Market Cap
UK£1.8b
Last Updated
2021/01/15 02:25 UTC
Data Sources
Company Financials +
Executive Summary
Redrow plc focuses on housebuilding activities in the United Kingdom. More Details
Rewards
Risk Analysis
Snowflake Analysis
Very undervalued with excellent balance sheet.
Similar Companies
Share Price & News
How has Redrow's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: RDW is not significantly more volatile than the rest of UK stocks over the past 3 months, typically moving +/- 7% a week.
Volatility Over Time: RDW's weekly volatility (7%) has been stable over the past year.
Market Performance
7 Day Return
-6.8%
RDW
-4.2%
GB Consumer Durables
-0.7%
GB Market
1 Year Return
-31.4%
RDW
-16.4%
GB Consumer Durables
-7.7%
GB Market
Return vs Industry: RDW underperformed the UK Consumer Durables industry which returned -16.4% over the past year.
Return vs Market: RDW underperformed the UK Market which returned -7.7% over the past year.
Shareholder returns
| RDW | Industry | Market | |
|---|---|---|---|
| 7 Day | -6.8% | -4.2% | -0.7% |
| 30 Day | -1.2% | 1.8% | 4.5% |
| 90 Day | 19.2% | 20.5% | 15.6% |
| 1 Year | -31.4%-31.4% | -15.1%-16.4% | -3.9%-7.7% |
| 3 Year | -8.5%-21.0% | 9.3%-5.3% | 4.7%-8.1% |
| 5 Year | 49.7%22.2% | 44.9%13.6% | 49.0%15.2% |
Long-Term Price Volatility Vs. Market
How volatile is Redrow's share price compared to the market and industry in the last 5 years?
Simply Wall St News
4 weeks ago | Simply Wall St
Are Investors Undervaluing Redrow plc (LON:RDW) By 23%?1 month ago | Simply Wall St
Redrow's (LON:RDW) Shareholders Are Down 17% On Their Shares1 month ago | Simply Wall St
Did Redrow plc (LON:RDW) Insiders Sell Shares?Valuation
Is Redrow undervalued compared to its fair value and its price relative to the market?
25.6%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: RDW (£5.31) is trading below our estimate of fair value (£7.14)
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 (16.1x) compared to the GB Consumer Durables industry average (18.8x).
PE vs Market: RDW is good value based on its PE Ratio (16.1x) compared to the UK market (23x).
Price to Earnings Growth Ratio
PEG Ratio: RDW is good value based on its PEG Ratio (0.8x)
Price to Book Ratio
PB vs Industry: RDW is good value based on its PB Ratio (1.1x) compared to the GB Consumer Durables industry average (1.4x).
Next Steps
Future Growth
How is Redrow forecast to perform in the next 1 to 3 years based on estimates from 15 analysts?
21.3%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: RDW's forecast earnings growth (21.3% per year) is above the savings rate (1%).
Earnings vs Market: RDW's earnings (21.3% per year) are forecast to grow slower than the UK market (26.7% per year).
High Growth Earnings: earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: RDW's revenue (9.9% per year) is forecast to grow faster than the UK market (6.5% per year).
High Growth Revenue: RDW's revenue (9.9% 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 (12.4%).
Next Steps
Past Performance
How has Redrow performed over the past 5 years?
8.2%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: RDW has high quality earnings.
Growing Profit Margin: RDW's current net profit margins (8.4%) are lower than last year (15.6%).
Past Earnings Growth Analysis
Earnings Trend: RDW's earnings have grown by 8.2% per year over the past 5 years.
Accelerating Growth: RDW's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: RDW had negative earnings growth (-65.6%) over the past year, making it difficult to compare to the Consumer Durables industry average (-45.3%).
Return on Equity
High ROE: RDW's Return on Equity (6.9%) is considered low.
Next Steps
Financial Health
How is Redrow's financial position?
Financial Position Analysis
Short Term Liabilities: RDW's short term assets (£2.7B) exceed its short term liabilities (£805.0M).
