Bellway PLC

This report is an updated version of the report published on 06 December 2024 at 06:50 AM GMT.

Section 1: Company Overview, Low Carbon Emission Initiatives and Fundamentals

Section 1.1: Company Overview: Bellway PLC (LSE: BWY) is an FTSE 250 listed construction company involved in building and selling wide variety of homes, ranging from one-bedroom apartments up to six-bedroom family homes. Kalkine’s Low Carbon Research Report covers the Investment Highlights, Low Carbon Emission Initiatives, Key Financial Metrics, Risks, and Technical Analysis along with the Valuation, Target Price, and Recommendation on the stock.

Section 1.2: Why Low Carbon Emission Matters?

The shift toward a low-carbon economy is one of the most significant challenges of current time, spurred by the urgent need to combat climate change and reduce the environmental impact of corporate activities. This report covers LSE-listed low-carbon emission company Bellway PLC (LSE: BWY), which is committed to sustainability and responsible environmental practices.

Carbon and Waste Management - Key Metrics

BWY’s sustained environmental efforts have translated to a reduction in CO2 emissions, and higher Waste Recycling Ratio metrics since FY20, aligning with its net zero emissions goal.

Peer Comparison: Carbon Emission Metrics

1.3 The Key Positives, Negatives, Investment Highlights, and Risks

1.4 Top 10 Shareholders:

The top 10 shareholders together form ~46.94% of the total shareholding. BlackRock Investment Management (UK) Ltd. and Baillie Gifford & Co., hold maximum stakes in the company at ~7.37% and ~5.86%, respectively.

1.5 Key Metrics:

Section 2: Business Updates, Financial and Operational Highlights

2.1 Recent Business Updates:

2.2 Results Highlights

Section 3: Key Risks and Outlook:

Section 4: Stock Recommendation Summary

4.1 Price Performance and Technical Summary

The stock price has declined by ~8.78% in the last one month, whereas over the last six months, it has been corrected by ~8.91%. The stock has a 52-week low and 52-week high of GBX 2,338.00 and GBX 3,384.00, respectively, and is currently trading below the mid points of its 52-week low and 52-week high.

4.2 Fundamental Valuation

Valuation Methodology: P/E Multiple Based Relative Valuation (Illustrative)

Markets are trading in a highly volatile zone currently due to certain macro-economic issues and geopolitical tensions prevailing. Therefore, it is prudent to follow a cautious approach while investing.

Note 1: Past performance is not a reliable indicator of future performance.

Note 2: The reference data for all price data, currency, technical indicators, support, and resistance levels is 05 December 2024. The reference data in this report has been partly sourced from REFINITIV.

Note 3: Investment decisions should be made depending on an individual's appetite for upside potential, risks, holding duration, and any previous holdings. An 'Exit' from the stock can be considered if the Target Price mentioned as per the Valuation and or the technical levels provided has been achieved and is subject to the factors discussed above.

Note 4: Target Price refers to a price level that the stock is expected to reach as per the relative valuation method and or technical analysis taking into consideration both short-term and long-term scenarios.

Note 5:  Kalkine reports are prepared based on the stock prices captured either from the London Stock Exchange (LSE) and or REFINITIV. Typically, both sources (LSE and or REFINITIV) may reflect stock prices with a delay which could be a lag of 15-20 minutes. There can be no assurance that future results or events will be consistent with the information provided in the report. The information is subject to change without any prior notice.

Note 6: Dividend Yield may vary as per the stock price movement. 

Technical Indicators Defined: -

Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock.

Resistance: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Resistance 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Resistance 2 may act as the crucial resistance level for the stock.

Stop-loss: It is a level to protect further losses in case of unfavourable movement in the stock prices.