LSE:BKG

Stock Analysis Report

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

Excellent balance sheet with acceptable track record.


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 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-2.4%

BKG

0.8%

GB Consumer Durables

-0.2%

GB Market


1 Year Return

28.5%

BKG

16.4%

GB Consumer Durables

4.7%

GB Market

Return vs Industry: BKG exceeded the UK Consumer Durables industry which returned 16.4% over the past year.

Return vs Market: BKG exceeded the UK Market which returned 4.7% over the past year.


Shareholder returns

BKGIndustryMarket
7 Day-2.4%0.8%-0.2%
30 Day-1.7%-1.5%0.8%
90 Day12.5%12.7%3.7%
1 Year29.4%28.5%24.6%16.4%10.1%4.7%
3 Year96.9%82.8%61.7%35.2%20.9%5.6%
5 Year113.2%74.1%106.1%54.4%32.3%2.2%

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?

9.28x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: BKG (£44.65) is trading above our estimate of fair value (£30.21)

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


Price To Earnings Ratio

PE vs Industry: BKG is good value based on its PE Ratio (9.3x) compared to the Consumer Durables industry average (10.7x).

PE vs Market: BKG is good value based on its PE Ratio (9.3x) compared to the UK market (17.2x).


Price to Earnings Growth Ratio

PEG Ratio: BKG's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: BKG is overvalued based on its PB Ratio (1.9x) compared to the GB Consumer Durables industry average (1.4x).


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?

-5.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: BKG's earnings are forecast to decline over the next 3 years (-5.1% per year).

Earnings vs Market: BKG's earnings are forecast to decline over the next 3 years (-5.1% per year).

High Growth Earnings: BKG's earnings are forecast to decline over the next 3 years.

Revenue vs Market: BKG's revenue is expected to decline over the next 3 years (-7.3% per year).

High Growth Revenue: BKG's revenue is forecast to decline over the next 3 years (-7.3% 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 (13.5%).


Next Steps

Past Performance

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

16.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: BKG has high quality earnings.

Growing Profit Margin: BKG's current net profit margins (21.2%) are lower than last year (28%).


Past Earnings Growth Analysis

Earnings Trend: BKG's earnings have grown by 16.4% 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 (-21.1%) over the past year, making it difficult to compare to the Consumer Durables industry average (5%).


Return on Equity

High ROE: BKG's Return on Equity (21.2%) is considered high.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Berkeley Group Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: BKG's short term assets (£4.5B) exceeds its short term liabilities (£1.6B)

Long Term Liabilities: BKG's short term assets (£4.5B) exceeds its long term liabilities (399.6M)


Debt to Equity History and Analysis

Debt Level: BKG's debt to equity ratio (10.1%) is considered satisfactory.

Reducing Debt: BKG's debt to equity ratio has increased from 0.08% to 10.1% over the past 5 years.

Debt Coverage: BKG's debt is well covered by operating cash flow (204.1%).

Interest Coverage: BKG's interest payments on its debt are well covered by EBIT (384.2x coverage).


Balance Sheet

Inventory Level: BKG has a high level of physical assets or inventory.

Debt Coverage by Assets: BKG's debt is covered by short term assets (assets are 14.9x debt).


Next Steps

Dividend

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

0.61%

Current Dividend Yield


Dividend Yield vs Market

company0.6%marketbottom25%2.0%markettop25%5.3%industryaverage6.2%forecastin3Years4.7%

Current dividend yield vs market & industry

Notable Dividend: BKG's dividend (0.61%) isn’t notable compared to the bottom 25% of dividend payers in the UK market (1.97%).

High Dividend: BKG's dividend (0.61%) is low compared to the top 25% of dividend payers in the UK market (5.33%).


Stability and Growth of Payments

Stable Dividend: BKG is not paying a notable dividend for the UK market, therefore no need to check if payments are stable.

Growing Dividend: BKG is not paying a notable dividend for the UK market, therefore no need to check if payments are increasing.


Current Payout to Shareholders

Dividend Coverage: BKG is not paying a notable dividend for the UK market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of BKG's dividend in 3 years as they are not forecast to pay a notable one for the UK market.


Next Steps

Management

What is the CEO of Berkeley Group Holdings's salary, the management and board of directors tenure and is there insider trading?

3.3yrs

Average management tenure


CEO

Rob Perrins (54yo)

10.2yrs

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 ($USD10.08M) is above average for companies of similar size in the UK market ($USD3.42M).

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


Management Age and Tenure

3.3yrs

Average Tenure

54yo

Average Age

Experienced Management: BKG's management team is considered experienced (3.3 years average tenure).


Board Age and Tenure

9.7yrs

Average Tenure

60yo

Average Age

Experienced Board: BKG's board of directors are considered experienced (9.7 years average tenure).


