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RDW

RedrowLSE:RDW Stock Report

Market Cap

UK£2.2b

7D

-0.9%

1Y

16.2%

Updated

30 Nov, 2021

Data

Company Financials +
RDW fundamental analysis
Snowflake Score
Valuation5/6
Future Growth2/6
Past Performance4/6
Financial Health6/6
Dividends3/6

RDW Stock Overview

Redrow plc focuses on housebuilding activities in the United Kingdom.

Redrow Competitors

Persimmon

LSE:PSN

UK£8.7b

Barratt Developments

LSE:BDEV

UK£7.1b

Taylor Wimpey

LSE:TW.

UK£5.7b

Berkeley Group Holdings

LSE:BKG

UK£4.8b

Price History & Performance

Summary of all time highs, changes and price drops for Redrow
Historical stock prices
Current Share PriceUK£6.48
52 Week HighUK£7.44
52 Week LowUK£4.92
Beta1.75
1 Month Change0.43%
3 Month Change-8.06%
1 Year Change16.23%
3 Year Change31.92%
5 Year Change47.01%
Change since IPO401.74%

Recent News & Updates

Sep 18
Redrow plc's (LON:RDW) Intrinsic Value Is Potentially 92% Above Its Share Price

Redrow plc's (LON:RDW) Intrinsic Value Is Potentially 92% Above Its Share Price

Today we will run through one way of estimating the intrinsic value of Redrow plc ( LON:RDW ) by taking the forecast...

Aug 19
Is It Too Late To Consider Buying Redrow plc (LON:RDW)?

Is It Too Late To Consider Buying Redrow plc (LON:RDW)?

Redrow plc ( LON:RDW ), might not be a large cap stock, but it saw a decent share price growth in the teens level on...

Shareholder Returns

RDWGB Consumer DurablesGB Market
7D-0.9%-1.9%-2.6%
1Y16.2%0.6%10.9%

Return vs Industry: RDW exceeded the UK Consumer Durables industry which returned 7.1% over the past year.

Return vs Market: RDW exceeded the UK Market which returned 13.8% over the past year.

Price Volatility

Is RDW's price volatile compared to industry and market?
RDW volatility
RDW Average Weekly Movement3.5%
Consumer Durables Industry Average Movement3.6%
Market Average Movement4.9%
10% most volatile stocks in GB Market9.8%
10% least volatile stocks in GB Market2.5%

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

Volatility Over Time: RDW's weekly volatility (3%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
19742,161Matthew Brennan-Pratthttps://www.redrowplc.co.uk

Redrow plc focuses on housebuilding activities in the United Kingdom. The company acquires land; and develops and sells residential housing properties. Redrow plc was founded in 1974 and is based in Flintshire, the United Kingdom.

Redrow Fundamentals Summary

How do Redrow's earnings and revenue compare to its market cap?
RDW fundamental statistics
Market CapUK£2.22b
Earnings (TTM)UK£254.00m
Revenue (TTM)UK£1.94b

8.8x

P/E Ratio

1.1x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
RDW income statement (TTM)
RevenueUK£1.94b
Cost of RevenueUK£1.52b
Gross ProfitUK£419.00m
ExpensesUK£165.00m
EarningsUK£254.00m

Last Reported Earnings

Jun 27, 2021

Next Earnings Date

Feb 09, 2022

Earnings per share (EPS)0.74
Gross Margin21.61%
Net Profit Margin13.10%
Debt/Equity Ratio0%

How did RDW perform over the long term?

See historical performance and comparison

Dividends

3.8%

Current Dividend Yield

33%

Payout Ratio

Valuation

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

43.9%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: RDW (£6.48) is trading below our estimate of fair value (£11.55)

Significantly Below Fair Value: RDW is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: RDW is good value based on its PE Ratio (8.8x) compared to the UK Consumer Durables industry average (12.3x).

PE vs Market: RDW is good value based on its PE Ratio (8.8x) compared to the UK market (19x).


