| The Berkeley Group Holdings plc (GB00BLJNXL82) | |||
36,74 GBXStand (close): 03.07.25 |
 |
||
Nachrichten |
||
| Datum / Uhrzeit | Titel | Bewertung |
| 25.06.25 12:23:51 | Berkeley Group Holdings Full Year 2025 Earnings: EPS Beats Expectations |  |
| Berkeley Group Holdings (LON:BKG) Full Year 2025 Results Key Financial Results Revenue: UK£2.49b (flat on FY 2024). Net income: UK£382.0m (down 3.9% from FY 2024). Profit margin: 15% (in line with FY 2024). EPS: UK£3.72 (down from UK£3.88 in FY 2024). We've found 21 US stocks that are forecast to pay a dividend yield of over 6% next year. See the full list for free.LSE:BKG Revenue and Expenses Breakdown June 25th 2025 All figures shown in the chart above are for the trailing 12 month (TTM) period Berkeley Group Holdings EPS Beats Expectations Revenue was in line with analyst estimates. Earnings per share (EPS) surpassed analyst estimates by 1.8%. In the last 12 months, the only revenue segment was Residential-Led Mixed-Use Development contributing UK£2.49b. Notably, cost of sales worth UK£1.83b amounted to 73% of total revenue thereby underscoring the impact on earnings. The largest operating expense was General & Administrative costs, amounting to UK£160.3m (58% of total expenses). Explore how BKG's revenue and expenses shape its earnings. Looking ahead, revenue is forecast to stay flat during the next 3 years compared to a 9.0% growth forecast for the Consumer Durables industry in the United Kingdom. Performance of the British Consumer Durables industry. The company's shares are down 6.2% from a week ago. Risk Analysis You still need to take note of risks, for example - Berkeley Group Holdings has 1 warning sign we think you should be aware of. Have feedback on this article? Concerned about the content?Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. View Comments |
||
| 21.06.25 07:50:52 | The Berkeley Group Holdings plc's (LON:BKG) Stock Has Been Sliding But Fundamentals Look Strong: Is The Market Wrong? | |
| It is hard to get excited after looking at Berkeley Group Holdings' (LON:BKG) recent performance, when its stock has declined 11% over the past week. But if you pay close attention, you might gather that its strong financials could mean that the stock could potentially see an increase in value in the long-term, given how markets usually reward companies with good financial health. Specifically, we decided to study Berkeley Group Holdings' ROE in this article. Return on equity or ROE is an important factor to be considered by a shareholder because it tells them how effectively their capital is being reinvested. In short, ROE shows the profit each dollar generates with respect to its shareholder investments. This technology could replace computers: discover the 20 stocks are working to make quantum computing a reality. How To Calculate Return On Equity? The formula for ROE is: Return on Equity = Net Profit (from continuing operations) ÷ Shareholders' Equity So, based on the above formula, the ROE for Berkeley Group Holdings is: 11% = UK£382m ÷ UK£3.5b (Based on the trailing twelve months to April 2025). The 'return' is the amount earned after tax over the last twelve months. One way to conceptualize this is that for each £1 of shareholders' capital it has, the company made £0.11 in profit. Check out our latest analysis for Berkeley Group Holdings Why Is ROE Important For Earnings Growth? We have already established that ROE serves as an efficient profit-generating gauge for a company's future earnings. Based on how much of its profits the company chooses to reinvest or "retain", we are then able to evaluate a company's future ability to generate profits. Assuming all else is equal, companies that have both a higher return on equity and higher profit retention are usually the ones that have a higher growth rate when compared to companies that don't have the same features. Berkeley Group Holdings' Earnings Growth And 11% ROE At first glance, Berkeley Group Holdings seems to have a decent ROE. On comparing with the average industry ROE of 5.6% the company's ROE looks pretty remarkable. Despite this, Berkeley Group Holdings' five year net income growth was quite flat over the past five years. Based on this, we feel that there might be other reasons which haven't been discussed so far in this article that could be hampering the company's growth. These include low earnings retention or poor allocation of capital. Given that the industry shrunk its earnings at a rate of 3.2% over the last few years, the net income growth of the company is quite impressive. Story Continues LSE:BKG Past Earnings Growth June 21st 2025 Earnings growth is a huge factor in stock valuation. The investor should try to establish if the expected growth or decline in earnings, whichever the case may be, is priced in. This then helps them determine if the stock is placed for a bright or bleak future. One good indicator of expected earnings growth is the P/E ratio which determines the price the market is willing to pay for a stock based on its earnings prospects. So, you may want to check if Berkeley Group Holdings is trading on a high P/E or a low P/E, relative to its