Barratt Redrow plc (BTRW.L) stock analysis

In our weekly check, Barratt Redrow plc is graded C (A to F). Of 25 checks on debt, profit, cash flow and trend: 12 pass, warnings: 7, red flags: 6.

About Barratt Redrow plc

Barratt Redrow plc is a Consumer Cyclical company (Residential Construction) based in the United Kingdom, listed on LSE as BTRW.L.

What our checks show for BTRW.L

Red flags

• The net margin fell by 5.8 points over 5 years, to 4%: the company keeps less of each sale as profit.
• The gross margin fell by 2.8 points, to 14.3%: costs are rising faster than prices.
• The net margin is only 4%: little room if costs rise.
• The stock has fallen as much as 97% from a peak. Would you have held through that?
• Recovering from its deepest fall took about 11.4 years.
• The share count grew by 46.4% in 2 years: each shareholder owns a smaller slice.

Warning signs

• Analysts expect only about 4.4% a year of growth in revenue.
• Revenue grew only 4.4% a year over the last 3 years.
• Earnings per share fell 31.5% a year over the last 3 years.
• Net profit fell 22.9% a year over the last 3 years.
• The price swings a lot: 37.1% annual volatility. Expect large ups and downs.
• Beta 1.32: the stock usually moves more than the market, both up and down.
• Return on capital (ROCE) is only 5.8%.

Strengths

• Debt is low: 0.03x equity.
• Operating profit covers interest 8.7 times over.
• Operating cash flow is 1.88x net profit: the profit arrives as real cash.
• Analysts expect earnings per share to grow about 28.6% a year over the next years.
• Analysts expect the net margin to improve by 2.4 points from today's 4%.
• Actively traded: about 6.6 million shares a day.

Similar companies

SKY · MTH · CVCO · PSN.L · IBP · MHO

Questions

What grade does Barratt Redrow plc (BTRW.L) have?

In our weekly check, Barratt Redrow plc is graded C (A to F). Of 25 checks on debt, profit, cash flow and trend: 12 pass, warnings: 7, red flags: 6. The grade is a risk check, not a buy or sell recommendation.

What are the main risks of BTRW.L stock?

This week's biggest flags for Barratt Redrow plc: Margins falling, Gross margin falling, Thin margins. In total 13 of 25 checks show a warning or a red flag.

What does Barratt Redrow plc do?

Barratt Redrow plc is a Consumer Cyclical company (Residential Construction) based in the United Kingdom, listed on LSE as BTRW.L.

The grade is a risk check, not a price forecast, and not investment advice. In our 10-year test (S&P 500, 2016-2026), stocks we graded A or B fell more than 30% 2-3 times less often than D or F, without a lower average return.

Updated 2026-10-31

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