Barratt Developments (BTDPY)
OTHER OTC:BTDPY
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Barratt Developments
(OTC:BTDPY)
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Rating:58Neutral
Price Target:
$7.50
▼(-27.04% Downside)
Action:ReiteratedDate:03/20/26
The score is held back mainly by weak technicals (price below all major moving averages with bearish momentum) and cash flow deterioration, partly offset by solid balance-sheet leverage, strong recent revenue growth, and supportive valuation (moderate P/E and high dividend yield).
Positive Factors
Strong balance sheet
Very low leverage (debt-to-equity ~0.03) and a strong equity ratio provide durable financial flexibility. This supports capital returns, execution of remediation spend, and the ability to fund working-capital cycles or opportunistic land purchases without over-reliance on external debt.
Negative Factors
Weak cash generation
A 90% decline in free cash flow and an operating-cash-to-net-income ratio near 0.012 indicate weak cash conversion from earnings. This constrains self-funding of buybacks, dividends and remediation, increasing sensitivity to working-capital timing and seasonal cash outflows.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong balance sheet
Very low leverage (debt-to-equity ~0.03) and a strong equity ratio provide durable financial flexibility. This supports capital returns, execution of remediation spend, and the ability to fund working-capital cycles or opportunistic land purchases without over-reliance on external debt.
Read all positive factors
Barratt Developments (BTDPY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$4.82B
Dividend Yield4%
Average Volume (3M)38.42K
Price to Earnings (P/E)13.6
Beta (1Y)0.76
Revenue Growth37.52%
EPS Growth18.46%
CountryUS
Employees6,270
SectorConsumer Cyclical
Sector Strength84
IndustryResidential Construction
Share Statistics
EPS (TTM)0.19
Shares Outstanding707,973,270
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 Cap1.31
Enterprise Value/Revenue1.07
Enterprise Value/Gross Profit7.66
Enterprise Value/Ebitda13.24
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 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...
How the Company Makes Money
Barratt Developments primarily makes money by building and selling new homes to private buyers and other purchasers. Revenue is recognized from residential property sales when homes are legally completed/handed over (i.e., when control transfers u...
Barratt Developments Earnings Call Summary
Earnings Call Date:Feb 11, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Sep 09, 2026
Earnings Call Sentiment Neutral
The call emphasised resilience: management delivered volume growth, confirmed almost all of the GBP 100m synergy target, showed strong brand and quality credentials, and retained a robust land bank and capital-return plan. Offsetting this were meaningful margin pressures (200bps gross margin decline, 90bps operating margin fall), a 13.6% drop in adjusted PBT and a H1 net cash outflow as working capital seasonal patterns and Part Exchange investment weighed on cash. Guidance remains intact (completions range and net cash target) and management sees clear levers to improve gross margin, but near-term headwinds from incentives, build-cost inflation and subdued consumer confidence temper the outlook.Positive Updates
Successful Redrow integration and confirmed synergies
Integration of Redrow near completion; virtually all of the GBP 100m annual cost synergy target confirmed, with >GBP 30m delivered in H1 and GBP 20m delivered in FY25; revenue (sales outlet) revenue-synergy program underway (31 planning applications submitted, 16 approvals).
Negative Updates
Adjusted profit decline
Adjusted profit before tax (pre-PPA) down 13.6% to GBP 200m in H1, reflecting higher net interest costs and lower joint venture profits.
Read all updates
Q2-2026 Updates
Positive
Negative
Successful Redrow integration and confirmed synergies
Integration of Redrow near completion; virtually all of the GBP 100m annual cost synergy target confirmed, with >GBP 30m delivered in H1 and GBP 20m delivered in FY25; revenue (sales outlet) revenue-synergy program underway (31 planning applications submitted, 16 approvals).
