Barratt RedrowBTDPF 73 Operating Margin % is 7.07% as of Dec. 2025, which is 53% below its 10-year median of 15.11. 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 91 Homebuilding & Construction companies, Barratt Redrow ranks worse than 62.64% on this metric.
Barratt Redrow PLC operating margin has been in a 5-year decline. The average rate of decline per year is -23.3%.
The historical rank and industry rank for Barratt Redrow's Operating Margin % or its related term are showing as below:
BTDPF'
s Operating Margin % Range Over the Past 10 Years
Min: 4.19 Med: 15.11 Max: 18.92
Current: 6.07
BTDPF's Operating Margin % is ranked worse than 62.64% of 91
companies
in the Homebuilding & Construction industry
Industry Median: 7.76
vs BTDPF: 6.07
Barratt Redrow's 5-Year Average Operating Margin % Growth Rate was -23.30% per year.
Just like Gross Margin %, it is important to see a company maintains its operating margin over time. Among the same industry, a company with higher operating margin is more efficient in its operation. It is also more stable during industry slowdown or recessions. Peter Lynch prefers those with higher margins than those with lower margins.
Be Aware
Operating Margin % can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).
If a company is facing competition, its Operating Margin % may decline. Often the Operating Margin % declines well before the company's Revenue or even profit decline. Therefore, Operating Margin % is a very important indicator of whether the company is facing problems.
For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokias Operating Margin % had already been in decline since 2002, although its Earnings per Share (Diluted) were still rising. Investors who paid attention to Operating Margin % would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).
Therefore, Operating Margin % is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.
Barratt Redrow Operating Margin % Related Terms
Barratt Redrow Operating Margin % Historical Data
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The historical data trend for Barratt Redrow's Operating 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.
BTDPF vs DHI, PHM, LEN: Operating Margin % Comparison
For the Residential Construction subindustry, Barratt Redrow's Operating Margin %, along with its competitors' market caps and Operating 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 Operating Margin % vs Homebuilding & Construction Industry
For the Homebuilding & Construction industry and Consumer Cyclical sector, Barratt Redrow's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Barratt Redrow's Operating Margin % falls into.
Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.
Barratt Redrow's Operating Margin % for the fiscal year that ended in Jun. 2025 is calculated as
* 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.
Barratt Redrow (BTDPF) has a Operating Margin % of 7.07% as of Dec. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on Barratt Redrow and its competitors. This is 53% below median its historical median of 15.11. Over the past decade, Barratt Redrow's Operating Margin % has ranged from 4.19 to 18.92. According to the industry distribution chart, Barratt Redrow ranks #57 out of 91 companies in the Homebuilding & Construction industry, placing it in the top 62.6%.
Is Barratt Redrow's Operating Margin % too high?
Barratt Redrow's current Operating Margin % of 7.07% is 53% below median its 10-year median of 15.11. Over the past 10 years, this metric has ranged from a low of 4.19 to a high of 18.92. The Homebuilding & Construction industry median Operating Margin % is 7.76. Barratt Redrow's value of 7.07% is 8.9% below this industry median. Based on the distribution chart, Barratt Redrow ranks #57 out of 91 companies in the Homebuilding & Construction industry, which is below the industry midpoint. 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 Operating Margin % compare to DHI and PHM?
According to the Homebuilding & Construction industry distribution chart, Barratt Redrow ranks #57 out of 91 companies for Operating Margin %. This places Barratt Redrow in the lower half of its industry. The industry median Operating Margin % is 7.76. Barratt Redrow's value of 7.07% is 8.9% below this benchmark. Historically, Barratt Redrow's own Operating Margin % has ranged from 4.19 to 18.92 over the past decade. While the company's 10-year median is 15.11 vs. the industry median of 7.76, 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 Operating Margin % for a Homebuilding & Construction company?
The median Operating Margin % among Homebuilding & Construction companies is 7.76, based on 91 companies in the industry. Companies in the top quartile (top 25%) have a Operating Margin % significantly above this median, while those in the bottom quartile fall well below. However, Operating Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Barratt Redrow's current Operating Margin % of 7.07% is 8.9% 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 Operating Margin % mean?
A high Operating Margin % can signal that a stock is expensive relative to its fundamentals. Operating margin is the ratio of total operating income to net sales. View historical data on Barratt Redrow and its competitors. For the Homebuilding & Construction industry, the median Operating Margin % is 7.76 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Barratt Redrow's current Operating Margin % is 7.07%, which is 53% below median its own 10-year median of 15.11. 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 Operating Margin % is 7.07%, which is 53% below median its 10-year median of 15.11 and 8.9% below the Homebuilding & Construction industry median of 7.76. 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 Operating Margin % calculated?
Operating Margin % is calculated from a company's financial statements. For Barratt Redrow (BTDPF), the current Operating Margin % is 7.07% 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:
Operating Margin %: 7.07% (53% below median its 10-year median of 15.11)
GF Value™: $5.34 vs. price of $3.50 (34.5% below fair value)
Industry Position: 8.9% below the Homebuilding & Construction median (#57 of 91)
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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