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Barratt Developments PLC (GB:BTRW)
LSE:BTRW

Barratt Developments (BTRW) AI Stock Analysis

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Barratt Developments

(LSE:BTRW)

55Neutral
Barratt Developments' overall stock score reflects a balanced view of its financial and market position. The company's strong balance sheet and strategic share buybacks are positive factors. However, declining revenue and profitability, along with challenges in cash flow and high P/E ratio, present significant risks. Neutral technical indicators suggest a cautious near-term outlook, and the dividend yield offers some support to investors.
Positive Factors
Acquisition and Synergies
The merger with Redrow is expected to bring significant synergies, with a synergy target of £90m.
Financial Targets and Performance
Barratt Redrow communicated medium-term financial targets of significant growth in home completions and improving operating margin and ROCE.
Negative Factors
Interest Rates and Market Conditions
The housebuilders' shares have suffered due to recent increases in the five-year swap rate, affecting mortgage rates.

Barratt Developments (BTRW) vs. S&P 500 (SPY)

Barratt Developments Business Overview & Revenue Model

Company DescriptionBarratt Developments PLC is one of the largest residential property development companies in the United Kingdom. Founded in 1958, the company specializes in building a wide range of residential properties, from starter homes to luxury houses, across the UK. Barratt Developments operates through several well-known brands, including Barratt Homes, David Wilson Homes, and Barratt London, focusing on high-quality construction and community development.
How the Company Makes MoneyBarratt Developments makes money primarily through the sale of residential properties. The company's revenue model is centered around acquiring land, obtaining necessary planning permissions, and developing residential housing projects which are then sold to individual homebuyers. Key revenue streams include the sale of completed houses and apartments, as well as the development of mixed-use communities. Barratt Developments also benefits from strategic partnerships with local governments and housing associations to develop affordable housing projects. Additionally, the company is influenced by factors such as housing demand, construction costs, and government policies related to housing and real estate.

Barratt Developments Financial Statement Overview

Summary
Barratt Developments is facing challenges in maintaining revenue and profitability, with declining margins and revenue growth. Despite a strong balance sheet with low leverage, the company is experiencing significant cash flow challenges, indicating potential liquidity issues.
Income Statement
45
Neutral
Barratt Developments has experienced a decline in revenue and profitability over the past year. The net profit margin has decreased from 9.97% in 2023 to 2.74% in 2024, and the gross profit margin has also decreased from 18.32% to 12.22%. The revenue growth rate has shown a notable decline of 21.68% from 2023 to 2024. EBIT Margin and EBITDA Margin also saw significant declines, indicating reduced operational efficiency and profitability.
Balance Sheet
70
Positive
The company maintains a strong balance sheet with a low debt-to-equity ratio of 0.045 and a robust equity ratio of 69.04% in 2024. Stockholders' equity decreased slightly, but overall, the company is in a stable financial position with a strong capital structure and low leverage.
Cash Flow
40
Negative
There has been a substantial decrease in operating cash flow from 2023 to 2024, dropping by 79.34%. Free cash flow also decreased significantly by 79.89%. The operating cash flow to net income ratio has declined, reflecting challenges in converting income into cash. This indicates potential liquidity issues and reduced cash generation capacity.
Breakdown
TTMJun 2024Jun 2023Jun 2022Jun 2021Jun 2020
Income StatementTotal Revenue
4.60B4.17B5.32B5.27B4.81B3.42B
Gross Profit
789.20M509.50M974.90M899.90M1.01B614.30M
EBIT
190.90M174.70M707.40M646.60M811.10M493.40M
EBITDA
390.10M255.00M760.10M672.60M833.20M544.80M
Net Income Common Stockholders
120.60M114.10M530.30M515.10M659.80M399.70M
Balance SheetCash, Cash Equivalents and Short-Term Investments
1.27B1.07B1.27B1.35B1.52B619.80M
Total Assets
8.00B7.88B8.00B8.21B7.47B6.86B
Total Debt
249.60M242.80M249.60M254.40M246.00M365.50M
Net Debt
-1.02B-822.50M-1.02B-1.10B-1.27B-254.30M
Total Liabilities
2.41B2.44B2.41B2.58B2.02B2.02B
Stockholders Equity
5.60B5.44B5.60B5.63B5.45B4.84B
Cash FlowFree Cash Flow
-275.50M89.00M442.40M387.70M1.08B-128.50M
Operating Cash Flow
-262.80M96.20M465.50M417.60M1.08B-121.00M
Investing Cash Flow
213.20M12.00M55.40M-222.40M13.50M61.20M
Financing Cash Flow
-244.70M-308.60M-590.60M-378.40M-197.00M-456.40M

