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Balfour Beatty

LSE:BBY
Snowflake Description

Fair value with moderate growth potential.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
BBY
LSE
£2B
Market Cap
  1. Home
  2. GB
  3. Capital Goods
Company description

Balfour Beatty plc finances, designs, develops, builds, and maintains infrastructure in the United Kingdom, the United States, and internationally. The last earnings update was 4 days ago. More info.


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BBY Share Price and Events
7 Day Returns
10.6%
LSE:BBY
3.8%
GB Construction
-1.7%
GB Market
1 Year Returns
-22.8%
LSE:BBY
-42%
GB Construction
-5.7%
GB Market
BBY Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Balfour Beatty (BBY) 10.6% -2.1% -5.3% -22.8% -15.6% -9.5%
GB Construction 3.8% -1.3% -16.3% -42% -40.3% -48%
GB Market -1.7% -4.6% -3.2% -5.7% 4% 0.2%
1 Year Return vs Industry and 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.
Price Volatility
BBY
Industry
5yr Volatility vs Market

Value

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

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Balfour Beatty to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Balfour Beatty.

LSE:BBY Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 6 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 10.2%
Perpetual Growth Rate 10-Year GB Government Bond Rate 1.2%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for LSE:BBY
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year GB Govt Bond Rate 1.2%
Equity Risk Premium S&P Global 6.7%
Construction Unlevered Beta Simply Wall St/ S&P Global 1.02
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.023 (1 + (1- 19%) (59.69%))
1.347
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.35
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 1.23% + (1.347 * 6.65%)
10.19%

Discounted Cash Flow Calculation for LSE:BBY using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Balfour Beatty is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

Note: Free cash flow to equity valuations ignore the company's cash or debt.

LSE:BBY DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (GBP, Millions) Source Present Value
Discounted (@ 10.19%)
2020 115.95 Analyst x3 105.23
2021 124.09 Analyst x2 102.21
2022 130.44 Est @ 5.12% 97.51
2023 135.59 Est @ 3.95% 91.99
2024 139.84 Est @ 3.13% 86.10
2025 143.42 Est @ 2.56% 80.14
2026 146.52 Est @ 2.16% 74.31
2027 149.27 Est @ 1.88% 68.71
2028 151.79 Est @ 1.68% 63.41
2029 154.14 Est @ 1.55% 58.44
Present value of next 10 years cash flows £828.03
LSE:BBY DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= £154.14 × (1 + 1.23%) ÷ (10.19% – 1.23%)
£1,741.75
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= £1,741.75 ÷ (1 + 10.19%)10
£660.32
LSE:BBY Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= £828.03 + £660.32
£1,488.36
Equity Value per Share
(GBP)
= Total value / Shares Outstanding
= £1,488.36 / 684.22
£2.18
LSE:BBY Discount to Share Price
Calculation Result
Value per share (GBP) From above. £2.18
Current discount Discount to share price of £2.19
= -1 x (£2.19 - £2.18) / £2.18
-0.9%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of Balfour Beatty is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Balfour Beatty's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Balfour Beatty's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
LSE:BBY PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-06-28) in GBP £0.16
LSE:BBY Share Price ** LSE (2019-08-16) in GBP £2.19
United Kingdom of Great Britain and Northern Ireland Construction Industry PE Ratio Median Figure of 16 Publicly-Listed Construction Companies 7.94x
United Kingdom of Great Britain and Northern Ireland Market PE Ratio Median Figure of 793 Publicly-Listed Companies 15.83x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Balfour Beatty.

LSE:BBY PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= LSE:BBY Share Price ÷ EPS (both in GBP)

= 2.19 ÷ 0.16

13.41x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • 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
Does Balfour Beatty's expected growth come at a high price?
Raw Data
LSE:BBY PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 13.41x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 6 Analysts
15.6%per year
United Kingdom of Great Britain and Northern Ireland Construction Industry PEG Ratio Median Figure of 9 Publicly-Listed Construction Companies 0.86x
United Kingdom of Great Britain and Northern Ireland Market PEG Ratio Median Figure of 570 Publicly-Listed Companies 1.41x

*Line of best fit is calculated by linear regression .

