Barratt RedrowBTDPF 73 Gross Margin % is 15.00% as of Dec. 2025, which is 19% below its 10-year median of 18.61. GuruFocus rates BTDPF with a GF Score™ of 73/100 and a GF Value™ of $5.34 (Significantly Undervalued). The stock has 6 warning signs investors should review. Among 90 Homebuilding & Construction companies, Barratt Redrow ranks worse than 82.22% on this metric.
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
Barratt Redrow had a gross margin of 15.00% for the quarter that ended in Dec. 2025 => No sustainable competitive advantage
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
Barratt Redrow Gross Margin % Related Terms
Barratt Redrow Gross Margin % Historical Data
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The historical data trend for Barratt Redrow's Gross Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Residential Construction subindustry, Barratt Redrow's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Barratt Redrow Gross Margin % vs Homebuilding & Construction Industry
For the Homebuilding & Construction industry and Consumer Cyclical sector, Barratt Redrow's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Barratt Redrow's Gross Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
Barratt Redrow (BTDPF) has a Gross Margin % of 15.00% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Barratt Redrow and its competitors. This is 19% below median its historical median of 18.61. Over the past decade, Barratt Redrow's Gross Margin % has ranged from 12.22 to 22.76. According to the industry distribution chart, Barratt Redrow ranks #74 out of 90 companies in the Homebuilding & Construction industry, placing it in the top 82.2%.
Is Barratt Redrow's Gross Margin % too high?
Barratt Redrow's current Gross Margin % of 15.00% is 19% below median its 10-year median of 18.61. Over the past 10 years, this metric has ranged from a low of 12.22 to a high of 22.76. The Homebuilding & Construction industry median Gross Margin % is 21.34. Barratt Redrow's value of 15.00% is 29.7% below this industry median. Based on the distribution chart, Barratt Redrow ranks #74 out of 90 companies in the Homebuilding & Construction industry, which is in the bottom quartile relative to peers. Overall, Barratt Redrow has a GF Score™ of 73/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Barratt Redrow's Gross Margin % compare to DHI and PHM?
According to the Homebuilding & Construction industry distribution chart, Barratt Redrow ranks #74 out of 90 companies for Gross Margin %. This places Barratt Redrow in the lower half of its industry. The industry median Gross Margin % is 21.34. Barratt Redrow's value of 15.00% is 29.7% below this benchmark. Historically, Barratt Redrow's own Gross Margin % has ranged from 12.22 to 22.76 over the past decade. While the company's 10-year median is 18.61 vs. the industry median of 21.34, Barratt Redrow has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for a Homebuilding & Construction company?
The median Gross Margin % among Homebuilding & Construction companies is 21.34, based on 90 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Barratt Redrow's current Gross Margin % of 15.00% is 29.7% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on Barratt Redrow and its competitors. For the Homebuilding & Construction industry, the median Gross Margin % is 21.34 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Barratt Redrow's current Gross Margin % is 15.00%, which is 19% below median its own 10-year median of 18.61. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Barratt Redrow stock overvalued right now?
Based on GuruFocus' analysis, Barratt Redrow (BTDPF) is currently considered Significantly Undervalued. The stock's GF Value™ is $5.34, compared to a current price of $3.50 — trading 34.5% below its estimated fair value. The current Gross Margin % is 15.00%, which is 19% below median its 10-year median of 18.61 and 29.7% below the Homebuilding & Construction industry median of 21.34. Barratt Redrow's overall GF Score™ is 73/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For Barratt Redrow (BTDPF), the current Gross Margin % is 15.00% as of Dec. 2025. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Barratt Redrow (BTDPF) Overvalued in 2026?
Based on GuruFocus' analysis, Barratt Redrow stock appears to be undervalued.
The current stock price of $3.50 is trading 34.5% below its estimated GF Value™ of $5.34.
GuruFocus considers Barratt Redrow to be Significantly Undervalued.
Key valuation signals for BTDPF:
Gross Margin %: 15.00% (19% below median its 10-year median of 18.61)
GF Value™: $5.34 vs. price of $3.50 (34.5% below fair value)
Industry Position: 29.7% below the Homebuilding & Construction median (#74 of 90)
No single metric tells the full story. See the BTDPF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Barratt Redrow is the UK's largest residential property developer by revenue, marketing homes under its three brands: Barratt Homes, David Wilson, and Redrow. Barratt Developments, already the largest residential property developer in the UK by revenue, merged with Redrow in 2024. Barratt Redrow typifies the business model employed by UK homebuilders, traditionally operating in the land development, construction, and sales and marketing segments of the residential property development value chain.
73GF Score
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