LSE:TW.

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

Flawless balance sheet with proven track record.


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


Market Performance


7 Day Return

12.1%

TW.

11.0%

GB Consumer Durables

1.7%

GB Market


1 Year Return

5.2%

TW.

15.2%

GB Consumer Durables

2.9%

GB Market

Return vs Industry: TW. underperformed the UK Consumer Durables industry which returned 15.2% over the past year.

Return vs Market: TW. exceeded the UK Market which returned 2.9% over the past year.


Shareholder returns

TW.IndustryMarket
7 Day12.1%11.0%1.7%
30 Day1.3%6.7%-0.7%
90 Day0.4%11.8%-1.8%
1 Year17.5%5.2%23.4%15.2%8.0%2.9%
3 Year46.6%12.8%63.8%35.8%18.2%3.8%
5 Year105.4%41.8%127.4%70.2%35.6%6.1%

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?

34.3%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: TW. (£1.66) is trading below our estimate of fair value (£2.52)

Significantly Undervalued: TW. is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: TW. is good value based on its PE Ratio (8.3x) compared to the Consumer Durables industry average (10.4x).

PE vs Market: TW. is good value based on its PE Ratio (8.3x) compared to the UK market (16.7x).


Price to Earnings Growth Ratio

Low PEG Ratio: TW. is poor value based on its PEG Ratio (6x)


Price to Book Ratio

PB vs Industry: TW. is overvalued based on its PB Ratio (1.8x) compared to the GB Consumer Durables industry average (1.5x).


Next Steps

Future Growth

How is Taylor Wimpey forecast to perform in the next 1 to 3 years based on estimates from 14 analysts?

1.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: TW.'s forecast earnings growth (1.4% per year) is above the savings rate (1.2%).

Earnings vs Market: TW.'s earnings (1.4% per year) are forecast to grow slower than the UK market (12.9% per year).

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

Revenue vs Market: TW.'s revenue (2.9% per year) is forecast to grow slower than the UK market (3.9% per year).

High Growth Revenue: TW.'s revenue (2.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: TW.'s Return on Equity is forecast to be low in 3 years time (19.9%).


Next Steps

Past Performance

How has Taylor Wimpey performed over the past 5 years?

13.2%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: TW.'s earnings have grown by 13.2% per year over the past 5 years.

Accelerating Growth: TW.'s earnings growth over the past year (3.2%) is below its 5-year average (13.2% per year).

Earnings vs Industry: TW. earnings growth over the past year (3.2%) underperformed the Consumer Durables industry 5%.


Return on Equity

High ROE: TW.'s Return on Equity (21.7%) is considered high.


Return on Assets

ROA vs Industry: TW. has a higher Return on Assets than the Consumer Durables industry average last year.


Return on Capital Employed

ROCE Improving: TW. has improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is Taylor Wimpey's financial position?


Financial Position Analysis

Short Term Liabilities: TW.'s short term assets (£5.1B) exceeds its short term liabilities (£1.5B)

Long Term Liabilities: TW.'s short term assets (5.1B) exceeds its long term liabilities (763.4M)


Debt to Equity History and Analysis

Debt Level: TW.'s debt to equity ratio (3%) is considered satisfactory

Reducing Debt: TW.'s debt to equity ratio has reduced from 4.2% to 3% over the past 5 years.

Debt Coverage: TW.'s debt is well covered by operating cash flow (471.2%).

Interest Coverage: TW.'s interest payments on its debt are well covered by EBIT (493.2x coverage).


Balance Sheet

Inventory Level: TW. has a high level of physical assets or inventory.

Debt Coverage by Assets: TW.'s debt is covered by short term assets (assets are 56.940640x debt).


Next Steps

Dividend

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

11.10%

Current Dividend Yield


Dividend Yield vs Market

company11.1%marketbottom25%2.0%markettop25%5.4%industryaverage6.2%forecastin3Years11.2%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: TW.'s dividend (11.1%) is higher than the bottom 25% of dividend payers in the UK market (1.99%).