LSE:BBY PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 13.41x ÷ 15.6%

0.86x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Balfour Beatty is good value based on expected growth next year.
Price based on value of assets
What value do investors place on Balfour Beatty's assets?
Raw Data
LSE:BBY PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-06-28) in GBP £1.76
LSE:BBY Share Price * LSE (2019-08-16) in GBP £2.19
United Kingdom of Great Britain and Northern Ireland Construction Industry PB Ratio Median Figure of 19 Publicly-Listed Construction Companies 1.25x
United Kingdom of Great Britain and Northern Ireland Market PB Ratio Median Figure of 1,370 Publicly-Listed Companies 1.39x
LSE:BBY PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= LSE:BBY Share Price ÷ Book Value per Share (both in GBP)

= 2.19 ÷ 1.76

1.25x

* Primary Listing of Balfour Beatty.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Balfour Beatty is good value based on assets compared to the GB Construction industry average.
X
Value checks
We assess Balfour Beatty's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Construction industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Construction industry average (and greater than 0)? (1 check)
  5. Balfour Beatty has a total score of 3/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

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

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
15.6%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Balfour Beatty expected to grow at an attractive rate?
  • Balfour Beatty's earnings growth is expected to exceed the low risk savings rate of 1.2%.
Growth vs Market Checks
  • Balfour Beatty's earnings growth is expected to exceed the United Kingdom of Great Britain and Northern Ireland market average.
  • Balfour Beatty's revenue growth is expected to exceed the United Kingdom of Great Britain and Northern Ireland market average.
Annual Growth Rates Comparison
Raw Data
LSE:BBY Future Growth Rates Data Sources
Data Point Source Value (per year)
LSE:BBY Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 6 Analysts 15.6%
LSE:BBY Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 6 Analysts 5%
United Kingdom of Great Britain and Northern Ireland Construction Industry Earnings Growth Rate Market Cap Weighted Average 19.8%
United Kingdom of Great Britain and Northern Ireland Construction Industry Revenue Growth Rate Market Cap Weighted Average 3.1%
United Kingdom of Great Britain and Northern Ireland Market Earnings Growth Rate Market Cap Weighted Average 12.1%
United Kingdom of Great Britain and Northern Ireland Market Revenue Growth Rate Market Cap Weighted Average 4.2%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
LSE:BBY Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (1 month ago) See Below
Future Estimates Average of up to 6 Analyst Estimates (S&P Global) See Below
All numbers in GBP Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
LSE:BBY Future Estimates Data
Date (Data in GBP Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2021-12-31 8,269 214 180 4
2020-12-31 7,892 185 144 6
2019-12-31 7,638 138 140 6
LSE:BBY Past Financials Data
Date (Data in GBP Millions) Revenue Cash Flow Net Income *
2019-06-28 6,811 -4 112
2019-03-28 6,723 -67 124
2018-12-31 6,634 -130 135
2018-09-30 6,613 -68 176
2018-06-29 6,592 -6 217
2018-03-29 6,754 16 190
2017-12-31 6,916 38 162
2017-09-30 7,030 -1 93
2017-06-30 7,144 -39 23
2017-03-31 7,034 -88 13
2016-12-31 6,923 -136 2
2016-09-30 6,868 -163 -30
2016-07-01 6,812 -190 -62

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • 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 is expected to grow by 5% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
LSE:BBY Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (1 month ago) See Below
Future Estimates Average of up to 6 Analyst Estimates (S&P Global) See Below

All data from Balfour Beatty Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

LSE:BBY Future Estimates Data
Date (Data in GBP Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2021-12-31 0.26 0.30 0.23 2.00
2020-12-31 0.21 0.28 0.15 3.00
2019-12-31 0.18 0.24 0.13 3.00
LSE:BBY Past Financials Data
Date (Data in GBP Millions) EPS *
2019-06-28 0.16
2019-03-28 0.18
2018-12-31 0.20
2018-09-30 0.26
2018-06-29 0.32
2018-03-29 0.28
2017-12-31 0.24
2017-09-30 0.14
2017-06-30 0.03
2017-03-31 0.02
2016-12-31 0.00
2016-09-30 -0.04
2016-07-01 -0.09

