TipRanks
Go Ultimate55% OFF

Barratt Developments (3BAA) AI Stock Analysis

0 Followers
DE:3BAA

Barratt Developments

(Frankfurt:3BAA)

Rating:―N/A
Action:N/A
Date:―

No summary available

Positive Factors
Conservative balance sheetConsistently low leverage gives Barratt financial flexibility during housing-cycle volatility and reduces pressure from borrowing costs. The stronger equity base also supports land investment, remediation commitments and shareholder returns while preserving capacity to respond to changing demand.
Negative Factors
Margin compressionLower gross and operating margins show that recent revenue recovery is not translating fully into earnings because profitability remains below earlier-cycle levels. Persistent margin pressure reduces operating leverage, limits cash available for investment and makes results more sensitive to further cost or pricing changes.

Barratt Developments (3BAA) vs. iShares MSCI Germany ETF (EWG)

-40%-30%-20%-10%0%10%20%DE:3BAA-4.58%EWG+9.86%Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26Nov '26
Market Cap
EUR 3.10B
Dividend Yield
3.68%
Average Volume (3M)
―
Price to Earnings (P/E)
19.0
Beta (1Y)
0.87
Revenue Growth
5.05%
EPS Growth
22.38%
Country
Germany
Employees
7,334
Sector
Consumer Cyclical
Sector Strength
61
Industry
Residential Construction

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 extensive...

Barratt Developments Earnings Call Summary

Earnings Call Date:Sep 15, 2026(Q4-2026)|% Change Since:21.74%|Next Earnings Date:Feb 09, 2027
Earnings Call SentimentPositive

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.

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 Peers Comparison

Overall Rating

UnderperformOutperform
Sector (61)

Financial Indicators

DE:3BAA against its peers
NameOverall RatingMarket CapP/E RatioROEDividend YieldRevenue GrowthEPS Growth
NVRNVR72Outperform$16.06B16.7529.53%―-10.43%-21.29%
DHIDHI71Outperform$39.42B15.4712.22%1.15%-3.52%-12.68%
PHMPHM69Neutral$23.36B14.4613.80%0.76%-9.35%-27.96%
LENLEN65Neutral$20.45B17.436.03%2.17%-8.01%-47.77%
Sector *61Neutral$18.38B12.79-2.54%3.03%1.52%-15.83%
KBHKBH52Neutral$2.97B14.635.93%1.88%-20.80%-50.30%

* Consumer Cyclical Sector Average

Performance Comparison

-20%0%20%DE:3BAADHIKBHLENNVRPHMDec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26Nov '26
DE:3BAA and its peers over the selected period
Show on chartTickerCompany NamePriceChange% Change
DE:3BAABarratt Developments PLC Unsponsored ADR7.10-0.49-6.43%
DHID.R. Horton Inc156.9913.499.40%
KBHKB Home53.12-6.49-10.89%
LENLennar Corporation92.19-25.50-21.67%
NVRNVR Inc6376.82-818.23-11.37%
PHMPultegroup135.9718.0515.30%
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.