Fact based stock research
Barratt Developments (LSE:BDEV)

GB0000811801

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For every stock, we judge its performance against its peers and rank it on a scale of 1 to 100. The higher the rank, the better the stock performs than its peers. And, we do this for six investment strategies:
Value - shows how good of a value the stock is. Green is "inexpensive"; red is "expensive".

Growth - shows a company's growth potential. Green is "high growth" expected; red is "tough times ahead".

Safety - relates to the amount of debt a company has. Green is low debt level; red is high debt level.

Combined Financial - this isn't an average of the first three ranks but rather a consolidated view across several financial indicators. Green = good; red = tread carefully.

(NEW) Sentiment - quantifies professional analyst ratings and holdings as well as market pulse. Green = positive sentiment; red = skepticism (Only available to Premium Subscribers).

(NEW) 360° View - the ultimate rating with all financial and non-financial indicators.

Barratt Developments stock research in summary

barrattdevelopments.co.uk

ANALYSIS: With an Obermatt Combined Rank of 86 (better than 86% compared with investment alternatives), Barratt Developments (Homebuilding, United Kingdom) shares have much better financial characteristics than comparable stocks. Shares of Barratt Developments are a good value (attractively priced) with a consolidated Value Rank of 60 (better than 60% of alternatives), show above-average growth (Growth Rank of 57), and are safely financed (Safety Rank of 94), which means low debt burdens. ...read more

RECOMMENDATION: A Combined Rank of 86, is a strong buy recommendation based on Barratt Developments's financial characteristics. As the company Barratt Developments's key financial metrics all exhibit excellent performance, such as good value (Obermatt Value Rank of 60), above-average growth (Obermatt Growth Rank of 57), and indicate that the company is safely financed (Obermatt Safety Rank of 94), it is a solid stock investment where the risk of paying too much for the share is limited, unless the company has a bleak future. Such good financial performance can indicate that the company's future might actually be challenging, as it may be difficult to maintain the good performance. If they are safely financed and have been growing above average, and are still a good value, it means that the market is keeping prices low, for a reason which may become clearer over time. We recommend evaluating the future of Barratt Developments. If you believe the company's future is market-typical or even better, this could be an argument for a share purchase. Obermatt Premium subscribers can further check the stock’s Sentiment Ranks, which also flow into the Obermatt 360° View for investors. ...read more

Latest Obermatt Ranks


360° View^new
Sentiment Rank^new
Value Rank	60
Growth Rank	57
Safety Rank	94
Combined Rank	86

Country	United Kingdom
Industry	Homebuilding
Index	FTSE All Shares, FTSE 100, FTSE 350, Customer Focus EU, Water Tech
Size class	X-Large

This stock has achievements: Top 10 Stock.

19-Dec-2024. Stock data may be delayed. Log in or sign up to get the most recent research.

Further information

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Review the performance ranks of the individual metrics that form each investment strategy.

Research History: Barratt Developments

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	38	71	24	60
GROWTH
GROWTH	71	1	51	57
SAFETY
SAFETY	100	92	92	94
SENTIMENT
SENTIMENT	n/a	42	36	^new
360° VIEW
360° VIEW	n/a	49	48	^new

Most recent update of the stock research: 19-Dec-2024. Financial reporting date used for calculating ranks: 30-Jun-2024. Stock research history is based on the Obermatt Method. The higher the rank, the better Barratt Developments is in the corresponding investment strategy.
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Combined financial peformance in Detail

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	38	71	24	60
GROWTH
GROWTH	71	1	51	57
SAFETY
SAFETY	100	92	92	94
COMBINED
COMBINED	92	60	63	86

Last update of combined financial performance: 19-Dec-2024. Stock analysis on combined financial performance: The higher the rank of Barratt Developments the better the performance.

Value Metrics in Detail

ANALYSIS: With an Obermatt Value Rank of 60 (better than 60% compared with alternatives), Barratt Developments shares are more attractively priced than the majority of comparable stocks. The Value Rank is based on consolidating four value indicators, with half of the indicators below and half above average for Barratt Developments. Expected dividend yields are higher than for 74% of comparable companies (a Dividend Yield rank of 74), making the stock attractive. The same is valid for Price-to-Book Capital (also referred to as market-to-book ratio) with a Price-to-Book Rank of 74, which means that the stock price is lower compared with invested capital than for 74% of comparable investments. But in respect to sales and profits, the picture is reversed. Price-to-Sales is 29 which means that the stock price compared with what market professionals expect for future profits is higher than for 71% of comparable companies, indicating a low value concerning Barratt Developments's sales levels. The Price-to-Profit ratio (also referred to as price-earnings (P/E) ratio) is also unfavorable for Barratt Developments with a rank of 47. This means that the stock price, compared with what market professionals expect for future profits, is higher than for 53% of comparable companies, indicating a low value concerning Barratt Developments's profit levels. ...read more

RECOMMENDATION: The overall picture with a consolidated Value Rank of 60, is a buy recommendation based on Barratt Developments's stock price compared with the company's operational size and dividend yields. The company seems confident that it can generate a reasonable return on invested capital, because it pays an above-average dividend while profits are below what you would expect for a company with this stock price. If you agree with this practice and believe that profits will return to higher levels, as the current dividend policy suggests, Barratt Developments may be an attractive investment. If this is not the case, you may want to be careful with this stock as it is also expensive compared with its expected revenue levels. We recommend further analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks, including the 360° View, before making an investment decision, which is essential in this case, as the financial indicators are inconclusive. ...read more

