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Barratt Developments
(OTC:BTDPY)
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Rating:69Neutral
Price Target:
$9.00
▲(2.97% Upside)
Action:Reiterated
Date:09/20/26
The score is led by solid financial foundation (notably low leverage and improved 2026 cash generation) and a constructive earnings outlook driven by integration synergies and capital returns. These positives are tempered by below-peak profitability/margins and ongoing housing-cycle volatility, while technical signals are mixed and valuation is held back by a high P/E despite a strong dividend yield.
Positive Factors
Conservative balance sheet
Consistently low leverage gives Barratt flexibility to withstand housing-cycle volatility and fund operations without excessive dependence on borrowing. The expanding equity base further strengthens financial resilience, supporting land investment and shareholder returns even when market conditions are uneven.
Negative Factors
Compressed margins and cost pressure
Lower gross and operating margins show that revenue recovery is not translating fully into profit growth. Continued build-cost inflation and buyer incentives could keep pressuring earnings conversion, limiting returns even if completion volumes remain broadly stable.
Read all positive and negative factors
Positive Factors
Negative Factors
Conservative balance sheet
Consistently low leverage gives Barratt flexibility to withstand housing-cycle volatility and fund operations without excessive dependence on borrowing. The expanding equity base further strengthens financial resilience, supporting land investment and shareholder returns even when market conditions are uneven.
Read all positive factors
Barratt Developments (BTDPY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$5.64B
Dividend Yield5.44%
Average Volume (3M)5.75K
Price to Earnings (P/E)30.7
Beta (1Y)0.76
Revenue Growth12.59%
EPS Growth32.22%
CountryUS
Employees7,928
SectorConsumer Cyclical
Sector Strength84
IndustryResidential Construction
Share Statistics
EPS (TTM)0.54
Shares Outstanding695,183,200
10 Day Avg. Volume13,163
30 Day Avg. Volume5,748
Financial Highlights & Ratios
PEG Ratio0.53
Price to Book (P/B)0.51
Price to Sales (P/S)0.66
P/FCF Ratio8.91
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Barratt Developments Business Overview & Revenue Model
Company Description
Barratt Redrow Plc is a major property developer with operations primarily concentrated in the United Kingdom. The company specializes in creating a variety of real estate, encompassing both residential homes and commercial structures. Its extensi...
How the Company Makes Money
Barratt Developments primarily makes money by building and selling new homes in the UK. Its main revenue stream is the sale of completed residential properties to private customers (owner-occupiers and investors), where revenue is typically recogn...
Barratt Developments Earnings Call Summary
Earnings Call Date:Sep 16, 2026
(Q4-2026)
| % Change Since: |
Next Earnings Date:Feb 10, 2027
Earnings Call Sentiment Positive
The call was cautiously positive. Management highlighted resilient trading, higher completions, completed Redrow integration, strong synergy delivery, a robust balance sheet, planned capital returns and early success from the multi-brand strategy. These positives were offset by lower profitability and margins, pricing deflation, building-cost inflation, building-safety liabilities, planning delays, affordability constraints and macroeconomic uncertainty. The positive operational execution and financial position significantly outweighed the stated challenges.Positive Updates
Resilient FY2026 Performance
Barratt Redrow described its operational and financial performance as solid and in line with expectations despite challenging market conditions, supported by its brands, strategy, teams and supply chain.
Negative Updates
Challenging Market and Affordability Conditions
Management said market conditions were clearly challenging, customers were subdued, and first-time buyers faced severe affordability challenges. The industry also remains constrained by an under-resourced planning system, red tape, regulation and taxation.
Read all updates
Q4-2026 Updates
Positive
Negative
Resilient FY2026 Performance
Barratt Redrow described its operational and financial performance as solid and in line with expectations despite challenging market conditions, supported by its brands, strategy, teams and supply chain.