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Balfour Beatty is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Balfour Beatty's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United Kingdom of Great Britain and Northern Ireland market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United Kingdom of Great Britain and Northern Ireland market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Balfour Beatty has a total score of 3/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Balfour Beatty performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Balfour Beatty's growth in the last year to its industry (Construction).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • 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.
Earnings and Revenue History
Balfour Beatty's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Balfour Beatty Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

LSE:BBY Past Revenue, Cash Flow and Net Income Data
Date (Data in GBP Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-06-28 6,811.00 112.00
2019-03-28 6,722.50 123.50
2018-12-31 6,634.00 135.00
2018-09-30 6,613.00 176.00 1.50
2018-06-29 6,592.00 217.00 3.00
2018-03-29 6,754.00 189.50 4.50
2017-12-31 6,916.00 162.00 6.00
2017-09-30 7,030.00 92.50 5.50
2017-06-30 7,144.00 23.00 5.00
2017-03-31 7,033.50 12.50 4.50
2016-12-31 6,923.00 2.00 4.00
2016-09-30 6,867.50 -30.00 3.50
2016-07-01 6,812.00 -62.00 3.00
2016-04-01 6,883.50 -134.00 3.00
2015-12-31 6,955.00 -206.00 3.00
2015-09-30 7,374.50 -281.00 6.50
2015-06-26 7,175.00 -410.00 10.00
2015-03-26 7,219.50 -356.00 13.00
2014-12-31 7,264.00 -302.00 16.00
2014-09-30 6,688.50 -231.00 13.50
2014-06-27 6,732.00 -106.00 11.00
2014-03-27 7,110.00 -79.50 10.00
2013-12-31 7,488.00 -53.00 9.00
2013-09-30 8,006.50 -3.50 9.50
2013-06-28 8,525.00 46.00 10.00
2013-03-28 8,590.50 83.50 9.50
2012-12-31 8,656.00 121.00 9.00
2012-09-30 9,040.00 162.00 8.00

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Balfour Beatty has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Balfour Beatty used its assets less efficiently than the GB Construction industry average last year based on Return on Assets.
  • 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).
X
Past performance checks
We assess Balfour Beatty's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Construction industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Balfour Beatty has a total score of 2/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Balfour Beatty's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Balfour Beatty's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • 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.
Balance sheet
This treemap shows a more detailed breakdown of Balfour Beatty's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Debt is covered by short term assets, assets are 2.8x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Balfour Beatty Company Filings, last reported 1 month ago.

LSE:BBY Past Debt and Equity Data
Date (Data in GBP Millions) Total Equity Total Debt Cash & Short Term Investments
2019-06-28 1,232.00 776.00 730.00
2019-03-28 1,232.00 776.00 730.00
2018-12-31 1,241.00 768.00 661.00
2018-09-30 1,241.00 768.00 661.00
2018-06-29 1,240.00 1,022.00 926.00
2018-03-29 1,240.00 1,022.00 926.00
2017-12-31 1,066.00 1,075.00 968.00
2017-09-30 1,066.00 1,075.00 968.00
2017-06-30 765.00 1,108.00 843.00
2017-03-31 765.00 1,108.00 843.00
2016-12-31 762.00 965.00 770.00
2016-09-30 762.00 965.00 770.00
2016-07-01 834.00 1,211.00 728.00
2016-04-01 834.00 1,211.00 728.00
2015-12-31 830.00 1,043.00 667.00
2015-09-30 830.00 1,032.00 666.00
2015-06-26 854.00 972.00 740.00
2015-03-26 854.00 972.00 740.00
2014-12-31 1,230.00 1,142.00 733.00
2014-09-30 1,230.00 1,142.00 733.00
2014-06-27 965.00 1,204.00 457.00
2014-03-27 965.00 1,204.00 457.00
2013-12-31 1,035.00 1,184.00 606.00
2013-09-30 1,035.00 1,184.00 606.00
2013-06-28 1,192.00 1,308.00 564.00
2013-03-28 1,192.00 1,308.00 564.00
2012-12-31 1,313.00 1,104.00 543.00
2012-09-30 1,313.00 1,104.00 543.00
  • 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).
X
Financial health checks
We assess Balfour Beatty's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Balfour Beatty has a total score of 3/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
2.19%
Current annual income from Balfour Beatty dividends. Estimated to be 3.25% next year.
If you bought £2,000 of Balfour Beatty shares you are expected to receive £44 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • 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%).
Upcoming dividend payment

Purchase Balfour Beatty before the 'Ex-dividend' to receive their next dividend payment.

