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Balfour Beatty

DB:BIH
Snowflake Description

Solid track record second-rate dividend payer.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
BIH
DB
£2B
Market Cap
  1. Home
  2. DE
  3. Capital Goods
Company description

Balfour Beatty plc finances, develops, builds, and maintains infrastructure in the United Kingdom, the United States, and internationally. The last earnings update was 192 days ago. More info.


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BIH Share Price and Events
7 Day Returns
0%
DB:BIH
5.3%
DE Construction
1.2%
DE Market
1 Year Returns
4.4%
DB:BIH
-1.7%
DE Construction
-11.2%
DE Market
BIH Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Balfour Beatty (BIH) 0% 1.9% 5.7% 4.4% 1.6% -16.7%
DE Construction 5.3% 8.9% 13% -1.7% 41.6% 85.4%
DE Market 1.2% 2.7% 1.7% -11.2% 12% 6.1%
1 Year Return vs Industry and Market
  • BIH outperformed the Construction industry which returned -1.7% over the past year.
  • BIH outperformed the Market in Germany which returned -11.2% over the past year.
Price Volatility
BIH
Industry
5yr Volatility vs Market

BIH Value

 Is Balfour Beatty undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Balfour Beatty to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data    Our calculation method for this is changing soon.

Below are the data sources, inputs and calculation used to determine the intrinsic value for Balfour Beatty.

DB:BIH Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 5 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 8.1%
Perpetual Growth Rate 10-Year DE Government Bond Rate 0.2%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for DB:BIH
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year DE Govt Bond Rate 0.2%
Equity Risk Premium S&P Global 9.8%
Construction Unlevered Beta Simply Wall St/ S&P Global 0.57
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.565 (1 + (1- 19%) (53.35%))
0.809
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.81
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 0.23% + (0.809 * 9.77%)
8.14%

Discounted Cash Flow Calculation for DB:BIH using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Balfour Beatty is arrived at by discounting future cash flows to their present value using the 2 stage method. We use analyst's estimates of cash flows going forward 5 years for the 1st stage, the 2nd stage assumes the company grows at a stable rate into perpetuity.

DB:BIH DCF 1st Stage: Next 5 year cash flow forecast
2019 2020 2021 2022 2023
Levered FCF (GBP, Millions) 112.65 93.89 92.25 90.65 89.07
Source Analyst x3 Analyst x2 Est @ -1.74% Est @ -1.74% Est @ -1.74%
Present Value
Discounted (@ 8.14%)
104.17 80.29 72.95 66.29 60.24
Present value of next 5 years cash flows £383.94
DB:BIH DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2023 × (1 + g) ÷ (Discount Rate – g)
= £89.07 × (1 + 0.23%) ÷ (8.14% – 0.23%)
£1,128.62
Present Value of Terminal Value = Terminal Value ÷ (1 + r)5
= £1,128.62 ÷ (1 + 8.14%)5
£763.22
DB:BIH Total Equity Value
Calculation Result
Total Equity Value = Present value of next 5 years cash flows + Terminal Value
= £383.94 + £763.22
£1,147.16
Equity Value per Share
(GBP)
= Total value / Shares Outstanding
= £1,147.16 / 680.04
£1.91
DB:BIH Discount to Share Price
Calculation Result
Non-primary Listing Adjustment Factor 1 share in DB:BIH represents 1.13455x of LSE:BBY
(This could be a different class, a depositary receipt, a different currency, or all of these things.)
1.13455x
Value per Share
(Listing Adjusted, EUR)
= Value per Share (GBP) x Listing Adjustment Factor
= £ 1.69 x 1.13455
€1.91
Value per share (EUR) From above. €1.91
Current discount Discount to share price of €3.20
= -1 x (€3.20 - €1.91) / €1.91
-67%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of Balfour Beatty is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Balfour Beatty's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Balfour Beatty's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
DB:BIH PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-06-29) in GBP £0.32
LSE:BBY Share Price ** LSE (2019-02-22) in GBP £2.82
Europe Construction Industry PE Ratio Median Figure of 97 Publicly-Listed Construction Companies 10.41x
Germany Market PE Ratio Median Figure of 420 Publicly-Listed Companies 18.04x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Balfour Beatty.