Price to Earnings Growth Ratio

PEG Ratio: RDW is poor value based on its PEG Ratio (1.2x)


Price to Book Ratio

PB vs Industry: RDW is good value based on its PB Ratio (1.2x) compared to the GB Consumer Durables industry average (1.4x).


Future Growth

How is Redrow forecast to perform in the next 1 to 3 years based on estimates from 16 analysts?

7.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: RDW's forecast earnings growth (7.2% per year) is above the savings rate (0.9%).

Earnings vs Market: RDW's earnings (7.2% per year) are forecast to grow slower than the UK market (12.6% per year).

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

Revenue vs Market: RDW's revenue (5.6% per year) is forecast to grow faster than the UK market (4.9% per year).

High Growth Revenue: RDW's revenue (5.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: RDW's Return on Equity is forecast to be low in 3 years time (13.1%).


Past Performance

How has Redrow performed over the past 5 years?

-4.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: RDW has high quality earnings.

Growing Profit Margin: RDW's current net profit margins (13.1%) are higher than last year (8.5%).


Past Earnings Growth Analysis

Earnings Trend: RDW's earnings have declined by 4.8% per year over the past 5 years.

Accelerating Growth: RDW's earnings growth over the past year (122.7%) exceeds its 5-year average (-4.8% per year).

Earnings vs Industry: RDW earnings growth over the past year (122.7%) exceeded the Consumer Durables industry 57.9%.


Return on Equity

High ROE: RDW's Return on Equity (13.6%) is considered low.


Financial Health

How is Redrow's financial position?


Financial Position Analysis

Short Term Liabilities: RDW's short term assets (£2.8B) exceed its short term liabilities (£767.0M).

Long Term Liabilities: RDW's short term assets (£2.8B) exceed its long term liabilities (£201.0M).


Debt to Equity History and Analysis

Debt Level: RDW is debt free.

Reducing Debt: RDW has no debt compared to 5 years ago when its debt to equity ratio was 26.3%.

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

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


Balance Sheet


Dividend

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

3.78%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: RDW's dividend (3.78%) is higher than the bottom 25% of dividend payers in the UK market (1.37%).

High Dividend: RDW's dividend (3.78%) is low compared to the top 25% of dividend payers in the UK market (4.17%).


Stability and Growth of Payments

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

Growing Dividend: RDW's dividend payments have increased, but the company has only paid a dividend for 8 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (33.2%), RDW's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: RDW's dividends in 3 years are forecast to be well covered by earnings (41.7% payout ratio).


Next Steps

Management

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

9.6yrs

Average management tenure


CEO

Matthew Brennan-Pratt (46 yo)

1.33yrs

Tenure

UK£1,141,000

Compensation

Mr. Matthew Brennan-Pratt has been Group Chief Executive at Redrow plc since July 01, 2020 and served as its Chief Operating Officer since April 01, 2019 until July 01, 2020. Mr. Brennan-Pratt served as Ch...


CEO Compensation Analysis

Compensation vs Market: Matthew's total compensation ($USD1.51M) is about average for companies of similar size in the UK market ($USD1.75M).

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


Leadership Team

Experienced Management: RDW's management team is seasoned and experienced (9.6 years average tenure).


Board Members

Experienced Board: RDW's board of directors are not considered experienced ( 2.6 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: Insufficient data to determine if 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

Redrow plc's employee growth, exchange listings and data sources


Key Information

  • Name: Redrow plc
  • Ticker: RDW
  • Exchange: LSE
  • Founded: 1974
  • Industry: Homebuilding
  • Sector: Consumer Durables
  • Market Cap: UK£2.225b
  • Shares outstanding: 343.35m
  • Website: https://www.redrowplc.co.uk

Number of Employees


Location

  • Redrow plc
  • Redrow House
  • St. David's Park
  • Flintshire
  • Clwyd
  • CH5 3RX
  • United Kingdom

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/11/30 21:38
End of Day Share Price2021/11/30 00:00
Earnings2021/06/27
Annual Earnings2021/06/27


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.