Taylor Wimpey (TW) AI Stock Analysis

• Market Cap: £3.60B
• Dividend Yield: 9.36%
• Average Volume (3M): 20.72M
• Price to Earnings (P/E): 42.4
• Beta (1Y): 1.17
• Revenue Growth: 4.21%
• EPS Growth: -65.57%
• Country: UK
• Employees: 4,458
• Sector: Consumer Cyclical
• Sector Strength: 73
• Industry: Residential Construction
• EPS (TTM): 0.03
• Shares Outstanding: 3,541,386,000
• 10 Day Avg. Volume: 28,416,554
• 30 Day Avg. Volume: 20,721,504
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: £129.40
• Price Target Upside: 27.05% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 10

• Rating: 66 Neutral
• Price Target: 108.00p ▲(6.04% Upside)

Taylor Wimpey's overall stock score reflects a mixed outlook. The strong balance sheet and attractive dividend yield are key positives, appealing to risk-averse and income-seeking investors. However, technical indicators point to a bearish trend with weak market momentum, and financial performance highlights concerns with declining revenue and profit margins. The high P/E ratio also suggests the stock might be slightly overvalued.

Positive Factors

Financial Performance

2024 operating profit ended at the upper end of the consensus range, demonstrating strong financial health.

Growth Outlook

The 2025 outlook for volume growth is underpinned by a strong order book, which is up 25%.

Sales Performance

Taylor Wimpey has reported a UK private sales rate increase of 4%, indicating strong housing market conditions.

Negative Factors

Market Conditions

The scarcity of land with planning is a major obstacle to growth in the housing market.

Taylor Wimpey Business Overview & Revenue Model

Company Description

Taylor Wimpey is one of the largest residential developers in the United Kingdom, focusing primarily on the construction and sale of new homes. The company operates in the housebuilding sector and offers a wide range of properties, from apartments to large family homes. Taylor Wimpey is known for its commitment to quality and innovation, providing customers with modern, sustainable living spaces across various regions in the UK.

How the Company Makes Money

Taylor Wimpey generates revenue primarily through the sale of residential properties. The company's core revenue stream is the construction and sale of new homes, which include a diverse portfolio of housing options catering to first-time buyers, families, and investors. Taylor Wimpey benefits from strategic land acquisition, ensuring a steady pipeline of development opportunities. Additionally, the company may engage in partnerships with local authorities and housing associations to deliver affordable housing projects, which can also contribute to its revenue. Economic factors such as housing demand, property prices, and government policies related to housing and development significantly impact 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: 101.85
• 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 101.85 is below the 20-day moving average (MA) of 108.18, below the 50-day MA of 114.09, and below the 200-day MA of 116.54, indicating a bearish trend. The MACD of -3.52 indicates Positive momentum. The RSI at 30.14 is Neutral, neither overbought nor oversold. The STOCH value of 15.99 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	£3.54B	9.85	10.73%	6.79%	0.39%	-17.64%
PSN	71 Outperform	£3.72B	13.90	7.71%	4.77%	15.42%	4.45%
VTY	67 Neutral	£1.91B	28.80	2.27%	―	6.04%	-66.96%
TW	66 Neutral	£3.60B	42.44	1.97%	9.36%	4.21%	-65.57%
BWY	60 Neutral	£2.96B	20.13	4.22%	2.38%	-11.63%	-31.81%
BTRW	57 Neutral	£5.34B	35.84	1.81%	4.63%	4.78%	-53.59%
Sector *	56 Neutral	HK$24.69B	3.85	-3.23%	5.89%	0.30%	-59.75%