industry. Is Berkeley Group Holdings Efficiently Re-investing Its Profits? Berkeley Group Holdings' low three-year median payout ratio of 20% (implying that the company keeps80% of its income) should mean that the company is retaining most of its earnings to fuel its growth and this should be reflected in its growth number, but that's not the case. In addition, Berkeley Group Holdings has been paying dividends over a period of at least ten years suggesting that keeping up dividend payments is way more important to the management even if it comes at the cost of business growth. Upon studying the latest analysts' consensus data, we found that the company's future payout ratio is expected to rise to 45% over the next three years. Consequently, the higher expected payout ratio explains the decline in the company's expected ROE (to 8.2%) over the same period. Conclusion Overall, we are quite pleased with Berkeley Group Holdings' performance. Particularly, we like that the company is reinvesting heavily into its business, and at a high rate of return. Unsurprisingly, this has led to an impressive earnings growth. That being so, according to the latest industry analyst forecasts, the company's earnings are expected to shrink slightly in the future. Are these analysts expectations based on the broad expectations for the industry, or on the company's fundamentals? Click here to be taken to our analyst's forecasts page for the company. Have feedback on this article? Concerned about the content?Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. View Comments |
||
| 20.06.25 06:02:57 | Berkeley Group announces leadership changes as chairman steps down | |
| LONDON - Berkeley Group (OTC:BKGFY) Holdings plc (LSE:BKG) announced Friday that Chairman Michael Dobson will step down at the company’s Annual General Meeting on September 5, 2025, after three years in the role. The homebuilder plans to appoint current CEO Rob Perrins as Executive Chair following Dobson’s departure. Perrins has served as CEO since 2009. Chief Financial Officer Richard Stearn, who has been with the company since 2015, will be promoted to CEO. The board changes come as Berkeley implements its recently developed 10-year strategy, "Berkeley 2035." The company stated the leadership transition aims to maintain continuity during a period of "heightened geo-political and macro-economic volatility" in the housing sector. Non-executive director William Jackson will not seek re-election at the September AGM. The company announced Richard Dakin, former head of CBRE (NYSE:CBRE)’s European investment banking and debt and structured finance business, will join as a non-executive director. Berkeley also revealed it is "well advanced" in appointing another non-executive director with industry and public company experience, expected to be announced early next year. Senior Independent Director Rachel Downey will consult with major shareholders regarding the proposed leadership changes, as required by the UK Governance Code. The company indicated it has strong internal candidates for the CFO position. The information in this article is based on a press release statement from Berkeley Group. This article was generated with the support of AI and reviewed by an editor. For more information see our T&C. |
||
| 16.04.25 10:35:40 | Average London rent soars to £2,243 per month | |
| The average UK monthly private rent rose to £1,332 in the 12 months to March, but in London tenants are paying on average £2,243, the highest in the country. Figures released by the Office for National Statistics (ONS) showed monthly rents in the private sector rose 7.7% to £1,332 over the 12-month period. This marks a modest slowdown from February’s annual growth rate of 8.1% and a further retreat from the 9.2% peak recorded in November. London remained the most expensive region for renters, with monthly rents reaching £2,243 —the highest in the UK. At the opposite end of the scale, the North East recorded the lowest average rent, at £725. The disparity was even more pronounced at the local authority level: in March, tenants in Kensington and Chelsea paid an average of £3,639 per month, while those in Dumfries and Galloway paid just £528. England saw average rents rise to £1,386 in March, a 7.8% annual increase — or £101 more than the previous year. Though still high, this marks a slowdown from the 8.3% rise in February. Regional differences were stark. The North East posted the fastest rental growth in England, with a 9.4% year-on-year increase, while Yorkshire and the Humber saw the slowest growth at 4.6%. Read more: The UK regions where houses sell the fastest In Wales, average rents climbed 8.9% to £792 — surpassing the 8.5% growth rate of the previous period but below the 9.9% high of November 2023. Scotland’s rental growth was more subdued, rising 5.7% to an average of £1,001. Northern Ireland recorded an 8.2% increase in January, bringing average rents to £838, slightly higher than the 8.1% rise in December 2024 but below the 9.9% peak in April last year. Outside the capital, the highest local average rent in March was in Elmbridge, South East England, at £1,893. Alex Upton, managing