DB:BIH PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= LSE:BBY Share Price ÷ EPS (both in GBP)

= 2.82 ÷ 0.32

8.83x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Balfour Beatty is good value based on earnings compared to the Europe Construction industry average.
  • Balfour Beatty is good value based on earnings compared to the Germany market.
Price based on expected Growth
Does Balfour Beatty's expected growth come at a high price?
Raw Data
DB:BIH PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 8.83x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 5 Analysts
0.8%per year
Europe Construction Industry PEG Ratio Median Figure of 47 Publicly-Listed Construction Companies 1.01x
Germany Market PEG Ratio Median Figure of 277 Publicly-Listed Companies 1.4x

*Line of best fit is calculated by linear regression .

DB:BIH PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 8.83x ÷ 0.8%

11.46x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Balfour Beatty is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Balfour Beatty's assets?
Raw Data
DB:BIH PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-06-29) in GBP £1.75
LSE:BBY Share Price * LSE (2019-02-22) in GBP £2.82
Europe Construction Industry PB Ratio Median Figure of 136 Publicly-Listed Construction Companies 1.15x
Germany Market PB Ratio Median Figure of 565 Publicly-Listed Companies 1.78x
DB:BIH PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= LSE:BBY Share Price ÷ Book Value per Share (both in GBP)

= 2.82 ÷ 1.75

1.61x

* Primary Listing of Balfour Beatty.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Balfour Beatty is overvalued based on assets compared to the Europe Construction industry average.
X
Value checks
We assess Balfour Beatty's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Construction industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Construction industry average (and greater than 0)? (1 check)
  5. Balfour Beatty has a total score of 2/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

BIH Future Performance

 How is Balfour Beatty expected to perform in the next 1 to 3 years based on estimates from 5 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
0.8%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Balfour Beatty expected to grow at an attractive rate?
  • Balfour Beatty's earnings growth is expected to exceed the low risk savings rate of 0.2%.
Growth vs Market Checks
  • Balfour Beatty's earnings growth is positive but not above the Germany market average.
  • Balfour Beatty's revenue growth is expected to exceed the Germany market average.
Annual Growth Rates Comparison
Raw Data
DB:BIH Future Growth Rates Data Sources
Data Point Source Value (per year)
DB:BIH Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 5 Analysts 0.8%
DB:BIH Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 5 Analysts 5.2%
Europe Construction Industry Earnings Growth Rate Market Cap Weighted Average 12.7%
Europe Construction Industry Revenue Growth Rate Market Cap Weighted Average 3.1%
Germany Market Earnings Growth Rate Market Cap Weighted Average 10%
Germany Market Revenue Growth Rate Market Cap Weighted Average 5.1%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
DB:BIH Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (7 months ago) See Below
Future Estimates Average of up to 5 Analyst Estimates (S&P Global) See Below
All numbers in GBP Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
DB:BIH Future Estimates Data
Date (Data in GBP Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2020-12-31 8,002 186 189 3
2019-12-31 7,684 167 170 5
2018-12-31 7,400 -66 155 5
DB:BIH Past Financials Data
Date (Data in GBP Millions) Revenue Cash Flow Net Income *
2018-06-29 6,592 -6 217
2018-03-29 6,754 16 190
2017-12-31 6,916 38 162
2017-09-30 7,030 -1 93
2017-06-30 7,144 -39 23
2017-03-31 7,034 -88 13
2016-12-31 6,923 -136 2
2016-09-30 6,868 -163 -30
2016-07-01 6,812 -190 -62
2016-04-01 6,884 -160 -134
2015-12-31 6,955 -129 -206
2015-09-30 7,375 -119 -281

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Balfour Beatty's earnings are expected to grow by 0.8% yearly, however this is not considered high growth (20% yearly).
  • Balfour Beatty's revenue is expected to grow by 5.2% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
DB:BIH Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (7 months ago) See Below
Future Estimates Average of up to 5 Analyst Estimates (S&P Global) See Below

