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Bellway PLC BWY

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Stock XLON Rating as of
GBX 2,561.25 +17.25 (0.68%)
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Company Report

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Profit Margin Headwinds Are Abating for Bellway as UK House Prices Return to Growth in 2024

Grant Slade

Bellway is the fourth-largest residential property developer in the UK market by revenue and annual home completions, and operates under a vertically integrated business model typical of the UK industry. Volume growth and consequent market share gains are the group’s current focus in creating value for shareholders. To support this growth, Bellway invested in its land bank at an unprecedented level over the fiscal 2021 - fiscal 2022 period. Build quality is a strategic focus for the group, evidenced by the consistent award of a 5-star House Builder Rating from the UK’s Home Builders Federation since 2017.

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Price vs Fair Value

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BWY is trading at a 739% premium.
Price
GBX 2,544.00
Fair Value
GBX 4,512.00
Uncertainty
High
1-Star Price
GBX 7,824.40
5-Star Price
GBX 3,944.00
Economic Moat
Nvrzk
Capital Allocation
Rymchqwn

Bulls Say, Bears Say

Bulls

Underlying housing demand is likely to benefit from the UK’s changing demographics. The ongoing ageing of the population is likely to support demand for new housing over the coming decade as the UK's average household size declines.

Bears

Profit margin recovery is likely to be gradual, owing to upcoming incremental built costs for Future Homes Standard compliance.

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Trading Information

Previous Close Price
GBX 2,544.00
Day Range
GBX 2,536.00–2,568.00
52-Week Range
GBX 1,903.00–2,898.00
Bid/Ask
GBX 0.00 / GBX 2,850.00
Market Cap
GBX 303.90 Bil
Volume/Avg
115,493 / 255,551

Key Statistics

Price/Earnings (Normalized)
11.61
Price/Sales
1.08
Dividend Yield (Trailing)
4.36%
Dividend Yield (Forward)
4.36%
Total Yield
7.71%

Company Profile

Bellway is the UK’s fourth-largest residential property developer in terms of both revenue and dwelling completions. Bellway’s vertical integration through the land development, construction, and sales and marketing segments of the residential property development value chain aligns with the typical business model employed by homebuilders in the UK market.
Sector
Consumer Cyclical
Industry
Residential Construction
Stock Style Box
Mid Value
Total Number of Employees
3,130
Website
https://www.bellwayplc.co.uk

Competitors

Valuation

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Metric
BWY
BKG
BDEV
Price/Earnings (Normalized)
 11.6111.0711.59
Price/Book Value
 0.881.370.85
Price/Sales
 1.082.011.07
Price/Cash Flow
 12.1714.5621.99
Price/Earnings
BWY
BKG
BDEV

Financial Strength

Metric
BWY
BKG
BDEV
Quick Ratio
 0.330.640.86
Current Ratio
 5.783.574.92
Interest Coverage
 8.8123.087.17
Quick Ratio
BWY
BKG
BDEV

Profitability

Metric
BWY
BKG
BDEV
Return on Assets (Normalized)
 5.22%6.78%4.95%
Return on Equity (Normalized)
 7.58%13.98%7.02%
Return on Invested Capital (Normalized)
 7.82%11.33%6.74%
Return on Assets
BWY
BKG
BDEV
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