Taylor Wimpey plc (TW.L) stock analysis

In our weekly check, Taylor Wimpey 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 Taylor Wimpey plc

Taylor Wimpey plc is a Consumer Cyclical company (Residential Construction) based in the United Kingdom, listed on LSE as TW.L.

What our checks show for TW.L

Red flags

• The net margin fell by 10.4 points over 5 years, to 2.6%: the company keeps less of each sale as profit.
• The gross margin fell by 6.8 points, to 17.1%: costs are rising faster than prices.
• Revenue fell 4.5% a year over the last 3 years.
• The net margin is only 2.6%: little room if costs rise.
• The dividend takes 246% of profit: little cushion if profit falls.
• The stock has fallen as much as 99% from a peak. Would you have held through that?

Warning signs

• Analysts expect only about 2.6% a year of growth in revenue.
• Earnings per share fell 46% a year over the last 3 years.
• Net profit fell 46.2% a year over the last 3 years.
• Free cash flow is only 3.7% of revenue.
• The stock is still below its previous peak.
• Beta 1.3: the stock usually moves more than the market, both up and down.
• Return on capital (ROCE) is only 7.8%.

Strengths

• Debt is low: 0.03x equity.
• Operating profit covers interest 52.4 times over.
• Operating cash flow is 1.45x net profit: the profit arrives as real cash.
• Analysts expect earnings per share to grow about 30.9% a year over the next years.
• Analysts expect the net margin to improve by 2.8 points from today's 2.6%.
• The price is 11.4 times earnings (P/E), reasonable for its growth.

Similar companies

KBH · BKG.L · BWY.L · MHO · PSN.L · MTH

Questions

What grade does Taylor Wimpey plc (TW.L) have?

In our weekly check, Taylor Wimpey 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 TW.L stock?

This week's biggest flags for Taylor Wimpey plc: Margins falling, Gross margin falling, Weak revenue growth. In total 13 of 25 checks show a warning or a red flag.

What does Taylor Wimpey plc do?

Taylor Wimpey plc is a Consumer Cyclical company (Residential Construction) based in the United Kingdom, listed on LSE as TW.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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