director of specialist mortgages at Hampshire Trust Bank, said: “The rental market remains under significant pressure, with demand continuing to outstrip supply. Letting agents are managing multiple applicants for every available property. “While stock levels have seen some movement, competition remains fierce. Until that imbalance shifts, rental prices will continue to rise.” Rents also varied significantly by property type and size. Detached homes attracted the highest average monthly rent at £1,522, while flats and maisonettes were the most affordable, at £1,306. Properties with four or more bedrooms commanded the highest rents overall at £1,996, compared with £1,079 for one-bedroom homes. Tom Bill, the head of UK residential research at Knight Frank, said: “Upwards pressure on rents is likely to intensify as landlords leave the sector due to tougher green regulations, higher mortgage costs and the impact of the Renters' Rights Bill, which makes it harder to regain possession of a property. Story Continues “Nobody would argue against protecting tenants from unscrupulous landlords, but the new legislation could be a lesson in the laws of unintended consequences.” The persistent rise in rental prices compounds tenants' affordability pressures as house prices continue to climb in parallel. The average UK house price increased by 5.4% in the year to February, with the annual growth rate rising from 4.8% in the year to January. Read more: Home renovation mistakes and how to avoid them Karen Noye, mortgage expert at Quilter, said: “First-time buyers paid an average of £227,000 last month, up 5.6% annually, while former owner-occupiers paid just under £330,000. That widening gap reinforces the affordability challenge facing those trying to step onto the ladder. "Meanwhile, the sharp 28.7% annual surge in new build prices, compared to just 3.2% for existing homes, risks compounding that issue, particularly if developers focus on premium stock that pushes buyers towards increasingly stretched borrowing. “Still, activity is picking up, with residential transactions up 28% year-on-year. Lenders are starting to respond, with mortgage rates edging down as financial markets anticipate further interest rate cuts." Average house prices increased to £292,000 in England (5.3% annual growth rate), £207,000 in Wales (4.1%), and £186,000 in Scotland (5.7%) over the 12 months to February. Separate data from estate agent Foxtons revealed that March saw a 14% increase in new rental listings across London compared to February. Applicant registrations rose by 11% month-on-month in March. Year on year, demand was stable, tracking just 2% below March 2024 levels The average rent in March stood at £565 per week, reflecting a 2% increase year on year. Gareth Atkins, managing director of Lettings, said: "The London lettings market is gaining momentum as we enter April, with March delivering a 14% surge in new listings – the largest uplift so far this year. Simultaneously, applicant registrations climbed 11%, reflecting strong seasonal interest and sustained confidence among renters. "With more choice coming to the market, renters are well-positioned this spring. At the same time, the steady flow of listings is helping to keep conditions balanced across much of the capital, creating a more stable and competitive environment for everyone navigating the market.” Download the Yahoo Finance app, available for Apple and Android. View Comments |
||
| 07.04.25 11:44:45 | Capital Allocation Trends At Berkeley Group Holdings (LON:BKG) Aren't Ideal | |
| If you're looking for a multi-bagger, there's a few things to keep an eye out for. In a perfect world, we'd like to see a company investing more capital into its business and ideally the returns earned from that capital are also increasing. Basically this means that a company has profitable initiatives that it can continue to reinvest in, which is a trait of a compounding machine. However, after investigating Berkeley Group Holdings (LON:BKG), we don't think it's current trends fit the mold of a multi-bagger. AI is about to change healthcare. These 20 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10bn in marketcap - there is still time to get in early. Return On Capital Employed (ROCE): What Is It? Just to clarify if you're unsure, ROCE is a metric for evaluating how much pre-tax income (in percentage terms) a company earns on the capital invested in its business. Analysts use this formula to calculate it for Berkeley Group Holdings: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) 0.10 = UK£506m ÷ (UK£6.8b - UK£1.9b) (Based on the trailing twelve months to October 2024). So, Berkeley Group Holdings has an ROCE of 10%. In absolute terms, that's a satisfactory return, but compared to the Consumer Durables industry average of 8.3% it's much better. See our latest analysis for Berkeley Group Holdings LSE:BKG Return on Capital Employed April 7th 2025 Above you can see how the current ROCE for Berkeley Group Holdings compares to its prior returns on capital, but there's only so much you can tell from the past. If you'd like, you can check out the forecasts from the analysts covering