Bellway (BWY) AI Stock Analysis

• Market Cap: £3.54B
• Dividend Yield: 1.43%
• Average Volume (3M): 302.99K
• Price to Earnings (P/E): 23.8
• Beta (1Y): 1.54
• Revenue Growth: -11.63%
• EPS Growth: -31.81%
• Country: UK
• Employees: 2,659
• Sector: Consumer Cyclical
• Sector Strength: 57
• Industry: Residential Construction
• EPS (TTM): 0.90
• Shares Outstanding: 118,985,070
• 10 Day Avg. Volume: 366,879
• 30 Day Avg. Volume: 302,989
• PEG Ratio: 1.73
• Price to Book (P/B): 0.92
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -202.99
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: £3,182.17
• Price Target Upside: 8.02% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 6

• Rating: 64 Neutral
• Price Target: 2,861.00p ▼(-2.89%Downside)

Bellway's overall score is influenced by a solid balance sheet and positive corporate events, though tempered by valuation concerns and mixed technical signals. Strategic improvements in profitability and cash flow management are crucial for future success.

Positive Factors

Leadership

The new CFO is expected to sharpen the focus on returns, potentially leading to better financial performance.

Order book growth

A 19% growth in the order book suggests strong future demand and potential revenue increases.

Sales performance

Improving sales rates and pricing in four regions indicate a positive trend for the company's revenue growth.

Negative Factors

Sector comparison

The shares trade at a 16% discount to the sector, indicating market concerns about the company's relative performance.

Stock valuation

Shares trading at a 14% discount to the sector may reflect concerns over its relatively weaker post-tax RoE.

Bellway Business Overview & Revenue Model

Company Description

Bellway p.l.c., together with its subsidiaries, engages in the home building business in the United Kingdom. The company builds and sells homes ranging from one-bedroom apartments to six-bedroom family homes, as well as provides homes to housing associations for social housing. It offers homes under Bellway and Ashberry brands. The company was incorporated in 1978 and is headquartered in Newcastle upon Tyne, the United Kingdom.

How the Company Makes Money

Bellway makes money primarily through the sale of newly constructed residential properties. The company's revenue model is centered around acquiring land, obtaining necessary planning permissions, and developing these sites into residential communities. Bellway's key revenue streams include the sale of homes, which range from apartments to detached houses, catering to various market segments from first-time buyers to luxury home seekers. The company also generates income from partnerships with housing associations for affordable housing projects, which are often subsidized or supported by government schemes. Additionally, Bellway may engage in joint ventures or strategic partnerships to expand its development capabilities and market reach. The company's earnings are influenced by factors such as housing demand, real estate market trends, government policies, and economic conditions.

Bellway Financial Statement Overview

Summary

Bellway exhibits a mixed financial performance. While the balance sheet remains strong, demonstrating financial stability and low leverage, the income statement and cash flow statement indicate areas of concern. Declining revenues and profitability, along with negative cash flow trends, suggest the need for strategic initiatives to drive growth and improve operational efficiency. Emphasis on cash flow management and profitability enhancement will be crucial for Bellway's future financial health.

Income Statement

Bellway's income statement reveals a decline in revenue from the previous year, with a substantial decrease in net income. The gross profit margin stands at 15.4% and the net profit margin at 5.5%, both lower than industry expectations. The EBIT margin is 8.9%, showing challenges in maintaining operating efficiency. The revenue growth rate is negative, indicating a contraction compared to the prior year. Overall, the income statement reflects a need for strategic improvements to regain growth and profitability.

Balance Sheet

Bellway's balance sheet remains strong, with a low debt-to-equity ratio of 0.04, indicating prudent financial management and low leverage risk. The return on equity is 3.8%, which suggests moderate effectiveness in using equity to generate profits. The equity ratio is robust at 69.3%, showing a stable financial structure. However, the decline in equity from the previous year warrants attention to sustain this position.

Cash Flow

The cash flow statement shows negative free cash flow growth, indicating challenges in generating cash from operations. The operating cash flow to net income ratio is negative, highlighting cash flow management issues. The free cash flow to net income ratio is also negative, suggesting inefficiencies in converting profits into cash. Improvements in cash management strategies are essential to enhance liquidity and financial flexibility.

Breakdown
TTM	Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Income Statement		Total Revenue
2.54B	2.38B	3.41B	3.54B	3.12B	2.23B
	Gross Profit
397.70M	367.00M	687.30M	787.00M	651.90M	422.20M
	EBIT
237.20M	212.80M	545.10M	653.00M	531.80M	324.80M
	EBITDA
243.40M	223.70M	510.20M	314.70M	486.80M	255.60M
	Net Income Common Stockholders
146.90M	130.50M	365.00M	242.60M	390.70M	192.90M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
122.00M	119.50M	362.00M	375.30M	460.30M	51.40M
	Total Assets
5.08B	5.00B	5.11B	4.99B	4.68B	4.08B
	Total Debt
130.00M	130.00M	513.80M	540.60M	603.00M	410.70M
	Net Debt
8.00M	10.50M	151.80M	165.30M	142.70M	359.30M
	Total Liabilities
1.55B	1.53B	1.65B	1.62B	1.39B	1.09B
	Stockholders Equity
3.52B	3.47B	3.46B	3.37B	3.29B	2.99B
Cash Flow		Free Cash Flow
-15.90M	-66.90M	243.40M	60.70M	429.60M	-65.90M
	Operating Cash Flow
-9.40M	-65.50M	246.10M	61.20M	432.90M	-57.60M
	Investing Cash Flow
-14.00M	-8.00M	-18.20M	19.10M	5.20M	-18.10M
	Financing Cash Flow
-65.60M	-169.00M	-241.20M	-165.30M	-29.20M	-74.10M

