Other Items - Barratt Developments P L C (LSE:BDEV)

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Price: 472 GBX 2.79% Market Closed

Market Cap: £6.8B

Barratt Developments P L C
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Barratt Developments P L C
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	Other Items	CAGR 3Y	CAGR 5Y	CAGR 10Y
Barratt Developments P L C LSE:BDEV	Other Items £72.7m	CAGR 3-Years 29%	CAGR 5-Years 60%	CAGR 10-Years 42%
Bellway PLC LSE:BWY	Other Items -£1m	CAGR 3-Years N/A	CAGR 5-Years 36%	CAGR 10-Years N/A
Berkeley Group Holdings PLC LSE:BKG	Other Items £33.6m	CAGR 3-Years -21%	CAGR 5-Years 117%	CAGR 10-Years N/A
Persimmon PLC LSE:PSN	Other Items £4.8m	CAGR 3-Years 75%	CAGR 5-Years N/A	CAGR 10-Years 14%
Taylor Wimpey PLC LSE:TW	Other Items £30.5m	CAGR 3-Years 87%	CAGR 5-Years 69%	CAGR 10-Years 36%
Barratt Redrow PLC LSE:BTRW	Other Items £216.4m	CAGR 3-Years N/A	CAGR 5-Years 26%	CAGR 10-Years 16%

Barratt Developments P L C
Glance View

Market Cap

6.8B GBX

Industry

Consumer products

Barratt Developments PLC stands as one of the titans of the UK's housebuilding industry, tracing its origins back to the ambitions of Sir Lawrie Barratt in 1958. With a steadfast commitment to expanding the horizons of homeownership, the company meticulously crafts a myriad of residential properties, ranging from affordable housing units to luxury developments. Its operations revolve around a well-honed process of acquiring land, designing appealing residential projects, securing planning permissions, and then constructing homes that cater to diverse tastes and budgets. This developmental prowess has garnered them a substantial market footprint, allowing Barratt to thrive even amidst the intricate and often volatile dynamics of real estate markets. At the heart of Barratt’s financial ecosystem is a disciplined approach to capital investment and cost management. By leveraging economies of scale, they optimize construction efficiency, which in tandem with strategic land purchases, bolsters their profit margins. The company frequently reinvests its earnings to secure new land banks and enhance its technological and environmental practices, essential in a sector increasingly focused on sustainability. Through a network of influential national brands and a keen eye on market trends, Barratt not only meets consumer demand but also stays resilient during economic cycles, this resilience is key to their sustained financial health and market leadership in the competitive landscape of the UK's housing sector.

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BDEV Intrinsic Value

What is Intrinsic Value?

Economic Moat is a concept popularized by Warren Buffett to describe a company's durable competitive advantage. It represents the 'moat' that protects a company from competitors and helps it sustain profitability over the long term. Our analysis of the past 10 years showed that companies with a wide economic moat significantly outperformed the market, delivering +645% returns compared to +189% for the S&P 500.

Our research into Economic Moat performance spans the past 10 years and focuses on companies with a wide economic moat. For this analysis, we calculated the average stock price returns of these companies, comparing them to the performance of the S&P 500 index over the same period.

The results were compelling: wide moat stocks achieved a remarkable +645% average return, compared to +188% for the broader market. This difference highlights the long-term benefits of investing in businesses that can maintain their market position and pricing power over time.

Note: This research does not account for survivorship bias. Past performance is not indicative of future results.

Determining whether a company has an economic moat requires both a deep dive into financial metrics and a qualitative assessment of its competitive position. Our analysts conduct a rigorous evaluation that focuses on identifying structural advantages that enable a company to sustain profitability and defend its market share over the long term.

The process begins with an analysis of a company’s historical financial performance. We assess how consistently the company has generated returns above its cost of capital and whether those returns have been stable or improving. However, financial performance alone doesn’t reveal the full picture. To understand the sources of these advantages, we evaluate five key drivers of economic moats:

Network Effect: We analyze whether the value of a company’s product or service grows as its user base expands. Platforms like payment systems or marketplaces benefit from this self-reinforcing.

Switching Costs: We assess whether customers face significant costs or disruptions when switching to a competitor’s product or service. High switching costs create customer stickiness and provide pricing power.

Intangible Assets: Strong brands, patents, and regulatory licenses can protect a company’s market position by creating barriers for competitors or enabling premium pricing. For example, a well-recognized consumer brand may command higher customer loyalty and margins.

Efficient scale: Occurs when a market is optimally served by one or a few players, making it unprofitable for new entrants to compete. This typically happens in industries with high fixed costs or geographic constraints, such as utilities or pipelines.

Cost Advantage: Companies with structural cost advantages can produce goods or services at a lower cost than their competitors, enabling them to offer competitive pricing or maintain higher margins. These advantages often arise from economies of scale, superior supply chain management, or proprietary technology. Firms like Walmart leverage their massive scale to negotiate better terms with suppliers, allowing them to undercut competitors on price.

By examining these factors in combination with a company’s financial performance and market positioning, we classify each company into one of three categories:

This rigorous evaluation ensures that our moat ratings are both comprehensive and reliable, giving investors the tools they need to make well-informed, long-term decisions.

The AI Assistant may sometimes provide inaccurate information.

Make your own investment decisions or consult a licensed financial advisor.

Barratt Developments P L C
LSE:BDEV

Barratt Developments P L C
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Barratt Developments P L C
Other Items Peer Comparison

Competitors Analysis
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Barratt Developments P L C
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What is Barratt Developments P L C's Other Items?

Other Items
72.7m GBP

What is Barratt Developments P L C's Other Items growth rate?

Other Items CAGR 10Y
42%

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Barratt Developments P L C LSE:BDEV

Barratt Developments P L C Other Items

Barratt Developments P L C Other Items Peer Comparison

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Barratt Developments P L C Glance View

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What is Barratt Developments P L C's Other Items? Other Items 72.7m GBP

What is Barratt Developments P L C's Other Items growth rate? Other Items CAGR 10Y 42%

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Barratt Developments P L C
LSE:BDEV

Barratt Developments P L C
Other Items

Barratt Developments P L C
Other Items Peer Comparison

Competitors Analysis
Latest Figures & CAGR of Competitors

Barratt Developments P L C
Glance View

What is Barratt Developments P L C's Other Items?

Other Items
72.7m GBP

What is Barratt Developments P L C's Other Items growth rate?

Other Items CAGR 10Y
42%