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The Berkeley Group Holdings (GB:BKG)
LSE:BKG

The Berkeley Group Holdings (BKG) AI Stock Analysis

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GB:BKG

The Berkeley Group Holdings

(LSE:BKG)

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Outperform 70 (OpenAI - 4o)
Rating:70Outperform
Price Target:
4,085.00p
▲(5.23% Upside)
The overall stock score is primarily driven by strong valuation metrics, including a low P/E ratio and high dividend yield, which suggest potential undervaluation. However, technical indicators reflect a bearish trend, and financial performance highlights challenges in revenue growth and cash flow generation. Recent positive corporate events, while not weighted, support a positive outlook.
Positive Factors
Balance Sheet Health
A low debt-to-equity ratio indicates conservative leverage, enhancing financial stability and flexibility for future investments.
Profitability
Strong profit margins demonstrate effective cost management and pricing power, supporting long-term financial health and shareholder returns.
Cash Generation Ability
A high free cash flow to net income ratio indicates efficient cash generation, providing resources for reinvestment and dividend payments.
Negative Factors
Revenue Growth Challenges
Declining revenue growth can hinder the company's ability to expand its market position and invest in new projects, impacting long-term growth prospects.
Cash Flow Challenges
A decline in free cash flow growth suggests potential difficulties in funding operations and investments, which could affect future profitability.
Earnings Decline
A decline in earnings per share growth indicates potential challenges in maintaining profitability, which could affect investor confidence and stock performance.

The Berkeley Group Holdings (BKG) vs. iShares MSCI United Kingdom ETF (EWC)

The Berkeley Group Holdings Business Overview & Revenue Model

Company DescriptionThe Berkeley Group Holdings plc, together with its subsidiaries, engages in the residential-led and mixed-use property development activities in the United Kingdom. The company is also involved in land selling activities. It operates under the Berkeley, St Edward, St George, St James, St Joseph, and St William brand names. The Berkeley Group Holdings plc was founded in 1976 and is headquartered in Cobham, the United Kingdom.
How the Company Makes MoneyThe Berkeley Group generates revenue primarily through the sale of residential properties, including houses and apartments, which are developed on land acquired through various means such as direct purchases or partnerships with landowners. The company also earns income from commercial developments and the provision of related services, including planning consultancy and project management. Significant partnerships with local authorities and other stakeholders enable Berkeley to engage in large-scale regeneration projects, which can provide substantial profit margins. Additionally, the company has a strategy of investing in long-term land holdings, allowing it to capitalize on rising land values over time, and it often employs a mix of private and affordable housing to diversify its revenue streams.

The Berkeley Group Holdings Financial Statement Overview

Summary
The Berkeley Group Holdings demonstrates strong profitability and a solid balance sheet, with effective cost management and conservative leverage. However, challenges in revenue growth and cash flow generation could impact future financial flexibility.
Income Statement
75
Positive
The Berkeley Group Holdings has shown a slight decline in revenue over the past year, with a revenue growth rate of -2.54%. Despite this, the company maintains strong profitability with a gross profit margin of 26.56% and a net profit margin of 15.36%. The EBIT and EBITDA margins are also healthy at 22.44% and 22.59%, respectively. The company has managed to maintain stable margins despite the revenue decline, indicating effective cost management.
Balance Sheet
80
Positive
The company has a solid balance sheet with a low debt-to-equity ratio of 0.19, indicating conservative leverage. The return on equity is reasonable at 10.73%, reflecting efficient use of equity capital. The equity ratio is robust, suggesting a strong capital structure and financial stability.
Cash Flow
65
Positive
The cash flow statement reveals challenges in cash generation, with a significant decline in free cash flow growth at -43.55%. The operating cash flow to net income ratio is low at 0.11, indicating potential issues in converting income into cash. However, the free cash flow to net income ratio remains high at 0.99, suggesting that the company is still generating cash relative to its net income.
BreakdownDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue2.49B2.46B2.55B2.35B2.20B
Gross Profit660.30M644.50M696.80M664.80M635.30M
EBITDA561.70M591.30M547.00M569.20M531.70M
Net Income382.00M397.60M465.70M482.40M422.70M
Balance Sheet
Total Assets6.69B7.00B6.86B6.59B5.55B
Cash, Cash Equivalents and Short-Term Investments1.02B1.19B1.07B928.90M1.43B
Total Debt682.20M664.40M665.10M665.90M303.20M
Total Liabilities3.13B3.44B3.53B3.45B2.38B
Stockholders Equity3.56B3.56B3.33B3.14B3.18B
Cash Flow
Free Cash Flow192.10M232.00M408.50M-130.80M329.30M
Operating Cash Flow193.10M233.40M410.50M-129.50M331.70M
Investing Cash Flow-4.00M60.90M-12.80M-27.70M-6.60M
Financing Cash Flow-365.90M-172.70M-256.20M-342.10M-535.80M