Barratt Developments Technical Analysis

Technical Analysis Sentiment
Positive
Last Price430.60
Price Trends
50DMA
432.04
Negative
100DMA
434.15
Negative
200DMA
462.19
Negative
Market Momentum
MACD
-2.91
Negative
RSI
49.81
Neutral
STOCH
64.63
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:BTRW, the sentiment is Positive. The current price of 430.6 is above the 20-day moving average (MA) of 430.15, below the 50-day MA of 432.04, and below the 200-day MA of 462.19, indicating a neutral trend. The MACD of -2.91 indicates Negative momentum. The RSI at 49.81 is Neutral, neither overbought nor oversold. The STOCH value of 64.63 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:BTRW.

Barratt Developments Peers Comparison

Overall Rating
UnderperformOutperform
Sector (60)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
77
Outperform
£345.91M9.1935.97%4.19%22.39%179.53%
60
Neutral
$12.39B10.471.07%3.58%1.64%-18.33%
55
Neutral
£6.24B40.801.81%3.79%4.78%-53.59%
47
Neutral
£387.93M-13.06%8.59%-5.98%-677.54%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
GB:BTRW
Barratt Developments
430.60
-27.21
-5.94%
GB:GFRD
Galliford Try
357.00
106.49
42.51%
GB:CRST
Crest Nicholson Holdings
146.20
-62.34
-29.89%

Barratt Developments Corporate Events

Stock BuybackBusiness Operations and Strategy
Barratt Redrow Advances Share Repurchase Initiative
Positive
Mar 13, 2025

Barratt Redrow plc, a prominent player in the construction and real estate industry, has announced the purchase and cancellation of 125,000 ordinary shares as part of its £50 million share repurchase program. This strategic move, executed through UBS AG London Branch, reflects the company’s efforts to enhance shareholder value by reducing the number of shares in circulation, thereby potentially increasing the value of remaining shares.

Stock BuybackBusiness Operations and Strategy
Barratt Redrow Advances £50 Million Share Repurchase Program
Positive
Mar 12, 2025

Barratt Redrow plc, a company operating in the real estate and construction industry, has announced the purchase and cancellation of 125,000 ordinary shares as part of its £50 million share repurchase program. This transaction, executed through UBS AG London Branch, is part of a broader strategy to enhance shareholder value by reducing the number of shares in circulation, thereby increasing the value of remaining shares. Following this purchase, the company has no ordinary shares in treasury and maintains a total of 1,448,770,916 ordinary shares in issue, which impacts the total number of voting rights.

Stock Buyback
Barratt Redrow Continues Share Repurchase Program
Positive
Mar 11, 2025

Barratt Redrow plc has announced the repurchase and cancellation of 125,000 ordinary shares as part of its ongoing £50 million share repurchase program. This transaction, conducted through UBS AG London Branch, reflects the company’s commitment to returning value to shareholders and optimizing its capital structure, with a total of 2,200,000 shares repurchased to date.

Stock BuybackBusiness Operations and Strategy
Barratt Redrow Advances Share Repurchase Program
Positive
Mar 10, 2025

Barratt Redrow plc, a prominent player in the real estate sector, has announced the purchase and cancellation of 125,000 ordinary shares as part of its £50 million share repurchase program. This move, executed through UBS AG London Branch, is part of a larger strategy to enhance shareholder value, with a total of 2,075,000 shares repurchased to date. The company now has 1,449,020,916 ordinary shares in issue, reflecting a strategic decision to optimize its capital structure and potentially improve its market positioning.

