Taylor Wimpey (TW) AI Stock Analysis

• Market Cap: £3.49B
• Dividend Yield: 9.58%
• Average Volume (3M): 24.37M
• Price to Earnings (P/E): 41.1
• Beta (1Y): 1.18
• Revenue Growth: 4.21%
• EPS Growth: -65.57%
• Country: UK
• Employees: 4,458
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Residential Construction
• EPS (TTM): 0.03
• Shares Outstanding: 3,541,386,000
• 10 Day Avg. Volume: 30,282,203
• 30 Day Avg. Volume: 24,373,665
• PEG Ratio: -0.53
• Price to Book (P/B): 0.98
• Price to Sales (P/S): 1.27
• P/FCF Ratio: 22.79
• 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: £128.90
• Price Target Upside: 30.60% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 10

• Rating: 66 Neutral
• Price Target: 108.00p ▲(9.42% Upside)

Taylor Wimpey's overall stock score reflects a mixed outlook. The strong balance sheet and attractive dividend yield are key positives, appealing to risk-averse and income-seeking investors. However, technical indicators point to a bearish trend with weak market momentum, and financial performance highlights concerns with declining revenue and profit margins. The high P/E ratio also suggests the stock might be slightly overvalued.

Positive Factors

Balance Sheet Strength

A strong balance sheet with a high equity ratio and low debt-to-equity ratio indicates financial stability and low financial risk, providing a cushion against economic downturns.

Operational Efficiency

Sustained operational efficiency, as reflected in healthy EBIT and EBITDA margins, suggests effective cost management and the ability to maintain profitability despite revenue pressures.

Dividend Yield

A high dividend yield provides income-focused investors with attractive returns, enhancing shareholder value and supporting stock stability in volatile markets.

Negative Factors

Declining Revenue

A decline in revenue indicates potential challenges in market demand or competitive positioning, which could impact long-term growth and profitability.

Profit Margin Pressure

Decreasing gross profit margins suggest increased cost pressures or pricing challenges, which could hinder the company's ability to sustain profitability over time.

Cash Flow Efficiency

Declining efficiency in converting net income into free cash flow may limit the company's ability to reinvest in growth opportunities or return capital to shareholders.

Taylor Wimpey Business Overview & Revenue Model

Company Description

Taylor Wimpey plc operates a residential developer in the United Kingdom and Spain. It builds and delivers various homes and communities, including apartments to six-bedroom houses. Taylor Wimpey plc was founded in 1880 and is based in High Wycombe, the United Kingdom.

How the Company Makes Money

Taylor Wimpey generates revenue primarily through the sale of residential properties. The company acquires land, secures planning permissions, and then develops residential projects, which are sold to homebuyers. Key revenue streams include the sale of completed homes, as well as additional income from the sale of land. The company also benefits from partnerships with local authorities and housing associations, which can provide opportunities for developing affordable housing projects. Economic factors such as interest rates, housing demand, and government incentives for homebuyers can significantly influence the company's earnings.

Taylor Wimpey Financial Statement Overview

Summary

Taylor Wimpey shows a mixed financial performance. While there is strength in operational efficiency and a solid balance sheet with low leverage, challenges exist in revenue and profit growth. The negative revenue trend and reduced net income are concerns, but the company remains financially stable with robust equity and low debt. Cash flow management indicates room for improvement in converting earnings to cash flow.

Income Statement

Taylor Wimpey's income statement reflects a significant decline in revenue from 2022 to 2023 and a corresponding decrease in net income. The gross profit margin decreased from 20.39% in 2022 to 19.04% in 2023, indicating pressure on cost management. However, the EBIT and EBITDA margins remain healthy at 11.98% and 10.57% respectively in 2023, highlighting operational efficiency. The revenue growth shows a negative trend, which is a concern for future profitability.

Balance Sheet

The balance sheet is robust with a strong equity base; the equity ratio is 70.02% in 2023, reflecting financial stability. The debt-to-equity ratio is low at 0.03, indicating minimal leverage and low financial risk. Return on equity decreased from 14.29% in 2022 to 7.63% in 2023, suggesting a decline in profitability. Overall, the company maintains a solid financial position with low debt levels and a high equity cushion.

Cash Flow

Cash flow from operations improved from 2022 to 2023, but free cash flow growth was moderate. The operating cash flow to net income ratio improved to 0.88, indicating better cash generation relative to earnings. However, the free cash flow to net income ratio decreased from 0.74 in 2022 to 0.54 in 2023, pointing to declining efficiency in converting net income into free cash flow.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.54B	3.40B	3.51B	4.42B	4.28B	2.79B
Gross Profit	639.00M	647.60M	716.50M	1.13B	1.03B	496.70M
EBITDA	415.80M	360.00M	511.90M	831.70M	695.20M	281.60M
Net Income	84.80M	219.60M	349.00M	643.60M	555.50M	217.00M
Balance Sheet
Total Assets	6.25B	6.29B	6.25B	6.48B	6.24B	5.75B
Cash, Cash Equivalents and Short-Term Investments	412.10M	647.40M	764.90M	952.30M	921.00M	823.00M
Total Debt	123.00M	121.00M	126.80M	115.50M	111.40M	131.60M
Total Liabilities	2.07B	1.89B	1.73B	1.98B	1.93B	1.73B
Stockholders Equity	4.18B	4.41B	4.52B	4.50B	4.31B	4.02B
Cash Flow
Free Cash Flow	78.00M	189.60M	122.70M	475.40M	427.30M	-309.20M
Operating Cash Flow	81.20M	193.00M	129.60M	477.50M	431.90M	-301.20M
Investing Cash Flow	5.70M	73.90M	27.40M	33.60M	-10.30M	-23.90M
Financing Cash Flow	-351.40M	-352.30M	-342.80M	-482.40M	-321.70M	516.40M

Taylor Wimpey Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 98.70
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:TW, the sentiment is Neutral. The current price of 98.7 is above the 20-day moving average (MA) of 97.58, below the 50-day MA of 101.91, and below the 200-day MA of 110.85, indicating a neutral trend. The MACD of -0.93 indicates Negative momentum. The RSI at 48.34 is Neutral, neither overbought nor oversold. The STOCH value of 74.76 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for GB:TW.

Taylor Wimpey Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BKG	72 Outperform	3.52B	9.87	10.73%	6.74%	0.90%	-4.04%
PSN	68 Neutral	3.55B	13.83	7.62%	4.96%	16.74%	-0.16%
TW	66 Neutral	£3.49B	41.13	1.97%	9.58%	4.21%	-65.57%
BWY	60 Neutral	2.77B	18.92	0.00%	2.52%	-11.63%	-31.81%
VTY	57 Neutral	2.05B	-209.47	2.30%	―	-0.57%	-104.08%
BTRW	57 Neutral	5.33B	27.65	0.00%	4.60%	33.83%	15.11%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%