Bellway Plc (BWY) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Mears Group Plc

Galliford Try Holdings Plc

Bellway Plc

Henry Boot Plc

Crest Nicholson Holdings Plc

Redrow Plc

MJ Gleeson Plc

Barratt Developments Plc

Taylor Wimpey Plc

Vistry Group Plc

Persimmon Plc

Why is Bellway Plc ?

Company's ability to service its debt is strong with a healthy EBIT to Interest (avg) ratio of 27.59

Poor long term growth as Operating profit has grown by an annual rate -1.26% of over the last 5 years

Positive results in Jul 25

DIVIDEND PAYOUT RATIO(Y) Highest at 101.79%
DEBTORS TURNOVER RATIO(HY) Highest at 35.18 times
PRE-TAX PROFIT(Q) At GBP 139.8 MM has Grown at 59.95%

With ROE of 5.77%, it has a fair valuation with a 0.80 Price to Book Value

Over the past year, while the stock has generated a return of -8.59%, its profits have risen by 30.8% ; the PEG ratio of the company is 0.5

Below par performance in long term as well as near term

Along with generating -8.59% returns in the last 1 year, the stock has also underperformed FTSE 100 in the last 3 years, 1 year and 3 months

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Bellway Plc should be less than 10%
Overall Portfolio exposure to Furniture, Home Furnishing should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Furniture, Home Furnishing)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Bellway Plc for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Bellway Plc

-100.0%

-0.79

28.61%

FTSE 100

13.98%

1.15

13.60%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

4.57%

EBIT Growth (5y)

-1.26%

EBIT to Interest (avg)

27.59

Debt to EBITDA (avg)

Net Debt is too low

Net Debt to Equity (avg)

Sales to Capital Employed (avg)

0.83

Tax Ratio

28.86%

Dividend Payout Ratio

52.73%

Pledged Shares

Institutional Holding

0.00%

ROCE (avg)

13.41%

ROE (avg)

10.03%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

0.80

EV to EBIT

9.48

EV to EBITDA

9.31

EV to Capital Employed

0.81

EV to Sales

1.04

PEG Ratio

0.45

Dividend Yield

294.22%

ROCE (Latest)

8.50%

ROE (Latest)

5.77%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Mildly Bullish (Daily)

KST

Bearish

Mildly Bearish

Dow Theory

Mildly Bearish

OBV

Mildly Bearish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

4What is working for the Company

DIVIDEND PAYOUT RATIO(Y)

Highest at 101.79%

DEBTORS TURNOVER RATIO(HY)

Highest at 35.18 times

PRE-TAX PROFIT(Q)

At GBP 139.8 MM has Grown at 59.95%

NET PROFIT(Q)

At GBP 97.98 MM has Grown at 61.29%

-4What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at GBP 87.8 MM

RAW MATERIAL COST(Y)

Grown by 12.34% (YoY

Here's what is working for Bellway Plc

Pre-Tax Profit

At GBP 139.8 MM has Grown at 59.95%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (GBP MM)

Net Profit

At GBP 97.98 MM has Grown at 61.29%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is positive

Net Profit (GBP MM)

Debtors Turnover Ratio

Highest at 35.18 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Dividend Payout Ratio

Highest at 101.79%

in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Here's what is not working for Bellway Plc

Operating Cash Flow

Lowest at GBP 87.8 MM and Fallen

In each year in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (GBP MM)

Raw Material Cost

Grown by 12.34% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin

Raw Material Cost as a percentage of Sales