Stock BuybackBusiness Operations and Strategy
Barratt Redrow Advances Share Repurchase Program
Neutral
Mar 6, 2025

Barratt Redrow plc, a company involved in the construction and real estate industry, has announced the purchase and cancellation of 125,000 ordinary shares as part of its £50 million share repurchase program. This transaction, conducted through UBS AG London Branch, is part of a broader strategy to manage the company’s share capital and potentially enhance shareholder value, with the total number of shares in issue now standing at 1,449,270,916.

Stock Buyback
Barratt Redrow Advances Share Repurchase Program
Positive
Mar 5, 2025

Barratt Redrow plc, a company engaged in the construction and sale of residential properties, has announced the purchase and cancellation of 125,000 ordinary shares as part of its £50 million share repurchase program. This move is part of an ongoing effort to reduce the number of shares in circulation, potentially increasing the value of remaining shares and signaling confidence in the company’s financial health.

Regulatory Filings and Compliance
Barratt Redrow PLC Updates Total Voting Rights and Capital
Neutral
Mar 3, 2025

Barratt Redrow PLC announced that as of 28 February 2025, its issued share capital consists of 1,449,895,916 ordinary shares, each carrying one voting right. This update is in line with the UK Financial Conduct Authority’s Disclosure Guidance and Transparency Rule 5.6.1, and it clarifies the total number of voting rights for stakeholders and regulatory purposes.

Stock BuybackBusiness Operations and Strategy
Barratt Redrow Advances Share Repurchase Program
Positive
Mar 3, 2025

Barratt Redrow plc, a prominent player in the construction and real estate industry, announced the purchase and cancellation of 125,000 ordinary shares as part of its £50 million share repurchase program. This move, executed through UBS AG London Branch, reflects the company’s strategic initiative to enhance shareholder value by reducing the number of shares in circulation, thereby potentially increasing earnings per share and strengthening market confidence.

Stock BuybackBusiness Operations and Strategy
Barratt Redrow Advances £50 Million Share Buyback Program
Positive
Feb 28, 2025

Barratt Redrow plc, a company involved in the real estate and construction industry, has announced a significant transaction as part of its ongoing £50 million share repurchase program. On February 27, 2025, the company repurchased 125,000 ordinary shares for cancellation at an average price of £420.7026 per share, reducing the total number of shares in issue to 1,449,770,916. This move is part of Barratt Redrow’s strategy to enhance shareholder value by reducing the number of shares outstanding, potentially increasing earnings per share and reflecting confidence in its financial health.

Stock BuybackBusiness Operations and Strategy
Barratt Redrow Executes Share Repurchase to Enhance Shareholder Value
Positive
Feb 27, 2025

Barratt Redrow plc, a company involved in the construction and real estate industry, has announced the purchase and cancellation of 120,000 ordinary shares as part of its £50 million share repurchase program. This transaction, conducted through UBS AG London Branch, is part of a larger strategy to reduce the number of shares in circulation, potentially increasing the value of remaining shares and signaling confidence in the company’s financial health. The company now has 1,449,838,681 ordinary shares in issue, with no shares held in treasury, which may impact shareholder voting rights and market perception.

Stock Buyback
Barratt Redrow Advances Share Buyback Program with Latest Purchase
Positive
Feb 26, 2025

Barratt Redrow plc announced the purchase and cancellation of 120,000 ordinary shares as part of its £50 million share repurchase program. This transaction, conducted through UBS AG London Branch, reflects the company’s ongoing efforts to optimize its capital structure and enhance shareholder value. Following these purchases, Barratt Redrow has repurchased a total of 1,080,000 shares under the program, leaving the company with 1,449,958,681 ordinary shares in issue. The share buyback is expected to positively impact the company’s earnings per share and demonstrates its commitment to returning capital to shareholders.

Delistings and Listing Changes
Barratt Redrow PLC Announces New Share Listing
Neutral
Feb 25, 2025

Barratt Redrow PLC, a company involved in the construction and real estate industry, has announced a significant move regarding its stock market presence. The company has applied for the listing of 1,219 ordinary shares on the Financial Conduct Authority’s Official List and the London Stock Exchange’s Main Market. These shares are being issued as part of the Redrow Deferred Bonus Plan and the Redrow Sharesave Plan, and they will hold equal status with existing shares. The admission of these shares is expected to take place on February 27, 2025.

