Berkeley Group Holdings (The) PLC BKG

Morningstar Rating

Company Report

Improving UK Housing Market Conditions Are Conducive to Berkeley Group's Outlook in Fiscal 2025

Berkeley Group Holdings’ focus on large-scale, capital-intensive brownfield redevelopment projects distinguishes its strategy from its UK homebuilding peers. Brownfield projects involve the redevelopment of land previously used for commercial or industrial purposes. Berkeley is the only UK residential developer that regenerates large, complex brownfield sites at scale and is vertically integrated through the land development, construction, and sales and marketing segments of the residential property development value chain. Operating in this niche, Berkeley typically deploys capital into regeneration sites in built-up areas, with a particular focus on the housing markets of London, Birmingham, and the south of England.

Price vs Fair Value

BKG is trading at a 251% premium.
Price
GBX 4,707.00
Fair Value
GBX 8,112.00
Uncertainty
High
1-Star Price
GBX 3,881.00
5-Star Price
GBX 4,553.00
Economic Moat
Kfvq
Capital Allocation
Btbpcbn

Bulls Say, Bears Say

Bulls

Underlying housing demand is likely to benefit from the UK’s changing demographics. The ongoing aging of the population is likely to support demand for new housing over the coming decade as the UK's average household size declines.

Bears

The Residential Property Developer Tax came into effect in 2022, raising the tax burden for the sector over the coming decade.

Trading Information

Previous Close Price
Day Range
52-Week Range
Bid/Ask
/
Market Cap
Volume/Avg
/

Key Statistics

Price/Earnings (Normalized)
12.71
Price/Sales
1.98
Dividend Yield (Trailing)
1.45%
Dividend Yield (Forward)
1.45%
Total Yield
2.95%

Company Profile

Berkeley Group Holdings is a UK homebuilder specializing in large-scale residential-led brownfield redevelopment projects with a particular focus on the London, Birmingham, and south of England housing markets. The group is vertically integrated through the land development, construction, and sales and marketing segments of the residential property development value chain.
Sector
Consumer Cyclical
Industry
Residential Construction
Stock Style Box
Mid Value
Total Number of Employees
2,610

Competitors

Valuation

Metric
BKG
PSN
BDEV
Price/Earnings (Normalized)
12.7120.3816.12
Price/Book Value
1.351.520.85
Price/Sales
1.981.801.12
Price/Cash Flow
14.3619.0243.31
Price/Earnings
BKG
PSN
BDEV

Financial Strength

Metric
BKG
PSN
BDEV
Quick Ratio
0.680.500.90
Current Ratio
3.394.094.55
Interest Coverage
18.2420.803.37
Quick Ratio
BKG
PSN
BDEV

Profitability

Metric
BKG
PSN
BDEV
Return on Assets (Normalized)
5.76%5.49%3.51%
Return on Equity (Normalized)
11.61%7.71%5.01%
Return on Invested Capital (Normalized)
9.30%7.81%4.84%
Return on Assets
BKG
PSN
BDEV

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