Balfour Beatty
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Balfour Beatty plc finances, designs, develops, builds, and maintains infrastructure in the United Kingdom, the United States, and internationally. The last earnings update was 105 days ago. More info.
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BBY Share Price and Events
7 Day Returns
1 Year Returns
BBY Shareholder Return
| 7 Day | 30 Day | 90 Day | 1 Year | 3 Year | 5 Year | |
|---|---|---|---|---|---|---|
| Balfour Beatty (BBY) | -5.6% | -6.8% | -13.7% | -22.1% | 0.7% | -3.2% |
| GB Construction | -2.9% | -8.6% | -17.3% | -40.8% | -31.9% | -45.5% |
| GB Market | 0.3% | 1.9% | 0.4% | -1.9% | 11.4% | 6.7% |
1 Year Return vs Industry and Market
- BBY outperformed the Construction industry which returned -40.8% over the past year.
- BBY underperformed the Market in United Kingdom of Great Britain and Northern Ireland which returned -1.9% over the past year.
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.
Below are the data sources, inputs and calculation used to determine the intrinsic value for Balfour Beatty.
| 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 | 9.9% |
| Perpetual Growth Rate | 10-Year GB Government Bond Rate | 1.2% |
An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.
| Data Point | Calculation/ Source | Result |
|---|---|---|
| Risk-Free Rate | 10-Year GB Govt Bond Rate | 1.2% |
| Equity Risk Premium | S&P Global | 6.7% |
| Construction Unlevered Beta | Simply Wall St/ S&P Global | 1.04 |
| Re-levered Beta | = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.039 (1 + (1- 19%) (49.98%)) |
1.308 |
| Levered Beta | Levered Beta limited to 0.8 to 2.0 (practical range for a stable firm) |
1.31 |
| Discount Rate/ Cost of Equity |
= Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 1.23% + (1.308 * 6.65%) |
9.92% |
Discounted Cash Flow Calculation for LSE:BBY 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 try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.
| Levered FCF (GBP, Millions) | Source |
Present Value Discounted (@ 9.92%) |
|
|---|---|---|---|
| 2020 | 111.95 | Analyst x3 | 101.85 |
| 2021 | 99.17 | Analyst x1 | 82.08 |
| 2022 | 91.13 | Est @ -8.11% | 68.61 |
| 2023 | 86.29 | Est @ -5.31% | 59.11 |
| 2024 | 83.41 | Est @ -3.35% | 51.97 |
| 2025 | 81.76 | Est @ -1.98% | 46.35 |
| 2026 | 80.93 | Est @ -1.01% | 41.74 |
| 2027 | 80.65 | Est @ -0.34% | 37.84 |
| 2028 | 80.76 | Est @ 0.13% | 34.47 |
| 2029 | 81.13 | Est @ 0.46% | 31.50 |
| Present value of next 10 years cash flows | £555.51 | ||
| Calculation | Result | |
|---|---|---|
| Terminal Value |
= FCF2029
× (1 + g) ÷ (Discount Rate – g)
= £81.13 × (1 + 1.23%) ÷ (9.92% – 1.23%) |
£944.45 |
| Present Value of Terminal Value |
= Terminal Value ÷ (1 + r)10
= £944.45 ÷ (1 + 9.92%)10 |
£366.71 |
| Calculation | Result | |
|---|---|---|
| Total Equity Value |
= Present value of next 10 years cash flows +
Terminal Value
= £555.51 + £366.71 |
£922.22 |
| Equity Value per Share (GBP) |
= Total value / Shares Outstanding
= £922.22 / 684.22 |
£1.35 |
| Calculation | Result | |
|---|---|---|
| Value per share (GBP) | From above. | £1.35 |
| Current discount | Discount to share price of
£2.25
= -1 x (£2.25 - £1.35) / £1.35 |
-66.6% |
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.
