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Barratt Developments (BTDPY)
OTHER OTC:BTDPY
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Barratt Developments
(OTC:BTDPY)
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Rating:61Neutral
Price Target:
$11.00
▲(7.00% Upside)
Barratt Developments' overall stock score is driven by strong financial performance and strategic initiatives highlighted in the earnings call. However, technical analysis and valuation concerns, such as a high P/E ratio and bearish technical indicators, weigh down the score. The company's ability to address cash flow challenges and improve operational efficiency will be crucial for future performance.
Positive Factors
Strong Financial Position
A robust net cash position enhances financial flexibility, enabling strategic investments and shareholder returns, supporting long-term growth.
Successful Integration
The successful integration of Redrow and realization of cost synergies strengthen operational efficiency and competitive positioning.
Revenue Growth
Strong revenue growth indicates robust demand and effective market strategies, supporting the company's expansion and profitability.
Negative Factors
Cash Flow Challenges
Declining free cash flow growth suggests potential liquidity issues, which could impact the company's ability to fund operations and investments.
Market Challenges
Persistent market challenges may hinder sales and profit margins, affecting the company's ability to sustain growth in a competitive environment.
Building Safety Provisions
Rising safety provisions increase costs and may affect profitability, requiring strategic focus on compliance and risk management.
Barratt Developments (BTDPY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$6.97B
Dividend Yield4%
Average Volume (3M)38.42K
Price to Earnings (P/E)28.2
Beta (1Y)0.61
Revenue Growth37.52%
EPS Growth18.46%
CountryUS
Employees6,270
SectorConsumer Cyclical
Sector Strength84
IndustryResidential Construction
Share Statistics
EPS (TTM)0.20
Shares Outstanding712,748,300
10 Day Avg. Volume19,551
30 Day Avg. Volume38,418
Financial Highlights & Ratios
PEG Ratio2.08
Price to Book (P/B)0.82
Price to Sales (P/S)1.16
P/FCF Ratio577.39
Enterprise Value/Market Cap0.88
Enterprise Value/Revenue1.10
Enterprise Value/Gross Profit7.79
Enterprise Value/Ebitda15.35
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Barratt Developments Business Overview & Revenue Model
Company DescriptionBarratt Redrow Plc engages in the development of residential and non-residential properties mainly in the United Kingdom. It offers services in land, design, construction, and sales and marketing. The company was founded by Lawrence Arthur Barratt in 1958 and is headquartered in Coalville, the United Kingdom.
How the Company Makes MoneyBarratt Developments generates revenue primarily through the sale of residential properties, which includes both private and affordable homes. The company's revenue model is driven by the successful acquisition of land, which is then developed into residential projects. Key revenue streams include the sales of finished homes, which are often sold on a forward basis, allowing the company to secure funding and manage cash flow effectively. Additionally, Barratt benefits from partnerships with local authorities and housing associations, which can provide support and funding for affordable housing projects. The company also leverages economies of scale in construction and procurement, which helps in optimizing costs and enhancing profit margins.
Barratt Developments Earnings Call Summary
Earnings Call Date:Sep 17, 2025
(Q4-2025)
| % Change Since: |
Next Earnings Date:Feb 11, 2026
Earnings Call Sentiment Neutral
The earnings call highlighted significant achievements such as the successful Redrow integration, strong financial health, and operational resilience. However, the company faced notable challenges including market difficulties, a decrease in total completions, and ongoing building safety provisions. Despite these challenges, the company's strong financial position and strategic initiatives provide confidence in future growth.Q4-2025 Updates
Positive Updates
Successful Redrow Integration
Completion of the majority of the Redrow integration, delivering cost synergies well ahead of target with GBP 69 million confirmed in the year and GBP 20 million crystallized in FY '25, double the previous forecast.
Strong Financial Position
The company ended the year with a strong net cash position of GBP 773 million, supporting growth and capital allocation plans, despite paying GBP 249 million in dividends and GBP 50 million on share buybacks.
Operational Achievements
Delivered 16,500 homes in a challenging market and improved return on capital employed to 10.7% from 9.5%.
Positive Customer Feedback
Achieved highest ratings of Excellent for all three brands on Trustpilot, reflecting high customer satisfaction.
Land Bank Margin Improvement
Land bank margin improved by 90 basis points to 19.2% at the end of June, with a focus on reaching a 23% gross margin hurdle rate.
Negative Updates
Market Challenges
The market remained challenging with affordability constraints and low consumer confidence due to political and economic uncertainty.
Decrease in Total Completions
Total home completions decreased by 8% year-over-year, primarily due to a reduction in affordable completions.
Building Safety Provisions
Increased building safety provisions, including GBP 109 million for developments in the Southern region and GBP 105 million for Redrow developments, related to concrete frame issues.
Outlet Growth Delays
Expectations for outlet numbers in FY '26 to remain largely flat, with growth anticipated only from FY '27 due to slow planning reforms.