Insider Trading

Insider Buying: BKG insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUK£87,91416 Oct 19
John Armitt
EntityIndividual
Role
Member of the Board of Directors
Independent Non-Executive Director
Shares2,000
Max PriceUK£43.96
SellUK£314,36330 Sep 19
Justin Tibaldi
EntityIndividual
Role
Member of the Board of Directors
Executive Director
Shares7,501
Max PriceUK£42.01
SellUK£149,27430 Sep 19
Richard Stearn
EntityIndividual
Role
Member of the Board of Directors
Group Finance Director & Executive Director
Shares3,553
Max PriceUK£42.01
SellUK£150,15630 Sep 19
Karl Whiteman
EntityIndividual
Role
Member of the Board of Directors
Executive Director
Shares3,574
Max PriceUK£42.01
SellUK£243,04830 Sep 19
S. Ellis
EntityIndividual
Shares5,785
Max PriceUK£42.01
SellUK£166,49616 Sep 19
Glyn Barker
EntityIndividual
Role
Vice Chairman
Deputy Chairman & Senior Independent Director
Shares4,080
Max PriceUK£40.81
SellUK£11,911,29009 Sep 19
Rob Perrins
EntityIndividual
Role
Chief Executive Officer
CEO & Executive Director
Shares300,000
Max PriceUK£39.70
SellUK£59,26909 Sep 19
Veronica Wadley
EntityIndividual
Shares1,500
Max PriceUK£39.51
SellUK£1,219,55426 Jul 19
S. Ellis
EntityIndividual
Shares31,295
Max PriceUK£38.97
SellUK£1,202,44612 Jul 19
Karl Whiteman
EntityIndividual
Role
Member of the Board of Directors
Executive Director
Shares31,500
Max PriceUK£38.17
SellUK£195,19325 Mar 19
Paul Vallone
EntityIndividual
Role
Member of the Board of Directors
Executive Director
Shares5,138
Max PriceUK£37.99

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • Rob Perrins (54yo)

    CEO & Executive Director

    • Tenure: 10.2yrs
    • Compensation: UK£7.81m
  • Tony Pidgley (71yo)

    Co-Founder & Group Executive Chairman

    • Tenure: 10.2yrs
    • Compensation: UK£8.26m
  • Jared S. Cranney

    Company Secretary

    • Tenure: 1.5yrs
  • Karl Whiteman (54yo)

    Executive Director

    • Tenure: 10.2yrs
    • Compensation: UK£3.15m
  • Sean Ellis

    Executive Director

    • Tenure: 9.2yrs
    • Compensation: UK£4.96m
  • Richard Stearn (50yo)

    Group Finance Director & Executive Director

    • Tenure: 4.6yrs
    • Compensation: UK£3.19m
  • Chris Gilbert

    Managing Director of Berkeley Homes Southern

    • Tenure: 0yrs
  • Justin Tibaldi

    Executive Director

    • Tenure: 0yrs
    • Compensation: UK£2.28m
  • Paul Vallone

    Executive Director

    • Tenure: 0yrs
    • Compensation: UK£2.29m
  • A. Dowsett

    Managing Director of St William.

    • Tenure: 0yrs

Board Members

  • John Armitt (73yo)

    Independent Non-Executive Director

    • Tenure: 12.1yrs
    • Compensation: UK£80.00k
  • Rob Perrins (54yo)

    CEO & Executive Director

    • Tenure: 10.2yrs
    • Compensation: UK£7.81m
  • Tony Pidgley (71yo)

    Co-Founder & Group Executive Chairman

    • Tenure: 10.2yrs
    • Compensation: UK£8.26m
  • Glyn Barker (66yo)

    Deputy Chairman & Senior Independent Director

    • Tenure: 1.6yrs
    • Compensation: UK£119.50k
  • Karl Whiteman (54yo)

    Executive Director

    • Tenure: 10.2yrs
    • Compensation: UK£3.15m
  • Andy Myers

    Independent Non-Executive Director

    • Tenure: 5.9yrs
    • Compensation: UK£79.00k
  • Sean Ellis

    Executive Director

    • Tenure: 9.2yrs
    • Compensation: UK£4.96m
  • Richard Stearn (50yo)

    Group Finance Director & Executive Director

    • Tenure: 4.6yrs
    • Compensation: UK£3.19m
  • Justin Tibaldi

    Executive Director

    • Tenure: 0yrs
    • Compensation: UK£2.28m
  • Paul Vallone

    Executive Director

    • Tenure: 0yrs
    • Compensation: UK£2.29m

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£5.602b
  • Shares outstanding: 125.46m
  • 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 Edwar ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/11/21 20:44
End of Day Share Price2019/11/21 00:00
Earnings2019/04/30
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.