High Dividend: TW.'s dividend (11.1%) is in the top 25% of dividend payers in the UK market (5.41%)

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 8 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (38.2%), TW.'s dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: TW.'s dividends in 3 years are not forecast to be well covered by earnings (90.1% payout ratio).


Next Steps

Management

What is the CEO of Taylor Wimpey's salary, the management and board of directors tenure and is there insider trading?

5.9yrs

Average management tenure


CEO

Pete Redfern (47yo)

12.3yrs

Tenure

UK£3,152,000

Compensation

Mr. Peter Redfern, also known as Pete, has been the Group Chief Executive of Taylor Wimpey plc since July 2007. Mr. Redfern served as the Chief Executive Officer of George Wimpey PLC since July 01, 2006. M ...


CEO Compensation Analysis

Compensation vs. Market: Pete's total compensation ($USD4.05M) is about average for companies of similar size in the UK market ($USD3.28M).

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


Management Age and Tenure

5.9yrs

Average Tenure

50yo

Average Age

Experienced Management: TW.'s management team is seasoned and experienced (5.9 years average tenure).


Board Age and Tenure

2.9yrs

Average Tenure

56yo

Average Age

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


Insider Trading

Insider Buying: TW. insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyUK£99,51401 Aug 19
Kevin Beeston
EntityIndividual
Role
Chairman of the Board
Chairman of the Board
Shares59,164
Max PriceUK£1.68

Ownership Breakdown


Management Team

  • James Jordan (56yo)

    Group Legal Director

    • Tenure: 8.3yrs
    • Compensation: UK£1.49m
  • Pete Redfern (47yo)

    Group Chief Executive & Executive Director

    • Tenure: 12.3yrs
    • Compensation: UK£3.15m
  • Jennie Daly

    Group Operations Director & Executive Director

    • Tenure: 1.5yrs
    • Compensation: UK£735.74k
  • Daniel McGowan

    Divisional Chair of North

    • Tenure: 0yrs
  • Anne Billson-Ross (50yo)

    Group Human Resources Director

    • Tenure: 0yrs
  • Trish Henderson

    Sales & Marketing Director

    • Tenure: 7.7yrs
  • Nigel Holland

    Divisional Chair of Central & South West

    • Tenure: 4.2yrs
  • Chris Carney

    Group Finance Director & Executive Director

    • Tenure: 1.5yrs
    • Compensation: UK£1.07m
  • Ingrid Osborne

    Divisional Chairman of London & South East

    • Tenure: 0yrs

Board Members

  • Angela Knight (69yo)

    Independent Non-Executive Director

    • Tenure: 2.9yrs
    • Compensation: UK£60.00k
  • Kevin Beeston (56yo)

    Chairman of the Board

    • Tenure: 9.3yrs
    • Compensation: UK£309.00k
  • James Jordan (56yo)

    Group Legal Director

    • Tenure: 8.3yrs
    • Compensation: UK£1.49m
  • Pete Redfern (47yo)

    Group Chief Executive & Executive Director

    • Tenure: 12.3yrs
    • Compensation: UK£3.15m
  • Gwyn Burr (56yo)

    Independent Non Executive Director

    • Tenure: 1.7yrs
    • Compensation: UK£55.00k
  • Jennie Daly

    Group Operations Director & Executive Director

    • Tenure: 1.5yrs
    • Compensation: UK£735.74k
  • Kate Barker (62yo)

    Senior Independent Director

    • Tenure: 1.5yrs
    • Compensation: UK£87.00k
  • Humphrey Singer (53yo)

    Independent Non-Executive Director

    • Tenure: 3.8yrs
    • Compensation: UK£73.00k
  • Chris Carney

    Group Finance Director & Executive Director

    • Tenure: 1.5yrs
    • Compensation: UK£1.07m

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£5.408b
  • Shares outstanding: 3.27b
  • 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, including one- and two-bedroom apartments to six-bedroom detached houses. Taylor Wimpey ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/17 20:37
End of Day Share Price2019/10/17 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.