# Barratt Redrow (BTRW.LSE)

Canonical: https://gigainvestors.com/s/BTRW.LSE

Analysis as of: 2026-10-16T07:37:12.781Z. Financial observations: FY1997–FY2026.

Listing currency: GBX. Reporting currency: GBP.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: pass; earnings resilience is evidence only). Published buy qualification: no.

Share price: GBX 310.00 per share; close as of 2026-10-15.

Estimated value: low GBX 273.83 per share, central GBX 303.08 per share, high GBX 342.02 per share. Buy at or below the central value GBX 303.08 per share. Valuation as of 2026-10-16T07:37:12.781Z; scenarios are not confidence intervals.

Expected annual return: 9.8% at the stated quote. About 9.8% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; GB 10-year bond 5.4% + 4 points).

## Checklist

### understandable: pass

- 3 revenue declines in the last 10 years (informational)

- Financial history: 10 years

- Years with declining revenue: 3

- Years with a net loss: 0

- Operating margin variation: 0.33×

Chart: Operating margin; fiscal year observations.

- FY2017: 0.17×

- FY2018: 0.18×

- FY2019: 0.19×

- FY2020: 0.14×

- FY2021: 0.17×

- FY2022: 0.12×

- FY2023: 0.13×

- FY2024: 0.04×

- FY2025: 0.09×

- FY2026: 0.10×

### moat: fail

- ROIC median below threshold

- ROIC worst years below threshold (more than 1 bad year allowed)

- ROIC, median of available years: 14.2%

- ROIC, second-lowest year: 5.9%

- Typical minus recent gross margin: 3.8 pp

- Typical gross margin (annual median): 18.1%

- Recent gross margin (lower of latest and 3-year median): 14.3%

- Years with nonpositive capital: 0

- Capital spending / revenue: 0.2%

- ROIC including acquisitions, ten-year median: 11.1%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2017: 22.9%

- FY2018: 23.1%

- FY2019: 22.2%

- FY2020: 10.7%

- FY2021: 19.5%

- FY2022: 14.1%

- FY2023: 14.3%

- FY2024: 3.1%

- FY2025: 5.9%

- FY2026: 6.7%

### economics: fail

- incremental invested capital return below threshold

- working capital as a share of revenue rose more than 10pp and ends positive

- Owner earnings / net income, 5-yr: 1.03×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: GBP 1.6B

- Net income, five-year total: GBP 1.6B

- Return on incremental invested capital: -5.2%

- Working capital / revenue, annual change: 3.2 pp

- Working capital / revenue, change between three-year averages: 26.6 pp

- Working capital / revenue, final three-year average: 120.3%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2022: 0.98×

- FY2023: 0.99×

- FY2024: 1.15×

- FY2025: 1.07×

- FY2026: 1.10×

### management: fail

- Historical market-dollar context (not the management verdict): 2017 to 2026 (9 years)

- potential debt-funded buybacks (informational)

- buybacks unrelated to price (informational)

- ROIC first 3 years vs last 3 years: 22.9% vs 5.9%

- Per-share earnings: 0.60 to 0.13 (three-year endpoint medians)

- per-share value declined or ends nonpositive

- five-year and ten-year diluted share growth both above threshold

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: 3.5%

- Ordinary dilution, 5-year annual growth: 6.8%

- Market cap gain: GBP -1.7B

- Cumulative retained earnings: GBP 4.5B

- Diluted shares, 10-year annual growth: 3.5%

- Diluted shares, 5-year annual growth: 6.8%

- $1 test, starting fiscal year: FY2017

- $1 test, ending fiscal year: FY2026

- Per-share value growth: -17.6%

- Per-share value change: GBP -0.48

- Per-share value, starting three-year median: GBP 0.60

- Per-share value, ending three-year median: GBP 0.13

- Buybacks concentrated in cheaper years (correlation): -0.05

- Average buyback yield: 1.1%

- Buyback history: 10 years

- Debt-funded buybacks: Yes

- Acquisition spending: GBP 714M

- Cumulative net income, 10 years: GBP 4.7B

- ROIC, first three-year median: 22.9%

- ROIC, last three-year median: 5.9%

Chart: Earnings per share; fiscal year observations.

- FY2017: GBP 0.60

- FY2018: GBP 0.66

- FY2019: GBP 0.72

- FY2020: GBP 0.39

- FY2021: GBP 0.64

- FY2022: GBP 0.50

- FY2023: GBP 0.54

- FY2024: GBP 0.08

- FY2025: GBP 0.13

- FY2026: GBP 0.17

### accounting: pass

- Sloan accruals: -1.9%

- Receivables to sales index (DSRI): 0.86×

- Restructuring years, last five: 0

- Stock compensation / operating cash flow: 0.0%

- Earnings backed by cash: Yes

- Operating cash / earnings: 1.88×

- Accounting red flags: 0

- Goodwill and intangibles / equity: 0.20×

Chart: Sloan accruals; fiscal year observations.