Berkeley Group Holdings for free. The Trend Of ROCE On the surface, the trend of ROCE at Berkeley Group Holdings doesn't inspire confidence. Around five years ago the returns on capital were 18%, but since then they've fallen to 10%. Meanwhile, the business is utilizing more capital but this hasn't moved the needle much in terms of sales in the past 12 months, so this could reflect longer term investments. It's worth keeping an eye on the company's earnings from here on to see if these investments do end up contributing to the bottom line. The Key Takeaway In summary, Berkeley Group Holdings is reinvesting funds back into the business for growth but unfortunately it looks like sales haven't increased much just yet. Additionally, the stock's total return to shareholders over the last five years has been flat, which isn't too surprising. All in all, the inherent trends aren't typical of multi-baggers, so if that's what you're after, we think you might have more luck elsewhere. Story Continues If you want to continue researching Berkeley Group Holdings, you might be interested to know about the 1 warning sign that our analysis has discovered. If you want to search for solid companies with great earnings, check out this freelist of companies with good balance sheets and impressive returns on equity. Have feedback on this article? Concerned about the content?Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. View Comments |
||
| 14.03.25 09:52:07 | Berkeley shares rise on reaffirmed long-term guidance | |
| Investing.com -- Shares of Berkeley Group Holdings PLC (LON:BKGH) climbed 1.97% on Friday as the company reaffirmed its profit before tax (PBT) guidance for fiscal years 2025 and 2026, with expectations to deliver at least £975 million across the two years. This confidence comes despite a slight downward revision in the anticipated net cash position for April 2025, which is now expected to be around £300 million, a bit lower than the £350 million previously estimated. The uptick in Berkeley's stock follows the announcement that the company has made significant progress on 10 long-term regeneration sites and is in the process of finalizing Section 106 agreements and clearing conditions to implement these plans. Although the company has expressed concerns over the pace of regulatory changes, the management's ability to navigate this challenging environment has been noted. Barclays (LON:BARC) analysts have observed a modest improvement in sales reservations since the interim results were reported in early December, with sales rates surpassing those from the same period last year. "The group has seen the modest improvement in sales reservations that it noted at the time of the interim results in early December continue since then. Sales rates are ahead of those achieved during the same period last year," the analysts said in a note. Investors appear to be reassured by the company's steady performance and its proactive measures to accelerate shareholder returns, which have included £71.3 million in share buy-backs, purchasing 1.9 million shares at an average price of £37.92 each. Related Articles Berkeley shares rise on reaffirmed long-term guidance Kering shares plunge after it picks in-house designer for key Gucci brand Shares set for weekly drop, gold hits record high as tariffs risks lurk View Comments |
||
| 14.03.25 09:50:50 | Trending tickers: Ulta Beauty, Docusign, Rubrik, Tesla and Berkeley | |
| Ulta Beauty (ULTA) Ulta Beauty’s (ULTA) shares surged by almost 7% in pre-market trading, following the beauty retailer’s strong performance in its fourth-quarter earnings, which exceeded expectations for both sales and profit. The results point to a solid holiday season as consumers flocked to Ulta’s stores for everything from cosmetics to perfumes. NasdaqGS - Delayed Quote•USD (ULTA) Follow View Quote Details 314.47 - (-4.48%) At close: March 13 at 4:00:01 PM EDT Advanced Chart While Ulta's (ULTA) fourth-quarter net sales saw a modest decline of 1.9%, totalling $3.49bn (£2.7bn), the figure surpassed analysts' expectations of $3.46bn. Additionally, the beauty giant posted a profit of $8.46 per share for the quarter ended 1 February, comfortably outpacing the anticipated $7.12 per share. The retailer’s strong holiday performance was partly driven by discounts offered during the Thanksgiving period, aimed at attracting shoppers eager to spend during the season. However, despite the upbeat results, Ulta (ULTA) issued a cautious outlook for the upcoming year, citing a combination of internal challenges, intensifying competition, and "consumer uncertainty." The company, which appointed Kecia Steelman as its new CEO in January, warned that it expects comparable sales in 2025 to remain flat or grow by just 1%, a slowdown compared to analyst expectations of a 1.2% increase. Read more: FTSE 100 LIVE: Stocks push higher and pound dips as UK economy unexpectedly shrinks 0.1% “I’ve shared our plan to make important guest-facing investments, which are necessary to improve our competitiveness and re-accelerate long term share growth,” said Steelman on a call with analysts. “These investments will pressure profitability