All data from Balfour Beatty Company Filings, last reported 7 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

DB:BIH Future Estimates Data
Date (Data in GBP Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2020-12-31 0.28 0.29 0.27 2.00
2019-12-31 0.25 0.26 0.24 2.00
2018-12-31 0.23 0.24 0.21 2.00
DB:BIH Past Financials Data
Date (Data in GBP Millions) EPS *
2018-06-29 0.32
2018-03-29 0.28
2017-12-31 0.24
2017-09-30 0.14
2017-06-30 0.03
2017-03-31 0.02
2016-12-31 0.00
2016-09-30 -0.04
2016-07-01 -0.09
2016-04-01 -0.20
2015-12-31 -0.30
2015-09-30 -0.41

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Balfour Beatty is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Balfour Beatty's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Europe market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Europe market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Balfour Beatty has a total score of 2/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

BIH Past Performance

  How has Balfour Beatty performed over the past 5 years?

  • Balfour Beatty's last earnings update was 192 days ago.
The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Balfour Beatty's growth in the last year to its industry (Construction).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Balfour Beatty has delivered over 20% year on year earnings growth in the past 5 years.
  • Balfour Beatty's 1-year earnings growth exceeds its 5-year average (848.2% vs 41.5%)
  • Balfour Beatty's earnings growth has exceeded the Europe Construction industry average in the past year (848.2% vs 14.1%).
Earnings and Revenue History
Balfour Beatty's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Balfour Beatty Company Filings, last reported 7 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

DB:BIH Past Revenue, Cash Flow and Net Income Data
Date (Data in GBP Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-06-29 6,592.00 217.00 3.00
2018-03-29 6,754.00 189.50 4.50
2017-12-31 6,916.00 162.00 6.00
2017-09-30 7,030.00 92.50 5.50
2017-06-30 7,144.00 23.00 5.00
2017-03-31 7,033.50 12.50 4.50
2016-12-31 6,923.00 2.00 4.00
2016-09-30 6,867.50 -30.00 3.50
2016-07-01 6,812.00 -62.00 3.00
2016-04-01 6,883.50 -134.00 3.00
2015-12-31 6,955.00 -206.00 3.00
2015-09-30 7,374.50 -281.00 6.50
2015-06-26 7,175.00 -410.00 10.00
2015-03-26 7,219.50 -356.00 13.00
2014-12-31 7,264.00 -302.00 16.00
2014-09-30 6,688.50 -231.00 13.50
2014-06-27 6,732.00 -106.00 11.00
2014-03-27 7,110.00 -79.50 10.00
2013-12-31 7,488.00 -53.00 9.00
2013-09-30 8,006.50 -3.50 9.50
2013-06-28 8,525.00 46.00 10.00
2013-03-28 8,590.50 83.50 9.50
2012-12-31 8,656.00 121.00 9.00
2012-09-30 9,040.00 162.00 8.00
2012-06-29 9,424.00 203.00 7.00
2012-03-29 9,459.00 192.50 5.00

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Balfour Beatty has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Balfour Beatty used its assets more efficiently than the Europe Construction industry average last year based on Return on Assets.
  • Balfour Beatty has become profitable over the past 3 years. This is considered to be a significant improvement in its use of capital (Return on Capital Employed).
X
Past performance checks
We assess Balfour Beatty's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Construction industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Balfour Beatty has a total score of 5/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

BIH Health

 How is Balfour Beatty's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Balfour Beatty's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Balfour Beatty's short term (1 year) commitments are greater than its holdings of cash and other short term assets.
  • Balfour Beatty's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Balfour Beatty's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Debt is covered by short term assets, assets are 2.3x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Balfour Beatty Company Filings, last reported 7 months ago.

