LSE:TW.

Stock Analysis Report

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Executive Summary

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


Snowflake Analysis

Flawless balance sheet and undervalued.


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.'s share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-5.3%

TW.

-0.3%

GB Consumer Durables

0.4%

GB Market


1 Year Return

-36.4%

TW.

-16.7%

GB Consumer Durables

-13.8%

GB Market

Return vs Industry: TW. underperformed the UK Consumer Durables industry which returned -16.7% over the past year.

Return vs Market: TW. underperformed the UK Market which returned -13.8% over the past year.


Shareholder returns

TW.IndustryMarket
7 Day-5.3%-0.3%0.4%
30 Day-12.2%-4.5%-0.3%
90 Day-29.3%-5.3%-1.7%
1 Year-34.8%-36.4%-14.3%-16.7%-10.4%-13.8%
3 Year-31.3%-43.3%-4.9%-18.1%-4.3%-15.8%
5 Year-29.3%-48.6%11.2%-14.3%22.8%-4.6%

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. (£1.05) is trading below our estimate of fair value (£2.38)

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 (8.6x) compared to the GB Consumer Durables industry average (12.7x).

PE vs Market: TW. is good value based on its PE Ratio (8.6x) compared to the UK market (17.7x).


Price to Earnings Growth Ratio

PEG Ratio: TW. is good value based on its PEG Ratio (0.3x)


Price to Book Ratio

PB vs Industry: TW.'s PB Ratio (0.9x) is in line with the GB Consumer Durables industry average.


Next Steps

Future Growth

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

28.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: TW.'s forecast earnings growth (28.9% per year) is above the savings rate (1.2%).

Earnings vs Market: TW.'s earnings (28.9% per year) are forecast to grow faster than the UK market (23.9% per year).

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

Revenue vs Market: TW.'s revenue (16% per year) is forecast to grow faster than the UK market (6.3% per year).

High Growth Revenue: TW.'s revenue (16% 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 (12.7%).


Next Steps

Past Performance

How has Taylor Wimpey performed over the past 5 years?

5.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: TW. has high quality earnings.

Growing Profit Margin: TW.'s current net profit margins (11.9%) are lower than last year (16%).


Past Earnings Growth Analysis

Earnings Trend: TW.'s earnings have grown by 5% 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 (-38.8%) over the past year, making it difficult to compare to the Consumer Durables industry average (-34.6%).


Return on Equity

High ROE: TW.'s Return on Equity (10.7%) is considered low.


Next Steps

Financial Health

How is Taylor Wimpey's financial position?


Financial Position Analysis

Short Term Liabilities: TW.'s short term assets (£5.3B) exceed its short term liabilities (£1.0B).

Long Term Liabilities: TW.'s short term assets (£5.3B) exceed its long term liabilities (£743.7M).


Debt to Equity History and Analysis

Debt Level: TW.'s debt to equity ratio (2.8%) is considered satisfactory.

Reducing Debt: TW.'s debt to equity ratio has reduced from 5.1% to 2.8% over the past 5 years.

Debt Coverage: TW.'s debt is well covered by operating cash flow (84.8%).

Interest Coverage: TW.'s interest payments on its debt are well covered by EBIT (87.7x coverage).


Balance Sheet


Next Steps

Dividend

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

7.44%

Forecast Dividend Yield


Dividend Yield vs Market

Notable Dividend: Unable to evaluate TW.'s dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate TW.'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 TW.'s dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if TW.'s dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: TW. is not paying a notable dividend for the UK market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of TW.'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?

3.9yrs

Average management tenure


CEO

Pete Redfern (48 yo)

13.17yrs

Tenure

UK£3,023,000

Compensation

Mr. Peter Redfern, also known as Pete, has been Senior Independent Director at Travis Perkins plc since May 1, 2020. Mr. Redfern has been the Group Chief Executive of Taylor Wimpey plc since July 2007. Mr. ...


CEO Compensation Analysis

Compensation vs Market: Pete's total compensation ($USD3.92M) is about average for companies of similar size in the UK market ($USD3.25M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Peter Redfern
Group Chief Executive & Executive Director13.17yrsUK£3.02m0.062%
£ 2.4m
Chris Carney
Group Finance Director & Executive Director2.42yrsUK£1.24m0.010%
£ 389.5k
Jennifer Daly
Group Operations Director & Executive Director2.42yrsUK£987.00k0.0049%
£ 187.5k
Alice Marsden
Group General Counsel & Company Secretary0.83yrno datano data
Trish Henderson
Sales & Marketing Director8.58yrsno datano data
Anne Billson-Ross
Group Human Resources Directorno datano datano data
Daniel McGowan
Divisional Chair of Northno datano datano data
Nigel Holland
Divisional Chair of Central & South West5.08yrsno datano data
Ingrid Osborne
Divisional Chairman of London & South Eastno datano datano data

3.9yrs

Average Tenure

Experienced Management: TW.'s management team is considered experienced (3.9 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Peter Redfern
Group Chief Executive & Executive Director13.17yrsUK£3.02m0.062%
£ 2.4m
Chris Carney
Group Finance Director & Executive Director2.42yrsUK£1.24m0.010%
£ 389.5k
Jennifer Daly
Group Operations Director & Executive Director2.42yrsUK£987.00k0.0049%
£ 187.5k
Angela Knight
Independent Non-Executive Director3.83yrsUK£60.00k0.00046%
£ 17.6k
Irene Dorner
Independent Chairman0.58yrUK£5.00k0.0034%
£ 132.0k
Robert Noel
Senior Independent Director0.42yrUK£15.00k0.0013%
£ 49.0k
Gwyneth Burr
Independent Non Executive Director2.58yrsUK£72.00kno data
Katharine Barker
Independent Non-Executive Director9.42yrsUK£83.00k0.0019%
£ 71.2k
Humphrey Singer
Independent Non-Executive Director4.75yrsUK£78.00k0.00088%
£ 33.7k

2.6yrs

Average Tenure

57yo

Average Age

Experienced Board: TW.'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: TW. insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 11.3%.


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£3.826b
  • Shares outstanding: 3.63b
  • 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

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
TWOD.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJun 1989
TWWDB (Deutsche Boerse AG)YesOrdinary SharesDEEURJun 1989
TW.LSE (London Stock Exchange)YesOrdinary SharesGBGBPJun 1989
TWLBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBGBPJun 1989
TWOD.YOTCPK (Pink Sheets LLC)ADR-ORD SHSUSUSDJul 2008

Biography

Taylor Wimpey plc operates a residential developer in the United Kingdom and Spain. The company builds various homes, such as one- and two-bedroom apartments to six-bedroom detached houses. Taylor Wimpey p ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/09/19 02:58
End of Day Share Price2020/09/18 00:00
Earnings2020/06/28
Annual Earnings2019/12/31


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.