in 2025 but we believe they are critical to driving long-term sustainable growth in a competitive, innovative category.” Ulta (ULTA) also lowered its full-year earnings guidance to a range of $22.50 to $22.90 per share, falling short of analysts’ forecast of $23.47, according to data from LSEG (LSEG.L). Docusign (DOCU) Shares in DocuSign Inc. (DOCU) rose by more than 10% in pre-market trading after the electronic signature company reported strong earnings and revenue for the fourth quarter of fiscal year 2025. NasdaqGS - Delayed Quote•USD (DOCU) Follow View Quote Details 74.70 - (-6.78%) At close: March 13 at 4:00:01 PM EDT Advanced Chart For the quarter ending January 31, DocuSign (DOCU) posted adjusted earnings of $0.86 per share, up from $0.76 per share in the same period a year ago. Revenue for the quarter reached $776.3m, marking a 9% year-over-year increase. Both figures exceeded analyst expectations, which had forecast earnings of 84 cents per share and revenue of $760.99m. Subscription revenue for the quarter grew by 9%, reaching $757.8m, while professional services and other revenue rose 11%, totalling $18.5m. Billings in the quarter also saw an 11% year-over-year increase, amounting to $932.2m. Story Continues Free cash flow for the quarter stood at $279.6m, an increase from $248.6m in the same period in fiscal year 2024. DocuSign (DOCU) closed the quarter with $1.1bn in cash, cash equivalents, restricted cash and investments. Key business developments in the quarter included the launch of updates to Web Forms in October, which introduced document exclusion rules and multi-recipient form support to streamline data collection. In November, DocuSign (DOCU) unveiled DocuSign for Developers, a tool allowing partners to build integrations and automate workflows using a robust set of application programming interfaces and software development kits. For the full fiscal year 2025, DocuSign (DOCU) reported adjusted earnings per share of $3.55, up from $2.98 in 2024, with total revenue reaching $2.98bn, an 8% increase compared to the previous year. Looking ahead, for the first quarter of fiscal 2026, the company expects revenue to range from $745m to $749m. For the full year, the company anticipates revenue between $3.129bn and $3.141bn. Rubrik (RBRK) Shares of Rubrik (RBRK) surged by 20% in pre-market trading on Friday following the cybersecurity company’s fourth-quarter earnings report and upbeat guidance for the coming year. NYSE - Delayed Quote•USD (RBRK) Follow View Quote Details 55.28 - (-3.20%) At close: March 13 at 4:00:02 PM EDT Advanced Chart For the period ending January 31, Rubrik (RBRK) reported an adjusted loss of $0.18 per share, while revenue surged 47% year-over-year to $258.1m. This included $243.7m from subscription revenue and $3.38m from its maintenance segment. Rubrik (RBRK) also saw growth in its customer base, ending the quarter with 2,246 customers who spent $100,000 or more in annual recurring revenue. Analysts had expected a larger adjusted loss of $0.39 per share on $233.2m in revenue. “Fiscal 2025 was a milestone year for Rubrik,” said Bipul Sinha, Rubrik’s (RBRK) chief executive officer. “Our strong growth at scale demonstrates that we’re winning the cyber resilience market. However, we are still very early in Rubrik’s journey to achieve the company’s full potential and I’m confident that what's ahead of us is even more important and exciting.” Read more:UK economy shrinks in January in further setback for Rachel Reeves Looking ahead, Rubrik (RBRK) expects an adjusted loss between $0.31 and $0.32 per share for the first quarter of fiscal 2026, with revenue forecasted between $259m and $261m. Analysts had anticipated a larger adjusted loss of $0.50 per share and revenue of $243.3m. For the full fiscal year, Rubrik (RBRK) forecasts revenue between $1.15bn and $1.16bn, exceeding the analyst estimate of $1.11bn. The company expects an adjusted loss of between $1.13 and $1.23 per share, a smaller loss than the anticipated $1.25 per share. Subscription annual recurring revenue for fiscal 2026 is projected to be between $1.35bn and $1.36bn, with free cash flow expected to range from $45m to $65m. Tesla (TSLA) Tesla's (TSLA) shares rebounded by 1.4% in pre-market trading, recovering some of the losses from the previous session, where the stock dropped nearly 3%. The electric vehicle maker issued a warning that president Donald Trump’s trade policies could negatively impact its business, despite CEO Elon Musk being a close ally of the president. NasdaqGS - Delayed Quote•USD (TSLA) Follow View Quote Details 240.68 - (-2.99%) At close: March 13 at 4:00:00 PM EDT Advanced Chart Tesla (TSLA) said it is important to ensure that the Trump administration's efforts to address trade issues "do not inadvertently harm US companies". It added it is eager to avoid retaliation of the type it faced in prior trade disputes, which resulted in increased tariffs on electric vehicles imported into countries subject to US tariffs. "US exporters are inherently exposed to disproportionate impacts when other countries respond to US trade actions," Tesla (TSLA) said in the letter. "For example, past