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BAB

Babcock International GroupLSE:BAB Stock Report

Market Cap

UK£1.5b

7D

-8.2%

1Y

-15.4%

Updated

30 Nov, 2021

Data

Company Financials +
BAB fundamental analysis
Snowflake Score
Valuation2/6
Future Growth4/6
Past Performance0/6
Financial Health1/6
Dividends0/6

BAB Stock Overview

Babcock International Group PLC, together with its subsidiaries, provides value-add services for aerospace, defense, and security in the United Kingdom, rest of Europe, Africa, North America, Australasia, and internationally.

Babcock International Group Competitors

VINCI

ENXTPA:DG

€47.7b

Schlumberger

NYSE:SLB

US$40.2b

Ferrovial

BME:FER

€18.1b

Jacobs Engineering Group

NYSE:J

US$18.4b

Price History & Performance

Summary of all time highs, changes and price drops for Babcock International Group
Historical stock prices
Current Share PriceUK£2.96
52 Week HighUK£3.88
52 Week LowUK£1.97
Beta1.6
1 Month Change-7.30%
3 Month Change-18.99%
1 Year Change-15.43%
3 Year Change-46.97%
5 Year Change-68.66%
Change since IPO-13.85%

Recent News & Updates

Shareholder Returns

BABGB Aerospace & DefenseGB Market
7D-8.2%-3.1%-2.6%
1Y-15.4%11.2%10.9%

Return vs Industry: BAB underperformed the UK Aerospace & Defense industry which returned 14.3% over the past year.

Return vs Market: BAB underperformed the UK Market which returned 13.8% over the past year.

Price Volatility

Is BAB's price volatile compared to industry and market?
BAB volatility
BAB Average Weekly Movement3.7%
Aerospace & Defense Industry Average Movement4.3%
Market Average Movement4.9%
10% most volatile stocks in GB Market9.8%
10% least volatile stocks in GB Market2.5%

Stable Share Price: BAB is not significantly more volatile than the rest of UK stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: BAB's weekly volatility (4%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
189129,137David Lockwoodhttps://www.babcockinternational.com

Babcock International Group PLC, together with its subsidiaries, provides value-add services for aerospace, defense, and security in the United Kingdom, rest of Europe, Africa, North America, Australasia, and internationally. The company operates through four segments: Marine, Nuclear, Land, and Aviation. It designs, procures, operates, and manages critical utility and process equipment; offers asset management, defense and maritime training, data and information, and cyber security and intelligence services, as well as naval platforms, and facilities and infrastructure; and designs, manufactures, and provides through-life support for mechanical and electrical systems and equipment.

Babcock International Group Fundamentals Summary

How do Babcock International Group's earnings and revenue compare to its market cap?
BAB fundamental statistics
Market CapUK£1.49b
Earnings (TTM)-UK£1.70b
Revenue (TTM)UK£4.18b

0.4x

P/S Ratio

-0.9x

P/E Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
BAB income statement (TTM)
RevenueUK£4.18b
Cost of RevenueUK£4.16b
Gross ProfitUK£26.10m
ExpensesUK£1.73b
Earnings-UK£1.70b

Last Reported Earnings

Mar 31, 2021

Next Earnings Date

Dec 07, 2021

Earnings per share (EPS)-3.37
Gross Margin0.62%
Net Profit Margin-40.69%
Debt/Equity Ratio705.5%

How did BAB perform over the long term?

See historical performance and comparison

Valuation

Is Babcock International Group undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: BAB (£2.96) is trading below our estimate of fair value (£13.45)

Significantly Below Fair Value: BAB is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: BAB is unprofitable, so we can't compare its PE Ratio to the UK Aerospace & Defense industry average.

PE vs Market: BAB is unprofitable, so we can't compare its PE Ratio to the UK market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate BAB's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: BAB is overvalued based on its PB Ratio (6.6x) compared to the GB Aerospace & Defense industry average (2.3x).


Future Growth

How is Babcock International Group forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?

84.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: BAB is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (0.9%).

Earnings vs Market: BAB is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: BAB's is expected to become profitable in the next 3 years.

Revenue vs Market: BAB's revenue (1.8% per year) is forecast to grow slower than the UK market (4.9% per year).

High Growth Revenue: BAB's revenue (1.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: BAB's Return on Equity is forecast to be high in 3 years time (35.2%)


Past Performance

How has Babcock International Group performed over the past 5 years?

-63.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: BAB is currently unprofitable.

Growing Profit Margin: BAB is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: BAB is unprofitable, and losses have increased over the past 5 years at a rate of 63.8% per year.

Accelerating Growth: Unable to compare BAB's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: BAB is unprofitable, making it difficult to compare its past year earnings growth to the Aerospace & Defense industry (13.6%).


Return on Equity

High ROE: BAB has a negative Return on Equity (-699.26%), as it is currently unprofitable.


Financial Health

How is Babcock International Group's financial position?


Financial Position Analysis

Short Term Liabilities: BAB's short term assets (£1.9B) do not cover its short term liabilities (£2.1B).

Long Term Liabilities: BAB's short term assets (£1.9B) do not cover its long term liabilities (£2.3B).


Debt to Equity History and Analysis

Debt Level: BAB's net debt to equity ratio (333.8%) is considered high.

Reducing Debt: BAB's debt to equity ratio has increased from 59.3% to 705.5% over the past 5 years.

Debt Coverage: BAB's debt is well covered by operating cash flow (24.6%).

Interest Coverage: Insufficient data to determine if BAB's interest payments on its debt are well covered by EBIT.


Balance Sheet


Dividend

What is Babcock International Group current dividend yield, its reliability and sustainability?

2.38%

Forecast Dividend Yield


Dividend Yield vs Market

Notable Dividend: Unable to evaluate BAB's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate BAB's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if BAB's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if BAB's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: BAB is not paying a notable dividend for the UK market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of BAB's dividend in 3 years as they are not forecast to pay a notable one for the UK market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

1.6yrs

Average management tenure


CEO

David Lockwood (59 yo)

1.17yrs

Tenure

UK£811,552

Compensation

Mr. David C. Lockwood, OBE, BA, FCA, FRSA, FAeS, has been Director of Babcock International Group PLC since August 17, 2020 and its Chief Executive Officer since September 14, 2020. Mr. Lockwood was the Ch...


CEO Compensation Analysis

Compensation vs Market: David's total compensation ($USD1.07M) is about average for companies of similar size in the UK market ($USD1.53M).

Compensation vs Earnings: Insufficient data to compare David's compensation with company performance.


Leadership Team

Experienced Management: BAB's management team is not considered experienced ( 1.6 years average tenure), which suggests a new team.


Board Members

Experienced Board: BAB's board of directors are not considered experienced ( 1.4 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Babcock International Group PLC's employee growth, exchange listings and data sources


Key Information

  • Name: Babcock International Group PLC
  • Ticker: BAB
  • Exchange: LSE
  • Founded: 1891
  • Industry: Aerospace and Defense
  • Sector: Capital Goods
  • Market Cap: UK£1.495b
  • Shares outstanding: 504.94m
  • Website: https://www.babcockinternational.com

Number of Employees


Location

  • Babcock International Group PLC
  • 33 Wigmore Street
  • London
  • Greater London
  • W1U 1QX
  • United Kingdom

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/11/30 21:37
End of Day Share Price2021/11/30 00:00
Earnings2021/03/31
Annual Earnings2021/03/31


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.