Barratt Developments plc
Barratt Developments plc Fundamental Analysis
Barratt Developments plc (BTDPY) shows moderate financial fundamentals with a PE ratio of 18.94, profit margin of 3.60%, and ROE of 2.73%. The company generates $2.9B in annual revenue with strong year-over-year growth of 33.83%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 55.4/100 based on profitability, valuation, growth, and balance sheet metrics. The C grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze BTDPY's fundamental strength across five key dimensions:
Efficiency Score
WeakBTDPY struggles to generate sufficient returns from assets.
Valuation Score
ModerateBTDPY shows balanced valuation metrics.
Growth Score
ExcellentBTDPY delivers strong and consistent growth momentum.
Financial Health Score
ExcellentBTDPY maintains a strong and stable balance sheet.
Profitability Score
ModerateBTDPY maintains healthy but balanced margins.
Key Financial Metrics
Is BTDPY Expensive or Cheap?
P/E Ratio
BTDPY trades at 18.94 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, BTDPY's PEG of 3.54 indicates potential overvaluation.
Price to Book
The market values Barratt Developments plc at 0.52 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 4.47 times EBITDA. This is generally considered low.
How Well Does BTDPY Make Money?
Net Profit Margin
For every $100 in sales, Barratt Developments plc keeps $3.60 as profit after all expenses.
Operating Margin
Core operations generate 6.07 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $2.73 in profit for every $100 of shareholder equity.
ROA
Barratt Developments plc generates $1.89 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Barratt Developments plc generates limited operating cash flow of $65.73M, signaling weaker underlying cash strength.
Free Cash Flow
Barratt Developments plc generates weak or negative free cash flow of $58.03M, restricting financial flexibility.
FCF Per Share
Each share generates $0.16 in free cash annually.
FCF Yield
BTDPY converts 5.80% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
18.94
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
3.54
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.52
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.34
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.03
vs 25 benchmark
Current Ratio
Current assets to current liabilities
4.66
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.03
vs 25 benchmark
ROA
Return on assets percentage
0.02
vs 25 benchmark
ROCE
Return on capital employed
0.04
vs 25 benchmark
How BTDPY Stacks Against Its Sector Peers
| Metric | BTDPY Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 18.94 | 23.83 | Better (Cheaper) |
| ROE | 2.73% | 1168.00% | Weak |
| Net Margin | 3.60% | -2451.00% (disorted) | Weak |
| Debt/Equity | 0.03 | 0.74 | Strong (Low Leverage) |
| Current Ratio | 4.66 | 2.57 | Strong Liquidity |
| ROA | 1.89% | -34556.00% (disorted) | Weak |
BTDPY outperforms its industry in 3 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Barratt Developments plc's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
20.61%
Industry Style: Cyclical, Growth, Discretionary
High GrowthEPS CAGR
-65.52%
Industry Style: Cyclical, Growth, Discretionary
DecliningFCF CAGR
158.24%
Industry Style: Cyclical, Growth, Discretionary
High Growth