- FY2017: 3.4%

- FY2018: 2.3%

- FY2019: 5.1%

- FY2020: 7.6%

- FY2021: -5.7%

- FY2022: 1.2%

- FY2023: 0.8%

- FY2024: 0.2%

- FY2025: 1.0%

- FY2026: -1.9%

## Holders

## Price story

Down 59% since Dec 2021 · "Britain’s biggest housebuilder slows land buying and cuts home sales outlook" (uk.finance.yahoo.com, Sep 2026) · sales +8.5%

Story as of 2026-10-16T10:00:08.835Z; price observation 2026-10-15.

Price needs cash profits to grow 1.2% a year for ten years

- 2025-07-15: Barratt Redrow Shares Tumble After Sales Miss Guidance ([finance.yahoo.com](https://finance.yahoo.com/m/3f30b1a2-2896-36aa-beef-02afd9fb392e/barratt-redrow-shares-tumble.html))

- 2026-02-11: Barratt profits drop amid budget uncertainty and subdued buyer demand ([uk.finance.yahoo.com](https://uk.finance.yahoo.com/news/barratt-profits-drop-amid-budget-080701193.html))

- 2026-04-15: Barratt cautions over rising build costs as Iran war sends energy prices soaring ([uk.finance.yahoo.com](https://uk.finance.yahoo.com/news/barratt-cautions-over-rising-build-071710131.html))

- 2026-09-16: Britain’s biggest housebuilder slows land buying and cuts home sales outlook ([uk.finance.yahoo.com](https://uk.finance.yahoo.com/news/britain-biggest-housebuilder-slows-land-112700512.html))

### Sales · FY2025–2026

sales +8.5%; source https://filings.xbrl.org/2138006R85VEOF5YNK29/2025-06-29/ESEF/GB/0/2138006R85VEOF5YNK29-2025-06-29/reports/2138006R85VEOF5YNK29-2025-06-29-T01.xhtml; observed 2025-10-14.

- FY2017: GBP 4.7B 

- FY2018: GBP 4.9B 

- FY2019: GBP 4.8B 

- FY2020: GBP 3.4B 

- FY2021: GBP 4.8B 

- FY2022: GBP 5.3B 

- FY2023: GBP 5.3B 

- FY2024: GBP 4.2B 

- FY2025: GBP 5.6B 

- FY2026: GBP 6.1B 

### Gross margin · FY2026

gross margin 14.3%; source https://filings.xbrl.org/2138006R85VEOF5YNK29/2025-06-29/ESEF/GB/0/2138006R85VEOF5YNK29-2025-06-29/reports/2138006R85VEOF5YNK29-2025-06-29-T01.xhtml; observed 2025-10-14.

- FY2017: 20.0% 

- FY2018: 20.7% 

- FY2019: 22.8% 

- FY2020: 18.0% 

- FY2021: 21.0% 

- FY2022: 17.1% 

- FY2023: 18.3% 

- FY2024: 12.2% 

- FY2025: 15.4% 

- FY2026: 14.3% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in residential construction; annual sales are GBP 6.1 billion.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-10-14); FY2026: revenue 6055000000; grossProfit 867700000; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); BTRW.LSE: Barratt Redrow plc engages in the housebuilding business in the United Kingdom. It also engages in the commercial development business, which includes offices, retail, leisure, industrial, and distribution properties under the Wilson Bowden Developments brand; and land development activities. In addition, the company manufactures timber frames under the Oregon Timber Frame brand; and furniture under the BD Living brand. It offers its homes under the Barratt Homes, David Wilson Homes, Redrow, and Barratt London brand names. The company was formerly known as Barratt Developments plc and changed its name to Barratt Redrow plc in October 2024. Barratt Redrow plc was founded in 1953 and is headquartered in Coalville, the United Kingdom.