Bellway Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2946.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:BWY, the sentiment is Positive. The current price of 2946 is above the 20-day moving average (MA) of 2731.18, above the 50-day MA of 2596.53, and above the 200-day MA of 2604.42, indicating a bullish trend. The MACD of 78.62 indicates Negative momentum. The RSI at 70.66 is Negative, neither overbought nor oversold. The STOCH value of 92.98 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:BWY.

Bellway Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PSN	78 Outperform	£4.50B	16.60	7.71%	1.44%	15.42%	4.45%
BKG	74 Outperform	£4.28B	11.81	11.03%	1.53%	0.39%	-17.64%
TW	72 Outperform	£4.36B	19.64	4.92%	7.56%	-3.22%	-37.21%
VTY	69 Neutral	£2.22B	31.22	2.27%	―	6.04%	-66.96%
BTRW	65 Neutral	£6.77B	45.36	1.81%	2.32%	4.78%	-53.59%
BWY	64 Neutral	£3.54B	23.80	4.22%	1.43%	-11.63%	-31.81%
Sector *	62 Neutral	$6.90B	11.05	2.80%	4.27%	2.67%	-24.92%

Bellway Corporate Events

Bellway Reports Strong Trading Performance and Growth Outlook

Bellway p.l.c. reported robust trading performance from February to June 2025, with increased customer confidence and reservation rates. The company expects to deliver between 8,600 and 8,700 homes for the financial year, with an anticipated operating margin of 11%. The forward order book has grown by 7.7%, and the average selling price is expected to rise to £315,000 due to changes in product mix. Bellway’s disciplined approach to land acquisition has resulted in the purchase of 6,759 plots, supporting its long-term growth ambitions. The company is fully sold for the current financial year and aims for a 20% cumulative volume growth by July 2026, focusing on capital efficiency and shareholder value.

The most recent analyst rating on (GB:BWY) stock is a Buy with a £3646.00 price target. To see the full list of analyst forecasts on Bellway stock, see the GB:BWY Stock Forecast page.

Bellway PLC Announces Current Share Capital and Voting Rights

Bellway PLC has announced that its ordinary issued share capital consists of 118,985,070 ordinary shares, each with voting rights, as of May 30, 2025. The Bellway Employee Benefit Trust holds 370,097 of these shares but has waived its rights to vote and receive dividends, resulting in a total of 118,614,973 voting rights. This update reflects the company’s current capital structure and its implications for shareholder voting power.

The most recent analyst rating on (GB:BWY) stock is a Buy with a £3646.00 price target. To see the full list of analyst forecasts on Bellway stock, see the GB:BWY Stock Forecast page.

Bellway Updates on Share Capital and Voting Rights

Bellway p.l.c. announced that as of April 30, 2025, its issued share capital comprises 118,983,388 ordinary shares with voting rights. The Bellway Employee Benefit Trust holds 370,097 of these shares but has waived its voting rights and dividend entitlements. Consequently, the total number of voting rights in the company is 118,613,291. This update is significant for stakeholders as it clarifies the company’s voting rights structure, potentially impacting shareholder decisions and company governance.

Bellway Enhances Employee Incentive Schemes with Share Purchase

Bellway p.l.c. announced that its Employee Benefit Trust (EBT) purchased 44,983 ordinary shares at £22.075 per share to support its share incentive schemes for employees, including executive directors and other key personnel. This move underscores Bellway’s commitment to employee engagement and retention, while the EBT now holds a total of 370,097 shares, contributing to the company’s strategic human resource initiatives.

Bellway Announces Updated Voting Rights and Share Capital

Bellway p.l.c. has announced that as of March 31, 2025, its ordinary issued share capital consists of 118,983,388 ordinary shares with voting rights, with no shares held in Treasury. The Bellway Employee Benefit Trust holds 325,114 ordinary shares but has waived its voting rights and dividend entitlements, resulting in a total of 118,658,274 voting rights for Bellway p.l.c.

Bellway PLC Reports Strong Interim Results with Growth in Housing Completions

Bellway PLC reported a robust performance for the first half of the financial year ending January 31, 2025, with housing completions rising by 11.9% and revenue increasing by 12.3% compared to the same period last year. The company is on track to deliver at least 8,500 homes for the full year, supported by a strong forward order book and a well-capitalized balance sheet. The increase in private reservation rates and a strategic expansion of its land bank position Bellway well for multi-year growth, despite challenges in the planning system. The interim dividend per share rose by 31.3%, reflecting confidence in future growth prospects.