Bellway BWY.L
United KingdomConsumer Cyclical · Residential ConstructionLondon Stock Exchange · GBP
23.46 GBP (+17.3%)
18 analysts
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Bellway is a British residential builder that designs, constructs, and sells homes across the UK, with a business model focused on developing housing estates and selling houses to individual buyers.
Listed on London Stock Exchange · Symbol BWY.L · LON: BWY · Currency GBP
Key points
from its scores- ✓Attractive dividend7.9
- ✓Attractive valuation7.5
- ✓Very solid balance sheet7.1
- ✕Little competitive advantage3.5
- ✕Poor share-price trend3.6
AI analysis
bottom line, main risk, context and newsBellway is a financially solid and reasonably valued company, but the lack of growth and mediocre business quality limit its appeal in the current environment.
Bellway has a very solid balance sheet (Net Debt/EBITDA of 0.23, liquidity of 5.26) and an attractive valuation (P/E of 15.15, FCF yield of 4.71), but its quality is mediocre (ROE of 4.45, gross margin of 16.36) and earnings growth is flat (-0.20%). Momentum is negative (-18.38%), reflecting the sector's weakness.
The main risk is dependence on the UK housing cycle: a rise in mortgage rates or a cooling of demand could compress margins and slow revenue growth.
Context and risks
Bellway operates in the UK, a market with moderate regulatory risk for the residential construction sector. Activity depends on the evolution of mortgage interest rates and housing policies, adding a layer of uncertainty to the business.
Is Bellway stock cheap or expensive?
at the analysis dateOn P/E and EV / EBITDA, it trades 23% below the Consumer Cyclical median on average.
| Multiple | Company | Sector | Difference |
|---|---|---|---|
| P/E | 15.2 | 17.8 | −15% |
| EV / EBITDA | 7.8 | 11.2 | −30% |
| Price / book | 0.7 | 2.9 | −77% |
| Price / sales | 0.8 | 1.3 | −38% |
Sector: median of the 228 Consumer Cyclical companies analysed. In bold, the multiples used for the comparison.
Valuation score: 7.5 out of 10 (median for Consumer Cyclical: 6.6).
Average analyst target: 23.46 GBP, +17.3% versus the price.
A discount may reflect more risk or slower growth than its sector: Financial health 7.1 (sector 5.7), Growth 5.2 (sector 5.9).
Classic formulas with standard assumptions (10.0% growth, 8-9% discount rate). Indicative only: they change a lot with the assumptions and are not a recommendation.
Work out its fair value yourself →How much would you have made investing every month? →
Comparing it with its sector does not say whether it is a good buy: this is not investment advice.
Score by category
0 to 10 · hover overtap each one to see what it measuresKey metrics
at the analysis date · compared with the Consumer Cyclical medianValuation
- P/E
- 15.2
- Forward P/E
- 12.3
- EV / EBITDA
- 7.8
- Price / book
- 0.7
- Price / sales
- 0.8
- PEG
- 1.32
- Market cap
- 2.2B GBP
- Enterprise value
- 2.4B GBP
Profitability
- ROE
- 4.5%
- ROA
- 3.8%
- ROIC (approx.)
- 8.5%
- Gross margin
- 16.4%
- Operating margin
- 10.5%
- Net margin
- 5.5%
- Free cash flow
- 104.9M GBP
- FCF yield
- 4.7%
- Cash conversion
- 34%
Solvency
- Total debt
- 190.0M GBP
- Net debt
- 72.0M GBP
- Cash
- 118.0M GBP
- EBITDA
- 308.3M GBP
- Net debt / EBITDA
- 0.23
- Debt / equity
- 5.39
- Current ratio
- 5.26
- Quick ratio
- 0.21
Growth
- Revenue growth
- +6.3%
- Earnings growth
- −0.2%
- EPS (TTM)
- 1.32 GBP
- EPS (forward)
- 1.63 GBP
Dividend
- Dividend yield
- 3.6%
- Payout
- 53.2%
Risk and market
- Beta
- 1.34
- Analyst consensus
- Buy (18)
- Target price
- 23.46 GBP
Recent news
All BWY.L news →Compare it with its sector
All 228 in Consumer Cyclical →Frequently asked questions about Bellway
Is Bellway stock cheap or expensive?
On P/E and EV / EBITDA, it trades 23% below the Consumer Cyclical median on average. Valuation score: 7.5 out of 10 (median for Consumer Cyclical: 6.6). Average analyst target: 23.46 GBP, +17.3% versus the price. This is not investment advice.
What score does Bellway get on MeridIAn Screener?
It scores 5.5 out of 10, rank 1,388 of 2,130 (better than 32% of the companies analysed). Its strongest category is Dividend (7.9) and its weakest, Quality / Moat (3.5). Analysis of 08/10/2026.
What is Bellway's P/E ratio?
Its P/E is 15.2: the share price equals 15.2 times earnings per share over the last 12 months. The Consumer Cyclical median is 17.8. Based on the earnings analysts expect, the forward P/E is 12.3.
How much is Bellway worth on the stock market?
Its market capitalisation is 2.2B GBP and its enterprise value, debt included, is 2.4B GBP.
How much debt does Bellway have?
Its net debt (debt minus cash) is 72.0M GBP. That is 0.23 times its EBITDA; the Consumer Cyclical median is 1.91.
Does Bellway pay a dividend?
Yes: its dividend yield is 3.60% and it pays out 53% of its earnings.
How has Bellway stock performed over the last year?
It has fallen 17.6% over the last year, excluding dividends. Over the last 52 weeks it has traded between 0.00 and 28.90 GBP. Past performance does not guarantee future results.
What do analysts think of Bellway?
18 analysts cover it; their average recommendation is “Buy” and their average target is 23.46 GBP (+17.3% versus the price). It is an estimate, not market data.