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Barratt Developments PLC BDEV

Morningstar Rating
GBX 485.00 −2.70 (0.55%)
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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 678% premium.
Price
GBX 487.70
Fair Value
GBX 516.00
Uncertainty
High
1-Star Price
GBX 7,465.00
5-Star Price
GBX 669.00
Economic Moat
Glzz
Capital Allocation
Lrzrxwpm

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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News

Trading Information

Previous Close Price
GBX 487.70
Day Range
GBX 481.90493.10
52-Week Range
GBX 384.15582.60
Bid/Ask
GBX 430.00 / GBX 538.00
Market Cap
GBX 472.68 Bil
Volume/Avg
5.5 Mil / 6.2 Mil

Key Statistics

Price/Earnings (Normalized)
11.96
Price/Sales
1.10
Dividend Yield (Trailing)
5.72%
Dividend Yield (Forward)
5.72%
Total Yield
8.31%

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

Competitors

Valuation

Metric
BDEV
BKG
TW.
Price/Earnings (Normalized)
11.9612.0714.70
Price/Book Value
0.881.561.16
Price/Sales
1.102.141.50
Price/Cash Flow
22.6914.4515.29
Price/Earnings
BDEV
BKG
TW.

Financial Strength

Metric
BDEV
BKG
TW.
Quick Ratio
0.860.640.79
Current Ratio
4.923.575.37
Interest Coverage
7.1723.0818.49
Quick Ratio
BDEV
BKG
TW.

Profitability

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