DB:BIH Past Debt and Equity Data
Date (Data in GBP Millions) Total Equity Total Debt Cash & Short Term Investments
2018-06-29 1,240.00 1,022.00 926.00
2018-03-29 1,240.00 1,022.00 926.00
2017-12-31 1,066.00 1,075.00 970.00
2017-09-30 1,066.00 1,075.00 970.00
2017-06-30 765.00 1,108.00 843.00
2017-03-31 765.00 1,108.00 843.00
2016-12-31 762.00 966.00 770.00
2016-09-30 762.00 966.00 770.00
2016-07-01 834.00 1,212.00 728.00
2016-04-01 834.00 1,212.00 728.00
2015-12-31 830.00 1,044.00 667.00
2015-09-30 830.00 1,033.00 666.00
2015-06-26 854.00 972.00 740.00
2015-03-26 854.00 972.00 740.00
2014-12-31 1,230.00 1,143.00 733.00
2014-09-30 1,230.00 1,143.00 733.00
2014-06-27 965.00 1,204.00 457.00
2014-03-27 965.00 1,204.00 457.00
2013-12-31 1,035.00 1,187.00 606.00
2013-09-30 1,035.00 1,187.00 606.00
2013-06-28 1,192.00 1,308.00 564.00
2013-03-28 1,192.00 1,308.00 564.00
2012-12-31 1,313.00 1,108.00 543.00
2012-09-30 1,313.00 1,108.00 543.00
2012-06-29 1,256.00 1,117.00 586.00
2012-03-29 1,256.00 1,117.00 586.00
  • Balfour Beatty's level of debt (82.4%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has been reduced over the past 5 years (109.8% vs 82.4% today).
  • Operating cash flow is negative therefore debt is not well covered.
  • Interest payments on debt are not well covered by earnings (EBIT is 2.5x annual interest expense, ideally 3x coverage).
X
Financial health checks
We assess Balfour Beatty's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Balfour Beatty has a total score of 2/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

BIH Dividends

 What is Balfour Beatty's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
1.28%
Current annual income from Balfour Beatty dividends. Estimated to be 2.56% next year.
If you bought €2,000 of Balfour Beatty shares you are expected to receive €26 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Balfour Beatty's pays a lower dividend yield than the bottom 25% of dividend payers in Germany (1.54%).
  • Balfour Beatty's dividend is below the markets top 25% of dividend payers in Germany (3.93%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
DB:BIH Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 5 Analyst Estimates (S&P Global) See Below
Europe Construction Industry Average Dividend Yield Market Cap Weighted Average of 72 Stocks 3.8%
Germany Market Average Dividend Yield Market Cap Weighted Average of 332 Stocks 3%
Germany Minimum Threshold Dividend Yield 10th Percentile 0.9%
Germany Bottom 25% Dividend Yield 25th Percentile 1.5%
Germany Top 25% Dividend Yield 75th Percentile 3.9%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

DB:BIH Future Dividends Estimate Data
Date (Data in £) Dividend per Share (annual) Avg. No. Analysts
2020-12-31 0.08 4.00
2019-12-31 0.06 6.00
2018-12-31 0.05 6.00
DB:BIH Past Annualized Dividends Data
Date (Data in £) Dividend per share (annual) Avg. Yield (%)
2018-03-14 0.036 1.297
2017-03-16 0.027 0.987
2016-08-17 0.018 0.659
2016-04-12 0.000 0.000
2016-03-15 0.000 0.000
2015-08-12 0.000 0.000
2015-04-02 0.000 0.000
2015-03-25 0.000 0.000
2014-03-18 0.141 6.485
2014-03-06 0.141 4.922
2013-03-07 0.141 5.467
2012-03-27 0.138 4.896
2012-03-08 0.138 4.759
2011-03-03 0.127 4.548
2011-03-02 0.127 3.650
2010-03-04 0.120 4.323
2010-03-01 0.120 4.268
2009-08-11 0.132 4.635
2009-03-05 0.128 3.910
2009-02-24 0.115 3.496

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been stable in the past 10 years.
  • Dividends per share have fallen over the past 10 years.
Current Payout to shareholders
What portion of Balfour Beatty's earnings are paid to the shareholders as a dividend.
  • Dividends paid are thoroughly covered by earnings (8x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (3.3x coverage).
X
Income/ dividend checks
We assess Balfour Beatty's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.9%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Balfour Beatty afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Balfour Beatty has a total score of 3/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

