Redrow plc
Redrow plc Fundamental Analysis
Redrow plc (RDWWF) shows moderate financial fundamentals with a PE ratio of 5.06, profit margin of 14.01%, and ROE of 14.99%. The company generates $2.1B in annual revenue with N/A year-over-year growth of N/A.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 70.2/100 based on profitability, valuation, growth, and balance sheet metrics. The B grade reflects solid fundamentals with room for improvement in valuation or growth.
Fundamental Health Score
We analyze RDWWF's fundamental strength across five key dimensions:
Efficiency Score
WeakRDWWF struggles to generate sufficient returns from assets.
Valuation Score
ExcellentRDWWF trades at attractive valuation levels.
Growth Score
ModerateRDWWF shows steady but slowing expansion.
Financial Health Score
ExcellentRDWWF maintains a strong and stable balance sheet.
Profitability Score
WeakRDWWF struggles to sustain strong margins.
Key Financial Metrics
Is RDWWF Expensive or Cheap?
P/E Ratio
RDWWF trades at 5.06 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, RDWWF's PEG of 0.07 indicates potential undervaluation.
Price to Book
The market values Redrow plc at 0.74 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 4.17 times EBITDA. This is generally considered low.
How Well Does RDWWF Make Money?
Net Profit Margin
For every $100 in sales, Redrow plc keeps $14.01 as profit after all expenses.
Operating Margin
Core operations generate 18.76 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $14.99 in profit for every $100 of shareholder equity.
ROA
Redrow plc generates $9.66 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Redrow plc generates limited operating cash flow of $154.69M, signaling weaker underlying cash strength.
Free Cash Flow
Redrow plc produces free cash flow of $150.77M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $0.47 in free cash annually.
FCF Yield
RDWWF converts 10.42% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
5.06
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.07
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.74
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.69
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.005
vs 25 benchmark
Current Ratio
Current assets to current liabilities
3.52
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.15
vs 25 benchmark
ROA
Return on assets percentage
0.10
vs 25 benchmark
ROCE
Return on capital employed
0.18
vs 25 benchmark
How RDWWF Stacks Against Its Sector Peers
| Metric | RDWWF Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 5.06 | 23.83 | Better (Cheaper) |
| ROE | 14.99% | 1168.00% | Weak |
| Net Margin | 14.01% | -2451.00% (disorted) | Strong |
| Debt/Equity | 0.00 | 0.74 | Strong (Low Leverage) |
| Current Ratio | 3.52 | 2.57 | Strong Liquidity |
| ROA | 9.66% | -34556.00% (disorted) | Weak |
RDWWF outperforms its industry in 4 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Redrow plc's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
N/A
Industry Style: Cyclical, Growth, Discretionary
EPS CAGR
N/A
Industry Style: Cyclical, Growth, Discretionary
FCF CAGR
N/A
Industry Style: Cyclical, Growth, Discretionary