LSE:BBY

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Executive Summary

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


Snowflake Analysis

Reasonable 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

Stable Share Price: BBY has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-8.8%

BBY

-0.2%

GB Construction

2.4%

GB Market


1 Year Return

5.4%

BBY

-12.0%

GB Construction

-8.4%

GB Market

Return vs Industry: BBY exceeded the UK Construction industry which returned -12% over the past year.

Return vs Market: BBY exceeded the UK Market which returned -8.4% over the past year.


Shareholder returns

BBYIndustryMarket
7 Day-8.8%-0.2%2.4%
30 Day-12.4%-1.9%0.5%
90 Day-4.6%1.6%9.0%
1 Year6.4%5.4%2.1%-12.0%-4.8%-8.4%
3 Year-11.9%-15.5%-40.5%-54.4%-2.8%-14.6%
5 Year-8.0%-12.5%-36.0%-56.0%22.9%-4.5%

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

Valuation

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

15.25x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: BBY (£2.31) is trading above our estimate of fair value (£2.22)

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 (15.3x) compared to the GB Construction industry average (10.2x).

PE vs Market: BBY is good value based on its PE Ratio (15.3x) compared to the UK market (16.6x).


Price to Earnings Growth Ratio

PEG Ratio: BBY is good value based on its PEG Ratio (0.6x)


Price to Book Ratio

PB vs Industry: BBY's PB Ratio (1x) is in line with the GB Construction industry average.


Next Steps

Future Growth

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

24.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: BBY's forecast earnings growth (24.6% per year) is above the savings rate (1.2%).

Earnings vs Market: BBY's earnings (24.6% per year) are forecast to grow faster than the UK market (23.1% per year).

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

Revenue vs Market: BBY's revenue (5.8% per year) is forecast to grow faster than the UK market (5.6% per year).

High Growth Revenue: BBY's revenue (5.8% 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 (10.5%).


Next Steps

Past Performance

How has Balfour Beatty performed over the past 5 years?

63.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: BBY has high quality earnings.

Growing Profit Margin: BBY's current net profit margins (1.4%) are lower than last year (1.6%).


Past Earnings Growth Analysis

Earnings Trend: BBY has become profitable over the past 5 years, growing earnings by 63.6% 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 (-7.2%) over the past year, making it difficult to compare to the Construction industry average (-2.9%).


Return on Equity

High ROE: BBY's Return on Equity (6.5%) is considered low.


Next Steps

Financial Health

How is Balfour Beatty's financial position?


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 (£1.2B).


Debt to Equity History and Analysis

Debt Level: BBY's debt to equity ratio (43.3%) is considered high.

Reducing Debt: BBY's debt to equity ratio has reduced from 113.8% to 43.3% over the past 5 years.

Debt Coverage: BBY's debt is well covered by operating cash flow (30.1%).

Interest Coverage: BBY's interest payments on its debt are not well covered by EBIT (1.9x coverage).


Balance Sheet


Next Steps

Dividend

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

2.55%

Forecast Dividend Yield


Dividend Yield vs Market

Notable Dividend: Unable to evaluate BBY's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate BBY's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if BBY's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if BBY's dividend payments have been 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?

5.2yrs

Average management tenure


CEO

Leo Quinn (63 yo)

5.58yrs

Tenure

UK£2,953,278

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 ($USD3.87M) is above average for companies of similar size in the UK market ($USD1.76M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Leo Quinn
Group Chief Executive & Executive Director5.58yrsUK£2.95m0.31%
£ 5.0m
Philip Harrison
CFO & Executive Director5.17yrsUK£1.45m0.055%
£ 878.5k
William Weir
Honorary President17.25yrsUK£63.58kno data
John Tarpey
Chief of Organization Developmentno datano datano data
Chris Johnson
Chief Technology Officer0.67yrno datano data
Louise McCulloch
Group Head of Communications1.83yrsno datano data
Paul Raby
Human Resources Director15.58yrsno datano data
Neil Patterson
Regional Managing Director of London and South East for UK Construction Businessno datano datano data
Stephen Tarr
Managing Director of Major Projects5yrsno datano data
Dean Banks
Chief Executive Officer of UK Construction Services5.17yrsno datano data
Mark Bullock
Chief Executive Officer of Rail & Utilities8.58yrsno datano data
Hector Macaulay
Managing Director of Construction & Civil Engineering Business In Scotland and Ireland4.75yrsno datano data

5.2yrs

Average Tenure

61yo

Average Age

Experienced Management: BBY's management team is seasoned and experienced (5.2 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Leo Quinn
Group Chief Executive & Executive Director5.58yrsUK£2.95m0.31%
£ 5.0m
Philip Harrison
CFO & Executive Director5.17yrsUK£1.45m0.055%
£ 878.5k
Philip Aiken
Independent Non-Executive Group Chairman5.42yrsUK£277.00k0.0022%
£ 34.6k
Stephen Billingham
Senior Independent Director1.25yrsUK£76.08k0.0035%
£ 55.1k
Stuart Doughty
Independent Non-Executive Director5.33yrsUK£77.60k0.00066%
£ 10.5k
Barbara Moorhouse
Independent Non-Executive Director3.17yrsUK£62.88k0.00058%
£ 9.2k
Mark Layman
Director of Balfour Beatty Construction Services US6.67yrsno datano data
Michael Lucki
Independent Non-Executive Director3.08yrsUK£78.84kno data
Anne Drinkwater
Non-Executive Director1.67yrsUK£76.74k0.00066%
£ 10.5k

5.2yrs

Average Tenure

63.5yo

Average Age

Experienced Board: BBY's board of directors are considered experienced (5.2 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£1.588b
  • Shares outstanding: 686.96m
  • 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
BAFY.DOTCPK (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 Analysis2020/08/15 03:48
End of Day Share Price2020/08/14 00:00
Earnings2020/06/26
Annual Earnings2019/12/31


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.