Balfour Beatty
Market Cap
UK£1.8b
Last Updated
2020/07/09 20:54 UTC
Data Sources
Company Financials +
Executive Summary
Balfour Beatty plc finances, designs, develops, builds, and maintains infrastructure in the United Kingdom, the United States, and internationally.
Rewards
Risk Analysis
Snowflake Analysis
Adequate balance sheet and slightly overvalued.
Similar Companies
Share Price & News
How has Balfour Beatty's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: BBY has not had significant price volatility in the past 3 months.
Market Performance
7 Day Return
-1.9%
BBY
-2.1%
GB Construction
-2.5%
GB Market
1 Year Return
8.9%
BBY
-14.7%
GB Construction
-16.0%
GB Market
Return vs Industry: BBY exceeded the UK Construction industry which returned -13.8% over the past year.
Return vs Market: BBY exceeded the UK Market which returned -15.1% over the past year.
Shareholder returns
| BBY | Industry | Market | |
|---|---|---|---|
| 7 Day | -1.9% | -2.1% | -2.5% |
| 30 Day | -1.0% | -5.8% | -4.0% |
| 90 Day | 6.4% | 3.6% | 4.9% |
| 1 Year | 9.9%8.9% | -0.8%-14.7% | -12.1%-16.0% |
| 3 Year | 1.9%-2.2% | -38.8%-52.7% | -5.4%-17.1% |
| 5 Year | 16.2%10.5% | -32.2%-53.9% | 11.6%-13.4% |
Price Volatility Vs. Market
How volatile is Balfour Beatty's share price compared to the market and industry in the last 5 years?
Simply Wall St News
1 month ago | Simply Wall St
Is There An Opportunity With Balfour Beatty plc's (LON:BBY) 43% Undervaluation?1 month ago | Simply Wall St
Balfour Beatty plc (LON:BBY) Stock Has Shown Weakness Lately But Financials Look Strong: Should Prospective Shareholders Make The Leap?2 months ago | Simply Wall St
What To Know Before Buying Balfour Beatty plc (LON:BBY) For Its DividendValuation
Is Balfour Beatty undervalued compared to its fair value and its price relative to the market?
13.66x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: BBY (£2.59) is trading above our estimate of fair value (£2.41)
Significantly Below Fair Value: BBY is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: BBY is poor value based on its PE Ratio (13.7x) compared to the Construction industry average (7.9x).
PE vs Market: BBY is good value based on its PE Ratio (13.7x) compared to the UK market (14.9x).
Price to Earnings Growth Ratio
PEG Ratio: BBY is good value based on its PEG Ratio (0.8x)
Price to Book Ratio
PB vs Industry: BBY is overvalued based on its PB Ratio (1.3x) compared to the GB Construction industry average (1.3x).
Next Steps
Future Growth
How is Balfour Beatty forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?
16.5%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: BBY's forecast earnings growth (16.5% per year) is above the savings rate (1.2%).
Earnings vs Market: BBY's earnings (16.5% per year) are forecast to grow slower than the UK market (21.6% per year).
High Growth Earnings: BBY's earnings are forecast to grow, but not significantly.
Revenue vs Market: BBY's revenue (6% per year) is forecast to grow faster than the UK market (3.3% per year).
High Growth Revenue: BBY's revenue (6% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: BBY's Return on Equity is forecast to be low in 3 years time (12.1%).
Next Steps
Past Performance
How has Balfour Beatty performed over the past 5 years?
71.3%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: BBY has high quality earnings.
Growing Profit Margin: BBY's current net profit margins (1.8%) are lower than last year (2%).
Past Earnings Growth Analysis
Earnings Trend: BBY has become profitable over the past 5 years, growing earnings by 71.3% per year.
Accelerating Growth: BBY's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: BBY had negative earnings growth (-3.7%) over the past year, making it difficult to compare to the Construction industry average (11.3%).
Return on Equity
High ROE: BBY's Return on Equity (9.7%) is considered low.
Next Steps
Financial Health
How is Balfour Beatty's financial position?
Financial Position Analysis
Short Term Liabilities: BBY's short term assets (£2.2B) do not cover its short term liabilities (£2.4B).
Long Term Liabilities: BBY's short term assets (£2.2B) exceed its long term liabilities (£1.1B).
Debt to Equity History and Analysis
Debt Level: BBY's debt to equity ratio (51.6%) is considered high.
Reducing Debt: BBY's debt to equity ratio has reduced from 92.9% to 51.6% over the past 5 years.
Debt Coverage: BBY's debt is well covered by operating cash flow (29.7%).
Interest Coverage: BBY's interest payments on its debt are well covered by EBIT (5.2x coverage).
Balance Sheet
Next Steps
Dividend
What is Balfour Beatty current dividend yield, its reliability and sustainability?