Dividends are usually paid every 3 or 6 months, you can time your share purchase to take advantage of upcoming dividend payments.
Dividend payment calendar
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
LSE:BBY Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 6 Analyst Estimates (S&P Global) See Below
United Kingdom of Great Britain and Northern Ireland Construction Industry Average Dividend Yield Market Cap Weighted Average of 15 Stocks 7.6%
United Kingdom of Great Britain and Northern Ireland Market Average Dividend Yield Market Cap Weighted Average of 699 Stocks 4.5%
United Kingdom of Great Britain and Northern Ireland Minimum Threshold Dividend Yield 10th Percentile 1.1%
United Kingdom of Great Britain and Northern Ireland Bottom 25% Dividend Yield 25th Percentile 2.1%
United Kingdom of Great Britain and Northern Ireland Top 25% Dividend Yield 75th Percentile 5.8%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

LSE:BBY Future Dividends Estimate Data
Date (Data in £) Dividend per Share (annual) Avg. No. Analysts
2021-12-31 0.08 5.00
2020-12-31 0.07 7.00
2019-12-31 0.06 7.00
LSE:BBY Past Annualized Dividends Data
Date (Data in £) Dividend per share (annual) Avg. Yield (%)
2019-04-04 0.048 2.041
2019-03-13 0.048 1.793
2018-03-14 0.036 1.294
2017-03-16 0.027 0.987
2016-08-17 0.018 0.659
2016-04-12 0.000 0.000
2016-03-15 0.000 0.000
2015-08-12 0.000 0.000
2015-04-02 0.000 0.000
2015-03-25 0.000 0.000
2014-03-18 0.141 6.485
2014-03-06 0.141 4.922
2013-03-07 0.141 5.467
2012-03-27 0.138 4.896
2012-03-08 0.138 4.759
2011-03-03 0.127 4.548
2011-03-02 0.127 3.650
2010-03-04 0.120 4.323
2010-03-01 0.120 4.268
2009-08-11 0.132 4.635
2009-03-05 0.128 3.910

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • 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
What portion of Balfour Beatty's earnings are paid to the shareholders as a dividend.
  • 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).
X
Income/ dividend checks
We assess Balfour Beatty's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.1%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Balfour Beatty afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Balfour Beatty has a total score of 3/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

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

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Leo Quinn
COMPENSATION £4,341,480
AGE 62
TENURE AS CEO 4.6 years
CEO Bio

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, 2009 to December 31, 2014. Mr. Quinn served as the President of Tridium, Inc. Mr. Quinn served as an Chief Executive of De La Rue Plc from May 31, 2004 to December 31, 2004. He served as the President of Honeywell's International Enterprise Solutions division in the USA since 2000. Mr. Quinn was employed at Invensys Limited (alternate name, Invensys plc), where he served as the Chief Operating Officer of the Product Management Division, based in Massachusetts, USA. He has considerable operational experience, having spent 16 years with Honeywell Inc., the engineering Group from 2001 to 2004, initially in the UK, but also held a variety of senior management roles in the USA, Europe, the Middle East and Africa including Global President of Home & Business Controls Enterprise Solutions. He has been an Independent Non-Executive Director of Betfair Group PLC since March 05, 2014, The Sporting Exchange Limited since March 2014 and Betfair Limited since March 2014. He has been an Executive Director of Balfour Beatty plc since January 1, 2015. He served as Executive Director of QinetiQ Group Plc until December 31, 2014. He held a number of general management roles around the world with Honeywell International Inc. He served as an Independent Non-Executive Director of Tomkins Limited (alternate name, Tomkins PLC) from July 6, 2007 to November 3, 2009. He served as Independent Non-Executive Director of Pinafore Holdings B.V. from July 6, 2007 to November 3, 2009. He served as a Director of Wyless Plc. He served as an Executive Director of De La Rue plc from March 29, 2004 to December 31, 2008. Mr. Quinn received a Matching Award to mirror its Performance Share Plan in respect of this share purchase, subject to normal vesting and performance conditions. He was educated at both Imperial College and Portsmouth University and holds an MSc in Management Science and a BSc in Civil Engineering.