Stock BuybackBusiness Operations and Strategy
Barratt Redrow Advances £50 Million Share Buyback Program
Positive
Feb 25, 2025

Barratt Redrow plc, a prominent player in the real estate sector, announced the repurchase of 120,000 ordinary shares as part of its £50 million share buyback program. This transaction, executed through UBS AG London Branch, reflects the company’s strategic move to enhance shareholder value by reducing the number of shares in circulation. The repurchase, conducted on the London Stock Exchange, brings the total shares bought back under the program to 960,000, leaving the company with 1,450,078,681 shares in issue. This initiative underscores Barratt Redrow’s commitment to optimizing its capital structure and could potentially improve earnings per share, benefiting existing shareholders.

Stock BuybackBusiness Operations and Strategy
Barratt Redrow Enhances Shareholder Value through Strategic Share Repurchase
Positive
Feb 24, 2025

Barratt Redrow plc has executed a share repurchase program as part of its strategy to manage capital and return value to shareholders. On 21 February 2025, the company purchased 120,000 ordinary shares for cancellation, at prices ranging from £421.30 to £430.60 per share through UBS AG London Branch, contributing to an aggregate of 840,000 shares repurchased to date. This transaction underscores Barratt Redrow’s commitment to efficient capital allocation and may positively influence shareholder perception by reducing the number of shares in circulation, potentially leading to an increase in earnings per share.

Stock Buyback
Barratt Redrow Enhances Shareholder Value with Share Repurchase
Positive
Feb 21, 2025

Barratt Redrow, a company involved in real estate development, announced the purchase and cancellation of 120,000 ordinary shares as part of its £50 million share repurchase program. This transaction, executed on the London Stock Exchange, is part of a larger effort, with a total of 720,000 shares bought back so far, resulting in 1,450,318,681 shares remaining in circulation. This move is likely aimed at increasing shareholder value by reducing the number of shares available, reflecting positively on the company’s financial strategy.

Stock BuybackBusiness Operations and Strategy
Barratt Redrow Advances with Share Repurchase Program
Positive
Feb 20, 2025

Barratt Redrow, operating in the residential property development sector, has announced a significant transaction in its ongoing share repurchase program. On February 19, 2025, the company acquired 120,000 ordinary shares for cancellation as part of its £50 million buyback initiative, which started on February 12, 2025. This strategic move is aimed at consolidating the company’s share capital, potentially enhancing shareholder value by reducing the number of shares in circulation. Following this transaction, Barratt Redrow has now bought back a total of 600,000 shares. This reduction in share count could strengthen the company’s market position by increasing earnings per share and improving investor returns.

Stock BuybackBusiness Operations and Strategy
Barratt Redrow Announces Share Repurchase in Capital Strategy Move
Positive
Feb 19, 2025

Barratt Redrow plc, a major player in the construction and real estate industry, announced a significant transaction involving the repurchase of 120,000 ordinary shares for cancellation as part of a previously announced £50 million share repurchase programme. This move is part of the company’s strategic financial management efforts, aiming to enhance shareholder value and optimize capital structure, and it reflects confidence in the company’s financial health and market position.

Stock BuybackBusiness Operations and Strategy
Barratt Redrow Enhances Shareholder Value with Share Repurchase
Positive
Feb 18, 2025

Barratt Redrow plc, a prominent player in the construction and real estate industry, has announced the purchase and cancellation of 120,000 ordinary shares as part of its ongoing £50 million share repurchase programme. This move, executed on the London Stock Exchange through UBS AG London Branch, highlights the company’s strategic initiative to enhance shareholder value and optimize its capital structure. With this transaction, Barratt Redrow has increased its total repurchased shares to 360,000, reflecting a commitment to its buyback strategy and potentially influencing its stock liquidity and market perception.