VALUE METRICS	2021	2022	2023	2024
PRICE VS. REVENUES (P/S)
PRICE VS. REVENUES (P/S)	78	37	28	29
PRICE VS. PROFITS (P/E)
PRICE VS. PROFITS (P/E)	63	75	23	47
PRICE VS. CAPITAL (Market-to-Book)
PRICE VS. CAPITAL (Market-to-Book)	43	78	62	74
DIVIDEND YIELD
DIVIDEND YIELD	84	82	51	74
CONSOLIDATED RANK: VALUE
CONSOLIDATED RANK: VALUE	38	71	24	60

Last update of Value Rank: 19-Dec-2024. Stock analysis on value ratios: The higher the rank, the lower the value ratio of Barratt Developments; except for dividend yield where the rank is higher, the higher the yield.

Growth Metrics in Detail

ANALYSIS: With an Obermatt Growth Rank of 57 (better than 57% compared with alternatives), Barratt Developments shows an above-average growth dynamic in its industry. Investors also speak of positive momentum. The Growth Rank is based on consolidating four value indicators, with half of the indicators below and half above average for Barratt Developments. Sales Growth has a rank of 94, which means that, currently, professionals expect the company to grow more than 94% of its competitors. Profit Growth with a rank of 86 is also above average. But Capital Growth has only a rank of 21, and Stock Returns with 19 are also below-average. Stock returns for Barratt Developments have recently been below 81% of alternative investments. ...read more

RECOMMENDATION: The overall picture with a consolidated Growth Rank of 57, is a buy recommendation for growth and momentum investors. Are investors forecasting troubles based on the lack of operating investment activity at the company? This could be one explanation as to why stock returns are low. But stock returns can also be the result of correcting an error in the past, in this case, an overly optimistic outlook on the future, which is now more realistic. The Value Ranks may confirm such a picture. The more important growth indicators are revenues and profits, which are both above average for Barratt Developments. This is a positive sign from the company's operational side and may give investors courage, despite the poor recent stock price performance. While momentum is a popular investment factor, the value aspect might be the more important one, in the longer term. We recommend analyzing the stock with the Obermatt Value, Safety, and Sentiment Ranks to arrive at a 360° View of the stock purchase case, especially since the growth performance is mixed here. ...read more

GROWTH METRICS	2021	2022	2023	2024
REVENUE GROWTH
REVENUE GROWTH	56	28	68	94
PROFIT GROWTH
PROFIT GROWTH	50	14	16	86
CAPITAL GROWTH
CAPITAL GROWTH	n/a	1	26	21
STOCK RETURNS
STOCK RETURNS	46	17	89	19
CONSOLIDATED RANK: GROWTH
CONSOLIDATED RANK: GROWTH	71	1	51	57

Last update of Growth Rank: 19-Dec-2024. Stock analysis on growth metrics: The higher the rank, the higher the growth and returns of Barratt Developments.

Safety Metrics in Detail

ANALYSIS: With an Obermatt Safety Rank of 94 (better than 94% compared with alternatives) for 2024, the company Barratt Developments has safe financing practices, which means that their overall debt burden is low. This doesn't mean that the business of Barratt Developments is safe, it only means that the company is on the safer side regarding possible bankruptcy, assuming that public reporting is correct. The Safety Rank is based on consolidating three financing indicators, where all three are above average for Barratt Developments. Leverage is at 87, meaning the company has a below-average debt-to-equity ratio. It has less debt than 87% of its competitors. Refinancing is at a rank of 78, meaning that the portion of the debt about to be refinanced is below average. It has less debt in the refinancing stage than 78% of its competitors. Finally, Liquidity is also good at a rank of 83, which means that the company generates more profit to service its debt than 83% of its competitors. ...read more

RECOMMENDATION: With a consolidated Safety Rank of 94 (better than 94% compared with alternatives), Barratt Developments has a financing structure that is significantly safer than that of its competitors. These three positive financing indicators signal that the company is less likely to default on its debt obligations. However, it also means that its shareholder returns will be more modest if things go well. A low safety means fewer troubles in downtimes and less upside in good times. Investors may not have a debt issue with Barratt Developments but they should also compare Obermatt’s Value, Growth, and Sentiment Ranks before making a decision. ...read more

SAFETY METRICS	2021	2022	2023	2024
LEVERAGE
LEVERAGE	98	86	85	87
REFINANCING
REFINANCING	75	81	78	78
LIQUIDITY
LIQUIDITY	100	92	88	83
CONSOLIDATED RANK: SAFETY
CONSOLIDATED RANK: SAFETY	100	92	92	94

Last update of Safety Rank: 19-Dec-2024. Stock analysis on safety metrics: The higher the rank, the lower the leverage of Barratt Developments and the more cash is available to service its debt.

Sentiment Metrics in Detail

SENTIMENT	2021	2022	2023	2024
ANALYST OPINIONS
ANALYST OPINIONS	n/a	68	42	^new
OPINIONS CHANGE
OPINIONS CHANGE	n/a	66	56	^new
PRO HOLDINGS
PRO HOLDINGS	n/a	20	57	^new
MARKET PULSE
MARKET PULSE	n/a	41	15	^new
CONSOLIDATED RANK: SENTIMENT
CONSOLIDATED RANK: SENTIMENT	n/a	42	36	^new

Last update of Sentiment Rank: 19-Dec-2024. Stock analysis on sentiment metrics: The higher the rank, the more positive the sentiment for Barratt Developments.
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