CEO Compensation
  • Leo's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Leo's remuneration is higher than average for companies of similar size in United Kingdom of Great Britain and Northern Ireland.
Management Team Tenure

Average tenure and age of the Balfour Beatty management team in years:

4.1
Average Tenure
62
Average Age
  • The tenure for the Balfour Beatty management team is about average.
Management Team

Leo Quinn

TITLE
Group Chief Executive & Executive Director
COMPENSATION
£4M
AGE
62
TENURE
4.6 yrs

Phil Harrison

TITLE
CFO & Executive Director
COMPENSATION
£1M
AGE
58
TENURE
4.2 yrs

William Weir

TITLE
Honorary President
COMPENSATION
£64K
AGE
86
TENURE
16.3 yrs

John Tarpey

TITLE
Chief of Organization Development

Chris Johnson

TITLE
Chief Information Officer & Group Procurement Director
TENURE
4.1 yrs

Jonathan Lagan

TITLE
Group General Counsel
TENURE
0.5 yrs

Louise McCulloch

TITLE
Group Head of Communications
TENURE
0.8 yrs

Paul Raby

TITLE
Human Resources Director
TENURE
14.6 yrs

Neil Patterson

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

Steve Tarr

TITLE
Managing Director of Major Projects
TENURE
4 yrs
Board of Directors Tenure

Average tenure and age of the Balfour Beatty board of directors in years:

4.2
Average Tenure
62.5
Average Age
  • The tenure for the Balfour Beatty board of directors is about average.
Board of Directors

Phil Aiken

TITLE
Non-Executive Chairman
COMPENSATION
£274K
AGE
70
TENURE
4.4 yrs

Leo Quinn

TITLE
Group Chief Executive & Executive Director
COMPENSATION
£4M
AGE
62
TENURE
4.6 yrs

Phil Harrison

TITLE
CFO & Executive Director
COMPENSATION
£1M
AGE
58
TENURE
4.2 yrs

Stuart Doughty

TITLE
Non-Executive Director
COMPENSATION
£73K
AGE
75
TENURE
4.3 yrs

Stephen Billingham

TITLE
Senior Independent Director
COMPENSATION
£73K
AGE
61
TENURE
0.3 yrs

Anne Drinkwater

TITLE
Non-Executive Director
COMPENSATION
£5K
AGE
63
TENURE
0.7 yrs

Mark Layman

TITLE
Director of Balfour Beatty Construction Services US
TENURE
5.7 yrs

Barbara Moorhouse

TITLE
Non-Executive Director
COMPENSATION
£61K
AGE
61
TENURE
2.2 yrs

Mike Lucki

TITLE
Non-Executive Director
COMPENSATION
£68K
AGE
63
TENURE
2.1 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month open market individual insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (£) Value (£)
X
Management checks
We assess Balfour Beatty's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Balfour Beatty has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Balfour Beatty plc (LON:BBY): Is It A Smart Long Term Opportunity?

Since Balfour Beatty plc (LON:BBY) released its earnings in December 2018, analyst forecasts seem fairly subdued, with profits predicted to rise by 7.3% next year relative to the higher past 5-year average growth rate of 60%. … To understand the overall trajectory of BBY's earnings growth over these next fews years, I've fitted a line through these analyst earnings forecast to determine an annual growth rate from the slope. … LSE:BBY Past and Future Earnings, August 13th 2019 This results in an annual growth rate of 9.7% based on the most recent earnings level of UK£135m to the final forecast of UK£178m by 2022.

Simply Wall St -

These 4 Measures Indicate That Balfour Beatty (LON:BBY) Is Using Debt Extensively

View our latest analysis for Balfour Beatty How Much Debt Does Balfour Beatty Carry? … LSE:BBY Historical Debt, July 25th 2019 How Strong Is Balfour Beatty's Balance Sheet? … Looking at the balance sheet and taking into account all these factors, we do believe that debt is making Balfour Beatty stock a bit risky.

