# Taylor Wimpey plc (TW.L) fundamentals

Data as of 2026-09-08. LSE, United Kingdom. Sector: Industrials / Construction & Engineering. Price 81p, market value 2.8 billionp.

## Valuation
- **P/E (trailing): 11.6×** (5-yr avg 1797.4×, 3-yr avg 2419.3×). Taylor Wimpey plc trades at 11.6× trailing earnings, well below its own five-year average of 1797.4×: cheap by its own standards. The Industrials median in the September 2026 study was 25.7×. Forward P/E is 14.6×, higher than trailing, so analysts expect earnings to fall.
- **Price / sales: 0.4×**. Each dollar of revenue is priced at 0.4×, a low multiple typical of thin-margin businesses or out-of-favour stocks.
- **Price / book: 0.7×**. The shares trade below book value, which can signal a bargain or a balance sheet the market doubts.
- **EV / EBITDA: 2.9×**. Enterprise value is 2.9× operating earnings before depreciation, the multiple that ignores how the company is financed; below 8× is inexpensive for most sectors.
- **Free-cash-flow yield: 10.8%** (5-yr avg 0.1%). Free cash flow equals 10.8% of the market value, above its five-year average of 0.1%, so the shares are cheaper on cash than they have usually been. Above 5% is generally attractive.
- **Earnings yield: 8.6%**. The inverse of the P/E: 8.6% of the price is earned each year.

## Profitability
- **Gross margin: 18.0%**. Taylor Wimpey plc keeps 18.0% of revenue after the direct cost of what it sells, a thin margin typical of retail, distribution and commodity businesses.
- **Operating margin: 11.3%**. 11.3% of revenue is left after running the business.
- **Net margin: 2.6%**. 2.6% of each dollar of sales reaches the bottom line.
- **Return on equity: 2.4%**. 2.4% on shareholders' equity is weak; the business earns little on the capital its owners have in it.
- **Return on invested capital: 11.7%**. Return on all capital, debt included, is 11.7%.
- **Return on assets: 5.3%**. Each dollar of assets produces 5.3% of profit.

## Growth
- **Revenue growth (1 yr): 13.0%** (3-yr -4.5%/yr, 5-yr 6.6%/yr). Revenue grew 13.0% over the last year, against 6.6% a year compounded over five years: growth is accelerating.
- **EPS growth (1 yr): -54.2%** (3-yr -46.0%/yr, 5-yr -14.5%/yr). Earnings per share fell 54.2%, slower than revenue, so margins compressed.
- **Free-cash-flow growth (3 yr): -33.3%/yr**. Free cash flow has compounded at -33.3% a year over three years, keeping pace with earnings: the growth is real cash.

## Financial health
- **Debt to equity: 0.03**. Debt is 0.03 times equity: a conservative balance sheet.
- **Net debt / EBITDA: net cash**. Taylor Wimpey plc holds more cash than debt.
- **Interest coverage: 33.1×**. Operating profit covers interest 33.1× over, a safe margin.
- **Current ratio: 4.96** (quick 0.54). Current assets cover the next year's liabilities 4.96 times.
- **Altman Z-score: 3.66**. A Z-score of 3.66 places the company in the safe zone for bankruptcy risk.
- **Piotroski F-score: 6/9**. 6 of 9 checks pass: mixed.

## Dividends
- **Dividend yield: 5.02%** (0p per share, trailing). Taylor Wimpey plc yields 5.02%, an income-level yield.
- **Payout ratio: 329%** (219% of free cash flow). The dividend exceeds earnings (329% payout), which is rarely sustainable outside REITs and one-off years.
- **Shareholder yield: 5.2%**. Dividends plus net buybacks return 5.2% of the market value a year.

## Price and momentum
- **Total return (1 yr): -14.4%** (YTD -23.0%, 3-mo 6.9%). The shares are down 14.4% over twelve months including dividends.
- **From 52-week high: -30.4%** (9.8% above the low). Trading 30% below its 52-week high, deep in a drawdown.
- **200-day average: below**. The price sits below its 200-day moving average, the usual definition of a downtrend.
- **RSI (14-day): 48**. An RSI of 48 is neutral.
- **Beta (1 yr): 1.04** (volatility 29%). Beta of 1.04 against the FTSE All-Share: the shares move roughly with the market.

Live score and charts: https://foliofundamentals.com/analyzer?s=TW.L · Page: https://foliofundamentals.com/stocks/tw.l

Not investment advice.