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?
| Data Point | Source | Value |
|---|---|---|
| Earnings Per Share * | Company Filings (2018-12-31) in GBP | £0.20 |
| LSE:BBY Share Price ** | LSE (2019-07-18) in GBP | £2.25 |
| United Kingdom of Great Britain and Northern Ireland Construction Industry PE Ratio | Median Figure of 17 Publicly-Listed Construction Companies | 8.18x |
| United Kingdom of Great Britain and Northern Ireland Market PE Ratio | Median Figure of 791 Publicly-Listed Companies | 16.52x |
* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.
** Primary Listing of Balfour Beatty.
| Calculation | Outcome | |
|---|---|---|
| PE Ratio | = LSE:BBY Share Price ÷ EPS (both in GBP) = 2.25 ÷ 0.20 |
11.35x |
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- Balfour Beatty is overvalued based on earnings compared to the GB Construction industry average.
- Balfour Beatty is good value based on earnings compared to the United Kingdom of Great Britain and Northern Ireland market.
Price based on expected Growth
Does
Balfour Beatty's expected growth come at a high price?
| Data Point | Source | Value |
|---|---|---|
| PE Ratio | See PE Ratio Section | 11.35x |
| Net Income Annual Growth Rate | See Future Growth Section. Line of Best Fit* through Consensus Estimate Earnings of 5 Analysts |
13.2%per year |
| United Kingdom of Great Britain and Northern Ireland Construction Industry PEG Ratio | Median Figure of 10 Publicly-Listed Construction Companies | 0.89x |
| United Kingdom of Great Britain and Northern Ireland Market PEG Ratio | Median Figure of 572 Publicly-Listed Companies | 1.43x |
*Line of best fit is calculated by linear regression .
| Calculation | Outcome | |
|---|---|---|
| PEG Ratio | = PE Ratio ÷ Net Income Annual Growth Rate = 11.35x ÷ 13.2% |
0.86x |
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- Balfour Beatty is good value based on expected growth next year.
Price based on value of assets
What value do investors place on
Balfour Beatty's
assets?
| Data Point | Source | Value |
|---|---|---|
| Book Value per Share | Company Filings (2018-12-31) in GBP | £1.77 |
| LSE:BBY Share Price * | LSE (2019-07-18) in GBP | £2.25 |
| United Kingdom of Great Britain and Northern Ireland Construction Industry PB Ratio | Median Figure of 20 Publicly-Listed Construction Companies | 1.21x |
| United Kingdom of Great Britain and Northern Ireland Market PB Ratio | Median Figure of 1,377 Publicly-Listed Companies | 1.51x |
| Calculation | Outcome | |
|---|---|---|
| PB Ratio | = LSE:BBY Share Price ÷ Book Value per Share (both in GBP) = 2.25 ÷ 1.77 |
1.27x |
* 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 GB Construction industry average.
Value checks
We assess Balfour Beatty's value by looking at:- 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. )
- Is the PE ratio less than the market average, and/ or less than the Construction industry average (and greater than 0)? (2 checks)
- Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
- Is the PB ratio less than the Construction industry average (and greater than 0)? (1 check) 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.
Future Performance
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!
Earnings growth vs Low Risk Savings
- Balfour Beatty's earnings growth is expected to exceed the low risk savings rate of 1.2%.
Growth vs Market Checks
- Balfour Beatty's earnings growth is expected to exceed the United Kingdom of Great Britain and Northern Ireland market average.
- Balfour Beatty's revenue growth is expected to exceed the United Kingdom of Great Britain and Northern Ireland market average.