trade actions by the United States have resulted in immediate reactions by the targeted countries, including increased tariffs on EVs imported into those countries." The letter, which was unsigned but printed on Tesla’s (TSLA) company letterhead, did not specify the author within the company. Berkeley (BKG.L) Shares in Berkeley Group (BKG.L) were higher as the UK housebuilder reaffirmed its earnings guidance, but warned that planned government regulatory changes are placing “significant” pressure on the delivery of new homes. The government is set to introduce the building safety levy, which will require developers to contribute to the costs of addressing historic building safety defects, including unsafe fire cladding, in an effort to protect leaseholders and taxpayers from bearing the financial burden. “Berkeley (BKG.L) remains concerned by the impact of the extent and pace of regulatory changes of recent years, as we now await details of the new building safety levy,” the company said in a trading statement on Friday. Despite this, the FTSE 100 (^FTSE) company reported that sales enquiries remained at a “consistently good level,” with a modest improvement in reservations continuing through the four months to February 28. However, the company cautioned that a full recovery in sales rates, bringing them closer to levels seen three years ago, would require greater confidence in the trajectory of interest rate reductions and broader economic stability. Berkeley (BKG.L) maintained its earnings forecast for the year ending 30 April at £525m, with a forecast of £450m for the following year. Other companies in the news on Friday 14 March Allianz (ALVD.XC) Bodycote (BOY.L) Vanquis Banking (VANQ.L) AIA (1299.HK) Hon Hai Precision 2317 (2317.TW) BMW (BMW.DE) Daimler Truck (DTG.DE) Download the Yahoo Finance app, available for Apple and Android. View Comments |
||
| 02.03.25 07:33:17 | Berkeley Group Holdings (LON:BKG) Will Pay A Dividend Of £0.33 | |
| The board of The Berkeley Group Holdings plc (LON:BKG) has announced that it will pay a dividend of £0.33 per share on the 28th of March. Including this payment, the dividend yield on the stock will be 1.8%, which is a modest boost for shareholders' returns. Check out our latest analysis for Berkeley Group Holdings Berkeley Group Holdings' Future Dividend Projections Appear Well Covered By Earnings It would be nice for the yield to be higher, but we should also check if higher levels of dividend payment would be sustainable. However, Berkeley Group Holdings' earnings easily cover the dividend. This means that most of its earnings are being retained to grow the business. Looking forward, earnings per share is forecast to fall by 11.8% over the next year. If the dividend continues along recent trends, we estimate the payout ratio could be 63%, which we consider to be quite comfortable, with most of the company's earnings left over to grow the business in the future.LSE:BKG Historic Dividend March 2nd 2025 Dividend Volatility Although the company has a long dividend history, it has been cut at least once in the last 10 years. The annual payment during the last 10 years was £2.02 in 2015, and the most recent fiscal year payment was £0.66. The dividend has fallen 67% over that period. Declining dividends isn't generally what we look for as they can indicate that the company is running into some challenges. The Dividend's Growth Prospects Are Limited Given that dividend payments have been shrinking like a glacier in a warming world, we need to check if there are some bright spots on the horizon. In the last five years, Berkeley Group Holdings' earnings per share has shrunk at approximately 3.8% per annum. If earnings continue declining, the company may have to make the difficult choice of reducing the dividend or even stopping it completely - the opposite of dividend growth. Our Thoughts On Berkeley Group Holdings' Dividend In summary, while it's good to see that the dividend hasn't been cut, we are a bit cautious about Berkeley Group Holdings' payments, as there could be some issues with sustaining them into the future. The company is generating plenty of cash, which could maintain the dividend for a while, but the track record hasn't been great. We don't think Berkeley Group Holdings is a great stock to add to your portfolio if income is your focus. Investors generally tend to favour companies with a consistent, stable dividend policy as opposed to those operating an irregular one. However, there are other things to consider for investors when analysing stock performance. As an example, we've identified 1 warning sign for Berkeley Group Holdings that you should be aware of before investing. If you are a dividend investor, you might also want to look at our curated list of high yield dividend stocks. Have feedback on this article? Concerned about the content?Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. View Comments |
||
| 17.02.25 08:52:10 | Investors in Berkeley Group Holdings (LON:BKG) have unfortunately lost 21% over the last five years | |
