Barratt Developments (BTDPY) AI Stock Analysis

• Market Cap: $7.33B
• Dividend Yield: 4.46%
• Average Volume (3M): 38.42K
• Price to Earnings (P/E): 29.3
• Beta (1Y): 0.72
• Revenue Growth: 37.52%
• EPS Growth: 18.46%
• Country: US
• Employees: 6,270
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Residential Construction
• EPS (TTM): 0.20
• Shares Outstanding: 715,429,140
• 10 Day Avg. Volume: 19,551
• 30 Day Avg. Volume: 38,418
• PEG Ratio: 2.08
• Price to Book (P/B): 0.82
• Price to Sales (P/S): 1.16
• P/FCF Ratio: 577.39
• Enterprise Value/Market Cap: 1.22
• Enterprise Value/Revenue: 1.61
• Enterprise Value/Gross Profit: 11.41
• Enterprise Value/Ebitda: 22.49
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 66 Neutral
• Price Target: $11.00 ▲(5.16% Upside)

Barratt Developments' overall stock score reflects strong financial management and strategic initiatives, particularly the successful Redrow integration and robust cash position. However, challenges such as declining profit margins, cash flow issues, and market difficulties weigh on the score. The technical analysis suggests short-term bullish momentum, while the valuation indicates potential overvaluation concerns.

Barratt Developments Business Overview & Revenue Model

Company Description

Barratt 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 Money

Barratt 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 Financial Statement Overview

Summary

Barratt Developments shows strong revenue growth and effective debt management, but faces challenges with declining profit margins and cash flow issues. The company needs to improve operational efficiency and cash flow management to enhance profitability.

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.

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.

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.

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

• Technical Analysis Sentiment: Neutral
• Last Price: 10.46
• 50DMA: Positive
• 100DMA: Positive
• 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 Neutral. The current price of 10.46 is above the 20-day moving average (MA) of 10.37, above the 50-day MA of 10.00, and below the 200-day MA of 10.74, indicating a neutral trend. The MACD of 0.19 indicates Negative momentum. The RSI at 53.67 is Neutral, neither overbought nor oversold. The STOCH value of 71.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for BTDPY.

Barratt Developments Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TOL	―	$13.37B	10.20	17.73%	0.71%	3.26%	-6.40%
KBH	―	$4.08B	8.84	13.04%	1.58%	-0.95%	-9.22%
MTH	―	$5.05B	8.10	12.58%	2.34%	-3.72%	-23.00%
TMHC	―	$5.90B	7.20	14.31%	―	6.98%	9.74%
BTDPY	―	$7.33B	29.33	2.73%	4.46%	37.52%	18.46%
LEN	―	$32.47B	12.67	10.63%	1.56%	-4.69%	-32.95%
Sector *	―	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%

Barratt Developments Corporate Events

Barratt Developments Reports Resilient FY25 Performance

Barratt Developments PLC, a leading UK housebuilder, operates in the residential construction sector, focusing on delivering high-quality homes through its three distinct brands: Barratt Homes, David Wilson Homes, and the recently acquired Redrow. The company is known for its commitment to sustainability and customer satisfaction.

Barratt Developments Earnings Call: Achievements Amid Challenges

The recent earnings call for Barratt Developments PLC Unsponsored ADR painted a picture of both triumph and challenge. The company celebrated significant achievements, such as the successful integration of Redrow and maintaining a robust financial health. However, it also faced hurdles, including market difficulties, a decrease in total completions, and ongoing building safety provisions. Despite these challenges, Barratt’s strong financial position and strategic initiatives instill confidence in its potential for future growth.