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

5.4%

LSE:BDEV

7.3%

GB Consumer Durables

1.6%

GB Market


1 Year Return

14.2%

LSE:BDEV

0.5%

GB Consumer Durables

-0.08%

GB Market

BDEV outperformed the Consumer Durables industry which returned 0.5% over the past year.

BDEV outperformed the Market in United Kingdom of Great Britain and Northern Ireland which returned -0.1% over the past year.


Share holder returns

BDEVIndustryMarket
7 Day5.4%7.3%1.6%
30 Day3.6%10.5%4.6%
90 Day14.0%10.0%-0.1%
1 Year23.9%14.2%7.6%0.5%4.7%-0.08%
3 Year65.9%34.0%51.4%27.4%21.8%7.3%
5 Year115.3%62.2%113.7%63.0%30.7%3.1%

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 based on future cash flows and its price relative to the stock market?

24%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Barratt Developments's share price is below the future cash flow value, and at a moderate discount (> 20%).

Barratt Developments's share price is below the future cash flow value, but not at a substantial discount (< 40%).


Price Based on Earnings

Barratt Developments is good value based on earnings compared to the GB Consumer Durables industry average.

Barratt Developments is good value based on earnings compared to the United Kingdom of Great Britain and Northern Ireland market.


Price Based on Expected Growth

Barratt Developments is poor value based on expected growth next year.


Price Based on Value of Assets

Barratt Developments is good value based on assets compared to the GB Consumer Durables industry average.


Next Steps

Future Growth

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

2.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Barratt Developments's revenue is expected to grow by 2.6% yearly, however this is not considered high growth (20% yearly).

Barratt Developments's earnings are expected to grow by 2.7% yearly, however this is not considered high growth (20% yearly).

Barratt Developments's revenue growth is positive but not above the United Kingdom of Great Britain and Northern Ireland market average.

Barratt Developments's earnings growth is positive but not above the United Kingdom of Great Britain and Northern Ireland market average.

Barratt Developments's earnings growth is expected to exceed the low risk savings rate of 1.2%.


Earnings per Share Growth Estimates


Future Return on Equity

Barratt Developments is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


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

Barratt Developments's year on year earnings growth rate has been positive over the past 5 years.

Barratt Developments's 1-year earnings growth is less than its 5-year average (10.2% vs 14.5%)

Barratt Developments's earnings growth has exceeded the GB Consumer Durables industry average in the past year (10.2% vs 6.8%).


Return on Equity

Barratt Developments has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Barratt Developments used its assets more efficiently than the GB Consumer Durables industry average last year based on Return on Assets.


Return on Capital Employed

Barratt Developments has improved its use of capital last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Barratt Developments's financial position?


Financial Position Analysis

Barratt Developments is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Barratt Developments's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

Barratt Developments's level of debt (4.1%) compared to net worth is satisfactory (less than 40%).

The level of debt compared to net worth has been reduced over the past 5 years (6.6% vs 4.1% today).

Debt is well covered by operating cash flow (180.7%, greater than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 29.4x coverage).


Balance Sheet

High level of physical assets or inventory.

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?

7.46%

Expected Dividend Yield


Upcoming Dividend Payment

Purchase Barratt Developments before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield and Payments Analysis

Barratt Developments's pays a higher dividend yield than the bottom 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (2.01%).

Barratt Developments's dividend is above the markets top 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (5.5%).

Whilst dividend payments have been stable, Barratt Developments has been paying a dividend for less than 10 years.

Dividend payments have increased, but Barratt Developments only paid a dividend in the past 6 years.


Current Payout to Shareholders

Dividends paid are well covered by earnings (2.5x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be covered by earnings (1.6x coverage).


Next Steps

Management

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

7.1yrs

Average management tenure


CEO

David Thomas (56yo)

4.2yrs

Tenure

UK£2,811,000

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

David's remuneration is about average for companies of similar size in United Kingdom of Great Britain and Northern Ireland.

David's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

7.1yrs

Average Tenure

56yo

Average Age

The average tenure for the Barratt Developments management team is over 5 years, this suggests they are a seasoned and experienced team.


Board Age and Tenure

4.0yrs

Average Tenure

59yo

Average Age

The tenure for the Barratt Developments board of directors is about average.


Insider Trading

Barratt Developments individual 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

  • Steven Boyes (59yo)

    COO, Deputy CEO & Executive Director

    • Tenure: 18.2yrs
    • Compensation: UK£2.29m
  • Jeremy Hipkiss

    Group Sales & Marketing Director

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

    Regional Managing Director of London & Southern

    • Tenure: 13.7yrs
  • David Thomas (56yo)

    Group Chief Executive & Executive Director

    • Tenure: 4.2yrs
    • Compensation: UK£2.81m
  • Mike Roberts

    Regional Managing Director of Northern

    • Tenure: 9.7yrs
  • Rob Tansey

    Group Human Resources Director

    • Tenure: 7.1yrs
  • 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£1.14m

Board Members

  • John Allan (70yo)

    Non-Executive Chairman

    • Tenure: 4.8yrs
    • Compensation: UK£315.00k
  • Richard Akers (58yo)

    Senior Independent Director

    • Tenure: 2.8yrs
    • Compensation: UK£81.00k
  • Steven Boyes (59yo)

    COO, Deputy CEO & Executive Director

    • Tenure: 18.2yrs
    • Compensation: UK£2.29m
  • Nina Bibby

    Non-Executive Director

    • Tenure: 6.8yrs
    • Compensation: UK£60.00k
  • Jock Lennox (63yo)

    Non-Executive Director

    • Tenure: 3.2yrs
    • Compensation: UK£70.00k
  • David Thomas (56yo)

    Group Chief Executive & Executive Director

    • Tenure: 4.2yrs
    • Compensation: UK£2.81m
  • Sharon White

    Independent Non-Executive Director

    • Tenure: 1.7yrs
    • Compensation: UK£35.00k
  • Jessica White

    CFO & Executive Director

    • Tenure: 2.3yrs
    • Compensation: UK£1.14m

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£6.493b
  • 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 Analysis2019/09/17 20:34
End of Day Share Price2019/09/17 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.