### Why customers stay

Margins ranged from 12.2% to 15.4% during 2024–26; it earns 14.2% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-10-14); FY2024: grossProfit / revenue = 12.2%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-10-14); FY2025: grossProfit / revenue = 15.4%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-10-14); FY2026: grossProfit / revenue = 14.3%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-10-14); 10-year return on capital observations [[2017,0.2289874419225547],[2018,0.23057855807646985],[2019,0.2220593277611576],[2020,0.10691775638910395],[2021,0.19546508408008414],[2022,0.14096407055138152],[2023,0.14288433231483097],[2024,0.031063522820385672],[2025,0.058717401370056176],[2026,0.06700411027252941]]; median 0.14192420143310625. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Paid dividends in 10 of 10 years; bought back GBP 115.1 million of shares.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-10-14); FY2017: growth capex 0; upkeep 4000000; owner earnings 615900000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-10-14); FY2018: growth capex 485251.89194689225; upkeep 7014748.108053108; owner earnings 670085251.8919469. Growth capex / owner earnings = 0.0007241644112847009.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-10-14); FY2019: growth capex 0; upkeep 7200000; owner earnings 737100000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-10-14); FY2020: growth capex 0; upkeep 7500000; owner earnings 402940000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-10-14); FY2021: growth capex 0; upkeep 7200000; owner earnings 665160000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-10-14); FY2022: growth capex 4765812.887412824; upkeep 25134187.112587176; owner earnings 506045812.88741285. Growth capex / owner earnings = 0.009417749867783496.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-10-14); FY2023: growth capex 0; upkeep 23100000; owner earnings 526860000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-10-14); FY2024: growth capex 0; upkeep 7200000; owner earnings 131440000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-10-14); FY2025: growth capex 0; upkeep 18100000; owner earnings 199160000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-10-14); FY2026: growth capex 0; upkeep 12200000; owner earnings 267400000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-10-14); Dividend observations: [[2017,321700000],[2018,434900000],[2019,452300000],[2020,373200000],[2021,76300000],[2022,337000000],[2023,360000000],[2024,270600000],[2025,249300000],[2026,242200000]]. Zero only counted when supported by a complete cash-flow statement.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-10-14); FY2026: cash repurchases 115100000 GBP.

### Are managers owners

Insiders own 5.6% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); BTRW.LSE SharesStats.PercentInsiders = 5.577 percentage points; cache date 2026-10-16.

### What the price says

The price assumes cash profits grow 1.2% yearly over ten years; actual decline was 10.1%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-10-14); Ten-year compound average after fade. Initial solved rate 0.005030868868198923. Price 310; FX 100; discount 0.1; same standard ten-year fade to terminal 0.03. FY2016 owner earnings/share 0.5415162930269654 → FY2026 0.18600082914356147. Closing-price date 2026-10-15.

