LSE:BVS

Stock Analysis Report

Executive Summary

Bovis Homes Group PLC, together with its subsidiaries, operates as a builder of homes in the United Kingdom.

Snowflake

Fundamentals

Flawless balance sheet with solid track record.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: BVS has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

1.9%

BVS

2.9%

GB Consumer Durables

-0.4%

GB Market


1 Year Return

22.8%

BVS

17.8%

GB Consumer Durables

4.5%

GB Market

Return vs Industry: BVS exceeded the UK Consumer Durables industry which returned 17.8% over the past year.

Return vs Market: BVS exceeded the UK Market which returned 4.5% over the past year.


Shareholder returns

BVSIndustryMarket
7 Day1.9%2.9%-0.4%
30 Day-4.2%0.2%1.7%
90 Day12.8%16.5%4.7%
1 Year29.5%22.8%26.2%17.8%10.0%4.5%
3 Year67.0%38.7%59.1%32.9%22.5%6.9%
5 Year83.3%40.1%113.9%60.3%33.0%2.9%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Bovis Homes Group undervalued compared to its fair value and its price relative to the market?

20.0%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: BVS (£11.6) is trading below our estimate of fair value (£14.5)

Significantly Below Fair Value: BVS is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: BVS is poor value based on its PE Ratio (10.6x) compared to the Consumer Durables industry average (10.4x).

PE vs Market: BVS is good value based on its PE Ratio (10.6x) compared to the UK market (17.2x).


Price to Earnings Growth Ratio

PEG Ratio: BVS is poor value based on its PEG Ratio (1.6x)


Price to Book Ratio

PB vs Industry: BVS is overvalued based on its PB Ratio (1.5x) compared to the GB Consumer Durables industry average (1.4x).


Next Steps

Future Growth

How is Bovis Homes Group forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?

6.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: BVS's forecast earnings growth (6.7% per year) is above the savings rate (1.2%).

Earnings vs Market: BVS's earnings (6.7% per year) are forecast to grow slower than the UK market (12.6% per year).

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

Revenue vs Market: BVS's revenue (2% per year) is forecast to grow slower than the UK market (3.6% per year).

High Growth Revenue: BVS's revenue (2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: BVS's Return on Equity is forecast to be low in 3 years time (15.2%).


Next Steps

Past Performance

How has Bovis Homes Group performed over the past 5 years?

4.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: BVS has high quality earnings.

Growing Profit Margin: BVS's current net profit margins (13.3%) are higher than last year (10.2%).


Past Earnings Growth Analysis

Earnings Trend: BVS's earnings have grown by 4.3% per year over the past 5 years.

Accelerating Growth: BVS's earnings growth over the past year (39%) exceeds its 5-year average (4.3% per year).

Earnings vs Industry: BVS earnings growth over the past year (39%) exceeded the Consumer Durables industry 5%.


Return on Equity

High ROE: BVS's Return on Equity (13.7%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Bovis Homes Group's financial position?


Financial Position Analysis

Short Term Liabilities: BVS's short term assets (£1.5B) exceeds its short term liabilities (£374.5M)

Long Term Liabilities: BVS's short term assets (1.5B) exceeds its long term liabilities (116.9M)


Debt to Equity History and Analysis

Debt Level: BVS is debt free.

Reducing Debt: BVS has no debt compared to 5 years ago when its debt to equity ratio was 12.1%.

Debt Coverage: BVS has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: BVS has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet

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

Debt Coverage by Assets: BVS's debt is covered by short term assets (assets are 4.1190879206851E+17x debt).


Next Steps

Dividend

What is Bovis Homes Group's current dividend yield, its reliability and sustainability?

4.91%

Current Dividend Yield


Upcoming Dividend Payment

Purchase Bovis Homes Group before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield vs Market

company4.9%marketbottom25%2.0%markettop25%5.3%industryaverage6.2%forecastin3Years8.6%

Current dividend yield vs market & industry

Notable Dividend: BVS's dividend (4.91%) is higher than the bottom 25% of dividend payers in the UK market (1.97%).

High Dividend: BVS's dividend (4.91%) is low compared to the top 25% of dividend payers in the UK market (5.34%).


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, BVS has been paying a dividend for less than 10 years.

Growing Dividend: BVS's dividend payments have increased, but the company has only paid a dividend for 9 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (53.5%), BVS's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: BVS's dividends in 3 years are forecast to be covered by earnings (71.8% payout ratio).