Annual Growth Rates Comparison
| Data Point | Source | Value (per year) |
|---|---|---|
| LSE:BBY Future Earnings Growth Rate | Line of Best Fit* through Consensus Estimate Earnings of 5 Analysts | 13.2% |
| LSE:BBY Future Revenue Growth Rate | Line of Best Fit* through Consensus Estimate Revenue of 5 Analysts | 6.7% |
| United Kingdom of Great Britain and Northern Ireland Construction Industry Earnings Growth Rate | Market Cap Weighted Average | 17.7% |
| United Kingdom of Great Britain and Northern Ireland Construction Industry Revenue Growth Rate | Market Cap Weighted Average | 3.7% |
| United Kingdom of Great Britain and Northern Ireland Market Earnings Growth Rate | Market Cap Weighted Average | 11% |
| United Kingdom of Great Britain and Northern Ireland Market Revenue Growth Rate | Market Cap Weighted Average | 4.8% |
*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
| Data Point | Source | Value |
|---|---|---|
| Past Financials | Company Filings (6 months ago) | See Below |
| Future Estimates | Average of up to 5 Analyst Estimates (S&P Global) | See Below |
| Date (Data in GBP Millions) | Revenue | Cash Flow | Net Income * | Avg. No. Analysts |
|---|---|---|---|---|
| 2021-12-31 | 8,172 | 201 | 3 | |
| 2020-12-31 | 7,807 | 186 | 192 | 5 |
| 2019-12-31 | 7,548 | 167 | 173 | 5 |
| Date (Data in GBP Millions) | Revenue | Cash Flow | Net Income * |
|---|---|---|---|
| 2018-12-31 | 6,634 | -130 | 135 |
| 2018-09-30 | 6,613 | -68 | 176 |
| 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 |
*GAAP earnings excluding extraordinary items.
Past and Future Earnings per Share
| Data Point | Source | Value |
|---|---|---|
| Past Financials | Company Filings (6 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 6 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.
| Date (Data in GBP Millions) | EPS * | EPS High Estimate | EPS Low Estimate | Avg. No. Analysts |
|---|---|---|---|---|
| 2021-12-31 | 0.30 | 0.30 | 0.30 | 1.00 |
| 2020-12-31 | 0.28 | 0.28 | 0.28 | 1.00 |
| 2019-12-31 | 0.25 | 0.25 | 0.25 | 1.00 |
| Date (Data in GBP Millions) | EPS * |
|---|---|
| 2018-12-31 | 0.20 |
| 2018-09-30 | 0.26 |
| 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 |
*GAAP earnings excluding extraordinary items.
Future performance checks
We assess Balfour Beatty's future performance by looking at:- Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
- Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United Kingdom of Great Britain and Northern Ireland market? (1 check)
- Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United Kingdom of Great Britain and Northern Ireland market? (1 check)
- Is the annual earnings growth rate expected to be above 20%? (1 check)
- Is the annual revenue growth rate expected to be above 20%? (1 check)
- Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Balfour Beatty has a total score of 3/6, 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.
Past Performance
How has Balfour Beatty performed over the past 5 years?
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
Past Earnings growth analysis
- Balfour Beatty has delivered over 20% year on year earnings growth in the past 5 years.
- Balfour Beatty's 1-year earnings growth is negative, it can't be compared to the 5-year average.
- Balfour Beatty's 1-year earnings growth is negative, it can't be compared to the GB Construction industry average.
Earnings and Revenue History
All data from Balfour Beatty Company Filings, last reported 6 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.
| Date (Data in GBP Millions) | Revenue | Net Income * | G+A Expenses | R&D Expenses |
|---|---|---|---|---|
| 2018-12-31 | 6,634.00 | 135.00 | ||
| 2018-09-30 | 6,613.00 | 176.00 | 1.50 | |
| 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 |
*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 less efficiently than the GB 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).
Past performance checks
We assess Balfour Beatty's performance over the past 5 years by checking for:- Has earnings increased in past 5 years? (1 check)
- Has the earnings growth in the last year exceeded that of the Construction industry? (1 check)
- Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
- Is the Return on Equity (ROE) higher than 20%? (1 check)
- Is the Return on Assets (ROA) above industry average? (1 check)
- Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
Balfour Beatty has a total score of 2/6, 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.
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.
- 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
Assets
Liabilities and shares
- Low level of unsold assets.
- Debt is covered by short term assets, assets are 2.6x 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.