## Monthly share-price history (GBX per share)

- 2016-10: GBX 453.70 per share

- 2016-11: GBX 469.20 per share

- 2016-12: GBX 462.40 per share

- 2017-01: GBX 477.70 per share

- 2017-02: GBX 511.50 per share

- 2017-03: GBX 546.50 per share

- 2017-04: GBX 579.50 per share

- 2017-05: GBX 612.50 per share

- 2017-06: GBX 563.50 per share

- 2017-07: GBX 615.50 per share

- 2017-08: GBX 624.50 per share

- 2017-09: GBX 614.50 per share

- 2017-10: GBX 654.50 per share

- 2017-11: GBX 606.00 per share

- 2017-12: GBX 647.50 per share

- 2018-01: GBX 585.20 per share

- 2018-02: GBX 539.00 per share

- 2018-03: GBX 530.40 per share

- 2018-04: GBX 558.00 per share

- 2018-05: GBX 545.60 per share

- 2018-06: GBX 515.40 per share

- 2018-07: GBX 534.00 per share

- 2018-08: GBX 542.00 per share

- 2018-09: GBX 567.00 per share

- 2018-10: GBX 514.00 per share

- 2018-11: GBX 462.20 per share

- 2018-12: GBX 462.80 per share

- 2019-01: GBX 538.60 per share

- 2019-02: GBX 599.00 per share

- 2019-03: GBX 599.20 per share

- 2019-04: GBX 601.80 per share

- 2019-05: GBX 558.00 per share

- 2019-06: GBX 572.60 per share

- 2019-07: GBX 645.20 per share

- 2019-08: GBX 632.40 per share

- 2019-09: GBX 648.00 per share

- 2019-10: GBX 631.20 per share

- 2019-11: GBX 666.80 per share

- 2019-12: GBX 746.60 per share

- 2020-01: GBX 802.80 per share

- 2020-02: GBX 757.20 per share

- 2020-03: GBX 441.00 per share

- 2020-04: GBX 519.00 per share

- 2020-05: GBX 497.00 per share

- 2020-06: GBX 495.90 per share

- 2020-07: GBX 510.60 per share

- 2020-08: GBX 525.20 per share

- 2020-09: GBX 475.80 per share

- 2020-10: GBX 482.50 per share

- 2020-11: GBX 620.00 per share

- 2020-12: GBX 670.00 per share

- 2021-01: GBX 638.80 per share

- 2021-02: GBX 664.40 per share

- 2021-03: GBX 746.80 per share

- 2021-04: GBX 772.00 per share

- 2021-05: GBX 756.40 per share

- 2021-06: GBX 695.20 per share

- 2021-07: GBX 703.60 per share

- 2021-08: GBX 739.00 per share

- 2021-09: GBX 660.40 per share

- 2021-10: GBX 663.00 per share

- 2021-11: GBX 697.40 per share

- 2021-12: GBX 748.00 per share

- 2022-01: GBX 611.60 per share

- 2022-02: GBX 611.00 per share

- 2022-03: GBX 522.40 per share

- 2022-04: GBX 494.50 per share

- 2022-05: GBX 504.80 per share

- 2022-06: GBX 457.40 per share

- 2022-07: GBX 501.00 per share

- 2022-08: GBX 427.30 per share

- 2022-09: GBX 342.20 per share

- 2022-10: GBX 376.20 per share

- 2022-11: GBX 397.70 per share

- 2022-12: GBX 396.80 per share

- 2023-01: GBX 459.80 per share

- 2023-02: GBX 469.10 per share

- 2023-03: GBX 466.50 per share

- 2023-04: GBX 500.00 per share

- 2023-05: GBX 462.80 per share

- 2023-06: GBX 413.50 per share

- 2023-07: GBX 456.70 per share

- 2023-08: GBX 453.30 per share

- 2023-09: GBX 441.10 per share

- 2023-10: GBX 413.90 per share

- 2023-11: GBX 513.80 per share

- 2023-12: GBX 562.60 per share

- 2024-01: GBX 540.40 per share

- 2024-02: GBX 466.50 per share

- 2024-03: GBX 475.60 per share

- 2024-04: GBX 454.70 per share

- 2024-05: GBX 503.20 per share

- 2024-06: GBX 472.20 per share

- 2024-07: GBX 526.60 per share

- 2024-08: GBX 507.20 per share

- 2024-09: GBX 478.70 per share

- 2024-10: GBX 446.40 per share

- 2024-11: GBX 427.70 per share

- 2024-12: GBX 440.10 per share

- 2025-01: GBX 455.50 per share

- 2025-02: GBX 426.70 per share

- 2025-03: GBX 422.90 per share

- 2025-04: GBX 465.80 per share

- 2025-05: GBX 460.80 per share

- 2025-06: GBX 455.90 per share

- 2025-07: GBX 374.10 per share

- 2025-08: GBX 359.70 per share

- 2025-09: GBX 389.90 per share

- 2025-10: GBX 376.30 per share

- 2025-11: GBX 394.40 per share

- 2025-12: GBX 381.10 per share

- 2026-01: GBX 388.20 per share

- 2026-02: GBX 364.10 per share

- 2026-03: GBX 260.30 per share

- 2026-04: GBX 250.70 per share

- 2026-05: GBX 262.90 per share

- 2026-06: GBX 281.10 per share

- 2026-07: GBX 293.30 per share

- 2026-08: GBX 318.20 per share

- 2026-09: GBX 332.20 per share

- 2026-10: GBX 310.00 per share

## Annual estimated value (GBX per share)

- FY2017: low GBX 662.32 per share, central GBX 744.29 per share, high GBX 853.41 per share

- FY2018: low GBX 762.89 per share, central GBX 856.14 per share, high GBX 980.28 per share

- FY2019: low GBX 870.47 per share, central GBX 1,114.38 per share, high GBX 1,286.84 per share

- FY2020: low GBX 534.21 per share, central GBX 600.48 per share, high GBX 688.70 per share

- FY2021: low GBX 836.00 per share, central GBX 932.32 per share, high GBX 1,060.53 per share

- FY2022: low GBX 1,071.54 per share, central GBX 1,462.42 per share, high GBX 1,695.74 per share

- FY2023: low GBX 944.26 per share, central GBX 1,247.41 per share, high GBX 1,442.03 per share

- FY2024: low GBX 382.25 per share, central GBX 425.53 per share, high GBX 483.15 per share

- FY2025: low GBX 461.90 per share, central GBX 517.45 per share, high GBX 591.40 per share

- FY2026: low GBX 262.41 per share, central GBX 290.45 per share, high GBX 327.76 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

Prior published observations retained from 2026-10-15T06:43:00.645Z where newer inputs omit a numeric field or fiscal period.

## Sources

[Original ESEF filing](https://filings.xbrl.org/2138006R85VEOF5YNK29/2025-06-29/ESEF/GB/0/2138006R85VEOF5YNK29-2025-06-29/reports/2138006R85VEOF5YNK29-2025-06-29-T01.xhtml); period 2025-06-29, filed 2025-10-14.

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.