Skip to Content

Bellway PLC BWY

Morningstar Rating
GBX 2,694.00 −4.00 (0.15%)
View Full Chart
Unlock our analysis with Morningstar Investor

Company Report

UK Homebuilders Remain Attractive Despite Positive Stock Price Reaction to Labour Election Victory

We reiterate the still-significant stock price upside potential for the majority of our UK homebuilder coverage despite the positive homebuilder stock price reaction to a Labour Party victory in the UK general election. Indeed, the election result was widely anticipated given polling in the lead up to the UK general election, which predicted a landslide Labour victory. Nonetheless, the election outcome has emboldened investors, with UK homebuilder stocks leading gains in UK stocks in early trading following the election result on July 5, 2024. Ostensibly, the Labour victory has instilled greater investor confidence that the present urban planning bottlenecks to new housing supply will be appropriately addressed—a key near-term concern that has weighed on UK homebuilder stock prices. Labour’s plans to reinstate support for first homebuyers and to increase supply of other forms of affordable housing are also constructive to the homebuilder industry outlook.

Price vs Fair Value

BWY is trading at a 123% premium.
Price
GBX 2,698.00
Fair Value
GBX 3,566.00
Uncertainty
High
1-Star Price
GBX 5,387.20
5-Star Price
GBX 7,575.00
Economic Moat
Yryxy
Capital Allocation
Ywddktt

Bulls Say, Bears Say

Bulls

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

Bears

Profit margin recovery is likely to be gradual, owing to upcoming incremental built costs for Future Homes Standard compliance.

Is it the right time to buy, sell, or hold?
Start a free trial of Morningstar Investor to unlock exclusive ratings and continuous analyst coverage to help you decide if BWY is a good fit for your portfolio.

News

Trading Information

Previous Close Price
GBX 2,698.00
Day Range
GBX 2,676.002,706.00
52-Week Range
GBX 1,972.002,898.00
Bid/Ask
GBX 2,692.00 / GBX 2,696.00
Market Cap
GBX 319.65 Bil
Volume/Avg
5,280 / 231,598

Key Statistics

Price/Earnings (Normalized)
12.31
Price/Sales
1.14
Dividend Yield (Trailing)
4.11%
Dividend Yield (Forward)
4.11%
Total Yield
7.27%

Company Profile

Bellway is the UK’s fourth-largest residential property developer in terms of both revenue and dwelling completions. Bellway’s vertical integration through the land development, construction, and sales and marketing segments of the residential property development value chain aligns with the typical business model employed by homebuilders in the UK market.
Sector
Consumer Cyclical
Industry
Residential Construction
Stock Style Box
Mid Value
Total Number of Employees
3,130

Competitors

Valuation

Metric
BWY
BDEV
BKG
Price/Earnings (Normalized)
12.3112.1711.82
Price/Book Value
0.930.891.46
Price/Sales
1.141.122.14
Price/Cash Flow
12.9023.0815.54
Price/Earnings
BWY
BDEV
BKG

Financial Strength

Metric
BWY
BDEV
BKG
Quick Ratio
0.330.860.64
Current Ratio
5.784.923.57
Interest Coverage
8.817.1723.08
Quick Ratio
BWY
BDEV
BKG

Profitability

Metric
BWY
BDEV
BKG
Return on Assets (Normalized)
5.22%4.95%6.78%
Return on Equity (Normalized)
7.58%7.02%13.98%
Return on Invested Capital (Normalized)
7.82%6.74%11.33%
Return on Assets
BWY
BDEV
BKG
See how this stock stacks up to its competitors with Morningstar Investor

Residential Construction Industry Comparables

1-Day Chart
Name
Price
Morningstar Rating for Stocks
Capital Allocation
Economic Moat
Market Cap
D.R. Horton Inc
DHI
CrfxdzjmLnng$58.0 Bil
Lennar Corp Class B
LEN.B
Hsnn$47.0 Bil
Lennar Corp Class A
LEN
NyptwjhFylx$47.0 Bil
NVR Inc
NVR
SdkswtndxmRlk$27.1 Bil
PulteGroup Inc
PHM
PtbmlrhyYwmv$26.4 Bil
Sekisui House Ltd
SKHSF
Fhrt$15.8 Bil
Sekisui House Ltd ADR
SKHSY
Vwv$15.8 Bil
Toll Brothers Inc
TOL
TsjryytQhp$13.8 Bil
Sumitomo Forestry Co Ltd
SMFRF
Tgxkb$8.4 Bil
Taylor Wimpey PLC
TWODF
Blzv$7.1 Bil

Sponsor Center