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Berkeley Group Holdings (The) PLC BKG

Morningstar Rating
GBX 5,300.00 −10.00 (0.19%)
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Company Report

Investors Are Drawn to Berkeley's Enviable Forward Order Book Amid a Glum UK Housing Market

Berkeley Group Holdings’ focus on large-scale, capital-intensive brownfield redevelopment projects distinguishes its strategy from its U.K. homebuilding peers. Brownfield projects involve the redevelopment of land previously used for commercial or industrial purposes. Berkeley is the only U.K. residential developer that regenerates large, complex brownfield sites at scale and is vertically integrated through the land development, construction, and sales and marketing segments of the residential property development value chain. Operating in this niche, Berkeley typically deploys capital into regeneration sites in built-up areas, with a particular focus on the housing markets of London, Birmingham, and the south of England.

Price vs Fair Value

BKG is trading at a 574% premium.
Price
GBX 5,310.00
Fair Value
GBX 3,266.00
Uncertainty
High
1-Star Price
GBX 1,112.00
5-Star Price
GBX 7,792.00
Economic Moat
Vrtb
Capital Allocation
Zhfrhzds

Bulls Say, Bears Say

Bulls

Underlying housing demand is likely to benefit from the U.K.’s changing demographics. The ongoing aging of the population is likely to support demand for new housing over the coming decade as the U.K.'s average household size declines.

Bears

The Residential Property Developer Tax came into effect in 2022, raising the tax burden for the sector over the coming decade.

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Trading Information

Previous Close Price
GBX 5,310.00
Day Range
GBX 5,275.005,360.00
52-Week Range
GBX 3,634.005,360.00
Bid/Ask
GBX 0.00 / GBX 5,360.00
Market Cap
GBX 561.42 Bil
Volume/Avg
144,328 / 284,664

Key Statistics

Price/Earnings (Normalized)
12.74
Price/Sales
2.26
Dividend Yield (Trailing)
1.74%
Dividend Yield (Forward)
1.74%
Total Yield
3.68%

Company Profile

Berkeley Group Holdings is a U.K. homebuilder specializing in large-scale residential-led brownfield redevelopment projects with a particular focus on the London, Birmingham, and south of England housing markets. The group is vertically integrated through the land development, construction, and sales and marketing segments of the residential property development value chain.
Sector
Consumer Cyclical
Industry
Residential Construction
Stock Style Box
Mid Value
Total Number of Employees
2,802

Competitors

Valuation

Metric
BKG
TW.
BDEV
Price/Earnings (Normalized)
12.7414.7712.86
Price/Book Value
1.651.170.94
Price/Sales
2.261.501.18
Price/Cash Flow
15.2515.3624.39
Price/Earnings
BKG
TW.
BDEV

Financial Strength

Metric
BKG
TW.
BDEV
Quick Ratio
0.640.790.86
Current Ratio
3.575.374.92
Interest Coverage
23.0818.497.17
Quick Ratio
BKG
TW.
BDEV

Profitability

Metric
BKG
TW.
BDEV
Return on Assets (Normalized)
6.78%5.48%4.95%
Return on Equity (Normalized)
13.98%7.74%7.02%
Return on Invested Capital (Normalized)
11.33%7.47%6.74%
Return on Assets
BKG
TW.
BDEV
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BKGFF
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