Bellway p.l.c. (BWY.L) stock analysis

In our weekly check, Bellway p.l.c. is graded C (A to F). Of 25 checks on debt, profit, cash flow and trend: 13 pass, warnings: 8, red flags: 4.

About Bellway p.l.c.

Bellway p.l.c. is a Consumer Cyclical company (Residential Construction) based in the United Kingdom, listed on LSE as BWY.L.

What our checks show for BWY.L

Red flags

• The gross margin fell by 6.5 points, to 15.7%: costs are rising faster than prices.
• Revenue fell 2.5% a year over the last 3 years.
• The stock has fallen as much as 78% from a peak. Would you have held through that?
• Recovering from its deepest fall took about 5.6 years.

Warning signs

• The net margin fell by 0.7 points over 5 years, to 6.1%: the company keeps less of each sale as profit.
• Analysts expect only about 2.1% a year of growth in revenue.
• Earnings per share fell 17.7% a year over the last 3 years.
• Net profit fell 19.1% a year over the last 3 years.
• The net margin is only 6.1%: little room if costs rise.
• The price swings a lot: 40.7% annual volatility. Expect large ups and downs.
• Beta 1.37: the stock usually moves more than the market, both up and down.
• Return on capital (ROCE) is only 7.9%.

Strengths

• Debt is low: 0x equity.
• Operating profit covers interest 18.5 times over.
• Operating cash flow is 1.76x net profit: the profit arrives as real cash.
• Analysts expect earnings per share to grow about 10.7% a year over the next years.
• Free cash flow is 10.6% of revenue: cash for dividends, buybacks or growth.
• The dividend takes 32% of profit: there is a cushion.

Similar companies

TW.L · KBH · BKG.L · MHO · CCS · PSN.L

Questions

What grade does Bellway p.l.c. (BWY.L) have?

In our weekly check, Bellway p.l.c. is graded C (A to F). Of 25 checks on debt, profit, cash flow and trend: 13 pass, warnings: 8, red flags: 4. The grade is a risk check, not a buy or sell recommendation.

What are the main risks of BWY.L stock?

This week's biggest flags for Bellway p.l.c.: Gross margin falling, Weak revenue growth, Deep past fall. In total 12 of 25 checks show a warning or a red flag.

What does Bellway p.l.c. do?

Bellway p.l.c. is a Consumer Cyclical company (Residential Construction) based in the United Kingdom, listed on LSE as BWY.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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