Next Steps

Management

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

9.1yrs

Average management tenure


CEO

Greg Fitzgerald (55yo)

2.6yrs

Tenure

UK£2,180,000

Compensation

Mr. Gerald Fitzgerald, also known as Greg, has been the Chief Executive Officer and Director of Bovis Homes Group PLC since April 18, 2017. Mr. Fitzgerald serves as Vice Chairman of the Board at Bovis Hom ...


CEO Compensation Analysis

Compensation vs Market: Greg's total compensation ($USD2.81M) is above average for companies of similar size in the UK market ($USD1.82M).

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


Management Age and Tenure

9.1yrs

Average Tenure

55yo

Average Age

Experienced Management: BVS's management team is seasoned and experienced (9.1 years average tenure).


Board Age and Tenure

3.0yrs

Average Tenure

58yo

Average Age

Experienced Board: BVS's board of directors are considered experienced (3 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyUK£139,22830 Nov 18
Gerald Fitzgerald
EntityIndividual
Role
Chief Executive Officer
Vice Chairman of the Board & CEO
Shares15,616
Max PriceUK£8.92

Ownership Breakdown

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


Management Team

  • Susie Bell

    Head of Investor Relations

    • Tenure: 0yrs
  • Greg Fitzgerald (55yo)

    Vice Chairman of the Board & CEO

    • Tenure: 2.6yrs
    • Compensation: UK£2.18m
  • Martin Trevor Palmer (60yo)

    Group Company Secretary

    • Tenure: 17.9yrs
  • Andrew Apps (64yo)

    Managing Director of Retirement Living

    • Tenure: 0yrs
  • Brian Johnson (71yo)

    Managing Director of South Midlands Region

    • Tenure: 13.8yrs
  • Terence Hyldon (65yo)

    Managing Director of Northern Region

    • Tenure: 13.7yrs
  • Kevin Wilkins (53yo)

    Group Marketing Director

    • Tenure: 14.3yrs
  • Earl Sibley (47yo)

    Group Finance Director & Executive Director

    • Tenure: 4.6yrs
    • Compensation: UK£682.00k
  • Darrell White (47yo)

    Divisional Chairman of West Division

    • Tenure: 1.8yrs
  • James Watson (46yo)

    Divisional Chairman of East Division

    • Tenure: 1.8yrs

Board Members

  • Ralph Findlay (58yo)

    Senior Independent Director

    • Tenure: 1.5yrs
    • Compensation: UK£64.00k
  • Ian Tyler (59yo)

    Non-Executive Chairman

    • Tenure: 6yrs
    • Compensation: UK£170.00k
  • Greg Fitzgerald (55yo)

    Vice Chairman of the Board & CEO

    • Tenure: 2.6yrs
    • Compensation: UK£2.18m
  • Mike Stansfield (63yo)

    Independent Non-Executive Director

    • Tenure: 2yrs
    • Compensation: UK£49.00k
  • John Altham (55yo)

    Director of Bovis Homes

    • Tenure: 0yrs
  • Nigel Keen (57yo)

    Independent Non-Executive Director

    • Tenure: 3yrs
    • Compensation: UK£54.00k
  • Chris Browne (59yo)

    Independent Non-Executive Director

    • Tenure: 5.2yrs
    • Compensation: UK£49.00k
  • Earl Sibley (47yo)

    Group Finance Director & Executive Director

    • Tenure: 4.6yrs
    • Compensation: UK£682.00k
  • Katherine Innes Ker (58yo)

    Independent Non-Executive Director

    • Tenure: 1.1yrs
    • Compensation: UK£11.00k

Company Information

Bovis Homes Group PLC's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Bovis Homes Group PLC
  • Ticker: BVS
  • Exchange: LSE
  • Founded: 1885
  • Industry: Homebuilding
  • Sector: Consumer Durables
  • Market Cap: UK£1.716b
  • Shares outstanding: 147.95m
  • Website: https://www.bovishomesgroup.co.uk

Number of Employees


Location

  • Bovis Homes Group PLC
  • 11 Tower View
  • Kings Hill
  • West Malling
  • Kent
  • ME19 4UY
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
BVHM.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDDec 1997
BVSLSE (London Stock Exchange)YesOrdinary SharesGBGBPDec 1997
44BDB (Deutsche Boerse AG)YesOrdinary SharesDEEURDec 1997
BVSLBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBGBPDec 1997

Biography

Bovis Homes Group PLC, together with its subsidiaries, operates as a builder of homes in the United Kingdom. The company offers two-bed to five-bed family homes. As of December 31, 2018, it had a consented ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/11/16 20:34
End of Day Share Price2019/11/15 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.