatile stocks in GB Market	3.1%

Stable Share Price: BDEV is not significantly more volatile than the rest of UK stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: BDEV's weekly volatility (5%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1958	6,329	David Thomas	https://www.barrattdevelopments.co.uk

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, and communities; and retail, leisure, office, industrial, and mixed-use properties. The company offers homes under the Barratt Homes, David Wilson Homes, and Barratt London brands.

Barratt Developments Fundamentals Summary

How do Barratt Developments's earnings and revenue compare to its market cap?
BDEV fundamental statistics
Market Cap	UK£5.01b
Earnings (TTM)	UK£662.00m
Revenue (TTM)	UK£4.56b

7.6x

P/E Ratio

1.1x

P/S Ratio

Is BDEV overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
BDEV income statement (TTM)
Revenue	UK£4.56b
Cost of Revenue	UK£3.42b
Gross Profit	UK£1.14b
Other Expenses	UK£478.30m
Earnings	UK£662.00m

Last Reported Earnings

Dec 31, 2021

Next Earnings Date

Sep 07, 2022

Earnings per share (EPS)	0.65
Gross Margin	24.98%
Net Profit Margin	14.50%
Debt/Equity Ratio	3.7%

How did BDEV perform over the long term?

See historical performance and comparison

Dividends

6.7%

Current Dividend Yield

51%

Payout Ratio

Valuation

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

Valuation Score

5/6

Valuation Score 5/6

Below Fair Value
Significantly Below Fair Value
PE vs Industry
PE vs Market
PEG Ratio
PB vs Industry

>50%

Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: BDEV (£4.94) is trading below our estimate of fair value (£12.47)

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 Price-To-Earnings Ratio (7.6x) compared to the UK Consumer Durables industry average (9.7x).

PE vs Market: BDEV is good value based on its Price-To-Earnings Ratio (7.6x) compared to the UK market (15.3x).

Price to Earnings Growth Ratio

PEG Ratio: BDEV is poor value based on its PEG Ratio (1.2x)

Price to Book Ratio

PB vs Industry: BDEV is good value based on its Price-To-Book Ratio (0.9x) compared to the GB Consumer Durables industry average (1.2x).

Future Growth

How is Barratt Developments forecast to perform in the next 1 to 3 years based on estimates from 18 analysts?

Future Growth Score

2/6

Future Growth Score 2/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

6.4%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: BDEV's forecast earnings growth (6.4% per year) is above the savings rate (0.9%).

Earnings vs Market: BDEV's earnings (6.4% per year) are forecast to grow slower than the UK market (11.3% per year).

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

Revenue vs Market: BDEV's revenue (5.3% per year) is forecast to grow faster than the UK market (4.1% per year).

High Growth Revenue: BDEV's revenue (5.3% 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 (12.5%).

Past Performance

How has Barratt Developments performed over the past 5 years?

Past Performance Score

3/6

Past Performance Score 3/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

-2.3%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: BDEV has high quality earnings.

Growing Profit Margin: BDEV's current net profit margins (14.5%) are higher than last year (11.1%).

Past Earnings Growth Analysis

Earnings Trend: BDEV's earnings have declined by 2.3% per year over the past 5 years.

Accelerating Growth: BDEV's earnings growth over the past year (63.1%) exceeds its 5-year average (-2.3% per year).

Earnings vs Industry: BDEV earnings growth over the past year (63.1%) underperformed the Consumer Durables industry 114.8%.

Return on Equity

High ROE: BDEV's Return on Equity (11.8%) is considered low.

Financial Health

How is Barratt Developments's financial position?

Financial Health Score

6/6

Financial Health Score 6/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: BDEV's short term assets (£6.4B) exceed its short term liabilities (£1.4B).

Long Term Liabilities: BDEV's short term assets (£6.4B) exceed its long term liabilities (£512.7M).

Debt to Equity History and Analysis

Debt Level: BDEV has more cash than its total debt.

Reducing Debt: BDEV's debt to equity ratio has reduced from 4.7% to 3.7% over the past 5 years.

Debt Coverage: BDEV's debt is well covered by operating cash flow (157.8%).

Interest Coverage: BDEV's interest payments on its debt are well covered by EBIT (34x coverage).

Balance Sheet

Dividend

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

Dividend Score

4/6

Dividend Score 4/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

6.70%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: BDEV's dividend (6.7%) is higher than the bottom 25% of dividend payers in the UK market (1.8%).

High Dividend: BDEV's dividend (6.7%) is in the top 25% of dividend payers in the UK market (4.82%)

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 9 years.

Earnings Payout to Shareholders

Earnings Coverage: With its reasonable payout ratio (50.9%), BDEV's dividend payments are covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: With its high cash payout ratio (107.1%), BDEV's dividend payments are not well covered by cash flows.

Discover strong dividend paying companies

Management

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

11.8yrs

Average management tenure

CEO

David Thomas (58 yo)

6.83yrs

Tenure

UK£3,888,000

Compensation

Mr. David Fraser Thomas has been Group Chief Executive Officer of Barratt Developments plc since July 1, 2015 and served 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 ($USD4.88M) is above average for companies of similar size in the UK market ($USD3.35M).

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

Leadership Team

Experienced Management: BDEV's management team is seasoned and experienced (11.8 years average tenure).

Board Members

Experienced Board: BDEV's board of directors are considered experienced (5.8 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.

Data	Last Updated (UTC time)
Company Analysis	2022/05/25 00:00
End of Day Share Price	2022/05/25 00:00
Earnings	2021/12/31
Annual Earnings	2021/06/30