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Redrow (LSE:RDW) Profitability Rank : 7 (As of Dec. 2023)


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What is Redrow Profitability Rank?

Redrow has the Profitability Rank of 7.

GuruFocus Profitability Rank ranks how profitable a company is and how likely the company's business will stay that way. It is based on these factors:

1. Operating Margin %
2. Piotroski F-Score
3. Trend of the Operating Margin % (5-year average). The company with an uptrend profit margin has a higher rank.
4. Consistency of the profitability
5. Predictability Rank

Redrow's Operating Margin % for the quarter that ended in Dec. 2023 was 11.38%. As of today, Redrow's Piotroski F-Score is 6.


Competitive Comparison of Redrow's Profitability Rank

For the Residential Construction subindustry, Redrow's Profitability Rank, along with its competitors' market caps and Profitability Rank 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.


Redrow's Profitability Rank Distribution in the Homebuilding & Construction Industry

For the Homebuilding & Construction industry and Consumer Cyclical sector, Redrow's Profitability Rank distribution charts can be found below:

* The bar in red indicates where Redrow's Profitability Rank falls into.



Redrow Profitability Rank Calculation

GuruFocus Profitability Rank ranks how profitable a company is and how likely the company's business will stay that way.

The maximum rank is 10. A rank of 7 or higher means a higher profitability and may stay that way. A rank of 3 or lower indicates that the company has had trouble to make a profit.

Redrow has the Profitability Rank of 7.

Profitability Rank is not directly related to the Financial Strength. But if a company is consistently profitable, its financial strength will be stronger.

Profitability Rank is based on these factors:

1. Operating Margin %

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.

Redrow's Operating Margin % for the quarter that ended in Dec. 2023 is calculated as:

Operating Margin %=Operating Income (Q: Dec. 2023 ) / Revenue (Q: Dec. 2023 )
=86 / 756
=11.38 %

* 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.

2. Piotroski F-Score

The zones of discrimination were as such:

Good or high score = 8 or 9
Bad or low score = 0 or 1

Redrow has an F-score of 6 indicating the company's financial situation is typical for a stable company.

3. Trend of the Operating Margin % (5-year average). The company with an uptrend profit margin has a higher rank.

Warning Sign:

Redrow PLC operating margin has been in a 5-year decline. The average rate of decline per year is -4%.

4. Consistency of the profitability

5. Predictability Rank


Redrow Profitability Rank Related Terms

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Redrow (LSE:RDW) Business Description

Traded in Other Exchanges
Address
Redrow House, St David's Park, Flintshire, GBR, CH5 3RX
Redrow PLC is a British construction company that focuses on residential construction. The company constructs single-family homes, apartments, and townhomes throughout England and Wales. It is one of the largest homebuilders in the region. Redrow operates across five distinct brands that provide various levels of luxury and styling for its customers to choose from. Single-family homes account for the majority of construction revenue, followed by apartment communities. The company operates approx 13 divisions across its regions, with London and surrounding communities providing the largest source of geographic revenue historically. Redrow is also engaged in land development for its future construction projects.

Redrow (LSE:RDW) Headlines

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