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Berkeley Group Holdings (The) PLC BKG

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Stock XLON Rating as of
GBX 4,542.00 −78.00 (1.69%)
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As of Delayed Price Closed
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Company Report

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Berkeley Group: Navigating UK Housing Market Malaise With Ease; Shares Fairly Valued

Grant Slade

We maintain our GBX 4,900 fair value estimate and 2024 financial estimates for Berkeley Group, with the no-moat homebuilder confirming it remains on track to deliver against its 2024 and medium-term financial guidance. With Berkeley Group continuing to navigate challenging housing market conditions largely unscathed, we make no change to our full-year fiscal 2024 pretax profit forecast of GBP 576 million, inclusive of joint-venture profits.

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Price vs Fair Value

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BKG is trading at a 6% discount.
Price
GBX 4,620.00
Fair Value
GBX 1,882.00
Uncertainty
High
1-Star Price
GBX 5,318.00
5-Star Price
GBX 1,694.00
Economic Moat
Fpt
Capital Allocation
Yxcqdnw

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 4,620.00
Day Range
GBX 4,524.00–4,618.00
52-Week Range
GBX 3,634.00–4,980.00
Bid/Ask
GBX 0.00 / GBX 5,245.00
Market Cap
GBX 481.33 Bil
Volume/Avg
320,885 / 282,021

Key Statistics

Price/Earnings (Normalized)
11.09
Price/Sales
1.96
Dividend Yield (Trailing)
2.00%
Dividend Yield (Forward)
2.00%
Total Yield
4.23%

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
Website
https://www.berkeleygroup.co.uk

Competitors

Valuation

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Metric
BKG
TW.
BDEV
Price/Earnings (Normalized)
 11.0913.0510.94
Price/Book Value
 1.441.030.80
Price/Sales
 1.961.331.01
Price/Cash Flow
 13.2713.5720.76
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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