LSE:BKG

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Executive Summary

The Berkeley Group Holdings plc, together with its subsidiaries, engages in the residential-led and mixed-use property development activities in the United Kingdom.


Snowflake Analysis

Excellent balance sheet second-rate dividend payer.


Similar Companies

Share Price & News

How has Berkeley Group Holdings's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

3.4%

BKG

5.9%

GB Consumer Durables

2.5%

GB Market


1 Year Return

17.1%

BKG

-5.1%

GB Consumer Durables

-12.4%

GB Market

Return vs Industry: BKG exceeded the UK Consumer Durables industry which returned -5.1% over the past year.

Return vs Market: BKG exceeded the UK Market which returned -12.4% over the past year.


Shareholder returns

BKGIndustryMarket
7 Day3.4%5.9%2.5%
30 Day-2.1%-3.9%2.8%
90 Day-13.9%-26.6%-7.2%
1 Year21.3%17.1%-0.8%-5.1%-8.2%-12.4%
3 Year38.2%28.2%2.6%-12.6%-5.9%-17.5%
5 Year62.0%33.2%29.3%-0.6%12.5%-12.9%

Price Volatility Vs. Market

How volatile is Berkeley Group Holdings's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Berkeley Group Holdings undervalued compared to its fair value and its price relative to the market?

9.94x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: BKG (£40.95) is trading above our estimate of fair value (£39.59)

Significantly Below Fair Value: BKG is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: BKG is poor value based on its PE Ratio (9.9x) compared to the Consumer Durables industry average (8.7x).

PE vs Market: BKG is good value based on its PE Ratio (9.9x) compared to the UK market (14.7x).


Price to Earnings Growth Ratio

PEG Ratio: BKG is poor value based on its PEG Ratio (2.7x)


Price to Book Ratio

PB vs Industry: BKG is overvalued based on its PB Ratio (1.7x) compared to the GB Consumer Durables industry average (1x).


Next Steps

Future Growth

How is Berkeley Group Holdings forecast to perform in the next 1 to 3 years based on estimates from 15 analysts?

3.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: BKG's forecast earnings growth (3.8% per year) is above the savings rate (1.2%).

Earnings vs Market: BKG's earnings (3.8% per year) are forecast to grow slower than the UK market (20.3% per year).

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

Revenue vs Market: BKG's revenue (5.1% per year) is forecast to grow faster than the UK market (3.7% per year).

High Growth Revenue: BKG's revenue (5.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: BKG's Return on Equity is forecast to be low in 3 years time (11.5%).


Next Steps

Past Performance

How has Berkeley Group Holdings performed over the past 5 years?

11.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: BKG has high quality earnings.

Growing Profit Margin: BKG's current net profit margins (23.5%) are lower than last year (24.1%).


Past Earnings Growth Analysis

Earnings Trend: BKG's earnings have grown by 11.6% per year over the past 5 years.

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

Earnings vs Industry: BKG had negative earnings growth (-22.9%) over the past year, making it difficult to compare to the Consumer Durables industry average (-6.6%).


Return on Equity

High ROE: BKG's Return on Equity (17.3%) is considered low.


Next Steps

Financial Health

How is Berkeley Group Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: BKG's short term assets (£4.7B) exceed its short term liabilities (£1.6B).

Long Term Liabilities: BKG's short term assets (£4.7B) exceed its long term liabilities (£418.1M).


Debt to Equity History and Analysis

Debt Level: BKG's debt to equity ratio (9.8%) is considered satisfactory.

Reducing Debt: BKG's debt to equity ratio has increased from 0.3% to 9.8% over the past 5 years.

Debt Coverage: BKG's debt is well covered by operating cash flow (91.6%).

Interest Coverage: BKG earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet


Next Steps

Dividend

What is Berkeley Group Holdings's current dividend yield, its reliability and sustainability?

2.92%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: BKG's dividend (2.92%) is higher than the bottom 25% of dividend payers in the UK market (2.04%).

High Dividend: BKG's dividend (2.92%) is low compared to the top 25% of dividend payers in the UK market (5.67%).


Stability and Growth of Payments

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

Growing Dividend: BKG's dividend payments have increased, but the company has only paid a dividend for 7 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (29%), BKG's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: BKG's dividends in 3 years are forecast to be covered by earnings (63.7% payout ratio).


