Berkeley Group (BKGFY)
OTHER OTC:BKGFY
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Berkeley Group
(OTC:BKGFY)
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Rating:75Outperform
Price Target:
$10.50
▼(-4.28% Downside)
Action:ReiteratedDate:09/30/25
Berkeley Group's strong valuation, characterized by a low P/E ratio and high dividend yield, is a significant strength. Financial performance is solid, with strong profitability and a robust balance sheet, though revenue growth inconsistency and cash flow volatility are concerns. Technical analysis shows short-term bullish momentum, but longer-term resistance is present.
Positive Factors
Strong balance sheet
Low leverage and a stable equity ratio give Berkeley durable financial flexibility to fund land acquisition, absorb project timing mismatches and support development pipelines. A strong balance sheet reduces refinancing risk and preserves ability to invest through cycles, aiding long-term delivery of urban regeneration projects.
Negative Factors
Inconsistent revenue growth
Negative and inconsistent revenue growth reduces predictability of cash inflows from home sales and complicates long-term planning. For a developer reliant on phasing and sales timing, uneven revenue undermines ability to smooth capital deployment and can force more frequent external financing in weaker periods.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong balance sheet
Low leverage and a stable equity ratio give Berkeley durable financial flexibility to fund land acquisition, absorb project timing mismatches and support development pipelines. A strong balance sheet reduces refinancing risk and preserves ability to invest through cycles, aiding long-term delivery of urban regeneration projects.
Read all positive factors
Berkeley Group (BKGFY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$4.30B
Dividend Yield5.18%
Average Volume (3M)46.00K
Price to Earnings (P/E)5.4
Beta (1Y)0.52
Revenue Growth2.82%
EPS Growth-96.09%
CountryUS
Employees2,610
SectorConsumer Cyclical
Sector Strength84
IndustryResidential Construction
Share Statistics
EPS (TTM)0.49
Shares Outstanding469,478,330
10 Day Avg. Volume50,022
30 Day Avg. Volume45,996
Financial Highlights & Ratios
PEG Ratio-3.65
Price to Book (P/B)1.25
Price to Sales (P/S)1.79
P/FCF Ratio23.22
Enterprise Value/Market Cap0.67
Enterprise Value/Revenue1.20
Enterprise Value/Gross Profit4.47
Enterprise Value/Ebitda5.02
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)0.89
Revenue Forecast (FY)$3.04B
Berkeley Group Business Overview & Revenue Model
Company Description
The Berkeley Group Holdings plc, together with its subsidiaries, engages in the residential-led and mixed-use property development activities in the United Kingdom. It operates under the Berkeley, St Edward, St George, St James, St Joseph, and St ...
How the Company Makes Money
Berkeley makes money mainly by developing residential property and selling completed homes. Its core revenue stream is proceeds from the sale of residential units to private buyers and other purchasers, generated after it acquires land (or secures...
Berkeley Group Earnings Call Summary
Earnings Call Date:Dec 08, 2023
(Q2-2024)
| % Change Since: |
Next Earnings Date:Jun 24, 2026
Earnings Call Sentiment Neutral
The earnings call reflects a mixed performance, with Berkeley Group maintaining strong financial metrics and stable sales prices amidst challenging market conditions, including reduced private sales and regulatory hurdles. The extension of profit guidance indicates confidence in future performance, yet regulatory and planning challenges pose significant hurdles.Positive Updates
Profit Before Tax Exceeds Guidance
Berkeley Group reported a profit before tax of GBP 298 million, slightly ahead of guidance, with an operating margin of 19.5%.
Negative Updates
Private Sales Drop
Private sales are down by 1/3 compared to last year due to elevated interest rates.
Read all updates
Q2-2024 Updates
Positive
Negative
Profit Before Tax Exceeds Guidance
Berkeley Group reported a profit before tax of GBP 298 million, slightly ahead of guidance, with an operating margin of 19.5%.
