Taylor Wimpey (GB:TW)
LSE:TW
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Taylor Wimpey
(LSE:TW)
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Rating:63Neutral
Price Target:
92.00 p
▲(6.19% Upside)
Action:ReiteratedDate:03/06/26
The score is driven mainly by solid financial resilience (very low leverage/net cash) but offset by materially weaker profitability versus prior years. Technicals are the biggest drag with clear bearish trend and weak momentum. Valuation is mixed: an attractive dividend yield is tempered by a negative P/E, while earnings-call guidance suggests stable volumes but modest profit softness and meaningful remediation cash outflows.
Positive Factors
Strong balance sheet
Very low leverage and declining absolute debt provide durable financial flexibility across cycles. Net cash supports land acquisition, site investment and multi‑year remediation funding without forced asset sales, lowering refinancing risk and preserving capacity to maintain distributions and opportunistic buybacks.
Negative Factors
Margin compression
Sustained margin erosion reflects build‑cost inflation, weaker opening order‑book pricing and an unwinding land‑sale benefit. Lower gross and operating margins reduce earnings power and return on capital, constraining reinvestment and dividend capacity unless cost control or pricing power meaningfully improves.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong balance sheet
Very low leverage and declining absolute debt provide durable financial flexibility across cycles. Net cash supports land acquisition, site investment and multi‑year remediation funding without forced asset sales, lowering refinancing risk and preserving capacity to maintain distributions and opportunistic buybacks.
Read all positive factors
Taylor Wimpey (TW) vs. iShares MSCI United Kingdom ETF (EWC)
Market Cap
£3.06B
Dividend Yield8.95%
Average Volume (3M)24.81M
Price to Earnings (P/E)37.9
Beta (1Y)1.42
Revenue Growth4.21%
EPS Growth-65.57%
CountryUK
Employees4,458
SectorConsumer Cyclical
Sector Strength84
IndustryResidential Construction
Share Statistics
EPS (TTM)0.05
Shares Outstanding3,534,047,400
10 Day Avg. Volume23,091,232
30 Day Avg. Volume24,810,876
Financial Highlights & Ratios
PEG Ratio-0.70
Price to Book (P/B)0.91
Price to Sales (P/S)0.99
P/FCF Ratio26.98
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
£122.38Price Target Upside41.25% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering8
EPS Forecast (FY)0.07
Revenue Forecast (FY)£3.89B
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 Wycomb...
How the Company Makes Money
Taylor Wimpey primarily makes money by selling newly built residential properties. Its core revenue stream is private home completions: the company buys or controls land, develops sites, constructs homes, and recognises revenue when homes are lega...
Taylor Wimpey Earnings Call Summary
Earnings Call Date:Mar 05, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Aug 05, 2026
Earnings Call Sentiment Positive
The call presents a balanced but constructive picture: strong operational progress (revenue +13%, completions +6.4%, outlet openings +29%), clear planning momentum, improved capital efficiency and a robust balance sheet with continued shareholder distributions. These positives are tempered by margin pressure (operating margin down ~1.4ppt), ongoing build cost inflation, a material building‑safety provisioning and remediation cash profile, and a slightly weaker opening order book. Management retains confidence in medium‑term targets and has added capital allocation flexibility to support returns, suggesting the positives outweigh the near‑term headwinds.Positive Updates
Revenue Growth
Group revenue increased 13% year‑on‑year to GBP 3.84 billion, driven by UK completions growth, resilient private pricing and stronger contribution from land sales.
Negative Updates
Margin Pressure
Adjusted operating margin reduced by ~1.4 percentage points to 10.9% year‑on‑year; gross margin stepped down to 17.1%. Company cites modest build cost inflation, slightly lower opening order book pricing (including London bulk deals) and landbank evolution as drivers.
Read all updates
Q4-2025 Updates
Positive
Negative
Revenue Growth
Group revenue increased 13% year‑on‑year to GBP 3.84 billion, driven by UK completions growth, resilient private pricing and stronger contribution from land sales.
