LSE:TW.

Stock Analysis Report

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Market Cap

UK£6.0b

Last Updated

2021/07/31 18:09 UTC

Data Sources

Company Financials +

Executive Summary

Taylor Wimpey plc operates a residential developer in the United Kingdom and Spain. More Details


Snowflake Analysis

Excellent balance sheet and good value.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: TW. is not significantly more volatile than the rest of UK stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: TW.'s weekly volatility (4%) has been stable over the past year.


Market Performance


7 Day Return

-1.0%

TW.

-1.0%

GB Consumer Durables

0.3%

GB Market


1 Year Return

39.1%

TW.

37.0%

GB Consumer Durables

22.4%

GB Market

Return vs Industry: TW. exceeded the UK Consumer Durables industry which returned 37% over the past year.

Return vs Market: TW. exceeded the UK Market which returned 22.4% over the past year.


Shareholder returns

TW.IndustryMarket
7 Day-1.0%-1.0%0.3%
30 Day1.0%1.7%0.3%
90 Day-8.4%-4.7%1.5%
1 Year42.3%39.1%42.6%37.0%27.9%22.4%
3 Year11.8%-3.6%33.7%17.4%12.7%-0.1%
5 Year42.4%6.7%95.9%53.4%39.4%12.6%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: TW. (£1.65) is trading below our estimate of fair value (£3.78)

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


Price To Earnings Ratio

PE vs Industry: TW. is good value based on its PE Ratio (26.3x) compared to the UK Consumer Durables industry average (28.4x).

PE vs Market: TW. is poor value based on its PE Ratio (26.3x) compared to the UK market (23.6x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: TW.'s PB Ratio (1.5x) is in line with the GB Consumer Durables industry average.


Future Growth

How is Taylor Wimpey forecast to perform in the next 1 to 3 years based on estimates from 18 analysts?

33.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: TW.'s forecast earnings growth (33.5% per year) is above the savings rate (0.9%).

Earnings vs Market: TW.'s earnings (33.5% per year) are forecast to grow faster than the UK market (14.8% per year).

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

Revenue vs Market: TW.'s revenue (16.4% per year) is forecast to grow faster than the UK market (4.7% per year).

High Growth Revenue: TW.'s revenue (16.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: TW.'s Return on Equity is forecast to be low in 3 years time (16.3%).


Past Performance

How has Taylor Wimpey performed over the past 5 years?

-3.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: TW. has a large one-off loss of £84.8M impacting its December 31 2020 financial results.

Growing Profit Margin: TW.'s current net profit margins (7.8%) are lower than last year (15.5%).


Past Earnings Growth Analysis

Earnings Trend: TW.'s earnings have declined by 3.3% per year over the past 5 years.

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

Earnings vs Industry: TW. had negative earnings growth (-67.7%) over the past year, making it difficult to compare to the Consumer Durables industry average (-48%).


Return on Equity

High ROE: TW.'s Return on Equity (5.4%) is considered low.


Financial Health

How is Taylor Wimpey's financial position?


Financial Position Analysis

Short Term Liabilities: TW.'s short term assets (£5.5B) exceed its short term liabilities (£1.0B).

Long Term Liabilities: TW.'s short term assets (£5.5B) exceed its long term liabilities (£720.9M).


Debt to Equity History and Analysis

Debt Level: TW.'s debt to equity ratio (2.6%) is considered satisfactory.

Reducing Debt: TW.'s debt to equity ratio has reduced from 3.7% to 2.6% over the past 5 years.

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

Interest Coverage: TW.'s interest payments on its debt are well covered by EBIT (65.3x coverage).


Balance Sheet


Dividend

What is Taylor Wimpey current dividend yield, its reliability and sustainability?

2.51%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: TW.'s dividend (2.52%) is higher than the bottom 25% of dividend payers in the UK market (1.31%).

High Dividend: TW.'s dividend (2.52%) is low compared to the top 25% of dividend payers in the UK market (4%).


Stability and Growth of Payments

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

Growing Dividend: TW.'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 (66.2%), TW.'s dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: TW.'s dividends in 3 years are forecast to be covered by earnings (63.2% payout ratio).


Next Steps

Management

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

4.7yrs

Average management tenure


CEO

Pete Redfern (49 yo)

14yrs

Tenure

UK£1,120,000

Compensation

Mr. Peter Redfern, also known as Pete, has been Senior Independent Non-Executive Director at Travis Perkins plc since March 2021. He had been Senior Independent Director at Travis Perkins plc since April 2...


CEO Compensation Analysis

Compensation vs Market: Pete's total compensation ($USD1.56M) is below average for companies of similar size in the UK market ($USD2.23M).

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


Leadership Team

Experienced Management: TW.'s management team is considered experienced (4.7 years average tenure).


Board Members

Experienced Board: TW.'s board of directors are considered experienced (3.2 years average tenure).


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

Taylor Wimpey plc's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Taylor Wimpey plc
  • Ticker: TW.
  • Exchange: LSE
  • Founded: 1880
  • Industry: Homebuilding
  • Sector: Consumer Durables
  • Market Cap: UK£5.990b
  • Shares outstanding: 3.64b
  • Website: https://www.taylorwimpey.co.uk

Number of Employees


Location

  • Taylor Wimpey plc
  • Gate House
  • Turnpike Road
  • High Wycombe
  • Buckinghamshire
  • HP12 3NR
  • United Kingdom

Listings


Biography

Taylor Wimpey plc operates a residential developer in the United Kingdom and Spain. The company builds and delivers various homes and communities, including apartments to six-bedroom houses. Taylor Wimpey ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/07/31 18:09
End of Day Share Price2021/07/30 00:00
Earnings2020/12/31
Annual Earnings2020/12/31


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.