Stock Buyback
Barratt Redrow Executes Share Buyback to Enhance Shareholder Value
Positive
Feb 17, 2025

Barratt Redrow plc, a company involved in a share repurchase program, announced the purchase and cancellation of 120,000 ordinary shares as part of its £50 million buyback initiative. This move, conducted through UBS AG London Branch, was executed on the London Stock Exchange, allowing Barratt Redrow to manage its equity structure effectively by reducing the number of shares in circulation, which could potentially enhance shareholder value.

Stock Buyback
Barratt Redrow Executes Share Repurchase
Positive
Feb 14, 2025

Barratt Redrow plc, a company engaged in the construction industry, announced the purchase and cancellation of 120,000 ordinary shares as part of its £50 million share repurchase programme. This transaction, executed on the London Stock Exchange, aims to enhance shareholder value by reducing the number of shares in circulation, thereby potentially increasing earnings per share and market confidence.

Stock BuybackDividendsBusiness Operations and StrategyFinancial Disclosures
Barratt Redrow PLC Reports Strong Half-Year Results and Promising Outlook
Positive
Feb 12, 2025

Barratt Redrow PLC reported strong half-year results ending 29 December 2024, highlighting solid customer demand and a successful integration with Redrow. The company delivered 6,846 home completions and anticipates full-year profit at the upper end of market expectations. The integration of Redrow has yielded £100m in cost synergies, and the firm is strategically positioned to address the UK housing shortage, maintaining robust forward sales. The firm also announced a 25% increase in interim dividends and introduced a share buyback program, reflecting a positive outlook for stakeholders.

Stock Buyback
Barratt Redrow Initiates £50 Million Share Buyback Programme
Neutral
Feb 12, 2025

Barratt Redrow plc announced the launch of a non-discretionary share buyback programme worth up to £50 million, set to run from February 12, 2025, to June 30, 2025. This initiative aims to reduce the company’s capital by purchasing and cancelling ordinary shares, with UBS AG London Branch handling the acquisitions independently under pre-set parameters, reflecting compliance with relevant market regulations.

Regulatory Filings and Compliance
Barratt Redrow PLC Announces Total Voting Rights and Capital
Neutral
Feb 3, 2025

Barratt Redrow PLC has announced its total voting rights and capital in accordance with the UK Financial Conduct Authority’s rules. As of January 31, 2025, the company has an issued share capital of 1,451,038,681 ordinary shares, each carrying equal voting rights, with none held in treasury. This update is relevant for stakeholders calculating voting rights under the Disclosure and Transparency Rules.

Barratt Redrow Announces Change in Voting Rights Structure
Jan 10, 2025

Barratt Redrow PLC has announced a significant change in its voting rights, with Bridgemere Investments Limited and Bridgemere Securities Limited acquiring a 4.9852% stake. This transaction involves the transfer of legal interest in shares within the same family group, indicating strategic maneuvering in shareholding that could impact the company’s governance and decision-making processes.

Barratt Redrow Executives Experience Lapse in Share Options
Jan 2, 2025

Barratt Redrow PLC announced the lapse of certain share options under its Savings-Related Share Option Scheme (SAYE) for key executives, including CEO David Thomas and COO Steven Boyes, effective January 1, 2025. This update reveals that despite the lapse of options, the executives still hold significant numbers of shares, indicating ongoing substantial equity interests by the company’s leadership.

Barratt Redrow Announces Share Capital and Voting Rights Update
Jan 2, 2025

Barratt Redrow PLC has announced its total voting rights and share capital information as of December 31, 2024. The company has 1,451,031,995 ordinary shares, each with equal voting rights, with no shares held in Treasury. This information is significant for stakeholders to understand the voting power distribution and compliance with UK regulatory requirements.

Barratt Redrow PLC Prepares Investors with Preliminary Financial Data
Dec 19, 2024

Barratt Redrow PLC has released unaudited aggregated financial information aimed at providing investors with insights before its interim results announcement in February 2025. The data, which includes metrics on sales outlets, reservation rates, home completions, and financial statements for 2023 and 2024, serves as an illustrative framework pending final auditor review. This release highlights the company’s performance post-acquisition of Redrow PLC and is crucial for stakeholders anticipating the impact on the company’s operational and financial positioning.

Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

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.