LSE:BWY

Stock Analysis Report

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Executive Summary

Bellway p.l.c., together with its subsidiaries, engages in the home building business in the United Kingdom. More Details


Snowflake Analysis

Excellent balance sheet average dividend payer.


Similar Companies

Share Price & News

How has Bellway's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: BWY is not significantly more volatile than the rest of UK stocks over the past 3 months, typically moving +/- 7% a week.

Volatility Over Time: BWY's weekly volatility (7%) has been stable over the past year.


Market Performance


7 Day Return

-8.5%

BWY

-3.3%

GB Consumer Durables

-0.4%

GB Market


1 Year Return

-14.5%

BWY

-5.1%

GB Consumer Durables

-10.0%

GB Market

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

Return vs Market: BWY underperformed the UK Market which returned -10% over the past year.


Shareholder returns

BWYIndustryMarket
7 Day-8.5%-3.3%-0.4%
30 Day21.2%25.0%13.7%
90 Day20.5%17.0%6.4%
1 Year-13.1%-14.5%-3.4%-5.1%-6.4%-10.0%
3 Year-9.6%-19.3%10.2%-4.7%1.6%-10.9%
5 Year30.5%7.5%35.1%5.3%27.5%-1.5%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Bellway undervalued compared to its fair value and its price relative to the market?

18.08x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: BWY (£28.94) is trading above our estimate of fair value (£28.11)

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


Price To Earnings Ratio

PE vs Industry: BWY's PE Ratio (18.5x) is in line with the GB Consumer Durables industry average.

PE vs Market: BWY is good value based on its PE Ratio (18.5x) compared to the UK market (21.2x).


Price to Earnings Growth Ratio

PEG Ratio: BWY is good value based on its PEG Ratio (0.8x)


Price to Book Ratio

PB vs Industry: BWY's PB Ratio (1.2x) is in line with the GB Consumer Durables industry average.


Next Steps

Future Growth

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

22.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: BWY's forecast earnings growth (22.6% per year) is above the savings rate (1.2%).

Earnings vs Market: BWY's earnings (22.6% per year) are forecast to grow slower than the UK market (27.2% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: BWY's revenue (10.4% per year) is forecast to grow faster than the UK market (6.8% per year).

High Growth Revenue: BWY's revenue (10.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: BWY's Return on Equity is forecast to be low in 3 years time (11.7%).


Next Steps

Past Performance

How has Bellway performed over the past 5 years?

5.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: BWY has a large one-off loss of £72.6M impacting its July 31 2020 financial results.

Growing Profit Margin: BWY's current net profit margins (8.7%) are lower than last year (16.8%).


Past Earnings Growth Analysis

Earnings Trend: BWY's earnings have grown by 5.3% per year over the past 5 years.

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

Earnings vs Industry: BWY had negative earnings growth (-64.2%) over the past year, making it difficult to compare to the Consumer Durables industry average (-44.6%).


Return on Equity

High ROE: BWY's Return on Equity (6.4%) is considered low.


Next Steps

Financial Health

How is Bellway's financial position?


Financial Position Analysis

Short Term Liabilities: BWY's short term assets (£4.0B) exceed its short term liabilities (£955.8M).

Long Term Liabilities: BWY's short term assets (£4.0B) exceed its long term liabilities (£133.8M).


Debt to Equity History and Analysis

Debt Level: BWY's debt to equity ratio (1.7%) is considered satisfactory.

Reducing Debt: BWY's debt to equity ratio has reduced from 5.1% to 1.7% over the past 5 years.

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

Interest Coverage: BWY's interest payments on its debt are well covered by EBIT (24x coverage).


Balance Sheet


Next Steps

Dividend

What is Bellway current dividend yield, its reliability and sustainability?

1.77%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: BWY's dividend (1.73%) is higher than the bottom 25% of dividend payers in the UK market (1.72%).

High Dividend: BWY's dividend (1.73%) is low compared to the top 25% of dividend payers in the UK market (4.93%).


Stability and Growth of Payments

Stable Dividend: BWY's dividend payments have been volatile in the past 10 years.

Growing Dividend: BWY's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (31.9%), BWY's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: BWY's dividends in 3 years are forecast to be well covered by earnings (36.9% payout ratio).


Next Steps

Management

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

4.7yrs

Average management tenure


CEO

Jason Honeyman

2.25yrs

Tenure

UK£1,090,665

Compensation

Mr. Jason Honeyman has been Group Chief Executive Officer of Bellway p.l.c. since August 1, 2018 and its Executive Director since September 1, 2017. Mr. Honeyman was the Chief Operating Officer of Bellway ...


CEO Compensation Analysis

Compensation vs Market: Jason's total compensation ($USD1.45M) is below average for companies of similar size in the UK market ($USD2.12M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Jason Honeyman
Group CEO & Executive Director2.25yrsUK£1.09m0.021%
£ 766.8k
Keith Adey
Group Finance Director & Executive Director8.67yrsUK£740.04k0.060%
£ 2.2m
Simon Scougall
Group General Counsel & Company Secretary4.67yrsno datano data

4.7yrs

Average Tenure

Experienced Management: BWY's management team is considered experienced (4.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Jason Honeyman
Group CEO & Executive Director2.25yrsUK£1.09m0.021%
£ 766.8k
Keith Adey
Group Finance Director & Executive Director8.67yrsUK£740.04k0.060%
£ 2.2m
Ian McHoul
Independent Non-Executive Director2.67yrsUK£67.23kno data
Paul Nigel Smith
Independent Non-Executive Chairman1.92yrsUK£213.96k0.017%
£ 589.9k
Denise Jagger
Senior Independent Non-Executive Director2yrsUK£67.23k0.0020%
£ 71.4k
Jill Caseberry
Independent Non-Executive Director3.08yrsUK£67.23k0.00038%
£ 13.6k

2.9yrs

Average Tenure

60yo

Average Age

Experienced Board: BWY's board of directors are not considered experienced ( 2.9 years average tenure), which suggests a new board.


Ownership

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


Insider Trading Volume

Insider Buying: BWY 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

Bellway p.l.c.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Bellway p.l.c.
  • Ticker: BWY
  • Exchange: LSE
  • Founded: 1978
  • Industry: Homebuilding
  • Sector: Consumer Durables
  • Market Cap: UK£3.568b
  • Shares outstanding: 123.30m
  • Website: https://www.bellwayplc.co.uk

Number of Employees


Location

  • Bellway p.l.c.
  • Woolsington House
  • Woolsington
  • Newcastle upon Tyne
  • Tyne and Wear
  • NE13 8BF
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
BWYLSE (London Stock Exchange)YesOrdinary SharesGBGBPJan 1994
41BDB (Deutsche Boerse AG)YesOrdinary SharesDEEURJan 1994
BLWY.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJan 1994
BWYLBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBGBPJan 1994
BLWY.YOTCPK (Pink Sheets LLC)ADRUSUSDApr 2011

Biography

Bellway p.l.c., together with its subsidiaries, engages in the home building business in the United Kingdom. The company builds and sells homes ranging from one-bedroom apartments to six-bedroom family hom...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/11/30 19:26
End of Day Share Price2020/11/30 00:00
Earnings2020/07/31
Annual Earnings2020/07/31


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.