BIH Management

 What is the CEO of Balfour Beatty's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Leo Quinn
COMPENSATION £5,393,891
AGE 61
TENURE AS CEO 4.1 years
CEO Bio

Mr. Leo M. Quinn, MSc, BSc (Hons) has been the Chief Executive Officer of Balfour Beatty plc since January 1, 2015. Mr. Quinn served as the Chief Executive Officer of QinetiQ Group Plc from November 16, 2009 to December 31, 2014. Mr. Quinn served as the President of Tridium, Inc. Mr. Quinn served as an Chief Executive of De La Rue Plc from May 31, 2004 to December 31, 2004. He served as the President of Honeywell's International Enterprise Solutions division in the USA since 2000. Mr. Quinn was employed at Invensys Limited (alternate name, Invensys plc), where he served as the Chief Operating Officer of the Product Management Division, based in Massachusetts, USA. He has considerable operational experience, having spent 16 years with Honeywell Inc., the engineering Group from 2001 to 2004, initially in the UK, but also held a variety of senior management roles in the USA, Europe, the Middle East and Africa including Global President of Home & Business Controls Enterprise Solutions. He has been an Independent Non-Executive Director of Betfair Group PLC since March 05, 2014, The Sporting Exchange Limited since March 2014 and Betfair Limited since March 2014. He has been an Executive Director of Balfour Beatty plc since January 1, 2015. He served as Executive Director of QinetiQ Group Plc until December 31, 2014. He held a number of general management roles around the world with Honeywell International Inc. He served as an Independent Non-Executive Director of Tomkins Limited (alternate name, Tomkins PLC) from July 6, 2007 to November 3, 2009. He served as Independent Non-Executive Director of Pinafore Holdings B.V. from July 6, 2007 to November 3, 2009. He served as a Director of Wyless Plc. He served as an Executive Director of De La Rue plc from March 29, 2004 to December 31, 2008. Mr. Quinn received a Matching Award to mirror its Performance Share Plan in respect of this share purchase, subject to normal vesting and performance conditions. He was educated at both Imperial College and Portsmouth University and holds an MSc in Management Science and a BSc in Civil Engineering.

CEO Compensation
  • Leo's compensation has increased by more than 20% in the past year.
  • Leo's remuneration is higher than average for companies of similar size in Germany.
Management Team Tenure

Average tenure and age of the Balfour Beatty management team in years:

3.9
Average Tenure
61
Average Age
  • The tenure for the Balfour Beatty management team is about average.
Management Team

Leo Quinn

TITLE
Group Chief Executive & Executive Director
COMPENSATION
£5M
AGE
61
TENURE
4.1 yrs

Phil Harrison

TITLE
CFO & Executive Director
COMPENSATION
£2M
AGE
57
TENURE
3.7 yrs

William Weir

TITLE
Honorary President
COMPENSATION
£64K
AGE
85
TENURE
15.8 yrs

John Tarpey

TITLE
Chief of Organization Development

Chris Johnson

TITLE
Chief Information Officer & Group Procurement Director
TENURE
3.6 yrs

David Mercer

TITLE
Head of Legal
TENURE
3.6 yrs

Louise McCulloch

TITLE
Group Head of Communications
TENURE
0.3 yrs

Paul Raby

TITLE
Human Resources Director
TENURE
14.1 yrs

John Moore

TITLE
Chief Executive Officer of International Businesses
TENURE
10.9 yrs

Neil Patterson

TITLE
Regional Managing Director of London and South East for UK Construction Business
Board of Directors Tenure

Average tenure and age of the Balfour Beatty board of directors in years:

3.8
Average Tenure
62
Average Age
  • The tenure for the Balfour Beatty board of directors is about average.
Board of Directors

Phil Aiken

TITLE
Non-Executive Chairman
COMPENSATION
£270K
AGE
69
TENURE
3.9 yrs

Leo Quinn

TITLE
Group Chief Executive & Executive Director
COMPENSATION
£5M
AGE
61
TENURE
4.1 yrs

