LSE:BDEV

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Executive Summary

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


Snowflake Analysis

Undervalued with adequate balance sheet.


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

-13.6%

BDEV

-9.7%

GB Consumer Durables

-4.6%

GB Market


1 Year Return

-31.9%

BDEV

-22.2%

GB Consumer Durables

-16.3%

GB Market

Return vs Industry: BDEV underperformed the UK Consumer Durables industry which returned -22.2% over the past year.

Return vs Market: BDEV underperformed the UK Market which returned -16.3% over the past year.


Shareholder returns

BDEVIndustryMarket
7 Day-13.6%-9.7%-4.6%
30 Day-17.8%-11.7%-3.5%
90 Day-13.4%-10.4%-3.3%
1 Year-27.5%-31.9%-20.0%-22.2%-12.8%-16.3%
3 Year-11.4%-28.1%-12.9%-25.0%-7.6%-18.9%
5 Year-7.7%-32.9%6.5%-17.8%21.0%-6.3%

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?

31.4%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: BDEV (£4.33) is trading below our estimate of fair value (£6.31)

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 (11x) compared to the GB Consumer Durables industry average (12.5x).

PE vs Market: BDEV is good value based on its PE Ratio (11x) compared to the UK market (17.4x).


Price to Earnings Growth Ratio

PEG Ratio: BDEV is good value based on its PEG Ratio (0.7x)


Price to Book Ratio

PB vs Industry: BDEV's PB Ratio (0.9x) is in line with the GB Consumer Durables industry average.


Next Steps

Future Growth

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

15.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: BDEV's forecast earnings growth (15.7% per year) is above the savings rate (1.2%).

Earnings vs Market: BDEV's earnings (15.7% per year) are forecast to grow slower than the UK market (23.6% per year).

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

Revenue vs Market: BDEV's revenue (10.2% per year) is forecast to grow faster than the UK market (6.3% per year).

High Growth Revenue: BDEV's revenue (10.2% 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 (11.1%).


Next Steps

Past Performance

How has Barratt Developments performed over the past 5 years?

5.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: BDEV has high quality earnings.

Growing Profit Margin: BDEV's current net profit margins (11.7%) are lower than last year (15.5%).


Past Earnings Growth Analysis

Earnings Trend: BDEV's earnings have grown by 5.7% 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 (-46%) over the past year, making it difficult to compare to the Consumer Durables industry average (-34.6%).


Return on Equity

High ROE: BDEV's Return on Equity (8.3%) 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 (£5.7B) exceed its short term liabilities (£1.5B).

Long Term Liabilities: BDEV's short term assets (£5.7B) exceed its long term liabilities (£558.2M).


Debt to Equity History and Analysis

Debt Level: BDEV's debt to equity ratio (6.6%) is considered satisfactory.

Reducing Debt: BDEV's debt to equity ratio has increased from 5.2% to 6.6% over the past 5 years.

Debt Coverage: BDEV's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: BDEV's interest payments on its debt are well covered by EBIT (18.7x coverage).


Balance Sheet


Next Steps

Dividend

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

6.33%

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?

8.2yrs

Average management tenure


CEO

David Thomas (57 yo)

5.17yrs

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 ($USD4.60M) is above average for companies of similar size in the UK market ($USD3.27M).

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


Leadership Team

NamePositionTenureCompensationOwnership
David Thomas
Group Chief Executive & Executive Director5.17yrsUK£3.61m0.099%
£ 4.3m
Jessica White
CFO & Executive Director3.25yrsUK£1.20m0.0067%
£ 293.3k
Steven Boyes
COO, Deputy CEO & Executive Director19.17yrsUK£2.92m0.045%
£ 2.0m
Michael Finn
Group Design & Technical Directorno datano datano data
Jenny Matthews
Interim Head of Investor Relations2yrsno 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 Director8.08yrsno datano data
Gary Ennis
Regional Managing Director of London14.67yrsno datano data
Nicholas Richardson
Managing Director of Wilson Bowden Developments21.67yrsno datano data
Mike Roberts
Regional Managing Director of Northern10.67yrsno datano data
Bernard Rooney
Regional Managing Director of Central10.17yrsno datano data

8.2yrs

Average Tenure

57yo

Average Age

Experienced Management: BDEV's management team is seasoned and experienced (8.2 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
David Thomas
Group Chief Executive & Executive Director5.17yrsUK£3.61m0.099%
£ 4.3m
Jessica White
CFO & Executive Director3.25yrsUK£1.20m0.0067%
£ 293.3k
Steven Boyes
COO, Deputy CEO & Executive Director19.17yrsUK£2.92m0.045%
£ 2.0m
John Allan
Independent Non-Executive Chairman5.83yrsUK£327.00k0.0076%
£ 331.9k
Richard Akers
Senior Independent Director3.83yrsUK£88.00k0.0059%
£ 259.6k
Nina Bibby
Independent Non-Executive Director7.75yrsUK£62.00k0.00084%
£ 36.8k
John Lennox
Non-Executive Director4.17yrsUK£74.00k0.00099%
£ 43.4k
Sharon White
Independent Non-Executive Director2.67yrsUK£62.00k0.000040%
£ 1.8k

5.0yrs

Average Tenure

60yo

Average Age

Experienced Board: BDEV's board of directors are considered experienced (5 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: BDEV 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£4.385b
  • 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 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 Analysis2020/09/23 03:05
End of Day Share Price2020/09/22 00:00
Earnings2020/06/30
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.