Read all positive updates
Company Guidance
Taylor Wimpey guided 2026 UK completions (ex‑JVs) of 10,600–11,000, with volumes weighted to H2 (~40% in H1 / ~60% in H2) and average outlets expected to be higher in 2026 (219 outlets at end‑2025; 71 outlets opened in 2025). They expect adjusted operating profit of ~£400m (vs £421m in 2025), pre‑exceptional net finance charges of ~£30m, and a blended UK average selling price c.2% above the 2025 £335k (noting opening order‑book pricing was ~0.5% lower y/y). Build‑cost inflation is expected to be low single‑digit (above 1% in 2026), Spain legal completions to normalize to ~£350–400m, and the ~+60bp land‑sale margin benefit seen in 2025 is not expected to repeat in 2026. Cash guidance: year‑end net cash was £343m (FY2025), half‑year net cash is expected around £0–50m due to H1 phasing, and cladding cash outflows are anticipated at ~£150m in 2026 and ~£100m in 2027 (total provision £544m, £131m spent, £413m remaining; remediation to conclude by 2030). The Board retains a 7.5% of NAV distribution policy (minimum 5% as ordinary dividend with flexibility between dividend and buyback); 2025 distributions totalled £322m (final dividend £0.0295/share = £105m plus a £52m buyback). The outlook excludes any potential impacts from recent Middle East events.Taylor Wimpey Financial Statement Overview
Summary
Income Statement
64
Positive
Balance Sheet
88
Very Positive
Cash Flow
67
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 3.84B | 3.40B | 3.51B | 4.42B | 4.28B |
| Gross Profit | 658.40M | 647.60M | 716.50M | 1.13B | 1.03B |
| EBITDA | 411.00M | 360.00M | 511.90M | 866.50M | 720.80M |
| Net Income | 100.40M | 219.60M | 349.00M | 643.60M | 555.50M |
Balance Sheet | |||||
| Total Assets | 6.07B | 6.29B | 6.25B | 6.48B | 6.24B |
| Cash, Cash Equivalents and Short-Term Investments | 429.60M | 647.40M | 764.90M | 952.30M | 921.00M |
| Total Debt | 124.00M | 121.00M | 126.80M | 115.50M | 111.40M |
| Total Liabilities | 1.88B | 1.89B | 1.73B | 1.98B | 1.93B |
| Stockholders Equity | 4.19B | 4.41B | 4.52B | 4.50B | 4.31B |
Cash Flow | |||||
| Free Cash Flow | 141.00M | 189.60M | 122.70M | 475.40M | 427.30M |
| Operating Cash Flow | 145.20M | 193.00M | 129.60M | 477.50M | 431.90M |
| Investing Cash Flow | -22.50M | 73.90M | 27.40M | 33.60M | -10.30M |
| Financing Cash Flow | -343.60M | -352.30M | -342.80M | -482.40M | -321.70M |
Taylor Wimpey Technical Analysis
Negative
86.64
Price Trends
104.34
Negative
103.90
Negative
102.76
Negative
Market Momentum
-5.47
Positive
27.64
Positive
32.52
Neutral
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 86.64 is below the 20-day moving average (MA) of 94.67, below the 50-day MA of 104.34, and below the 200-day MA of 102.76, indicating a bearish trend. The MACD of -5.47 indicates Positive momentum. The RSI at 27.64 is Positive, neither overbought nor oversold. The STOCH value of 32.52 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:TW.
Taylor Wimpey Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
70 Outperform | £3.22B | 5.48 | 10.20% | 6.38% | -6.44% | -0.03% | |
67 Neutral | £3.60B | 13.20 | 2.73% | 4.73% | 33.83% | 15.11% | |
63 Neutral | £3.06B | 37.90 | 2.40% | 8.95% | 4.21% | -65.57% | |
62 Neutral | £2.10B | 8.04 | 4.45% | 2.62% | 16.91% | 20.93% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
58 Neutral | £3.45B | 15.22 | 8.05% | 4.54% | 16.74% | -0.16% | |
54 Neutral | £1.09B | 15.19 | 4.20% | ― | -0.57% | -104.08% |
* Consumer Cyclical Sector Average
GB:TW
Taylor Wimpey
86.64
-16.67
-16.13%
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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.