2.62%
Forecast Dividend Yield
Dividend Yield vs Market
Notable Dividend: Unable to evaluate BBY's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.
High Dividend: Unable to evaluate BBY'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 BBY's dividends per share have been stable in the past.
Growing Dividend: Insufficient data to determine if BBY's dividend payments have been increasing.
Current Payout to Shareholders
Dividend Coverage: BBY is not paying a notable dividend for the UK market.
Future Payout to Shareholders
Future Dividend Coverage: No need to calculate the sustainability of BBY'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?
5.1yrs
Average management tenure
CEO
Leo Quinn (63yo)
5.5yrs
Tenure
UK£2,953,278
Compensation
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, 20 ...
CEO Compensation Analysis
Compensation vs Market: Leo's total compensation ($USD3.71M) is above average for companies of similar size in the UK market ($USD1.86M).
Compensation vs Earnings: Leo's compensation has been consistent with company performance over the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Group Chief Executive & Executive Director | 5.5yrs | UK£2.95m | 0.31% £5.6m | |
| CFO & Executive Director | 5.08yrs | UK£1.45m | 0.055% £984.9k | |
| Honorary President | 17.17yrs | UK£63.58k | no data | |
| Chief of Organization Development | no data | no data | no data | |
| Chief Technology Officer | 0.58yr | no data | no data | |
| Group Head of Communications | 1.75yrs | no data | no data | |
| Human Resources Director | 15.5yrs | no data | no data | |
| Regional Managing Director of London and South East for UK Construction Business | no data | no data | no data | |
| Managing Director of Major Projects | 4.92yrs | no data | no data | |
| Chief Executive Officer of UK Construction Services | 5.08yrs | no data | no data |
5.1yrs
Average Tenure
63yo
Average Age
Experienced Management: BBY's management team is seasoned and experienced (5.1 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Group Chief Executive & Executive Director | 5.5yrs | UK£2.95m | 0.31% £5.6m | |
| CFO & Executive Director | 5.08yrs | UK£1.45m | 0.055% £984.9k | |
| Independent Non-Executive Group Chairman | 5.33yrs | UK£277.00k | 0.0022% £38.8k | |
| Senior Independent Director | 1.17yrs | UK£76.08k | 0.0035% £61.8k | |
| Independent Non-Executive Director | 5.25yrs | UK£77.60k | 0.00066% £11.8k | |
| Independent Non-Executive Director | 3.08yrs | UK£62.88k | 0.00058% £10.3k | |
| Director of Balfour Beatty Construction Services US | 6.58yrs | no data | no data | |
| Independent Non-Executive Director | 3yrs | UK£78.84k | no data | |
| Non-Executive Director | 1.58yrs | UK£76.74k | 0.00066% £11.8k |
5.1yrs
Average Tenure
63.5yo
Average Age
Experienced Board: BBY's board of directors are considered experienced (5.1 years average tenure).
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
Balfour Beatty plc's company bio, employee growth, exchange listings and data sources
Key Information
- Name: Balfour Beatty plc
- Ticker: BBY
- Exchange: LSE
- Founded: 1909
- Industry: Construction and Engineering
- Sector: Capital Goods
- Market Cap: UK£1.781b
- Shares outstanding: 686.96m
- Website: https://www.balfourbeatty.com
Number of Employees
Location
- Balfour Beatty plc
- 5 Churchill Place
- Canary Wharf
- London
- Greater London
- E14 5HU
- United Kingdom
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| BIH | DB (Deutsche Boerse AG) | Yes | Ordinary Shares | DE | EUR | Jan 1992 |
| BBY | LSE (London Stock Exchange) | Yes | Ordinary Shares | GB | GBP | Jan 1992 |
| BAFB.F | OTCPK (Pink Sheets LLC) | Yes | Ordinary Shares | US | USD | Jan 1992 |
| BBYL | BATS-CHIXE (BATS 'Chi-X Europe') | Yes | Ordinary Shares | GB | GBP | Jan 1992 |
| BAFY.D | OTCPK (Pink Sheets LLC) | SPONSORED ADR RE | US | USD | Jul 2012 |
Biography
Balfour Beatty plc finances, designs, 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, refurbishment, fit-out, and rail engineering services. The Support Services segment designs, upgrades, manages, and maintains water, gas, and electricity networks, as well as rail and highways. The Infrastructure Investments segment is involved 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. The company serves government departments and agencies, regulated utilities, and private sector organizations. Balfour Beatty plc was founded in 1909 and is based in London, the United Kingdom.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/07/09 20:54 |
| End of Day Share Price | 2020/07/09 00:00 |
| Earnings | 2019/12/31 |
| Annual Earnings | 2019/12/31 |
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.