The Berkeley Group Holdings Technical Analysis

Technical Analysis Sentiment
Positive
Last Price3882.00
Price Trends
50DMA
3893.88
Negative
100DMA
3812.84
Positive
200DMA
3851.15
Positive
Market Momentum
MACD
13.88
Negative
RSI
54.65
Neutral
STOCH
77.41
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:BKG, the sentiment is Positive. The current price of 3882 is above the 20-day moving average (MA) of 3764.90, below the 50-day MA of 3893.88, and above the 200-day MA of 3851.15, indicating a neutral trend. The MACD of 13.88 indicates Negative momentum. The RSI at 54.65 is Neutral, neither overbought nor oversold. The STOCH value of 77.41 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:BKG.

The Berkeley Group Holdings Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
78
Outperform
£4.22B16.507.44%4.55%16.74%-0.16%
70
Outperform
£3.70B10.5210.27%6.38%-6.44%-0.03%
67
Neutral
£5.24B27.372.80%4.75%33.83%15.11%
65
Neutral
£3.12B20.164.49%2.63%16.91%20.93%
65
Neutral
£3.67B43.401.97%9.01%4.21%-65.57%
63
Neutral
£1.99B-206.32-0.31%-0.57%-104.08%
61
Neutral
$18.38B12.79-2.54%3.03%1.52%-15.83%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
GB:BKG
The Berkeley Group Holdings
3,882.00
37.61
0.98%
GB:BTRW
Barratt Redrow
372.00
-41.37
-10.01%
GB:BWY
Bellway
2,676.00
348.74
14.99%
GB:VTY
Vistry Group
627.20
64.20
11.40%
GB:PSN
Persimmon
1,322.50
190.59
16.84%
GB:TW
Taylor Wimpey
104.15
-6.35
-5.75%

The Berkeley Group Holdings Corporate Events

Regulatory Filings and Compliance
Berkeley Group Updates on Voting Rights and Share Capital
Neutral
Dec 1, 2025

The Berkeley Group Holdings plc announced that as of November 28, 2025, its total issued share capital comprised 103,822,846 ordinary shares, with 8,105,936 shares held in treasury. This results in a total of 95,716,910 voting rights, which shareholders can use to assess their interest in the company as per FCA regulations. This update is crucial for stakeholders to understand their voting power and any potential changes in their shareholding status.

Regulatory Filings and Compliance
Berkeley Group Updates Share Capital and Voting Rights
Neutral
Nov 3, 2025

The Berkeley Group Holdings plc announced that as of 31 October 2025, its total issued share capital consisted of 103,822,846 Ordinary Shares, with 8,105,936 shares held in Treasury. This results in a total of 95,716,910 voting rights, which shareholders can use to determine their notification requirements under the FCA’s Disclosure and Transparency Rules.

Other
Berkeley Group Announces Internal Share Transfer
Neutral
Oct 24, 2025

The Berkeley Group Holdings plc announced a transaction involving the transfer of a non-beneficial interest in Ordinary Shares from Robert Perrins, as co-executor of the Estate of Mr A W Pidgley, to Jessica Sarah Pidgley. This transaction does not affect Mr. Perrins’ beneficial holding and reflects internal estate management rather than a strategic business move, indicating stability in the company’s leadership and operations.

Executive/Board ChangesBusiness Operations and Strategy
Berkeley Group Announces New Director Appointment
Positive
Oct 22, 2025

The Berkeley Group Holdings plc announced the appointment of Andy Kemp as an Independent Non-Executive Director of Spirax Group plc, effective from 1 November 2025. This move is part of the company’s ongoing governance and leadership strategy, potentially enhancing its industry positioning and stakeholder confidence.

Stock Buyback
Berkeley Group Cancels 39,544 Shares Following Buyback
Neutral
Oct 6, 2025

The Berkeley Group Holdings plc announced the purchase and cancellation of 39,544 of its ordinary shares on 6 October 2025, as authorized by shareholders. This transaction, executed through Barclays Bank plc, affects the company’s share count, now totaling 95,716,910 shares in issue, and is significant for stakeholders monitoring share interest under the Financial Conduct Authority’s rules.

