Taylor Wimpey (TW) AI Stock Analysis

• Market Cap: £4.28B
• Dividend Yield: 7.7%
• Average Volume (3M): 18.77M
• Price to Earnings (P/E): 19.5
• Beta (1Y): 1.28
• Revenue Growth: -3.22%
• EPS Growth: -37.21%
• Country: UK
• Employees: 4,458
• Sector: Consumer Cyclical
• Sector Strength: 58
• Industry: Residential Construction
• EPS (TTM): 0.04
• Shares Outstanding: 3,541,343,500
• 10 Day Avg. Volume: 17,140,372
• 30 Day Avg. Volume: 18,769,937
• 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: £138.75
• Price Target Upside: 15.29% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4

• Rating: 72 Outperform
• Price Target: 129.00p ▲(7.19%Upside)

Taylor Wimpey's overall stock score of 72 reflects a stable financial position with strengths in operational efficiency and a solid balance sheet. However, concerns about declining revenue and net income impact the score. The technical analysis suggests a mixed outlook, with some indicators pointing to potential support. Valuation metrics are favorable, particularly the high dividend yield, which enhances the attractiveness of the stock. The lack of earnings call data and corporate events does not impact the score.

Positive Factors

Future Growth Outlook

2025 outlook for volume growth underpinned by strong order book, up 25%.

Market Conditions

Disinflationary impact should cushion the blow as interest rate expectations soften, and mortgage rates have recently fallen.

Sales Performance

Taylor Wimpey has reported that it achieved a UK private sales rate of 0.77 (per site per week), up 4% ahead of last year.

Negative Factors

Land Availability

Scarcity of land with planning is the major obstacle to growth.

Taylor Wimpey Business Overview & Revenue Model

Company Description

Taylor Wimpey plc is one of the largest residential developers in the United Kingdom. The company is engaged in the business of building homes and communities across the UK and Spain. Taylor Wimpey specializes in developing a wide range of properties, from affordable starter homes to luxury residences, catering to a diverse customer base. With a focus on quality, sustainability, and customer satisfaction, the company aims to create vibrant and well-designed communities.

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
	EBIT
407.60M	467.80M	827.50M	698.20M	282.40M
	EBITDA
360.00M	511.90M	831.70M	695.20M	281.60M
	Net Income Common Stockholders
219.60M	349.00M	643.60M	555.50M	217.00M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
647.40M	764.90M	952.30M	921.00M	823.00M
	Total Assets
6.29B	6.25B	6.48B	6.24B	5.75B
	Total Debt
121.00M	126.80M	115.50M	111.40M	131.60M
	Net Debt
-526.40M	-638.10M	-836.80M	-809.60M	-691.40M
	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: Positive
• Last Price: 120.35
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:TW, the sentiment is Positive. The current price of 120.35 is above the 20-day moving average (MA) of 118.56, above the 50-day MA of 115.62, and below the 200-day MA of 123.52, indicating a neutral trend. The MACD of 1.34 indicates Negative momentum. The RSI at 55.87 is Neutral, neither overbought nor oversold. The STOCH value of 75.25 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:TW.

Taylor Wimpey Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PSN	78 Outperform	£4.41B	16.47	7.71%	2.91%	15.42%	4.45%
BKG	74 Outperform	£4.23B	11.81	11.03%	1.54%	0.39%	-17.64%
TW	72 Outperform	£4.28B	19.50	4.92%	7.70%	-3.22%	-37.21%
VTY	68 Neutral	£2.14B	30.29	2.27%	―	6.04%	-66.96%
BWY	64 Neutral	£3.41B	23.23	4.22%	1.46%	-11.63%	-31.81%
BTRW	63 Neutral	£6.70B	44.92	1.81%	2.38%	4.78%	-53.59%
Sector *	62 Neutral	$6.86B	11.07	2.77%	4.27%	2.66%	-24.95%