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Barratt Developments PLC BDEV

Morningstar Rating
GBX 457.00 +2.10 (0.46%)
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Company Report

A Barratt-Redrow Tie-Up Offers Strategic Logic Particularly in The Face of Urban Planning Challenges

Barratt Developments is the U.K.’s largest homebuilder in terms of both revenue and dwelling completions. Barratt aims to distinguish itself from U.K. peers with a sharp focus on build quality. While falling short of delivering durable pricing power, the strategy has been highly effective in bolstering the reputation of Barratt’s three brands—Barratt Homes, David Wilson Homes, and Barratt London—which consistently garner more awards than peer U.K. homebuilders for build quality and customer satisfaction from the U.K.’s National House-Building Council.

Price vs Fair Value

BDEV is trading at a 39% discount.
Price
GBX 454.90
Fair Value
GBX 399.00
Uncertainty
High
1-Star Price
GBX 6,288.00
5-Star Price
GBX 883.00
Economic Moat
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Capital Allocation
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Bulls Say, Bears Say

Bulls

Underlying housing demand is likely to benefit from the U.K.’s changing demographics. The ongoing ageing 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 U.K. government’s annual target of 300,000 new home additions is unlikely to materialize with housing market data not indicative of a material undersupply of housing.

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Trading Information

Previous Close Price
GBX 454.90
Day Range
GBX 455.45465.60
52-Week Range
GBX 384.15582.60
Bid/Ask
GBX 450.00 / GBX 600.00
Market Cap
GBX 445.39 Bil
Volume/Avg
2.2 Mil / 9.5 Mil

Key Statistics

Price/Earnings (Normalized)
10.94
Price/Sales
1.01
Dividend Yield (Trailing)
6.10%
Dividend Yield (Forward)
6.10%
Total Yield
9.04%

Company Profile

Barratt Developments is the U.K.’s largest residential property developer by revenue and dwelling completions, marketing homes under its three brands Barratt Homes, David Wilson Homes, and Barratt London. Aligning with the typical business model employed by U.K. homebuilders, Barratt 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
6,389
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