| In order to justify the effort of selecting individual stocks, it's worth striving to beat the returns from a market index fund. But in any portfolio, there will be mixed results between individual stocks. So we wouldn't blame long term The Berkeley Group Holdings plc (LON:BKG) shareholders for doubting their decision to hold, with the stock down 36% over a half decade. The falls have accelerated recently, with the share price down 14% in the last three months. Now let's have a look at the company's fundamentals, and see if the long term shareholder return has matched the performance of the underlying business. Check out our latest analysis for Berkeley Group Holdings In his essay The Superinvestors of Graham-and-Doddsville Warren Buffett described how share prices do not always rationally reflect the value of a business. By comparing earnings per share (EPS) and share price changes over time, we can get a feel for how investor attitudes to a company have morphed over time. During the five years over which the share price declined, Berkeley Group Holdings' earnings per share (EPS) dropped by 3.9% each year. Readers should note that the share price has fallen faster than the EPS, at a rate of 9% per year, over the period. So it seems the market was too confident about the business, in the past. The low P/E ratio of 9.91 further reflects this reticence. The image below shows how EPS has tracked over time (if you click on the image you can see greater detail).LSE:BKG Earnings Per Share Growth February 17th 2025 It's probably worth noting we've seen significant insider buying in the last quarter, which we consider a positive. That said, we think earnings and revenue growth trends are even more important factors to consider. This free interactive report on Berkeley Group Holdings' earnings, revenue and cash flow is a great place to start, if you want to investigate the stock further. What About Dividends? It is important to consider the total shareholder return, as well as the share price return, for any given stock. The TSR incorporates the value of any spin-offs or discounted capital raisings, along with any dividends, based on the assumption that the dividends are reinvested. It's fair to say that the TSR gives a more complete picture for stocks that pay a dividend. As it happens, Berkeley Group Holdings' TSR for the last 5 years was -21%, which exceeds the share price return mentioned earlier. The dividends paid by the company have thusly boosted the total shareholder return. A Different Perspective Investors in Berkeley Group Holdings had a tough year, with a total loss of 20% (including dividends), against a market gain of about 15%. However, keep in mind that even the best stocks will sometimes underperform the market over a twelve month period. Regrettably, last year's performance caps off a bad run, with the shareholders facing a total loss of 4% per year over five years. We realise that Baron Rothschild has said investors should "buy when there is blood on the streets", but we caution that investors should first be sure they are buying a high quality business. While it is well worth considering the different impacts that market conditions can have on the share price, there are other factors that are even more important. Consider risks, for instance. Every company has them, and we've spotted 1 warning sign for Berkeley Group Holdings you should know about. Story Continues There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this freelist of undervalued small cap companies that insiders are buying. Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on British exchanges. Have feedback on this article? Concerned about the content?Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. View Comments |
||
| 31.01.25 09:36:58 | A Look At The Fair Value Of The Berkeley Group Holdings plc (LON:BKG) |  |
| Key Insights Using the 2 Stage Free Cash Flow to Equity, Berkeley Group Holdings fair value estimate is UK£39.70 Berkeley Group Holdings' UK£38.82 share price indicates it is trading at similar levels as its fair value estimate Our fair value estimate is 14% lower than Berkeley Group Holdings' analyst price target of UK£46.15 Does the January share price for The Berkeley Group Holdings plc (LON:BKG) reflect what it's really worth? Today, we will estimate the stock's intrinsic value by taking the forecast future cash flows of the company and discounting them back to today's value. Our analysis will employ the Discounted Cash Flow (DCF) model. There's really not all that much to it, even though it might appear quite complex. Companies can be valued in a lot of ways, so we would point out that a DCF is not perfect for every situation. Anyone interested in learning a bit more about intrinsic value should have a read of the Simply Wall St analysis model. View our latest analysis for Berkeley Group Holdings The Model We use what is known as a 2-stage model, which simply means we have two different periods of growth rates for the company's cash flows. Generally the first stage is higher growth, and the second stage is a lower growth phase. To start off with, we need to estimate the next ten years of cash flows. Where possible we use analyst estimates, but when these aren't available we extrapolate the previous free cash