Balfour Beatty
Market Cap
UK£1.8b
Last Updated
2020/02/25 20:48 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
Mediocre 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
-7.2%
BBY
-2.5%
GB Construction
-0.5%
GB Market
1 Year Return
-8.4%
BBY
-10.3%
GB Construction
6.0%
GB Market
Return vs Industry: BBY exceeded the UK Construction industry which returned -10.3% over the past year.
Return vs Market: BBY underperformed the UK Market which returned 6% over the past year.
Shareholder returns
| BBY | Industry | Market | |
|---|---|---|---|
| 7 Day | -7.2% | -2.5% | -0.5% |
| 30 Day | 3.0% | 8.0% | -1.8% |
| 90 Day | 17.4% | 10.7% | 2.4% |
| 1 Year | -6.4%-8.4% | 4.9%-10.3% | 11.5%6.0% |
| 3 Year | 1.2%-3.5% | -16.2%-38.8% | 18.2%3.5% |
| 5 Year | 13.4%7.8% | -3.6%-39.0% | 34.3%3.5% |
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 week ago | Simply Wall St
Balfour Beatty (LON:BBY) Takes On Some Risk With Its Use Of Debt3 weeks ago | Simply Wall St
Based On Its ROE, Is Balfour Beatty plc (LON:BBY) A High Quality Stock?Valuation
Is Balfour Beatty undervalued compared to its fair value and its price relative to the market?
16.32x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: BBY (£2.79) 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 (17x) compared to the Construction industry average (11.2x).
PE vs Market: BBY is good value based on its PE Ratio (17x) compared to the UK market (18.6x).
Price to Earnings Growth Ratio
PEG Ratio: BBY is poor value based on its PEG Ratio (1.9x)
Price to Book Ratio
PB vs Industry: BBY is good value based on its PB Ratio (1.6x) compared to the GB Construction industry average (1.6x).
Next Steps
Future Growth
How is Balfour Beatty forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?
8.8%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: BBY's forecast earnings growth (8.8% per year) is above the savings rate (0.5%).
Earnings vs Market: BBY's earnings (8.8% per year) are forecast to grow slower than the UK market (13.1% per year).
High Growth Earnings: BBY's earnings are forecast to grow, but not significantly.
Revenue vs Market: BBY's revenue (3.2% per year) is forecast to grow slower than the UK market (3.8% per year).
High Growth Revenue: BBY's revenue (3.2% 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 (14.4%).
Next Steps
Past Performance
How has Balfour Beatty performed over the past 5 years?
68.4%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: BBY has a large one-off gain of £34.0M impacting its June 28 2019 financial results.
Growing Profit Margin: BBY's current net profit margins (1.6%) are lower than last year (3.3%).
Past Earnings Growth Analysis
Earnings Trend: BBY has become profitable over the past 5 years, growing earnings by 68.4% 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 (-48.3%) over the past year, making it difficult to compare to the Construction industry average (-13.7%).
Return on Equity
High ROE: BBY's Return on Equity (9.3%) is considered low.
Return on Assets
Return on Capital Employed
Next Steps
Financial Health
How is Balfour Beatty's financial position?
Financial Position Analysis
Short Term Liabilities: BBY's short term assets (£2.1B) do not cover its short term liabilities (£2.3B).
Long Term Liabilities: BBY's short term assets (£2.1B) exceed its long term liabilities (£1.3B).
Debt to Equity History and Analysis
Debt Level: BBY's debt to equity ratio (63%) is considered high.
Reducing Debt: BBY's debt to equity ratio has reduced from 123.7% to 63% over the past 5 years.
Balance Sheet
Inventory Level: BBY has a low level of unsold assets or inventory.
Debt Coverage by Assets: BBY's debt is covered by short term assets (assets are 2.8x debt).
Cash Runway Analysis
For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.
Stable Cash Runway: BBY is profitable, therefore cash runway is not a concern.
Forecast Cash Runway: BBY is profitable, therefore cash runway is not a concern.
Next Steps
Dividend
What is Balfour Beatty's current dividend yield, its reliability and sustainability?
1.80%
Current Dividend Yield
Dividend Yield vs Market
Current dividend yield vs market & industry
Notable Dividend: BBY's dividend (1.72%) isn’t notable compared to the bottom 25% of dividend payers in the UK market (1.8%).
High Dividend: BBY's dividend (1.72%) is low compared to the top 25% of dividend payers in the UK market (5.03%).
Stability and Growth of Payments
Stable Dividend: BBY's dividend payments have been volatile in the past 10 years.
Growing Dividend: BBY's dividend payments have fallen over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonably low payout ratio (32.4%), BBY's dividend payments are well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: BBY's dividends in 3 years are forecast to be well covered by earnings (31.6% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
4.7yrs
Average management tenure
CEO
Leo Quinn (62yo)
5.1yrs
Tenure
UK£4,341,480
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 ($USD5.61M) is above average for companies of similar size in the UK market ($USD2.26M).
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 | 5.1yrs | UK£4.34m | 0.28% £5.1m | |
| CFO & Executive Director | 4.7yrs | UK£1.33m | 0.040% £724.3k | |
| Honorary President | 16.8yrs | UK£63.58k | no data | |
| Chief of Organization Development | 0yrs | no data | no data | |
| Chief Technology Officer | 0.2yrs | no data | no data | |
| Group Head of Communications | 1.3yrs | no data | no data | |
| Human Resources Director | 15.1yrs | no data | no data | |
| Regional Managing Director of London and South East for UK Construction Business | 0yrs | no data | no data | |
| Managing Director of Major Projects | 4.5yrs | no data | no data | |
| Chief Executive Officer of UK Construction Services | 4.7yrs | no data | no data |
4.7yrs
Average Tenure
62yo
Average Age
Experienced Management: BBY's management team is considered experienced (4.7 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Group Chief Executive & Executive Director | 5.1yrs | UK£4.34m | 0.28% £5.1m | |
| CFO & Executive Director | 4.7yrs | UK£1.33m | 0.040% £724.3k | |
| Non-Executive Chairman | 4.9yrs | UK£273.50k | 0.0022% £40.0k | |
| Senior Independent Director | 0.8yrs | UK£73.25k | 0.0035% £63.6k | |
| Non-Executive Director | 4.8yrs | UK£73.25k | 0.00066% £12.1k | |
| Non-Executive Director | 2.7yrs | UK£60.75k | 0.00058% £10.6k | |
| Director of Balfour Beatty Construction Services US | 6.2yrs | no data | no data | |
| Non-Executive Director | 2.6yrs | UK£68.25k | no data | |
| Non-Executive Director | 1.2yrs | UK£5.13k | no data |
4.7yrs
Average Tenure
62.5yo
Average Age
Experienced Board: BBY's board of directors are considered experienced (4.7 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£1.827b
- Shares outstanding: 684.22m
- 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 |
| BBYB | LSE (London Stock Exchange) | 10.75P GROSS(NET PD)CUM CNV RED PRF 1P | GB | GBP | Jan 1995 | |
| BAFY.Y | 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 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.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/02/25 20:48 |
| End of Day Share Price | 2020/02/25 00:00 |
| Earnings | 2019/06/28 |
| Annual Earnings | 2018/12/31 |
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.