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1. Company Snapshot

1.a. Company Description

The Berkeley Group Holdings plc, together with its subsidiaries, engages in the residential-led and mixed-use property development activities in the United Kingdom.The company is also involved in land selling activities.It operates under the Berkeley, St Edward, St George, St James, St Joseph, and St William brand names.


The Berkeley Group Holdings plc was founded in 1976 and is headquartered in Cobham, the United Kingdom.

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1.b. Last Insights on BKG

Berkeley Group Holdings' recent struggles can be attributed to a 5.1% fall in pre-tax profits to £528.9 million for the year to April 30, amidst a challenging UK housing market. The company's leadership reshuffle may have also contributed to uncertainty. Furthermore, the UK house price growth stalled in June, and recent data showed that average UK house prices rose to £269,000, but at a slower pace, indicating a softening market.

1.c. Company Highlights

2. Transcript Summary

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3. NewsRoom

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UK property sales edge up in October

Nov -28

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10 gorgeous gatehouses that make a lasting first impression

Nov -14

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Why buying property before the budget might bag you a bargain

Nov -10

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UK house prices see fastest growth since January as mortgage approvals rise

Nov -07

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9 high-tech homes that make daily life easier

Nov -07

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9 bewitching homes that will put you under their spell

Oct -31

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Looking at the Narrative for Berkeley After Leadership Change and Earnings Guidance Update

Oct -18

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8 magnificent castles that are ideal for Traitors superfans

Oct -10

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4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (1.00%)

6. Segments

Residential

Expected Growth: 1%

Berkeley Group's Residential segment growth is driven by increasing demand for new homes in London and the South East, fueled by government initiatives, low interest rates, and a shortage of supply. The company's focus on brownfield regeneration and partnerships with local authorities also contribute to its growth.

Commercial

Expected Growth: 1%

Berkeley Group's commercial segment growth is driven by increasing demand for mixed-use developments, strategic land acquisitions, and partnerships with local authorities. The company's focus on regeneration projects, brownfield site redevelopment, and provision of affordable housing also contribute to growth. Additionally, Berkeley's strong brand reputation, diversified portfolio, and efficient operations enable the company to capitalize on market opportunities and deliver sustainable growth.

7. Detailed Products

Residential Development

The Berkeley Group develops and builds residential properties, including apartments, houses, and mixed-use schemes, in London and the South East of England.

St Edward

St Edward is Berkeley's joint venture with the Prudential Assurance Company, developing residential and mixed-use schemes in London and the South East of England.

Berkeley Commercial

Berkeley Commercial develops and invests in commercial property, including offices, retail, and industrial space, in London and the South East of England.

Berkeley Partnerships

Berkeley Partnerships works with local authorities, housing associations, and other partners to deliver affordable housing and regeneration projects.

8. The Berkeley Group Holdings plc's Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for The Berkeley Group Holdings plc is moderate due to the availability of alternative housing options and the ability of customers to delay purchases.

Bargaining Power Of Customers

The bargaining power of customers is low due to the fragmented nature of the customer base and the lack of large, concentrated buyers.

Bargaining Power Of Suppliers

The bargaining power of suppliers is moderate due to the presence of multiple suppliers and the ability of The Berkeley Group Holdings plc to negotiate prices.

Threat Of New Entrants

The threat of new entrants is low due to the high barriers to entry, including the need for significant capital investment and regulatory approvals.

Intensity Of Rivalry

The intensity of rivalry is high due to the competitive nature of the UK housing market and the presence of multiple established players.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 16.58%
Debt Cost 6.96%
Equity Weight 83.42%
Equity Cost 9.87%
WACC 9.39%
Leverage 19.87%

11. Quality Control: The Berkeley Group Holdings plc passed 5 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Berkeley

A-Score: 6.1/10

Value: 7.8

Growth: 4.1

Quality: 7.5

Yield: 6.9

Momentum: 2.5

Volatility: 8.0

1-Year Total Return ->

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Stock-Card
Persimmon

A-Score: 4.9/10

Value: 7.0

Growth: 1.4

Quality: 5.2

Yield: 8.8

Momentum: 1.5

Volatility: 5.3

1-Year Total Return ->

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Stock-Card
Redrow

A-Score: 4.9/10

Value: 6.7

Growth: 3.8

Quality: 7.4

Yield: 4.4

Momentum: 4.0

Volatility: 3.0

1-Year Total Return ->

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Stock-Card
Taylor Wimpey

A-Score: 4.7/10

Value: 4.4

Growth: 1.6

Quality: 5.1

Yield: 8.8

Momentum: 1.5

Volatility: 7.0

1-Year Total Return ->

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Stock-Card
Bellway

A-Score: 4.5/10

Value: 6.2

Growth: 1.6

Quality: 5.9

Yield: 5.6

Momentum: 2.5

Volatility: 5.3

1-Year Total Return ->

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Stock-Card
Barratt Developments

A-Score: 4.5/10

Value: 3.1

Growth: 1.3

Quality: 5.0

Yield: 7.5

Momentum: 3.5

Volatility: 6.3

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

37.4$

Current Price

37.4$

Potential

-0.00%

Expected Cash-Flows