LSE:BBY

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

Moderate growth potential with mediocre balance sheet.


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


Market Performance


7 Day Return

15.8%

LSE:BBY

6.1%

GB Construction

-0.3%

GB Market


1 Year Return

-21.3%

LSE:BBY

-41.1%

GB Construction

-5.3%

GB Market

BBY outperformed the Construction industry which returned -42% over the past year.

BBY underperformed the Market in United Kingdom of Great Britain and Northern Ireland which returned -5.7% over the past year.


Share holder returns

BBYIndustryMarket
7 Day15.8%6.1%-0.3%
30 Day0.8%0.2%-3.9%
90 Day-3.9%-15.4%-2.2%
1 Year-19.8%-21.3%-38.3%-41.1%-0.9%-5.3%
3 Year-9.5%-13.2%-30.1%-39.6%18.9%5.1%
5 Year0.6%-6.8%-28.9%-47.0%28.1%1.1%

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

Valuation

Is Balfour Beatty undervalued based on future cash flows and its price relative to the stock market?

13.81x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

Balfour Beatty's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).

Balfour Beatty's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).


Price Based on Earnings

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

Balfour Beatty is good value based on expected growth next year.


Price Based on Value of Assets

Balfour Beatty is overvalued based on assets compared to the GB Construction industry average.


Next Steps

Future Growth

How is Balfour Beatty expected to perform in the next 1 to 3 years based on estimates from 6 analysts?

15.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Balfour Beatty's revenue is expected to grow by 5% yearly, however this is not considered high growth (20% yearly).

Balfour Beatty's earnings are expected to grow by 15.6% yearly, however this is not considered high growth (20% yearly).

Balfour Beatty's revenue growth is expected to exceed the United Kingdom of Great Britain and Northern Ireland market average.

Balfour Beatty's earnings growth is expected to exceed the United Kingdom of Great Britain and Northern Ireland market average.

Balfour Beatty's earnings growth is expected to exceed the low risk savings rate of 1.2%.


Earnings per Share Growth Estimates


Future Return on Equity

Balfour Beatty is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


Next Steps

Past Performance

How has Balfour Beatty performed over the past 5 years?

68.4%

Historical annual earnings growth


Earnings and Revenue History


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.


Return on Equity

Balfour Beatty has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Balfour Beatty used its assets less efficiently than the GB Construction industry average last year based on Return on Assets.


Return on Capital Employed

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).


Next Steps

Financial Health

How is Balfour Beatty's financial position?


Financial Position Analysis

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.


Debt to Equity History and Analysis

Balfour Beatty's level of debt (63%) 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 (123.7% vs 63% today).

Operating cash flow is negative therefore debt is not well covered.

Interest payments on debt are well covered by earnings (EBIT is 4.1x coverage).


Balance Sheet

Low level of unsold assets.

Debt is covered by short term assets, assets are 2.8x debt.


Next Steps

Dividend

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

3.15%

Expected Dividend Yield


Upcoming Dividend Payment

Purchase Balfour Beatty before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield and Payments Analysis

Balfour Beatty's pays a higher dividend yield than the bottom 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (2.08%).

Balfour Beatty's dividend is below the markets top 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (5.77%).

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.


Current Payout to Shareholders

Dividends paid are well covered by earnings (3.1x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be well covered by earnings (3.4x coverage).


Next Steps

Management

What is the CEO of Balfour Beatty's salary, the management and board of directors tenure and is there insider trading?

4.1yrs

Average management tenure


CEO

Leo Quinn (62yo)

4.6yrs

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

Leo's remuneration is higher than average for companies of similar size in United Kingdom of Great Britain and Northern Ireland.

Leo's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

4.1yrs

Average Tenure

62yo

Average Age

The tenure for the Balfour Beatty management team is about average.


Board Age and Tenure

4.2yrs

Average Tenure

62.5yo

Average Age

The tenure for the Balfour Beatty board of directors is about average.


Insider Trading

No 3 month open market individual insider trading information.


Ownership Breakdown


Management Team

  • William Weir (86yo)

    Honorary President

    • Tenure: 16.3yrs
    • Compensation: UK£63.58k
  • Leo Quinn (62yo)

    Group Chief Executive & Executive Director

    • Tenure: 4.6yrs
    • Compensation: UK£4.34m
  • John Tarpey

    Chief of Organization Development

    • Tenure: 0.0yrs
  • Paul Raby

    Human Resources Director

    • Tenure: 14.6yrs
  • Phil Harrison (58yo)

    CFO & Executive Director

    • Tenure: 4.2yrs
    • Compensation: UK£1.33m
  • Chris Johnson

    Chief Information Officer & Group Procurement Director

    • Tenure: 4.1yrs
  • Neil Patterson

    Regional Managing Director of London and South East for UK Construction Business

    • Tenure: 0.0yrs
  • Steve Tarr

    Managing Director of Major Projects

    • Tenure: 4.0yrs
  • Louise McCulloch

    Group Head of Communications

    • Tenure: 0.8yrs
  • Jonathan Lagan

    Group General Counsel

    • Tenure: 0.5yrs

Board Members

  • Phil Aiken (70yo)

    Non-Executive Chairman

    • Tenure: 4.4yrs
    • Compensation: UK£273.50k
  • Stephen Billingham (61yo)

    Senior Independent Director

    • Tenure: 0.3yrs
    • Compensation: UK£73.25k
  • Stuart Doughty (75yo)

    Non-Executive Director

    • Tenure: 4.3yrs
    • Compensation: UK£73.25k
  • Barbara Moorhouse (61yo)

    Non-Executive Director

    • Tenure: 2.2yrs
    • Compensation: UK£60.75k
  • Leo Quinn (62yo)

    Group Chief Executive & Executive Director

    • Tenure: 4.6yrs
    • Compensation: UK£4.34m
  • Mark Layman

    Director of Balfour Beatty Construction Services US

    • Tenure: 5.7yrs
  • Phil Harrison (58yo)

    CFO & Executive Director

    • Tenure: 4.2yrs
    • Compensation: UK£1.33m
  • Mike Lucki (63yo)

    Non-Executive Director

    • Tenure: 2.1yrs
    • Compensation: UK£68.25k
  • Anne Drinkwater (63yo)

    Non-Executive Director

    • Tenure: 0.7yrs
    • Compensation: UK£5.13k

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£1.546b
  • 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

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
BIHDB (Deutsche Boerse AG)YesOrdinary SharesDEEURJan 1992
BBYLSE (London Stock Exchange)YesOrdinary SharesGBGBPJan 1992
BAFB.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJan 1992
BBYLBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBGBPJan 1992
BBYBLSE (London Stock Exchange)10.75P GROSS(NET PD)CUM CNV RED PRF 1PGBGBPJan 1995
BAFY.YOTCPK (Pink Sheets LLC)SPONSORED ADR REUSUSDJul 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 Servic ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/08/19 20:38
End of Day Share Price2019/08/19 00:00
Earnings2019/06/28
Annual Earnings2018/12/31


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.