Barratt Developments (BTDPY) AI Stock Analysis

• Market Cap: $7.15B
• Dividend Yield: 4.56%
• Average Volume (3M): 8.28K
• Price to Earnings (P/E): 37.5
• Beta (1Y): 0.70
• Revenue Growth: 7.83%
• EPS Growth: -52.13%
• Country: US
• Employees: 6,270
• Sector: Consumer Cyclical
• Sector Strength: 81
• Industry: Residential Construction
• EPS (TTM): 0.15
• Shares Outstanding: 717,923,400
• 10 Day Avg. Volume: 2,062
• 30 Day Avg. Volume: 8,276
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 0.94
• Enterprise Value/Revenue: 1.61
• Enterprise Value/Gross Profit: 9.02
• Enterprise Value/Ebitda: 18.19
• 1Y Price Target: $10.50
• Price Target Upside: 5.42% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 59 Neutral
• Price Target: $10.50 ▲(5.42% Upside)

The overall stock score is primarily influenced by financial stability due to a strong balance sheet, but offset by declining profitability and challenging market conditions indicated by bearish technical signals. The stock's high valuation relative to earnings also tempers its attractiveness.

Barratt Developments Business Overview & Revenue Model

Company Description

Barratt Developments (BTDPY) is one of the largest residential property development companies in the United Kingdom, specializing in the construction and sale of homes. The company operates through several brands, including Barratt Homes, David Wilson Homes, and Barratt London, catering to a wide range of housing needs from affordable housing to luxury properties. Established in 1958, Barratt Developments is headquartered in Coalville, Leicestershire, and focuses primarily on developing sustainable and energy-efficient homes across England, Scotland, and Wales.

How the Company Makes Money

Barratt Developments generates revenue primarily through the sale of residential properties. The company's core revenue stream comes from the development and sale of newly built homes. Barratt Developments acquires land, often through strategic partnerships and joint ventures, and develops a variety of housing projects that cater to different market segments. The company also engages in urban regeneration projects, which can involve partnerships with local governments or other developers. Additionally, Barratt Developments may generate income through property management services and the sale of commercial properties, although these are not its primary focus. The company's earnings are influenced by factors such as housing market conditions, government policies on housing and planning, and economic factors affecting consumer confidence and mortgage availability.

Barratt Developments Financial Statement Overview

Summary

Barratt Developments shows a strong balance sheet with low debt levels, but faces challenges in profitability and cash flow generation. Revenue and profit margins have declined, reflecting operational pressures. While the balance sheet provides financial stability, there is a need to improve profitability and cash generation.

Income Statement

The income statement shows a decline in revenue from the previous year, with a revenue growth rate of -21.67%. Gross profit margin decreased to 16.53%, and net profit margin dropped to 2.74%, indicating reduced profitability. EBIT and EBITDA margins also reflect a downward trend, suggesting operational challenges. While the company remains profitable, the decline across key metrics indicates pressure on margins and overall earnings.

Balance Sheet

The balance sheet remains strong with a debt-to-equity ratio of 0.04, indicating low leverage and financial stability. The equity ratio is robust at 69.04%, reflecting a solid capital structure. Return on equity, however, has decreased to 2.10%, showing reduced shareholder returns. Overall, the company maintains a healthy balance sheet with low risk, but profitability concerns remain.

Cash Flow

Cash flow analysis shows a significant drop in free cash flow growth rate, down by 82.15%, reflecting reduced cash generation. The operating cash flow to net income ratio is 0.84, indicating efficient cash earnings conversion. The free cash flow to net income ratio is 0.78, highlighting decent cash flow relative to earnings. While cash flow generation has weakened, the company still manages its cash flows effectively.

Breakdown	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement
Total Revenue	4.17B	5.32B	5.27B	4.81B	3.42B
Gross Profit	689.00M	1.13B	1.30B	1.12B	646.90M
EBITDA	255.70M	767.00M	1.06B	858.90M	544.80M
Net Income	114.10M	530.30M	515.10M	659.80M	399.70M
Balance Sheet
Total Assets	7.88B	8.01B	8.22B	7.49B	6.88B
Cash, Cash Equivalents and Short-Term Investments	1.07B	1.27B	1.35B	1.52B	619.80M
Total Debt	242.80M	756.30M	988.00M	904.30M	1.16B
Total Liabilities	2.44B	2.42B	2.59B	2.04B	2.04B
Stockholders Equity	5.44B	5.60B	5.63B	5.45B	4.84B
Cash Flow
Free Cash Flow	89.00M	498.70M	406.40M	1.10B	-100.80M
Operating Cash Flow	96.20M	521.80M	436.30M	1.11B	-93.30M
Investing Cash Flow	12.00M	-900.00K	-241.10M	-9.70M	33.50M
Financing Cash Flow	-308.60M	-590.60M	-378.40M	-197.00M	-456.40M

Barratt Developments Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 9.96
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: 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 9.96 is below the 20-day moving average (MA) of 10.12, below the 50-day MA of 10.85, and below the 200-day MA of 11.10, indicating a bearish trend. The MACD of -0.17 indicates Negative momentum. The RSI at 39.91 is Neutral, neither overbought nor oversold. The STOCH value of 26.41 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TOL	79 Outperform	$13.52B	10.12	17.73%	0.70%	3.26%	-6.40%
MTH	76 Outperform	$5.49B	8.80	12.58%	2.07%	-3.72%	-23.00%
TMHC	76 Outperform	$6.66B	7.77	15.59%	―	13.77%	28.57%
SKY	74 Outperform	$4.21B	19.83	14.39%	―	16.87%	54.47%
KBH	73 Outperform	$4.30B	8.44	14.07%	1.58%	3.65%	-0.61%
Sector *	61 Neutral	$17.75B	12.56	-5.49%	3.02%	1.43%	-14.12%
BTDPY	59 Neutral	$7.15B	37.50	1.84%	4.56%	7.83%	-52.13%