Read all positive updates
Company Guidance
Guidance for FY‑26: total completions are expected to be 17,200–17,800 homes, underlying pricing broadly flat, build‑cost inflation c.2% (including procurement synergies), an adjusted finance charge of c.£30m and provision‑related imputed finance c.£32m, and c.£250m of building‑safety spend; year‑end net cash is expected to be c.£400–£500m (with an anticipated c.£300m cash inflow in H2). Capital return and buybacks: a 5p interim dividend (2x full‑year cover) and a £100m buyback programme (£50m completed H1, £50m to complete H2). Synergies and outlets: the £100m annual cost‑synergy target is confirmed (£20m delivered in FY25, a further £50m targeted in FY26 with >£30m delivered in H1) and revenue synergies target 45 incremental sales outlets (31 planning applications submitted, 16 approvals); average outlets are guided to be flat in FY26 and to rise to 425–435 in FY27 with ~15 synergy outlets coming on stream. Other metrics referenced: owned/controlled landbank 5.6 years, >27,500 strategic plots across 103 applications, expected JV completions ~600 units, and H1 completions were 7,444 (wholly‑owned ASP +4.9%).Barratt Developments Financial Statement Overview
Summary
Income Statement
65
Positive
Balance Sheet
75
Positive
Cash Flow
50
Neutral
| Breakdown | TTM | Jun 2025 | Jun 2024 | Jun 2023 | Jun 2022 | Jun 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 5.91B | 5.58B | 4.17B | 5.32B | 5.27B | 4.81B |
| Gross Profit | 825.05M | 784.80M | 689.00M | 1.13B | 1.30B | 1.12B |
| EBITDA | 477.22M | 398.10M | 255.70M | 767.00M | 1.06B | 858.90M |
| Net Income | 213.07M | 186.40M | 114.10M | 530.30M | 515.10M | 659.80M |
Balance Sheet | ||||||
| Total Assets | 11.26B | 11.55B | 7.88B | 8.01B | 8.22B | 7.49B |
| Cash, Cash Equivalents and Short-Term Investments | 373.90M | 969.60M | 1.07B | 1.27B | 1.35B | 1.52B |
| Total Debt | 251.30M | 255.20M | 242.80M | 249.60M | 254.40M | 246.00M |
| Total Liabilities | 3.50B | 3.68B | 2.44B | 2.42B | 2.59B | 2.04B |
| Stockholders Equity | 7.76B | 7.87B | 5.44B | 5.60B | 5.63B | 5.45B |
Cash Flow | ||||||
| Free Cash Flow | 116.59M | 11.20M | 89.00M | 498.70M | 406.40M | 1.10B |
| Operating Cash Flow | 132.05M | 29.30M | 96.20M | 521.80M | 436.30M | 1.11B |
| Investing Cash Flow | -41.80M | 195.80M | 12.00M | 55.40M | -241.10M | -9.70M |
| Financing Cash Flow | -370.37M | -320.80M | -308.60M | -590.60M | -378.40M | -197.00M |
Barratt Developments Technical Analysis
Negative
10.28
Price Trends
9.11
Negative
9.58
Negative
9.93
Negative
Market Momentum
-0.64
Negative
29.60
Positive
26.73
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 7.39, above the 50-day MA of 9.11, and above the 200-day MA of 9.93, indicating a bearish trend. The MACD of -0.64 indicates Negative momentum. The RSI at 29.60 is Positive, neither overbought nor oversold. The STOCH value of 26.73 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 |
|---|---|---|---|---|---|---|---|
77 Outperform | $5.59B | 8.21 | 12.83% | ― | 6.98% | 9.74% | |
69 Neutral | $12.86B | 16.39 | 16.86% | 0.70% | 1.11% | -10.03% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
60 Neutral | $4.15B | 10.29 | 8.65% | 2.62% | -6.06% | -32.39% | |
58 Neutral | $4.82B | 13.62 | 2.37% | 4.00% | 37.52% | 18.46% | |
58 Neutral | $3.17B | 29.80 | 8.64% | 1.76% | -10.01% | -27.81% | |
57 Neutral | $21.35B | 30.47 | 8.04% | 1.91% | -3.78% | -44.21% |
* Consumer Cyclical Sector Average
BTDPY
Barratt Developments
6.88
-3.01
-30.43%
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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.