Phil Harrison

TITLE
CFO & Executive Director
COMPENSATION
£2M
AGE
57
TENURE
3.7 yrs

Iain G. Ferguson

TITLE
Senior Independent Director
COMPENSATION
£69K
AGE
63
TENURE
6.8 yrs

Stuart Doughty

TITLE
Non-Executive Director
COMPENSATION
£64K
AGE
74
TENURE
3.8 yrs

Stephen Billingham

TITLE
Non-Executive Director
COMPENSATION
£69K
AGE
60
TENURE
3.7 yrs

Mark Layman

TITLE
Director of Balfour Beatty Construction Services US
TENURE
5.2 yrs

Barbara Moorhouse

TITLE
Non-Executive Director
COMPENSATION
£35K
AGE
60
TENURE
1.7 yrs

Mike Lucki

TITLE
Non-Executive Director
COMPENSATION
£35K
AGE
62
TENURE
1.6 yrs

Anne Drinkwater

TITLE
Non-Executive Director
AGE
62
TENURE
0.2 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (€) Value (€)
02. Jul 18 Sell Philip Harrison Individual 29. Jun 18 29. Jun 18 -121,869 €3.18 €-387,405
02. Jul 18 Sell Leo Quinn Individual 29. Jun 18 29. Jun 18 -336,646 €3.18 €-1,070,153
02. Jul 18 Sell Leo Quinn Individual 29. Jun 18 29. Jun 18 -93,042 €3.18 €-295,768
15. Mar 18 Sell Leo Quinn Individual 14. Mar 18 14. Mar 18 -231,865 €3.20 €-742,411
X
Management checks
We assess Balfour Beatty's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Balfour Beatty has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

BIH News

Simply Wall St News

BIH Company Info

Map
Description

Balfour Beatty plc finances, develops, builds, and maintains infrastructure in the United Kingdom, the United States, and internationally. It operates through Construction Services, Support Services, and Infrastructure Investments segments. The Construction Services segment provides civil engineering, building, ground engineering, mechanical and electrical installation, refurbishment and fit-out, and rail engineering services. The Support Services segment installs, upgrades, and maintains water, gas, and electricity networks; and undertakes highways network management, operation, and maintenance works, as well as provides rail technology and rail renewal services. The Infrastructure Investments segment engages in the acquisition, operation, and disposal of infrastructure assets, such as roads, hospitals, student accommodation, military housing, offshore transmission networks, waste and biomass, and other concessions. This segment also develops and finances public and private infrastructure projects. Balfour Beatty plc was founded in 1909 and is based in London, the United Kingdom.

Details
Name: Balfour Beatty plc
BIH
Exchange: DB
Founded: 1909
£2,205,868,791
680,039,619
Website: http://www.balfourbeatty.com
Address: Balfour Beatty plc
5 Churchill Place,
Canary Wharf,
London,
Greater London, E14 5HU,
United Kingdom
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
LSE BBY Ordinary Shares London Stock Exchange GB GBP 01. Jan 1992
OTCPK BAFB.F Ordinary Shares Pink Sheets LLC US USD 01. Jan 1992
DB BIH Ordinary Shares Deutsche Boerse AG DE EUR 01. Jan 1992
BATS-CHIXE BBYL Ordinary Shares BATS 'Chi-X Europe' GB GBP 01. Jan 1992
OTCPK BAFY.Y SPONSORED ADR RE Pink Sheets LLC US USD 10. Jul 2012
LSE BBYB 10.75P GROSS(NET PD)CUM CNV RED PRF 1P London Stock Exchange GB GBP 03. Jan 1995
Number of employees
Current staff
Staff numbers
20,238
Balfour Beatty employees.
Industry
Construction and Engineering
Capital Goods
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/02/23 20:39
End of day share price update: 2019/02/22 00:00
Last estimates confirmation: 2019/02/20
Last earnings filing: 2018/08/15
Last earnings reported: 2018/06/29
Last annual earnings reported: 2017/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.