All data from Balfour Beatty Company Filings, last reported 6 months ago.
| Date (Data in GBP Millions) | Total Equity | Total Debt | Cash & Short Term Investments |
|---|---|---|---|
| 2018-12-31 | 1,241.00 | 768.00 | 661.00 |
| 2018-09-30 | 1,241.00 | 768.00 | 661.00 |
| 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 | 968.00 |
| 2017-09-30 | 1,066.00 | 1,075.00 | 968.00 |
| 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 | 965.00 | 770.00 |
| 2016-09-30 | 762.00 | 965.00 | 770.00 |
| 2016-07-01 | 834.00 | 1,211.00 | 728.00 |
| 2016-04-01 | 834.00 | 1,211.00 | 728.00 |
| 2015-12-31 | 830.00 | 1,043.00 | 667.00 |
| 2015-09-30 | 830.00 | 1,032.00 | 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 | 1,142.00 | 733.00 |
| 2014-09-30 | 1,230.00 | 1,142.00 | 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 | 1,184.00 | 606.00 |
| 2013-09-30 | 1,035.00 | 1,184.00 | 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 | 1,104.00 | 543.00 |
| 2012-09-30 | 1,313.00 | 1,104.00 | 543.00 |
- Balfour Beatty's level of debt (61.9%) 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 (114.8% vs 61.9% today).
- Operating cash flow is negative therefore debt is not well covered.
- Interest payments on debt are well covered by earnings (EBIT is 3.7x coverage).
Financial health checks
We assess Balfour Beatty's financial health by checking for:- Are short term assets greater than short term liabilities? (1 check)
- Are short term assets greater than long term liabilities? (1 check)
- Has the debt to equity ratio increased in the past 5 years? (1 check)
- Is the debt to equity ratio over 40%? (1 check)
- Is the debt covered by operating cash flow? (1 check)
- Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check) Balfour Beatty has a total score of 3/6, see the detailed checks below.
- Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
- 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.
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
If you bought
£2,000 of
Balfour Beatty
shares you are expected to receive
£43
in your first year as a dividend.
Dividend Amount
- Balfour Beatty's pays a higher dividend yield than the bottom 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (1.94%).
- Balfour Beatty's dividend is below the markets top 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (5.46%).
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.
| 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 |
| United Kingdom of Great Britain and Northern Ireland Construction Industry Average Dividend Yield | Market Cap Weighted Average of 16 Stocks | 7.3% |
| United Kingdom of Great Britain and Northern Ireland Market Average Dividend Yield | Market Cap Weighted Average of 706 Stocks | 4.2% |
| United Kingdom of Great Britain and Northern Ireland Minimum Threshold Dividend Yield | 10th Percentile | 1% |
| United Kingdom of Great Britain and Northern Ireland Bottom 25% Dividend Yield | 25th Percentile | 1.9% |
| United Kingdom of Great Britain and Northern Ireland Top 25% Dividend Yield | 75th Percentile | 5.5% |
Industry and Market average data is calculated daily.
Note all dividend per share amounts are annualized and not quarterly or other period.
| Date (Data in £) | Dividend per Share (annual) | Avg. No. Analysts |
|---|---|---|
| 2021-12-31 | 0.08 | 4.00 |
| 2020-12-31 | 0.07 | 6.00 |
| 2019-12-31 | 0.06 | 6.00 |
| Date (Data in £) | Dividend per share (annual) | Avg. Yield (%) |
|---|---|---|
| 2019-04-04 | 0.048 | 1.966 |
| 2019-03-13 | 0.048 | 1.793 |
| 2018-03-14 | 0.036 | 1.294 |
| 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 |
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- Dividends per share have been volatile in the past 10 years (annual drop of over 20%).
- Dividends per share have fallen over the past 10 years.
Income/ dividend checks
We assess Balfour Beatty's dividend by checking for:- Firstly is the company paying a notable dividend (greater than 1%) - if not then the rest of the checks are ignored.
- Is current dividend yield above the bottom 25% of dividend payers? (1 check)
- Is current dividend yield above the top 25% of dividend payers? (1 check)
- Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
- If they have paid a dividend for 10 years has it increased in this time? (1 check)
- 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) 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.
Management
CEO
| COMPENSATION | £4,341,480 |
| AGE | 62 |
| TENURE AS CEO | 4.5 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 been consistent with company performance over the past year, both up more than 20%.
