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BBY

Balfour Beatty LSE:BBY Stock Report

Last Price

UK£2.53

Market Cap

UK£1.6b

7D

2.9%

1Y

-18.1%

Updated

22 May, 2022

Data

Company Financials +
BBY fundamental analysis
Snowflake Score
Valuation4/6
Future Growth1/6
Past Performance4/6
Financial Health4/6
Dividends3/6

BBY Stock Overview

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

Balfour Beatty Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Balfour Beatty
Historical stock prices
Current Share PriceUK£2.53
52 Week HighUK£3.22
52 Week LowUK£2.08
Beta0.94
1 Month Change-1.41%
3 Month Change4.55%
1 Year Change-18.09%
3 Year Change10.40%
5 Year Change-9.46%
Change since IPO-16.63%

Recent News & Updates

May 13
Balfour Beatty's (LON:BBY) Shareholders Will Receive A Bigger Dividend Than Last Year

Balfour Beatty's (LON:BBY) Shareholders Will Receive A Bigger Dividend Than Last Year

Balfour Beatty plc ( LON:BBY ) has announced that it will be increasing its dividend on the 6th of July to UK£0.06...

Apr 28
Balfour Beatty (LON:BBY) Is Increasing Its Dividend To UK£0.06

Balfour Beatty (LON:BBY) Is Increasing Its Dividend To UK£0.06

Balfour Beatty plc ( LON:BBY ) will increase its dividend on the 6th of July to UK£0.06. This takes the annual payment...

Apr 05
Balfour Beatty's (LON:BBY) Upcoming Dividend Will Be Larger Than Last Year's

Balfour Beatty's (LON:BBY) Upcoming Dividend Will Be Larger Than Last Year's

Balfour Beatty plc ( LON:BBY ) has announced that it will be increasing its dividend on the 6th of July to UK£0.06. The...

Shareholder Returns

BBYGB ConstructionGB Market
7D2.9%-0.7%-0.4%
1Y-18.1%-13.9%-4.0%

Return vs Industry: BBY underperformed the UK Construction industry which returned -13.9% over the past year.

Return vs Market: BBY underperformed the UK Market which returned -4% over the past year.

Price Volatility

Is BBY's price volatile compared to industry and market?
BBY volatility
BBY Average Weekly Movement4.3%
Construction Industry Average Movement4.8%
Market Average Movement6.2%
10% most volatile stocks in GB Market11.6%
10% least volatile stocks in GB Market3.2%

Stable Share Price: BBY is less volatile than 75% of UK stocks over the past 3 months, typically moving +/- 4% a week.

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

About the Company

FoundedEmployeesCEOWebsite
190924,541Leo 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£1.58b
Earnings (TTM)UK£140.00m
Revenue (TTM)UK£7.19b

11.3x

P/E Ratio

0.2x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
BBY income statement (TTM)
RevenueUK£7.19b
Cost of RevenueUK£6.95b
Gross ProfitUK£239.00m
Other ExpensesUK£99.00m
EarningsUK£140.00m

Last Reported Earnings

Dec 31, 2021

Next Earnings Date

Aug 17, 2022

Earnings per share (EPS)0.22
Gross Margin3.33%
Net Profit Margin1.95%
Debt/Equity Ratio35.6%

How did BBY perform over the long term?

See historical performance and comparison

Dividends

3.6%

Current Dividend Yield

42%

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 DateMay 26 2022
Dividend Pay DateJul 06 2022
Days until Ex dividend3 days
Days until Dividend pay date44 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?

Valuation Score

4/6

Valuation Score 4/6

  • Below Fair Value

  • Significantly Below Fair Value

  • PE vs Industry

  • PE vs Market

  • PEG Ratio

  • PB vs Industry


45.0%

Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: BBY (£2.53) is trading below our estimate of fair value (£4.59)

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


Price To Earnings Ratio

PE vs Industry: BBY is good value based on its PE Ratio (11.3x) compared to the UK Construction industry average (13x).

PE vs Market: BBY is good value based on its PE Ratio (11.3x) compared to the UK market (15.4x).


Price to Earnings Growth Ratio

PEG Ratio: BBY is poor value based on its PEG Ratio (1.6x)


Price to Book Ratio

PB vs Industry: BBY's PB Ratio (1.2x) 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?

Future Growth Score

1/6

Future Growth Score 1/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


7.2%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: BBY's forecast earnings growth (7.2% per year) is above the savings rate (0.9%).

Earnings vs Market: BBY's earnings (7.2% per year) are forecast to grow slower than the UK market (11.3% per year).

High Growth Earnings: BBY's earnings are forecast to grow, but not significantly.

Revenue vs Market: BBY's revenue (0.1% per year) is forecast to grow slower than the UK market (4.1% per year).

High Growth Revenue: BBY's revenue (0.1% 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 (11.9%).


Past Performance

How has Balfour Beatty performed over the past 5 years?

Past Performance Score

4/6

Past Performance Score 4/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


0.6%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: BBY has a large one-off gain of £41.0M impacting its December 31 2021 financial results.

Growing Profit Margin: BBY's current net profit margins (1.9%) are higher than last year (0.4%).


Past Earnings Growth Analysis

Earnings Trend: BBY's earnings have grown by 0.6% per year over the past 5 years.

Accelerating Growth: BBY's earnings growth over the past year (366.7%) exceeds its 5-year average (0.6% per year).

Earnings vs Industry: BBY earnings growth over the past year (366.7%) exceeded the Construction industry 33%.


Return on Equity

High ROE: BBY's Return on Equity (10.1%) is considered low.


Financial Health

How is Balfour Beatty's financial position?

Financial Health Score

4/6

Financial Health Score 4/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

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 has more cash than its total debt.

Reducing Debt: BBY's debt to equity ratio has reduced from 122.9% to 35.6% over the past 5 years.

Debt Coverage: BBY's debt is well covered by operating cash flow (72%).

Interest Coverage: BBY's interest payments on its debt are not well covered by EBIT (1.3x coverage).


Balance Sheet


Dividend

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

Dividend Score

3/6

Dividend Score 3/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Future Dividend Coverage


3.56%

Current Dividend Yield

Upcoming Dividend Payment

TodayMay 23 2022Ex Dividend DateMay 26 2022Dividend Pay DateJul 06 202241 days from Ex DividendBuy in the next 3 days to receive the upcoming dividend

Dividend Yield vs Market

Notable Dividend: BBY's dividend (3.56%) is higher than the bottom 25% of dividend payers in the UK market (1.8%).

High Dividend: BBY's dividend (3.56%) is low compared to the top 25% of dividend payers in the UK market (4.86%).


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.


Earnings Payout to Shareholders

Earnings Coverage: With its reasonably low payout ratio (42.2%), BBY's dividend payments are well covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: With its low cash payout ratio (17.8%), BBY's dividend payments are well covered by cash flows.


Discover strong dividend paying companies

Management

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

6.8yrs

Average management tenure


CEO

Leo Quinn (64 yo)

7.33yrs

Tenure

UK£2,942,943

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 ($USD3.67M) is above average for companies of similar size in the UK market ($USD1.85M).

Compensation vs Earnings: Leo's compensation has increased by more than 20% in the past year.


Leadership Team

Experienced Management: BBY's management team is seasoned and experienced (6.8 years average tenure).


Board Members

Experienced Board: BBY's board of directors are considered experienced (4.9 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
  • Implied Market Cap: UK£1.578b
  • Shares outstanding: 624.86m
  • 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 Analysis2022/05/22 00:00
End of Day Share Price2022/05/20 00:00
Earnings2021/12/31
Annual Earnings2021/12/31


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.