Long Term Liabilities: RDW's short term assets (£2.7B) exceed its long term liabilities (£303.0M).
Debt to Equity History and Analysis
Debt Level: RDW's debt to equity ratio (10.5%) is considered satisfactory.
Reducing Debt: RDW's debt to equity ratio has reduced from 24.7% to 10.5% over the past 5 years.
Debt Coverage: RDW's operating cash flow is negative, therefore debt is not well covered.
Interest Coverage: RDW's interest payments on its debt are well covered by EBIT (18.5x coverage).
Balance Sheet
Next Steps
Dividend
What is Redrow current dividend yield, its reliability and sustainability?
4.12%
Forecast Dividend Yield
Dividend Yield vs Market
Notable Dividend: Unable to evaluate RDW's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.
High Dividend: Unable to evaluate RDW's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.
Stability and Growth of Payments
Stable Dividend: Insufficient data to determine if RDW's dividends per share have been stable in the past.
Growing Dividend: Insufficient data to determine if RDW's dividend payments have been increasing.
Current Payout to Shareholders
Dividend Coverage: RDW is not paying a notable dividend for the UK market.
Future Payout to Shareholders
Future Dividend Coverage: No need to calculate the sustainability of RDW's dividend in 3 years as they are not forecast to pay a notable one for the UK market.
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
9.0yrs
Average management tenure
CEO
Matthew Brennan-Pratt (45 yo)
0.50
Tenure
UK£461,000
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 ($USD631.22K) is below average for companies of similar size in the UK market ($USD1.98M).
Compensation vs Earnings: Insufficient data to compare Matthew's compensation with company performance.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Group Chief Executive & Executive Director | 0.50yr | UK£461.00k | 0.026% £ 482.0k | |
| Group Finance Director & Executive Director | 11yrs | UK£467.00k | 0.16% £ 3.0m | |
| Head of Legal & Company Secretary | 18.17yrs | no data | 0.042% £ 771.2k | |
| Group Development Director | 9yrs | no data | 0.0064% £ 116.9k | |
| Group Sales & Marketing Director | 6.58yrs | no data | no data | |
| Group Human Resources Director | no data | no data | 0.0050% £ 92.1k | |
| Chairman of Northern Region | 13.5yrs | no data | no data | |
| Regional Chief Executive for Greater London | 1.08yrs | no data | no data | |
| Managing Director of Lancashire Division | no data | no data | no data |
9.0yrs
Average Tenure
57yo
Average Age
Experienced Management: RDW's management team is seasoned and experienced (9 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Group Chief Executive & Executive Director | 0.50yr | UK£461.00k | 0.026% £ 482.0k | |
| Group Finance Director & Executive Director | 11yrs | UK£467.00k | 0.16% £ 3.0m | |
| Non-Executive Chairman | 1.75yrs | UK£712.00k | 0.24% £ 4.3m | |
| Senior Independent Director | 2.17yrs | UK£73.00k | no data | |
| Independent Non-Executive Director | 6yrs | UK£63.00k | no data | |
| Independent Non-Executive Director | 1.17yrs | UK£35.00k | no data |
2.0yrs
Average Tenure
61yo
Average Age
Experienced Board: RDW's board of directors are not considered experienced ( 2 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 company bio, 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£1.823b
- 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
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| RDW | LSE (London Stock Exchange) | Yes | New Ordinary Shares | GB | GBP | Jun 1994 |
| RDWL | BATS-CHIXE (BATS 'Chi-X Europe') | Yes | New Ordinary Shares | GB | GBP | Jun 1994 |
| 1HO1 | DB (Deutsche Boerse AG) | Yes | New Ordinary Shares | DE | EUR | Jun 1994 |
Biography
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 Flints...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/01/15 02:25 |
| End of Day Share Price | 2021/01/14 00:00 |
| Earnings | 2020/06/28 |
| Annual Earnings | 2020/06/28 |
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.