Bellway (BWY) AI Stock Analysis

• Market Cap: £3.13B
• Dividend Yield: 116.77%
• Average Volume (3M): 382.86K
• Price to Earnings (P/E): 21.3
• Beta (1Y): 1.54
• Revenue Growth: -11.63%
• EPS Growth: -31.81%
• Country: UK
• Employees: 2,659
• Sector: Consumer Cyclical
• Sector Strength: 57
• Industry: Residential Construction
• EPS (TTM): 0.90
• Shares Outstanding: 118,988,625
• 10 Day Avg. Volume: 461,879
• 30 Day Avg. Volume: 382,863
• PEG Ratio: 1.73
• Price to Book (P/B): 0.92
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -202.99
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: £3,219.67
• Price Target Upside: 22.14% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 9

• Rating: 64 Neutral
• Price Target: 2,788.00p ▲(5.77%Upside)

Bellway's overall stock score reflects strong corporate events and positive earnings call highlights, counterbalanced by concerns in financial performance, technical analysis, and valuation. The company's solid balance sheet and strategic initiatives present growth potential, but immediate financial metrics and valuation concerns limit the score.

Positive Factors

Earnings

Unit completions and adjusted profit before tax both increased by 12%, indicating robust financial performance.

Management

The new CFO is focusing on improving capital efficiency, which could accelerate the recovery of returns.

Negative Factors

Valuation

Shares are trading at a 14% discount to the sector, reflecting concerns about relatively weaker post-tax return on equity.

Bellway Business Overview & Revenue Model

Company Description

Bellway p.l.c., together with its subsidiaries, engages in the home building business in the United Kingdom. The company builds and sells homes ranging from one-bedroom apartments to six-bedroom family homes, as well as provides homes to housing associations for social housing. It offers homes under Bellway and Ashberry brands. The company was incorporated in 1978 and is headquartered in Newcastle upon Tyne, the United Kingdom.

How the Company Makes Money

Bellway makes money primarily through the sale of newly constructed residential properties. The company's revenue model is centered around acquiring land, obtaining necessary planning permissions, and developing these sites into residential communities. Bellway's key revenue streams include the sale of homes, which range from apartments to detached houses, catering to various market segments from first-time buyers to luxury home seekers. The company also generates income from partnerships with housing associations for affordable housing projects, which are often subsidized or supported by government schemes. Additionally, Bellway may engage in joint ventures or strategic partnerships to expand its development capabilities and market reach. The company's earnings are influenced by factors such as housing demand, real estate market trends, government policies, and economic conditions.

Bellway Financial Statement Overview

Summary

Bellway exhibits a mixed financial performance. While the balance sheet remains strong, demonstrating financial stability and low leverage, the income statement and cash flow statement indicate areas of concern. Declining revenues and profitability, along with negative cash flow trends, suggest the need for strategic initiatives to drive growth and improve operational efficiency. Emphasis on cash flow management and profitability enhancement will be crucial for Bellway's future financial health.

Income Statement

Bellway's income statement reveals a decline in revenue from the previous year, with a substantial decrease in net income. The gross profit margin stands at 15.4% and the net profit margin at 5.5%, both lower than industry expectations. The EBIT margin is 8.9%, showing challenges in maintaining operating efficiency. The revenue growth rate is negative, indicating a contraction compared to the prior year. Overall, the income statement reflects a need for strategic improvements to regain growth and profitability.

Balance Sheet

Bellway's balance sheet remains strong, with a low debt-to-equity ratio of 0.04, indicating prudent financial management and low leverage risk. The return on equity is 3.8%, which suggests moderate effectiveness in using equity to generate profits. The equity ratio is robust at 69.3%, showing a stable financial structure. However, the decline in equity from the previous year warrants attention to sustain this position.

Cash Flow

The cash flow statement shows negative free cash flow growth, indicating challenges in generating cash from operations. The operating cash flow to net income ratio is negative, highlighting cash flow management issues. The free cash flow to net income ratio is also negative, suggesting inefficiencies in converting profits into cash. Improvements in cash management strategies are essential to enhance liquidity and financial flexibility.

Breakdown	TTM	Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Income Statement
Total Revenue	2.54B	2.38B	3.41B	3.54B	3.12B	2.23B
Gross Profit	397.70M	367.00M	687.30M	787.00M	651.90M	422.20M
EBITDA	243.40M	223.70M	510.20M	314.70M	486.80M	255.60M
Net Income	146.90M	130.50M	365.00M	242.60M	390.70M	192.90M
Balance Sheet
Total Assets	5.08B	5.00B	5.11B	4.99B	4.68B	4.08B
Cash, Cash Equivalents and Short-Term Investments	122.00M	119.50M	362.00M	375.30M	460.30M	51.40M
Total Debt	130.00M	130.00M	513.80M	540.60M	603.00M	410.70M
Total Liabilities	1.55B	1.53B	1.65B	1.62B	1.39B	1.09B
Stockholders Equity	3.52B	3.47B	3.46B	3.37B	3.29B	2.99B
Cash Flow
Free Cash Flow	-15.90M	-66.90M	243.40M	60.70M	429.60M	-65.90M
Operating Cash Flow	-9.40M	-65.50M	246.10M	61.20M	432.90M	-57.60M
Investing Cash Flow	-14.00M	-8.00M	-18.20M	19.10M	5.20M	-18.10M
Financing Cash Flow	-65.60M	-169.00M	-241.20M	-165.30M	-29.20M	-74.10M

Bellway Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2636.00
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:BWY, the sentiment is Negative. The current price of 2636 is below the 20-day moving average (MA) of 2809.50, below the 50-day MA of 2746.17, and above the 200-day MA of 2583.08, indicating a neutral trend. The MACD of -27.07 indicates Positive momentum. The RSI at 40.18 is Neutral, neither overbought nor oversold. The STOCH value of 10.73 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:BWY.

