Taylor Wimpey (TW) AI Stock Analysis

• Market Cap: £3.96B
• Dividend Yield: 611.79%
• Average Volume (3M): 18.67M
• Price to Earnings (P/E): 18.0
• Beta (1Y): 1.24
• Revenue Growth: -3.22%
• EPS Growth: -37.21%
• Country: UK
• Employees: 4,458
• Sector: Consumer Cyclical
• Sector Strength: 59
• Industry: Residential Construction
• EPS (TTM): 0.04
• Shares Outstanding: 3,541,343,500
• 10 Day Avg. Volume: 18,065,245
• 30 Day Avg. Volume: 18,670,055
• PEG Ratio: 0.28
• Price to Book (P/B): 0.80
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 7.62
• 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: £134.83
• Price Target Upside: 19.80% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 6

• Rating: 70 Outperform
• 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 Business Overview & Revenue Model

Company Description

Taylor 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 Money

Taylor 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

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

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

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.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.40B	3.51B	4.42B	4.28B	2.79B
Gross Profit	647.60M	716.50M	1.13B	1.03B	496.70M
EBITDA	360.00M	511.90M	831.70M	695.20M	281.60M
Net Income	219.60M	349.00M	643.60M	555.50M	217.00M
Balance Sheet
Total Assets	6.29B	6.25B	6.48B	6.24B	5.75B
Cash, Cash Equivalents and Short-Term Investments	647.40M	764.90M	952.30M	921.00M	823.00M
Total Debt	121.00M	126.80M	115.50M	111.40M	131.60M
Total Liabilities	1.89B	1.73B	1.98B	1.93B	1.73B
Stockholders Equity	4.41B	4.52B	4.50B	4.31B	4.02B
Cash Flow
Free Cash Flow	189.60M	122.70M	475.40M	427.30M	-309.20M
Operating Cash Flow	193.00M	129.60M	477.50M	431.90M	-301.20M
Investing Cash Flow	45.80M	27.40M	33.60M	-10.30M	-23.90M
Financing Cash Flow	-352.30M	-342.80M	-482.40M	-321.70M	516.40M

Taylor Wimpey Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 112.55
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BKG	74 Outperform	£3.51B	9.65	10.73%	183.95%	0.39%	-17.64%
VTY	71 Outperform	£2.00B	0.29	2.27%	―	6.04%	-66.96%
PSN	71 Outperform	£3.83B	14.32	7.71%	662.52%	15.42%	4.45%
TW	70 Outperform	£3.96B	18.02	4.92%	611.79%	-3.22%	-37.21%
BWY	64 Neutral	£3.12B	21.24	4.22%	116.77%	-11.63%	-31.81%
BTRW	60 Neutral	£5.97B	40.00	1.81%	262.91%	4.78%	-53.59%
Sector *	56 Neutral	HK$24.58B	3.79	-2.03%	6.58%	-0.32%	-67.68%