- Leo's remuneration is higher than average for companies of similar size in United Kingdom of Great Britain and Northern Ireland.
Management Team Tenure
Average tenure and age of the Balfour Beatty management team in years:
- The tenure for the Balfour Beatty management team is about average.
Management Team
Leo Quinn
Group Chief Executive & Executive Director
£4M
62
4.5 yrs
Phil Harrison
CFO & Executive Director
£1M
58
4.1 yrs
William Weir
Honorary President
£64K
86
16.2 yrs
John Tarpey
Chief of Organization Development
Chris Johnson
Chief Information Officer & Group Procurement Director
4 yrs
Jonathan Lagan
Group General Counsel
0.4 yrs
Louise McCulloch
Group Head of Communications
0.8 yrs
Paul Raby
Human Resources Director
14.5 yrs
Neil Patterson
Regional Managing Director of London and South East for UK Construction Business
Steve Tarr
Managing Director of Major Projects
3.9 yrs
Board of Directors Tenure
Average tenure and age of the Balfour Beatty board of directors in years:
- The tenure for the Balfour Beatty board of directors is about average.
Board of Directors
Phil Aiken
Non-Executive Chairman
£274K
70
4.3 yrs
Leo Quinn
Group Chief Executive & Executive Director
£4M
62
4.5 yrs
Phil Harrison
CFO & Executive Director
£1M
58
4.1 yrs
Stuart Doughty
Non-Executive Director
£73K
75
4.3 yrs
Stephen Billingham
Senior Independent Director
£73K
61
0.2 yrs
Mark Layman
Director of Balfour Beatty Construction Services US
5.6 yrs
Barbara Moorhouse
Non-Executive Director
£61K
61
2.1 yrs
Mike Lucki
Non-Executive Director
£68K
63
2 yrs
Anne Drinkwater
Non-Executive Director
£5K
63
0.6 yrs
Who owns this company?
Recent Insider Transactions
| Announced | Type | Name | Entity | Role | Start | End | Shares | Max Price (£) | Value (£) | |
|---|---|---|---|---|---|---|---|---|---|---|
Management checks
We assess Balfour Beatty's management by checking for:- Is the CEO's compensation unreasonable compared to market cap? (1 check)
- Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
- Is the average tenure of the management team less than 2 years? (1 check)
- Is the average tenure of the board of directors team less than 3 years? (1 check) 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.
News
Simply Wall St News
Balfour Beatty plc (LON:BBY): Is Growth Priced In?
Balfour Beatty plc (LON:BBY) is considered a high-growth stock, but its last closing price of £2.388 left some investors wondering if this high future earnings potential can be rationalized by its current price tag. … But, since Balfour Beatty is a high-growth stock, we must also account for its earnings growth by using calculation called the PEG ratio. … This tells us that when we include its growth in our analysis Balfour Beatty's stock can be considered fairly valued , based on fundamental analysis.
Simply Wall St - – Full articleShould You Worry About Balfour Beatty plc's (LON:BBY) CEO Salary Level?
Check out our latest analysis for Balfour Beatty How Does Leo Quinn's Compensation Compare With Similar Sized Companies? … Balfour Beatty plc has served shareholders reasonably well, with a total return of 21% over three years. … We compared the total CEO remuneration paid by Balfour Beatty plc, and compared it to remuneration at a group of similar sized companies.
Simply Wall St - – Full articleIs Balfour Beatty plc (LON:BBY) Struggling With Its 3.6% Return On Capital Employed?
The formula for calculating the return on capital employed is: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) Or for Balfour Beatty: 0.036 = UK£89m ÷ (UK£4.6b - UK£2.1b) (Based on the trailing twelve months to December 2018.) Therefore, Balfour Beatty has an ROCE of 3.6%. … Do Balfour Beatty's Current Liabilities Skew Its ROCE? … With a medium level of current liabilities boosting the ROCE a little, Balfour Beatty's low ROCE is unappealing.
Simply Wall St - – Full articleVolatility 101: Should Balfour Beatty (LON:BBY) Shares Have Dropped 23%?
