TAYLOR WIMPEY

Analysis of Taylor Wimpey share price

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Before you embark in trading the Taylor Wimpey share, we suggest you obtain as much information as possible about this share and the company. To do so, we'll be explaining who the company really is and how it works, what its activities are and its main sources of profit. The competition of this sector of activity is also important with the company's main adversaries as well as the recent strategic alliances which it has set up. Finally, we'll reveal the strengths and weaknesses of the share as well as some tips to carry out your fundamental analyses of its price.

Elements that can influence the price of this asset:

Analysis N°1

First of all, follow closely the company's possibilities of expansion outside the United Kingdom and Spain as there are geographic areas where the demand for house construction has been increasing for some time including developing countries with the demand for smart homes.

Analysis N°2

You should also keep an eye on the group's expansion possibilities by developing activities in other sectors such as industry, factory construction or other such sectors. With its expertise, this expansion is possible in various areas.

Analysis N°3

The level of debt of European nations which is increasingly important is also to be monitored as it also interferes with Taylor Wimpey orders.

Analysis N°4

Finally, you should also follow the evolution of the price of construction materials with the greatest attention, particularly the price of the various types of steel such as hot-rolled sheets or cold-rolled coils which have been increasing for several years.

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General presentation of Taylor Wimpey

Now let's explore the Taylor Wimpey Company and its industry. Knowing a company's products and services as well as its main sources of profit is important when it comes to trading a share on the stock market. Here are some elements and information that will help you.

The Taylor Wimpey Group is a British company who operate in the construction and real estate industry. Taylor Wimpey is currently one of the leading home builders in the UK.

To better understand the Company's activities, you can divide them into several divisions according to the percentage of turnover they generate like so:

  • First of all, Taylor Wimpey's main activity is the construction and sale of housing. This activity generates more than 99.1% of the group's turnover. This particularly concerns activities carried out in the United Kingdom not only with brands such as Georges Wimpey, G2, Wilson Connolly and Laing Homes but also in North America with Morrison Homes, Taylor Woodrow and Monarch or in Spain and Gibraltar with the Taylor brand Woodrow.
  • The rest of the company's turnover, i.e. 0.9%, comes from land sales activities.

As part of your analyses, it's also important to know the geographical distribution of the income of the Taylor Wimpey group. It makes 97.2% of its turnover in the United Kingdom and 2.8% in Spain.

Analysis of Taylor Wimpey share price
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The major competitors of Taylor Wimpey

To go a little further in your analysis of the Taylor Wimpey share price, we suggest you discover who its main competitors are on the market and therefore the major players in the construction industry in the United Kingdom since it's on this market that the group achieves most of its turnover.

Barratt Developments plc

This Company is currently one of the largest companies active in the residential housing sector in the United Kingdom. It has been around since 1958 and is based in Newcastle upon Tyne. It's important to mention that this company has been one of the companies listed on the London Stock Exchange since 1968 and that it is part of the composition of the FTSE 250 stock market index. The company's activities handle the construction and sale of houses with the Barratt Homes, David Wilson Homes, Barrat London and Wilson Bowden brands. The group also carries out real estate asset management activities.

Persimmon plc

This other large UK construction company is currently the largest on the UK stock market in terms of market capitalization. It's therefore a very serious competitor of Taylor Wimpey.

Pulte Group Inc.

Finally, the Pulte Group is also a competitor to watch closely and is a home construction company based in Atlanta, USA. This company is the third largest in this sector in the country in terms of the number of houses created. The company operates in over 23 different states and is ranked 312th on the Fortune 500.


The major partners of Taylor Wimpey

Of course, the Taylor Wimpey group doesn't just have enemies and adversaries but can also count on certain strategic allies to support its growth. Check out a little more about it by reading about recent partnerships that it has set up with other companies.

Vinci PLC

This British subsidiary of Vinci Construction signed a strategic partnership agreement with Taylor Wimpey in 2018 through the acquisition of the Taylor Woodrow Construction division of the latter. This division had achieved a turnover of more than 600 million pounds the previous year with an operating profit of 17.8 million pounds and organizes its activity into three big activity hubs, building, infrastructure and facility management. It carries out these activities with recurring and regular customers in the rail, airport, energy infrastructure, health and education sectors under PPP contracts (public private partnerships).

Bouygues Construction 

Also in 2018, Taylor Wimpey chose to partner with the Bouygues Construction group in the first phase of Postmark, a residential project in the heart of London. The British subsidiary of the French group therefore carried out this first phase for a project located in the historic district of the capital, the district of Farringdon. It's the construction of two real estate complexes for a total amount of 100 million euros.

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The factors in favour of a rise in the Taylor Wimpey share price:

When it comes to Taylor Wimpey's strengths, the following are be seen as advantages for its stock price:

  • First of all, the group operates a robust and transparent website which allows it to gain many customers. This group in fact relies heavily on new technologies to reach its core target, namely individual buyers.
  • Taylor Wimpey is also recognized for the quality of its products. Its brand image is therefore mostly positive on the markets of the United Kingdom and Spain.
  • The same goes for the group's customer service, which is both fast and efficient and tends to reassure potential customers and buyers.
  • The size of the company, which currently employs over 4,000 people, is also one of its main strengths in the face of competition.
  • Finally, the positioning of Taylor Wimpey on the market is another of its strengths since the company is one of the most important construction companies in the United Kingdom.
The factors in favour of a drop in the Taylor Wimpey share price:
  • First, it is a shame that the group hasn't managed to diversify geographically with a limited presence worldwide. The company carries out most of its activities in the United Kingdom and in some regions of Spain. However, the possibilities for international development are significant and the risks of recession linked to the economic slowdown in Europe are substantial.
  • Finally, the second and last weak point of the Taylor Wimpey Company relates to the high cost of its houses for end buyers, which makes their sale complicated and the company uncompetitive. The group is in fact positioned only on high-end and mid-range houses and therefore loses some of its potential prospects with lower incomes.
The information supplied here is only for indicative purposes and should not be used without the completion of a comprehensive and complete fundamental analysis of this asset notably taking into account exterior data, future publications and announcements and all fundamental events and news that could influence the strengths and weaknesses or make them more or less significant. This information does not in any way constitute recommendations relating to the completion of transactions.

Frequently Asked Questions

What analyses should be carried out to anticipate the Taylor Wimpey share price?

To anticipate future variations in the Taylor Wimpey share price, you should of course focus on the group's key news as well as on major publications such as the income statement with regard to fundamental analysis. At the same time, a coherent technical analysis of the share should be carried out in order to validate or invalidate the expected trends.

What stock market index is Taylor Wimpey listed on?

Taylor Wimpey is currently one of the companies included in the FTSE 250, which is a British stock market index calculated by the FTSE Group. This completes the FTSE 100 index, but this time is made up of 250 British companies with the capitalization between 101st and 350th place. It's reassessed quarterly in March, June, September and December of each year.

When did the merger that gave birth to Taylor Wimpey happen?

The Taylor Wimpey Group was born out of the 2007 merger of British property builders Taylor Woodrow and George Wimpey. The new group created was able to instantly become the largest manufacturer in the United Kingdom with a capitalization of nearly 5 billion pounds at that time, nearly 7.39 billion euros.

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