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Taylor Wimpey (GB:TW)
LSE:TW

Taylor Wimpey (TW) AI Stock Analysis

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Taylor Wimpey

(LSE:TW)

Rating:70Outperform
Price Target:
130.00p
▲(15.50%Upside)
The overall score of 70 reflects the company's strong balance sheet and dividend yield, which are offset by declining revenue and a relatively high P/E ratio. Technical indicators suggest a neutral trend, and no significant earnings call or corporate events influence the score.
Positive Factors
Company Outlook
The 2025 outlook for volume growth is underpinned by a strong order book, which is up 25%.
Market Conditions
Disinflationary impact and softened interest rate expectations are cushioning the blow for Taylor Wimpey, with mortgage rates recently falling.
Sales Performance
Taylor Wimpey achieved a UK private sales rate of 0.77 per site per week, marking a 4% increase compared to last year.
Negative Factors
Market Challenges
Scarcity of land with planning is a major obstacle to growth, highlighting the competitive challenge in the market.

Taylor Wimpey (TW) vs. iShares MSCI United Kingdom ETF (EWC)

Taylor Wimpey Business Overview & Revenue Model

Company DescriptionTaylor Wimpey plc operates a residential developer in the United Kingdom and Spain. It builds and delivers various homes and communities, including apartments to six-bedroom houses. Taylor Wimpey plc was founded in 1880 and is based in High Wycombe, the United Kingdom.
How the Company Makes MoneyTaylor Wimpey generates revenue primarily through the sale of residential properties. The company's main revenue stream comes from the construction and sale of homes to individual buyers, including first-time buyers, families, and investors. Taylor Wimpey also earns income from land sales and the strategic management of its land bank, which involves acquiring, developing, and selling land plots. Additionally, the company may engage in joint ventures and collaborations with other real estate developers and financial institutions to enhance its project offerings and expand its market reach. These partnerships and strategic land acquisitions are significant factors contributing to Taylor Wimpey's earnings.

Taylor Wimpey Financial Statement Overview

Summary
Taylor Wimpey's financial performance shows mixed results. The income statement reflects a decline in revenue and net income, with a drop in gross profit margin, raising concerns about future profitability. However, operational efficiency remains strong with healthy EBIT and EBITDA margins. The balance sheet is robust, with a strong equity base and minimal leverage. Cash flow management shows improvement in operational cash flow, but there is a decline in converting net income into free cash flow.
Income Statement
72
Positive
Taylor Wimpey's income statement reflects a significant decline in revenue from 2022 to 2023 and a corresponding decrease in net income. The gross profit margin decreased from 20.39% in 2022 to 19.04% in 2023, indicating pressure on cost management. However, the EBIT and EBITDA margins remain healthy at 11.98% and 10.57% respectively in 2023, highlighting operational efficiency. The revenue growth shows a negative trend, which is a concern for future profitability.
Balance Sheet
80
Positive
The balance sheet is robust with a strong equity base; the equity ratio is 70.02% in 2023, reflecting financial stability. The debt-to-equity ratio is low at 0.03, indicating minimal leverage and low financial risk. Return on equity decreased from 14.29% in 2022 to 7.63% in 2023, suggesting a decline in profitability. Overall, the company maintains a solid financial position with low debt levels and a high equity cushion.
Cash Flow
68
Positive
Cash flow from operations improved from 2022 to 2023, but free cash flow growth was moderate. The operating cash flow to net income ratio improved to 0.88, indicating better cash generation relative to earnings. However, the free cash flow to net income ratio decreased from 0.74 in 2022 to 0.54 in 2023, pointing to declining efficiency in converting net income into free cash flow.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue3.40B3.51B4.42B4.28B2.79B
Gross Profit647.60M716.50M1.13B1.03B496.70M
EBITDA360.00M511.90M831.70M695.20M281.60M
Net Income219.60M349.00M643.60M555.50M217.00M
Balance Sheet
Total Assets6.29B6.25B6.48B6.24B5.75B
Cash, Cash Equivalents and Short-Term Investments647.40M764.90M952.30M921.00M823.00M
Total Debt121.00M126.80M115.50M111.40M131.60M
Total Liabilities1.89B1.73B1.98B1.93B1.73B
Stockholders Equity4.41B4.52B4.50B4.31B4.02B
Cash Flow
Free Cash Flow189.60M122.70M475.40M427.30M-309.20M
Operating Cash Flow193.00M129.60M477.50M431.90M-301.20M
Investing Cash Flow45.80M27.40M33.60M-10.30M-23.90M
Financing Cash Flow-352.30M-342.80M-482.40M-321.70M516.40M

Taylor Wimpey Technical Analysis

Technical Analysis Sentiment
Negative
Last Price112.55
Price Trends
50DMA
118.25
Negative
100DMA
113.54
Negative
200DMA
120.99
Negative
Market Momentum
MACD
-1.27
Positive
RSI
38.76
Neutral
STOCH
5.58
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:TW, the sentiment is Negative. The current price of 112.55 is below the 20-day moving average (MA) of 118.64, below the 50-day MA of 118.25, and below the 200-day MA of 120.99, indicating a bearish trend. The MACD of -1.27 indicates Positive momentum. The RSI at 38.76 is Neutral, neither overbought nor oversold. The STOCH value of 5.58 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:TW.

Taylor Wimpey Peers Comparison

Overall Rating
UnderperformOutperform
Sector (56)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
GBBKG
74
Outperform
£3.51B9.6510.73%183.95%0.39%-17.64%
GBVTY
71
Outperform
£2.00B0.292.27%6.04%-66.96%
GBPSN
71
Outperform
£3.83B14.327.71%662.52%15.42%4.45%
GBTW
70
Outperform
£3.96B18.024.92%611.79%-3.22%-37.21%
GBBWY
64
Neutral
£3.12B21.244.22%116.77%-11.63%-31.81%
60
Neutral
£5.97B40.001.81%262.91%4.78%-53.59%
56
Neutral
HK$24.58B3.79-2.03%6.58%-0.32%-67.68%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
GB:TW
Taylor Wimpey
112.15
-28.88
-20.48%
GB:BTRW
Barratt Developments
423.50
-43.68
-9.35%
GB:BWY
Bellway
2,636.00
137.82
5.52%
GB:BKG
The Berkeley Group Holdings
3,654.00
-1,076.35
-22.75%
GB:VTY
Vistry Group
615.80
-674.20
-52.26%
GB:PSN
Persimmon
1,222.00
-162.01
-11.71%
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: Jul 02, 2025