Read all positive updates
Company Guidance
For FY '27, Barratt Redrow is confident in total completions of between 17,500 and 17,900, expects affordable volumes to return to around 20% of completions, joint venture completions to increase slightly to around 600 units, and average outlets to be stable at approximately 405; it is guiding to 3% to 4% inflation for the year, administrative expenses of approximately GBP 360 million, an annual profit and loss contribution from synergies of approximately GBP 95 million, land approvals of between 6,000 and 8,000 plots only if sufficiently attractive opportunities arise, and FY '27 year-end net cash between GBP 400 million and GBP 500 million, subject to any changes in land activity and guidance on that as the year develops. The company expects to spend approximately GBP 300 million on legacy property remediation and GBP 340 million settling line creditors, expects to spend approximately GBP 450 million in FY '28 on direct remediation-related works and payments to the Building Safety fund, and expects FY '27 total capital return to be GBP 400 million, with GBP 386 million delivered through a share buyback.Barratt Developments Financial Statement Overview
Summary
Income Statement
62
Positive
Balance Sheet
86
Very Positive
Cash Flow
70
Positive
| Breakdown | Jun 2026 | Jun 2025 | Jun 2024 | Jun 2023 | Jun 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 6.03B | 5.58B | 4.17B | 5.32B | 5.27B |
| Gross Profit | 864.33M | 784.80M | 689.00M | 1.13B | 1.30B |
| EBITDA | 622.67M | 398.10M | 255.70M | 767.00M | 1.06B |
| Net Income | 242.26M | 186.40M | 114.10M | 530.30M | 515.10M |
Balance Sheet | |||||
| Total Assets | 11.05B | 11.55B | 7.88B | 8.01B | 8.22B |
| Cash, Cash Equivalents and Short-Term Investments | 965.04M | 969.60M | 1.07B | 1.27B | 1.35B |
| Total Debt | 246.11M | 255.20M | 242.80M | 249.60M | 254.40M |
| Total Liabilities | 3.32B | 3.68B | 2.44B | 2.42B | 2.59B |
| Stockholders Equity | 7.73B | 7.87B | 5.44B | 5.60B | 5.63B |
Cash Flow | |||||
| Free Cash Flow | 444.17M | 11.20M | 89.00M | 498.70M | 406.40M |
| Operating Cash Flow | 456.32M | 29.30M | 96.20M | 521.80M | 436.30M |
| Investing Cash Flow | -79.99M | 195.80M | 12.00M | 55.40M | -241.10M |
| Financing Cash Flow | -375.04M | -320.80M | -308.60M | -590.60M | -378.40M |
Barratt Developments Technical Analysis
Positive
8.74
Price Trends
8.19
Negative
7.60
Positive
8.28
Negative
Market Momentum
-0.08
Positive
49.99
Neutral
92.10
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BTDPY, the sentiment is Positive. The current price of 8.74 is above the 20-day moving average (MA) of 8.25, above the 50-day MA of 8.19, and above the 200-day MA of 8.28, indicating a bearish trend. The MACD of -0.08 indicates Positive momentum. The RSI at 49.99 is Neutral, neither overbought nor oversold. The STOCH value of 92.10 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for BTDPY.
Barratt Developments Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $21.98B | 11.93 | 14.73% | 0.89% | -7.28% | -26.86% | |
72 Outperform | $16.39B | 15.15 | 31.02% | ― | -9.66% | -19.36% | |
69 Neutral | $5.64B | 30.75 | 2.73% | 5.44% | 12.59% | 32.22% | |
69 Neutral | $38.60B | 13.11 | 12.77% | 1.30% | -3.54% | -15.86% | |
69 Neutral | $18.36B | 14.45 | 6.03% | 2.62% | -8.04% | -47.70% | |
64 Neutral | $2.89B | 11.22 | 7.04% | 2.12% | -17.52% | -45.77% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% |
* Consumer Cyclical Sector Average
BTDPY
Barratt Developments
8.17
-1.43
-14.88%
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Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.