Read all positive updates
Company Guidance
In the earnings call for the six months ending October 31, 2023, Berkeley Group executives provided detailed guidance and performance metrics. The company reported a pretax profit of GBP 298 million, exceeding previous guidance, with an operating margin of 19.5% and net cash maintained above GBP 400 million. The firm aims to deliver at least GBP 1.5 billion of pretax profit over the three years ending April 30, 2026. Despite a 1% drop in earnings per share to 198.3p, they managed to keep the pretax return on equity at 17.7%. The sales market faced challenges, with private sales down by a third, but sales prices remained stable, and build cost inflation was negligible. Berkeley's forward sales cover the next three years, totaling GBP 2 billion, providing strong visibility on earnings and cash flow. Shareholders' funds increased to GBP 3.4 billion, and the net asset value per share rose by 3.8% to GBP 32.19. The company plans to maintain its robust balance sheet and capital allocation strategy, with ongoing annual shareholder returns of GBP 283 million until September 2025. If new investments are not made by April 2027, Berkeley intends to return 100% of the net profit earned from FY24 to FY27 to shareholders.Berkeley Group Financial Statement Overview
Summary
Income Statement
75
Positive
Balance Sheet
80
Positive
Cash Flow
65
Positive
| Breakdown | TTM | Apr 2025 | Apr 2024 | Apr 2023 | Apr 2022 | Apr 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 2.42B | 2.49B | 2.46B | 2.55B | 2.35B | 2.20B |
| Gross Profit | 648.39M | 660.30M | 644.50M | 696.80M | 664.80M | 635.30M |
| EBITDA | 577.73M | 561.70M | 591.30M | 527.60M | 569.20M | 531.70M |
| Net Income | 369.25M | 382.00M | 397.60M | 465.70M | 482.40M | 422.70M |
Balance Sheet | ||||||
| Total Assets | 6.58B | 6.69B | 7.00B | 6.86B | 6.59B | 5.55B |
| Cash, Cash Equivalents and Short-Term Investments | 1.34B | 1.02B | 1.19B | 1.07B | 928.90M | 1.43B |
| Total Debt | 681.70M | 682.20M | 664.40M | 665.10M | 665.90M | 303.20M |
| Total Liabilities | 2.98B | 3.13B | 3.44B | 3.53B | 3.45B | 2.38B |
| Stockholders Equity | 3.60B | 3.56B | 3.56B | 3.33B | 3.14B | 3.18B |
Cash Flow | ||||||
| Free Cash Flow | 161.19M | 192.10M | 232.00M | 408.50M | -130.80M | 329.30M |
| Operating Cash Flow | 161.29M | 193.10M | 233.40M | 410.50M | -129.50M | 331.70M |
| Investing Cash Flow | -11.70M | -4.00M | 60.90M | -12.80M | -27.70M | -6.60M |
| Financing Cash Flow | -263.50M | -365.90M | -172.70M | -256.20M | -342.10M | -535.80M |
Berkeley Group Technical Analysis
Negative
10.97
Price Trends
10.68
Negative
10.54
Negative
10.36
Negative
Market Momentum
-0.60
Negative
42.92
Neutral
45.23
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BKGFY, the sentiment is Negative. The current price of 10.97 is above the 20-day moving average (MA) of 9.35, above the 50-day MA of 10.68, and above the 200-day MA of 10.36, indicating a bearish trend. The MACD of -0.60 indicates Negative momentum. The RSI at 42.92 is Neutral, neither overbought nor oversold. The STOCH value of 45.23 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for BKGFY.
Berkeley Group Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $5.68B | 8.21 | 12.83% | ― | 6.98% | 9.74% | |
75 Outperform | $4.30B | 5.40 | 10.20% | 5.18% | 2.82% | -96.09% | |
74 Outperform | $4.35B | 22.24 | 13.58% | ― | 12.14% | 48.68% | |
71 Outperform | $3.19B | 8.49 | 12.99% | ― | 4.77% | -9.30% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
60 Neutral | $4.35B | 10.29 | 8.65% | 2.62% | -6.06% | -32.39% | |
58 Neutral | $3.20B | 29.80 | 8.64% | 1.76% | -10.01% | -27.81% |
* Consumer Cyclical Sector Average
BKGFY
Berkeley Group
9.21
-0.78
-7.81%
KBH
KB Home
51.41
0.88
1.75%
MHO
M/I Homes
123.88
17.60
16.56%
MTH
Meritage
65.05
3.47
5.64%
SKY
Champion Homes
78.65
-4.12
-4.98%
TMHC
Taylor Morrison
59.01
3.68
6.65%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.