Stock Buyback
Berkeley Group Executes Share Buyback and Cancellation
Neutral
Oct 3, 2025

The Berkeley Group Holdings plc announced the purchase and cancellation of 40,000 of its ordinary shares on 3 October 2025, as part of a shareholder-approved buyback program. This transaction, executed through Barclays Bank plc, reduces the total number of shares in issue to 95,756,454, impacting shareholder calculations under the Financial Conduct Authority’s rules.

Regulatory Filings and Compliance
Berkeley Group Updates Share Capital and Voting Rights
Neutral
Oct 1, 2025

The Berkeley Group Holdings plc has announced its total issued share capital as of 30 September 2025, which consists of 103,902,390 ordinary shares, with 8,105,936 shares held in treasury. Consequently, the total number of voting rights in the company is 95,796,454, a figure that shareholders can use to assess their interests in accordance with the FCA’s Disclosure and Transparency Rules. This update is crucial for stakeholders to understand their voting power and any potential changes in their shareholding interests.

Executive/Board ChangesBusiness Operations and Strategy
Berkeley Group Announces Share Option Vesting for Directors
Neutral
Sep 30, 2025

The Berkeley Group Holdings plc announced that options to acquire shares under the 2011 Long Term Incentive Plan (LTIP) have vested, allowing directors to exercise their options at a price of £5.303 per share. This transaction resulted in the transfer of shares to directors and their spouses, impacting the beneficial shareholdings of key figures like Chair Robert Perrins and CEO Richard Stearn. The announcement reflects the company’s ongoing commitment to aligning management incentives with shareholder interests, potentially influencing stakeholder confidence and market perception.

Other
Berkeley Group Announces Insider Share Purchase
Positive
Sep 30, 2025

The Berkeley Group Holdings plc announced a transaction involving the purchase of ordinary shares by Jane Eady, who is closely associated with Neil Eady, the company’s Chief Financial Officer. This transaction, conducted on the London Stock Exchange, reflects internal confidence in the company’s performance and may influence stakeholders’ perceptions of its financial health.

Executive/Board ChangesBusiness Operations and Strategy
Berkeley Group Appoints Neil Eady as New CFO
Positive
Sep 29, 2025

The Berkeley Group Holdings plc has appointed Neil Eady as its new Chief Financial Officer, effective immediately. Eady, who has been with Berkeley since 2013, brings extensive experience from his previous roles within the company and the broader property sector, making him well-suited for the position. This appointment reflects Berkeley’s commitment to leveraging internal talent and maintaining strong leadership to support its strategic goals.

Executive/Board ChangesBusiness Operations and Strategy
Berkeley Group Appoints Neil Eady as New CFO
Positive
Sep 29, 2025

The Berkeley Group Holdings plc has appointed Neil Eady as its new Chief Financial Officer, effective immediately. Eady, who has been with Berkeley since 2013, brings extensive experience from his previous roles within the company and the property sector, making him a well-suited choice for the position. This appointment highlights Berkeley’s internal talent development and strengthens its leadership team, potentially enhancing its strategic operations and stakeholder confidence.

Stock BuybackBusiness Operations and Strategy
Berkeley Group Executes Share Buyback and Cancellation
Neutral
Sep 24, 2025

The Berkeley Group Holdings plc announced the purchase and cancellation of 40,000 of its ordinary shares, executed through Barclays Bank plc. This transaction, conducted under the authority granted at the recent Annual General Meeting, reduces the company’s total shares in issue to 95,796,454. The move is part of the company’s ongoing strategy to manage its share capital effectively, potentially enhancing shareholder value by reducing the number of shares outstanding.

Stock BuybackBusiness Operations and Strategy
Berkeley Group Executes Share Buyback and Cancellation
Neutral
Sep 19, 2025

The Berkeley Group Holdings plc has announced the repurchase and cancellation of 45,000 of its ordinary shares, executed through Barclays Bank plc, as per the authority granted by its shareholders. This transaction, conducted on 19 September 2025, reflects the company’s ongoing strategy to manage its share capital and potentially enhance shareholder value, reducing the total number of shares in issue to 95,836,454.

Stock BuybackBusiness Operations and Strategy
Berkeley Group Enhances Shareholder Value with Share Buyback
Positive
Sep 11, 2025

The Berkeley Group Holdings announced the purchase and cancellation of 44,152 ordinary shares as part of its ongoing share buyback program. This transaction, executed through Barclays Bank, reflects the company’s strategic focus on enhancing shareholder value by reducing the number of shares in circulation, which can positively impact earnings per share and overall market perception.

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.Date of analysis: Dec 07, 2025