Unfortunately the Balfour Beatty plc (LON:BBY) share price slid 23% over twelve months. … We've already covered Balfour Beatty's share price action, but we should also mention its total shareholder return (TSR). … Dividends have been really beneficial for Balfour Beatty shareholders, and that cash payout explains why its total shareholder loss of 22%, over the last year, isn't as bad as the share price return.
Simply Wall St - – Full articleShould You Be Worried About Balfour Beatty plc's (LON:BBY) 11% Return On Equity?
The formula for ROE is: Return on Equity = Net Profit ÷ Shareholders' Equity Or for Balfour Beatty: 11% = UK£135m ÷ UK£1.2b (Based on the trailing twelve months to December 2018.) Most readers would understand what net profit is, but it’s worth explaining the concept of shareholders’ equity. … Combining Balfour Beatty's Debt And Its 11% Return On Equity While Balfour Beatty does have some debt, with debt to equity of just 0.62, we wouldn't say debt is excessive. … If you would prefer check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity and low debt.
Simply Wall St - – Full articleWhat Should You Know About Balfour Beatty plc's (LON:BBY) Earnings Trajectory?
Balfour Beatty plc's (LON:BBY) announced its latest earnings update in December 2018, which showed that the business faced a immense headwind with earnings declining by -17%. … Investors may find it useful to understand how market analysts predict Balfour Beatty's earnings growth trajectory over the next couple of years and whether the future looks brighter. … View our latest analysis for Balfour Beatty Analysts' outlook for this coming year seems positive, with earnings rising by a robust 28%.
Simply Wall St - – Full articleDon't Sell Balfour Beatty plc (LON:BBY) Before You Read This
The formula for price to earnings is: Price to Earnings Ratio = Share Price ÷ Earnings per Share (EPS) Or for Balfour Beatty: P/E of 12.64 = £2.5 ÷ £0.20 (Based on the trailing twelve months to December 2018.) Is A High Price-to-Earnings Ratio Good? … A higher P/E ratio means that buyers have to pay a higher price for each £1 the company has earned over the last year. … Balfour Beatty's earnings per share fell by 17% in the last twelve months.
Simply Wall St - – Full articleBalfour Beatty plc (LON:BBY): What Does The Future Look Like?
Help shape the future of investing tools and you could win a $250 gift card! … Based on Balfour Beatty plc's (LON:BBY) earnings update on 31 December 2018, … analyst consensus outlook appear cautiously optimistic,
Simply Wall St - – Full articleWhy Balfour Beatty plc's (LON:BBY) High P/E Ratio Isn't Necessarily A Bad Thing
We'll show how you can use Balfour Beatty plc's (LON:BBY) P/E ratio to inform your assessment of the investment opportunity. … Based on the last twelve months, Balfour Beatty's P/E ratio is 13.14. … Price to Earnings Ratio = Price per Share ÷ Earnings per Share (EPS)
Simply Wall St - – Full articleRead This Before Buying Balfour Beatty plc (LON:BBY) Shares
So shareholders might well want to know whether insiders have been buying or selling shares in Balfour Beatty plc (LON:BBY). … So we know that an insider sold shares at around the present share price of UK£2.61. … While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price.
Simply Wall St - – Full articleCompany Info
Description
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 installation, refurbishment and fit-out, and rail engineering services. The Support Services segment designs, upgrades, manages, 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 |
| BBY | |
| Exchange: | LSE |
| Founded: | 1909 |
| £1,536,751,355 | |
| 684,216,988 | |
| 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
Industry
| Construction and Engineering | |
| Capital Goods |
Company Analysis and Financial Data Status
| Area | Date (UTC time) |
|---|---|
| Company Analysis updated: | 2019/07/18 20:40 |
| End of day share price update: | 2019/07/18 00:00 |
| Last estimates confirmation: | 2019/07/13 |
| Last earnings filing: | 2019/04/04 |
| Last earnings reported: | 2018/12/31 |
| Last annual earnings reported: | 2018/12/31 |
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.
