Want to see BKGFY full AI Analyst Report?
Berkeley Group (BKGFY) AI Stock Analysis
Berkeley Group
(Other OTC:BKGFY)
The score is primarily supported by solid financial fundamentals—especially a conservative, low-leverage balance sheet—alongside still-healthy (but cooling) profitability and improved recent cash flow. These positives are tempered by clearly weak technicals (below key moving averages with negative MACD) and evidence of softening operating performance (lower margins, declining ROE). Valuation is supportive due to a low P/E, but not enough to offset the current bearish price trend.
Berkeley Group (BKGFY) vs. SPDR S&P 500 ETF (SPY)
- Market Cap
- $4.19B
- Dividend Yield
- ―
- Average Volume (3M)
- 66.26K
- Price to Earnings (P/E)
- 10.4
- Beta (1Y)
- 0.59
- Revenue Growth
- 0.46%
- EPS Growth
- -6.54%
- Country
- US
- Employees
- 2,438
- Sector
- Consumer Cyclical
- Sector Strength
- 61
- Industry
- Residential Construction
Berkeley Group Business Overview & Revenue Model
Company Description
The Berkeley Group Holdings plc, encompassing its various subsidiaries, specializes in creating residential and mixed-use property developments throughout the United Kingdom. Its operations are conducted under distinct brand identities such as Berkel...
How the Company Makes Money
Berkeley Group makes money primarily by developing residential properties and selling completed homes to private buyers and other purchasers. Its core revenue stream is recognized from property sales, which are generated by acquiring or controlling l...
Berkeley Group Earnings Call Summary
The earnings call reflects a mixed performance, with Berkeley Group maintaining strong financial metrics and stable sales prices amidst challenging market conditions, including reduced private sales and regulatory hurdles. The extension of profit guidance indicates confidence in future performance, yet regulatory and planning challenges pose significant hurdles.
Q2-2024 Updates
Positive Updates
Negative Updates
Company Guidance
In the earnings call for the six months ending October 31, 2023, Berkeley Group executives provided detailed guidance and performance metrics. The company reported a pretax profit of GBP 298 million, exceeding previous guidance, with an operating margin of 19.5% and net cash maintained above GBP 400 million. The firm aims to deliver at least GBP 1.5 billion of pretax profit over the three years ending April 30, 2026. Despite a 1% drop in earnings per share to 198.3p, they managed to keep the pretax return on equity at 17.7%. The sales market faced challenges, with private sales down by a third, but sales prices remained stable, and build cost inflation was negligible. Berkeley's forward sales cover the next three years, totaling GBP 2 billion, providing strong visibility on earnings and cash flow. Shareholders' funds increased to GBP 3.4 billion, and the net asset value per share rose by 3.8% to GBP 32.19. The company plans to maintain its robust balance sheet and capital allocation strategy, with ongoing annual shareholder returns of GBP 283 million until September 2025. If new investments are not made by April 2027, Berkeley intends to return 100% of the net profit earned from FY24 to FY27 to shareholders.
Berkeley Group Financial Statement Overview
Summary
Strong balance-sheet positioning (low leverage and sizable equity base) supports resilience in a cyclical homebuilding industry. Profitability remains solid (gross margin ~25–29%, net margin low-to-mid teens), but recent trends are weaker with revenue down (~2.4% in 2026), EBIT margin stepping down (~24–25% to ~19%), and ROE moderating (~8.6% in 2026). Cash flow recovered meaningfully since 2022 and generally supports reported earnings, though volatility remains a key risk.
Income Statement
73PositiveBalance Sheet
82Very PositiveCash Flow
68Positive| Breakdown | TTM | Apr 2026 | Apr 2025 | Apr 2024 | Apr 2023 | Apr 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 2.40B | 2.36B | 2.49B | 2.46B | 2.55B | 2.35B |
| Gross Profit | 601.07M | 590.52M | 660.30M | 644.50M | 696.80M | 664.80M |
| EBITDA | 476.91M | 445.06M | 561.70M | 591.30M | 527.60M | 569.20M |
| Net Income | 320.68M | 314.74M | 382.00M | 397.60M | 465.70M | 482.40M |
Balance Sheet | ||||||
| Total Assets | 6.49B | 6.49B | 6.69B | 7.00B | 6.86B | 6.59B |
| Cash, Cash Equivalents and Short-Term Investments | 1.02B | 1.02B | 1.02B | 1.19B | 1.07B | 928.90M |
| Total Debt | 664.35M | 664.35M | 682.20M | 664.40M | 665.10M | 665.90M |
| Total Liabilities | 2.84B | 2.84B | 3.13B | 3.44B | 3.53B | 3.45B |
| Stockholders Equity | 3.64B | 3.64B | 3.56B | 3.56B | 3.33B | 3.14B |
Cash Flow | ||||||
| Free Cash Flow | 306.18M | 301.98M | 192.10M | 232.00M | 408.50M | -130.80M |
| Operating Cash Flow | 306.18M | 301.98M | 193.10M | 233.40M | 410.50M | -129.50M |
| Investing Cash Flow | -43.79M | -43.61M | -4.00M | 60.90M | -12.80M | -27.70M |
| Financing Cash Flow | -253.96M | -250.37M | -365.90M | -172.70M | -256.20M | -342.10M |
Berkeley Group Technical Analysis
Price Trends
Market Momentum
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BKGFY, the sentiment is Positive. The current price of 9.32 is above the 20-day moving average (MA) of 8.87, above the 50-day MA of 9.03, and below the 200-day MA of 9.59, indicating a neutral trend. The MACD of 0.12 indicates Negative momentum. The RSI at 59.17 is Neutral, neither overbought nor oversold. The STOCH value of 54.95 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for BKGFY.
Berkeley Group Peers Comparison
Overall Rating
TOL72Outperform
PHM69Neutral- BKGFY66Neutral
LEN65Neutral
DHI64Neutral
KBH43Neutral
Financial Indicators
| Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| TOL | 72Outperform | $13.45B | 11.64 | 14.23% | 0.71% | -1.08% | -8.57% |
| PHM | 69Neutral | $22.96B | 13.27 | 13.80% | 0.83% | -9.35% | -27.96% |
| BKGFY | 66Neutral | $4.19B | 10.42 | 8.79% | ― | 0.46% | -6.54% |
| LEN | 65Neutral | $20.65B | 16.43 | 6.03% | 2.30% | -8.01% | -47.77% |
| DHI | 64Neutral | $40.84B | 14.38 | 12.22% | 1.23% | -3.52% | -12.68% |
| Sector * | 61Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% |
| KBH | 43Neutral | $2.91B | 13.21 | 5.93% | 2.09% | -20.80% | -50.30% |
* Consumer Cyclical Sector Average
Performance Comparison
| Show on chart | Ticker | Company Name | Price | Change | % Change |
|---|---|---|---|---|---|
| BKGFY | Berkeley Group Holdings Plc | 9.32 | -1.19 | -11.28% | |
| DHI | D.R. Horton Inc | 146.00 | 2.66 | 1.86% | |
| KBH | KB Home | 47.94 | -12.05 | -20.09% | |
| LEN | Lennar Corporation | 86.94 | -31.01 | -26.29% | |
| PHM | Pultegroup | 124.74 | 6.98 | 5.93% | |
| TOL | Toll Brothers Inc. | 145.95 | 13.62 | 10.29% |
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.
Date of analysis: Sep 26, 2026