Bellway Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BKG	74 Outperform	£3.51B	9.65	10.73%	182.22%	0.39%	-17.64%
VTY	71 Outperform	£2.00B	29.27	2.27%	―	6.04%	-66.96%
PSN	71 Outperform	£3.87B	14.45	7.71%	662.52%	15.42%	4.45%
TW	70 Outperform	£3.98B	18.12	4.92%	608.53%	-3.22%	-37.21%
BWY	64 Neutral	£3.13B	21.31	4.22%	116.77%	-11.63%	-31.81%
Sector *	62 Neutral	AU$2.85B	27.30	5.13%	5.36%	2.35%	-31.70%
BTRW	60 Neutral	£5.97B	40.00	1.81%	262.91%	4.78%	-53.59%

Bellway Corporate Events

Bellway Joins UK Housebuilders in CMA Commitments for Affordable Housing

Bellway p.l.c. has engaged with the UK Competition and Markets Authority (CMA) by offering voluntary commitments, alongside six other UK housebuilders, to address potential concerns in the housebuilding sector. As part of these commitments, Bellway will contribute £13.5 million to government programs supporting affordable housing, without admitting any wrongdoing. The CMA has not determined any competition law infringement, and Bellway is committed to working constructively with the authority.

The most recent analyst rating on (GB:BWY) stock is a Buy with a £3646.00 price target. To see the full list of analyst forecasts on Bellway stock, see the GB:BWY Stock Forecast page.

Bellway Updates on Share Capital and Voting Rights

Bellway p.l.c. announced that as of 30 June 2025, its ordinary issued share capital consists of 118,988,622 ordinary shares with voting rights. The Bellway Employee Benefit Trust holds 370,097 of these shares but has waived its voting rights and dividend entitlements, resulting in a total of 118,618,525 voting rights. This update on voting rights and capital structure provides stakeholders with clarity on the company’s share distribution and governance.

The most recent analyst rating on (GB:BWY) stock is a Buy with a £3646.00 price target. To see the full list of analyst forecasts on Bellway stock, see the GB:BWY Stock Forecast page.

Bellway Reports Strong Trading Performance and Growth Outlook

Bellway p.l.c. reported robust trading performance from February to June 2025, with increased customer confidence and reservation rates. The company expects to deliver between 8,600 and 8,700 homes for the financial year, with an anticipated operating margin of 11%. The forward order book has grown by 7.7%, and the average selling price is expected to rise to £315,000 due to changes in product mix. Bellway’s disciplined approach to land acquisition has resulted in the purchase of 6,759 plots, supporting its long-term growth ambitions. The company is fully sold for the current financial year and aims for a 20% cumulative volume growth by July 2026, focusing on capital efficiency and shareholder value.

The most recent analyst rating on (GB:BWY) stock is a Buy with a £3646.00 price target. To see the full list of analyst forecasts on Bellway stock, see the GB:BWY Stock Forecast page.

Bellway PLC Announces Current Share Capital and Voting Rights

Bellway PLC has announced that its ordinary issued share capital consists of 118,985,070 ordinary shares, each with voting rights, as of May 30, 2025. The Bellway Employee Benefit Trust holds 370,097 of these shares but has waived its rights to vote and receive dividends, resulting in a total of 118,614,973 voting rights. This update reflects the company’s current capital structure and its implications for shareholder voting power.

The most recent analyst rating on (GB:BWY) stock is a Buy with a £3646.00 price target. To see the full list of analyst forecasts on Bellway stock, see the GB:BWY Stock Forecast page.

Bellway Updates on Share Capital and Voting Rights

Bellway p.l.c. announced that as of April 30, 2025, its issued share capital comprises 118,983,388 ordinary shares with voting rights. The Bellway Employee Benefit Trust holds 370,097 of these shares but has waived its voting rights and dividend entitlements. Consequently, the total number of voting rights in the company is 118,613,291. This update is significant for stakeholders as it clarifies the company’s voting rights structure, potentially impacting shareholder decisions and company governance.

Bellway Enhances Employee Incentive Schemes with Share Purchase

Bellway p.l.c. announced that its Employee Benefit Trust (EBT) purchased 44,983 ordinary shares at £22.075 per share to support its share incentive schemes for employees, including executive directors and other key personnel. This move underscores Bellway’s commitment to employee engagement and retention, while the EBT now holds a total of 370,097 shares, contributing to the company’s strategic human resource initiatives.