Taylor Wimpey plc
Taylor Wimpey plc Fundamental Analysis
Taylor Wimpey plc (TWODF) shows weak financial fundamentals with a PE ratio of 33.35, profit margin of 2.61%, and ROE of 2.40%. The company generates $3.8B in annual revenue with weak year-over-year growth of -3.22%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 30.9/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze TWODF's fundamental strength across five key dimensions:
Efficiency Score
WeakTWODF struggles to generate sufficient returns from assets.
Valuation Score
WeakTWODF trades at a premium to fair value.
Growth Score
WeakTWODF faces weak or negative growth trends.
Financial Health Score
ExcellentTWODF maintains a strong and stable balance sheet.
Profitability Score
ModerateTWODF maintains healthy but balanced margins.
Key Financial Metrics
Is TWODF Expensive or Cheap?
P/E Ratio
TWODF trades at 33.35 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, TWODF's PEG of 2.53 indicates potential overvaluation.
Price to Book
The market values Taylor Wimpey plc at 0.80 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 8.55 times EBITDA. This is generally considered low.
How Well Does TWODF Make Money?
Net Profit Margin
For every $100 in sales, Taylor Wimpey plc keeps $2.61 as profit after all expenses.
Operating Margin
Core operations generate 10.68 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $2.40 in profit for every $100 of shareholder equity.
ROA
Taylor Wimpey plc generates $1.65 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Taylor Wimpey plc generates limited operating cash flow of $136.45M, signaling weaker underlying cash strength.
Free Cash Flow
Taylor Wimpey plc produces free cash flow of $132.26M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $0.04 in free cash annually.
FCF Yield
TWODF converts 3.98% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
33.35
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
2.53
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.80
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.87
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.03
vs 25 benchmark
Current Ratio
Current assets to current liabilities
4.96
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.02
vs 25 benchmark
ROA
Return on assets percentage
0.02
vs 25 benchmark
ROCE
Return on capital employed
0.08
vs 25 benchmark
How TWODF Stacks Against Its Sector Peers
| Metric | TWODF Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 33.35 | 23.83 | Worse (Expensive) |
| ROE | 2.40% | 1168.00% | Weak |
| Net Margin | 2.61% | -2451.00% (disorted) | Weak |
| Debt/Equity | 0.03 | 0.74 | Strong (Low Leverage) |
| Current Ratio | 4.96 | 2.57 | Strong Liquidity |
| ROA | 1.65% | -34556.00% (disorted) | Weak |
TWODF outperforms its industry in 2 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Taylor Wimpey plc's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
-27.64%
Industry Style: Cyclical, Growth, Discretionary
DecliningEPS CAGR
-69.90%
Industry Style: Cyclical, Growth, Discretionary
DecliningFCF CAGR
-65.05%
Industry Style: Cyclical, Growth, Discretionary
Declining