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BBY

Balfour BeattyLSE:BBY Stock Report

Market Cap

UK£1.8b

7D

-0.2%

1Y

24.6%

Updated

23 Sep, 2021

Data

Company Financials +
BBY fundamental analysis
Snowflake Score
Valuation2/6
Future Growth3/6
Past Performance2/6
Financial Health4/6
Dividends0/6

BBY Overview

Balfour Beatty plc finances, designs, develops, builds, and maintains infrastructure in the United Kingdom, the United States, and internationally.

Balfour Beatty Competitors

Morgan Sindall Group

LSE:MGNS

UK£1.2b

Kier Group

LSE:KIE

UK£555.6m

Galliford Try Holdings

LSE:GFRD

UK£196.2m

Costain Group

LSE:COST

UK£165.5m

Price History & Performance

Summary of all time highs, changes and price drops for Balfour Beatty
Historical stock prices
Current Share PriceUK£2.77
52 Week HighUK£2.09
52 Week LowUK£3.27
Beta0.88
1 Month Change-2.12%
3 Month Change-9.54%
1 Year Change24.57%
3 Year Change-0.47%
5 Year Change-0.86%
Change since IPO-8.65%

Recent News & Updates

Shareholder Returns

BBYGB ConstructionGB Market
7D-0.2%0.4%0.4%
1Y24.6%52.5%24.5%

Return vs Industry: BBY underperformed the UK Construction industry which returned 50.5% over the past year.

Return vs Market: BBY exceeded the UK Market which returned 23.1% over the past year.

Price Volatility

Is BBY's price volatile compared to industry and market?
BBY volatility
BBY Beta0.88
Industry Beta1.01
Market Beta1

Stable Share Price: BBY is less volatile than 75% of UK stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: BBY's weekly volatility (3%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
190925,684Leo Quinnhttps://www.balfourbeatty.com

Balfour Beatty plc finances, designs, develops, builds, and maintains infrastructure in the United Kingdom, the United States, and internationally. It operates through three segments: Construction Services, Support Services, and Infrastructure Investments. The Construction Services segment provides civil engineering, building, ground engineering, mechanical and electrical, refurbishment, fit-out, and rail engineering services.

Balfour Beatty Fundamentals Summary

How do Balfour Beatty's earnings and revenue compare to its market cap?
BBY fundamental statistics
Market CapUK£1.77b
Earnings (TTM)UK£63.00m
Revenue (TTM)UK£7.42b

28.1x

P/E Ratio

0.2x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
BBY income statement (TTM)
RevenueUK£7.42b
Cost of RevenueUK£7.12b
Gross ProfitUK£292.00m
ExpensesUK£229.00m
EarningsUK£63.00m

Last Reported Earnings

Jul 02, 2021

Next Earnings Date

n/a

Earnings per share (EPS)0.093
Gross Margin3.94%
Net Profit Margin0.85%
Debt/Equity Ratio42.0%

How did BBY perform over the long term?

See historical performance and comparison

Dividends

0.5%

Current Dividend Yield

49%

Payout Ratio

Does BBY pay a reliable dividends?

See BBY dividend history and benchmarks
When do you need to buy BBY by to receive an upcoming dividend?
Balfour Beatty dividend dates
Ex Dividend DateNov 04 2021
Dividend Pay DateDec 06 2021
Days until Ex dividend41 days
Days until Dividend pay date73 days

Does BBY pay a reliable dividends?

See BBY dividend history and benchmarks

Valuation

Is Balfour Beatty undervalued compared to its fair value and its price relative to the market?

30.6%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: BBY (£2.77) is trading below our estimate of fair value (£3.99)

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


Price To Earnings Ratio

PE vs Industry: BBY is poor value based on its PE Ratio (28.1x) compared to the UK Construction industry average (20.8x).

PE vs Market: BBY is poor value based on its PE Ratio (28.1x) compared to the UK market (23.5x).


Price to Earnings Growth Ratio

PEG Ratio: BBY is poor value based on its PEG Ratio (1x)


Price to Book Ratio

PB vs Industry: BBY's PB Ratio (1.3x) is in line with the GB Construction industry average.


Future Growth

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

26.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: BBY's forecast earnings growth (26.8% per year) is above the savings rate (0.9%).

Earnings vs Market: BBY's earnings (26.8% per year) are forecast to grow faster than the UK market (13.5% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: BBY's revenue (0.05% per year) is forecast to grow slower than the UK market (5.4% per year).

High Growth Revenue: BBY's revenue (0.05% 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 (11.8%).


Past Performance

How has Balfour Beatty performed over the past 5 years?

13.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: BBY has high quality earnings.

Growing Profit Margin: BBY's current net profit margins (0.8%) are lower than last year (1.4%).


Past Earnings Growth Analysis

Earnings Trend: BBY has become profitable over the past 5 years, growing earnings by 13.8% 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 (-38%) over the past year, making it difficult to compare to the Construction industry average (-30.8%).


Return on Equity

High ROE: BBY's Return on Equity (4.7%) is considered low.


Financial Health

How is Balfour Beatty's financial position?


Financial Position Analysis

Short Term Liabilities: BBY's short term assets (£2.0B) do not cover its short term liabilities (£2.3B).

Long Term Liabilities: BBY's short term assets (£2.0B) exceed its long term liabilities (£1.1B).


Debt to Equity History and Analysis

Debt Level: BBY's debt to equity ratio (42%) is considered high.

Reducing Debt: BBY's debt to equity ratio has reduced from 142.6% to 42% over the past 5 years.

Debt Coverage: BBY's debt is well covered by operating cash flow (62.1%).

Interest Coverage: BBY earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet


Dividend

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

0.54%

Current Dividend Yield


Upcoming Dividend Payment

TodaySep 24 2021Ex Dividend DateNov 04 2021Dividend Pay DateDec 06 202132 days from Ex DividendBuy in the next 41 days to receive the upcoming dividend

Dividend Yield vs Market

Notable Dividend: BBY's dividend (0.54%) isn’t notable compared to the bottom 25% of dividend payers in the UK market (1.36%).

High Dividend: BBY's dividend (0.54%) is low compared to the top 25% of dividend payers in the UK market (3.95%).


Stability and Growth of Payments

Stable Dividend: BBY is not paying a notable dividend for the UK market, therefore no need to check if payments are stable.

Growing Dividend: BBY is not paying a notable dividend for the UK market, therefore no need to check if payments are 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?

6.2yrs

Average management tenure


CEO

Leo Quinn (64 yo)

6.67yrs

Tenure

UK£2,148,970

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 ($USD2.95M) is above average for companies of similar size in the UK market ($USD1.65M).

Compensation vs Earnings: Leo's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: BBY's management team is seasoned and experienced (6.2 years average tenure).


Board Members

Experienced Board: BBY's board of directors are considered experienced (4.2 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: BBY 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 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£1.767b
  • Shares outstanding: 638.39m
  • 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


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/09/23 21:35
End of Day Share Price2021/09/23 00:00
Earnings2021/07/02
Annual Earnings2020/12/31


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.