Next Steps

Management

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

3.8yrs

Average management tenure


CEO

Rob Perrins (54yo)

10.67yrs

Tenure

UK£7,809,000

Compensation

Mr. Rob C. Perrins, BSC (Hons), FCA, has been Chief Executive of The Berkeley Group Holdings plc since September 9, 2009. Mr. Perrins served as Managing Director of The Berkeley Group Holdings plc since Se ...


CEO Compensation Analysis

Compensation vs Market: Rob's total compensation ($USD9.64M) is above average for companies of similar size in the UK market ($USD3.36M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Anthony Pidgley
Co-Founder & Group Executive Chairman10.67yrsUK£8.26m1.34% £68.5m
Rob Perrins
CEO & Executive Director10.67yrsUK£7.81m0.92% £47.2m
Richard Stearn
Group Finance Director & Executive Director5.08yrsUK£3.19m0.13% £6.9m
Karl Whiteman
Executive Director10.67yrsUK£3.15m0.23% £11.8m
Sean Ellis
Executive Director9.67yrsUK£4.96m0.23% £11.6m
Justin Tibaldi
Executive Directorno dataUK£2.28m0.039% £2.0m
Paul Vallone
Executive Directorno dataUK£2.29m0.041% £2.1m
A. Dowsett
Managing Director of St William.no datano datano data
Jared S. Cranney
Company Secretary2yrsno datano data
Chris Gilbert
Managing Director of Berkeley Homes Southernno datano datano data

3.8yrs

Average Tenure

54yo

Average Age

Experienced Management: BKG's management team is considered experienced (3.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Anthony Pidgley
Co-Founder & Group Executive Chairman10.67yrsUK£8.26m1.34% £68.5m
Rob Perrins
CEO & Executive Director10.67yrsUK£7.81m0.92% £47.2m
Richard Stearn
Group Finance Director & Executive Director5.08yrsUK£3.19m0.13% £6.9m
Karl Whiteman
Executive Director10.67yrsUK£3.15m0.23% £11.8m
Sean Ellis
Executive Director9.67yrsUK£4.96m0.23% £11.6m
Justin Tibaldi
Executive Directorno dataUK£2.28m0.039% £2.0m
Paul Vallone
Executive Directorno dataUK£2.29m0.041% £2.1m
John Armitt
Independent Non-Executive Director12.58yrsUK£80.00k0.0055% £282.2k
Glyn Barker
Deputy Chairman & Senior Independent Director2.08yrsUK£119.50k0.0075% £385.3k
Andy Myers
Independent Non-Executive Director6.42yrsUK£79.00k0.0024% £122.6k

10.2yrs

Average Tenure

60yo

Average Age

Experienced Board: BKG's board of directors are seasoned and experienced ( 10.2 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: BKG 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

The Berkeley Group Holdings plc's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: The Berkeley Group Holdings plc
  • Ticker: BKG
  • Exchange: LSE
  • Founded: 1976
  • Industry: Homebuilding
  • Sector: Consumer Durables
  • Market Cap: UK£5.130b
  • Shares outstanding: 125.28m
  • Website: https://www.berkeleygroup.co.uk

Number of Employees


Location

  • The Berkeley Group Holdings plc
  • Berkeley House
  • 19 Portsmouth Road
  • Cobham
  • Surrey
  • KT11 1JG
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
BKGLSE (London Stock Exchange)YesNew Ordinary SharesGBGBPJan 1992
42BADB (Deutsche Boerse AG)YesNew Ordinary SharesDEEURJan 1992
BKGLBATS-CHIXE (BATS 'Chi-X Europe')YesNew Ordinary SharesGBGBPJan 1992
BKG NBMV (Bolsa Mexicana de Valores)YesNew Ordinary SharesMXMXNJan 1992
BKGF.FOTCPK (Pink Sheets LLC)UnitsUSUSDApr 2005
BKGF.YOTCPK (Pink Sheets LLC)UNSPONSORD ADRUSUSDOct 2008

Biography

The Berkeley Group Holdings plc, together with its subsidiaries, engages in the residential-led and mixed-use property development activities in the United Kingdom. It operates under the Berkeley, St Edward, St George, St James, St Joseph, St William, Berkeley First, Berkeley Commercial, Berkeley Partnership, and Berkeley Modular brands. The company was founded in 1976 and is headquartered in Cobham, the United Kingdom. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/05/30 11:22
End of Day Share Price2020/05/29 00:00
Earnings2019/10/31
Annual Earnings2019/04/30


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.