Company Guidance
During the Barratt FY '25 call, the company provided various metrics and guidance on its performance and strategy. The company delivered 16,565 homes, despite a challenging market, which was a slight decrease from FY '24. They reported an adjusted profit before tax of GBP 591.6 million, with a gross margin improvement of 30 basis points to 17.4%. The integration of Redrow was a significant highlight, with GBP 69 million in cost synergies confirmed, including GBP 20 million crystallized in FY '25, doubling previous forecasts. The net cash position stood strong at GBP 773 million, even after significant expenditures, including GBP 249 million in dividends and GBP 50 million in share buybacks. The return on capital employed improved to 10.7%, and the reservation rate increased to 0.64. However, total completions were down by 8% due to a reduction in affordable completions, although private completions increased by 3.5%. The average selling price (ASP) saw a 1% inflation, mainly due to larger homes outside London. The company projects outlet numbers to remain flat in FY '26 but anticipates organic growth from FY '27, with a goal of 22,000 home completions in the medium term. They also highlighted a strong land bank with a margin improvement to 19.2% and a focus on improving this further to a hurdle rate of 23%.Barratt Developments Financial Statement Overview
Summary
Barratt Developments shows strong revenue growth and effective debt management, which are positive indicators for future stability. However, declining profit margins and cash flow challenges present potential risks. The company should focus on improving operational efficiency and cash flow management to enhance profitability and financial resilience.Income Statement
Barratt Developments shows a strong revenue growth rate of 33.83% in the latest year, indicating robust sales performance. However, the gross profit margin has decreased from previous years, currently at 14.07%, which may suggest rising costs or pricing pressures. The net profit margin is relatively low at 3.34%, reflecting challenges in converting revenue into profit. The EBIT and EBITDA margins are moderate, indicating operational efficiency but with room for improvement.65
Positive
Balance Sheet
The company maintains a healthy debt-to-equity ratio of 0.03, showcasing strong financial leverage management. The return on equity (ROE) is modest at 2.37%, suggesting moderate efficiency in generating returns from equity. The equity ratio is strong, indicating a solid capital structure with significant equity backing the assets.75
Positive
Cash Flow
Cash flow analysis reveals a significant decline in free cash flow growth, down by 90.06%, which could indicate cash management challenges. The operating cash flow to net income ratio is low at 0.012, suggesting limited cash generation relative to net income. The free cash flow to net income ratio is healthier at 0.38, but overall cash flow performance needs improvement.50
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 5.58B | 5.58B | 4.17B | 5.32B | 5.27B | 4.81B |
| Gross Profit | 784.80M | 784.80M | 689.00M | 1.13B | 1.30B | 1.12B |
| EBITDA | 398.10M | 398.10M | 255.70M | 767.00M | 1.06B | 858.90M |
| Net Income | 186.40M | 186.40M | 114.10M | 530.30M | 515.10M | 659.80M |
Balance Sheet | ||||||
| Total Assets | 11.55B | 11.55B | 7.88B | 8.01B | 8.22B | 7.49B |
| Cash, Cash Equivalents and Short-Term Investments | 969.60M | 969.60M | 1.07B | 1.27B | 1.35B | 1.52B |
| Total Debt | 255.20M | 255.20M | 242.80M | 249.60M | 254.40M | 246.00M |
| Total Liabilities | 3.68B | 3.68B | 2.44B | 2.42B | 2.59B | 2.04B |
| Stockholders Equity | 7.87B | 7.87B | 5.44B | 5.60B | 5.63B | 5.45B |
Cash Flow | ||||||
| Free Cash Flow | 11.20M | 11.20M | 89.00M | 498.70M | 406.40M | 1.10B |
| Operating Cash Flow | 29.30M | 29.30M | 96.20M | 521.80M | 436.30M | 1.11B |
| Investing Cash Flow | 195.80M | 195.80M | 12.00M | 55.40M | -241.10M | -9.70M |
| Financing Cash Flow | -320.80M | -320.80M | -308.60M | -590.60M | -378.40M | -197.00M |
Barratt Developments Technical Analysis
Negative
10.28
Price Trends
10.02
Negative
10.02
Negative
10.60
Negative
Market Momentum
0.04
Positive
45.10
Neutral
32.73
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BTDPY, the sentiment is Negative. The current price of 10.28 is above the 20-day moving average (MA) of 10.12, above the 50-day MA of 10.02, and below the 200-day MA of 10.60, indicating a bearish trend. The MACD of 0.04 indicates Positive momentum. The RSI at 45.10 is Neutral, neither overbought nor oversold. The STOCH value of 32.73 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for BTDPY.
Barratt Developments Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | $13.77B | 10.74 | 16.89% | 0.70% | 1.11% | -10.03% | |
71 Outperform | $3.99B | 10.02 | 10.72% | 1.76% | -10.01% | -27.81% | |
71 Outperform | $6.20B | 7.72 | 14.31% | ― | 6.98% | 9.74% | |
69 Neutral | $5.43B | 10.29 | 10.50% | 2.62% | -6.06% | -32.39% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
61 Neutral | $6.97B | 28.23 | 2.73% | 4.00% | 37.52% | 18.46% | |
59 Neutral | $30.59B | 15.21 | 8.28% | 1.91% | -3.78% | -44.21% |
* Consumer Cyclical Sector Average
BTDPY
Barratt Developments
10.05
0.02
0.20%
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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.