flow (FCF) from the last estimate or reported value. We assume companies with shrinking free cash flow will slow their rate of shrinkage, and that companies with growing free cash flow will see their growth rate slow, over this period. We do this to reflect that growth tends to slow more in the early years than it does in later years. Generally we assume that a dollar today is more valuable than a dollar in the future, and so the sum of these future cash flows is then discounted to today's value: 10-year free cash flow (FCF) forecast 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 Levered FCF (£, Millions) UK£190.7m UK£221.3m UK£231.4m UK£259.3m UK£278.2m UK£294.3m UK£308.0m UK£320.0m UK£330.7m UK£340.6m Growth Rate Estimate Source Analyst x8 Analyst x8 Analyst x7 Analyst x2 Est @ 7.32% Est @ 5.76% Est @ 4.66% Est @ 3.90% Est @ 3.36% Est @ 2.99% Present Value (£, Millions) Discounted @ 8.7% UK£175 UK£187 UK£180 UK£185 UK£183 UK£178 UK£171 UK£164 UK£156 UK£147 ("Est" = FCF growth rate estimated by Simply Wall St) Present Value of 10-year Cash Flow (PVCF) = UK£1.7b Story Continues The second stage is also known as Terminal Value, this is the business's cash flow after the first stage. For a number of reasons a very conservative growth rate is used that cannot exceed that of a country's GDP growth. In this case we have used the 5-year average of the 10-year government bond yield (2.1%) to estimate future growth. In the same way as with the 10-year 'growth' period, we discount future cash flows to today's value, using a cost of equity of 8.7%. Terminal Value (TV)= FCF2034 × (1 + g) ÷ (r – g) = UK£341m× (1 + 2.1%) ÷ (8.7%– 2.1%) = UK£5.3b Present Value of Terminal Value (PVTV)= TV / (1 + r)10= UK£5.3b÷ ( 1 + 8.7%)10= UK£2.3b The total value is the sum of cash flows for the next ten years plus the discounted terminal value, which results in the Total Equity Value, which in this case is UK£4.0b. To get the intrinsic value per share, we divide this by the total number of shares outstanding. Relative to the current share price of UK£38.8, the company appears about fair value at a 2.2% discount to where the stock price trades currently. The assumptions in any calculation have a big impact on the valuation, so it is better to view this as a rough estimate, not precise down to the last cent.LSE:BKG Discounted Cash Flow January 31st 2025 Important Assumptions The calculation above is very dependent on two assumptions. The first is the discount rate and the other is the cash flows. If you don't agree with these result, have a go at the calculation yourself and play with the assumptions. The DCF also does not consider the possible cyclicality of an industry, or a company's future capital requirements, so it does not give a full picture of a company's potential performance. Given that we are looking at Berkeley Group Holdings as potential shareholders, the cost of equity is used as the discount rate, rather than the cost of capital (or weighted average cost of capital, WACC) which accounts for debt. In this calculation we've used 8.7%, which is based on a levered beta of 1.365. Beta is a measure of a stock's volatility, compared to the market as a whole. We get our beta from the industry average beta of globally comparable companies, with an imposed limit between 0.8 and 2.0, which is a reasonable range for a stable business. SWOT Analysis for Berkeley Group Holdings Strength Debt is not viewed as a risk. Dividends are covered by earnings and cash flows. Weakness Earnings declined over the past year. Dividend is low compared to the top 25% of dividend payers in the Consumer Durables market. Opportunity Good value based on P/E ratio and estimated fair value. Significant insider buying over the past 3 months. Threat Annual earnings are forecast to decline for the next 3 years. Looking Ahead: Although the valuation of a company is important, it shouldn't be the only metric you look at when researching a company. DCF models are not the be-all and end-all of investment valuation. Rather it should be seen as a guide to "what assumptions need to be true for this stock to be under/overvalued?" For instance, if the terminal value growth rate is adjusted slightly, it can dramatically alter the overall result. For Berkeley Group Holdings, we've put together three important items you should look at: Risks: For example, we've discovered 1 warning sign for Berkeley Group Holdings that you should be aware of before investing here. Future Earnings: How does BKG's growth rate compare to its peers and the wider market? Dig deeper into the analyst consensus number for the upcoming years by interacting with our free analyst growth expectation chart. Other High Quality Alternatives: Do you like a good all-rounder? Explore our interactive list of high quality stocks to get an idea of what else is out there you may be missing! PS. The Simply Wall St app conducts a discounted cash flow valuation for every stock on the LSE every day. If you want to find the calculation for other stocks just search here. Have feedback on this article? Concerned about the content?Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. View Comments |
||