Simply Wall St -

Balfour Beatty plc (LON:BBY): Is Growth Priced In?

Balfour Beatty plc (LON:BBY) is considered a high-growth stock, but its last closing price of £2.388 left some investors wondering if this high future earnings potential can be rationalized by its current price tag. … But, since Balfour Beatty is a high-growth stock, we must also account for its earnings growth by using calculation called the PEG ratio. … This tells us that when we include its growth in our analysis Balfour Beatty's stock can be considered fairly valued , based on fundamental analysis.

Simply Wall St -

Should You Worry About Balfour Beatty plc's (LON:BBY) CEO Salary Level?

Check out our latest analysis for Balfour Beatty How Does Leo Quinn's Compensation Compare With Similar Sized Companies? … Balfour Beatty plc has served shareholders reasonably well, with a total return of 21% over three years. … We compared the total CEO remuneration paid by Balfour Beatty plc, and compared it to remuneration at a group of similar sized companies.

Simply Wall St -

Is Balfour Beatty plc (LON:BBY) Struggling With Its 3.6% Return On Capital Employed?

The formula for calculating the return on capital employed is: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) Or for Balfour Beatty: 0.036 = UK£89m ÷ (UK£4.6b - UK£2.1b) (Based on the trailing twelve months to December 2018.) Therefore, Balfour Beatty has an ROCE of 3.6%. … Do Balfour Beatty's Current Liabilities Skew Its ROCE? … With a medium level of current liabilities boosting the ROCE a little, Balfour Beatty's low ROCE is unappealing.

Simply Wall St -

Volatility 101: Should Balfour Beatty (LON:BBY) Shares Have Dropped 23%?

Unfortunately the Balfour Beatty plc (LON:BBY) share price slid 23% over twelve months. … We've already covered Balfour Beatty's share price action, but we should also mention its total shareholder return (TSR). … Dividends have been really beneficial for Balfour Beatty shareholders, and that cash payout explains why its total shareholder loss of 22%, over the last year, isn't as bad as the share price return.

Simply Wall St -

Should You Be Worried About Balfour Beatty plc's (LON:BBY) 11% Return On Equity?

The formula for ROE is: Return on Equity = Net Profit ÷ Shareholders' Equity Or for Balfour Beatty: 11% = UK£135m ÷ UK£1.2b (Based on the trailing twelve months to December 2018.) Most readers would understand what net profit is, but it’s worth explaining the concept of shareholders’ equity. … Combining Balfour Beatty's Debt And Its 11% Return On Equity While Balfour Beatty does have some debt, with debt to equity of just 0.62, we wouldn't say debt is excessive. … If you would prefer check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity and low debt.

Simply Wall St -

What Should You Know About Balfour Beatty plc's (LON:BBY) Earnings Trajectory?

Balfour Beatty plc's (LON:BBY) announced its latest earnings update in December 2018, which showed that the business faced a immense headwind with earnings declining by -17%. … Investors may find it useful to understand how market analysts predict Balfour Beatty's earnings growth trajectory over the next couple of years and whether the future looks brighter. … View our latest analysis for Balfour Beatty Analysts' outlook for this coming year seems positive, with earnings rising by a robust 28%.

Simply Wall St -

Don't Sell Balfour Beatty plc (LON:BBY) Before You Read This

The formula for price to earnings is: Price to Earnings Ratio = Share Price ÷ Earnings per Share (EPS) Or for Balfour Beatty: P/E of 12.64 = £2.5 ÷ £0.20 (Based on the trailing twelve months to December 2018.) Is A High Price-to-Earnings Ratio Good? … A higher P/E ratio means that buyers have to pay a higher price for each £1 the company has earned over the last year. … Balfour Beatty's earnings per share fell by 17% in the last twelve months.

Simply Wall St -

Balfour Beatty plc (LON:BBY): What Does The Future Look Like?

Help shape the future of investing tools and you could win a $250 gift card! … Based on Balfour Beatty plc's (LON:BBY) earnings update on 31 December 2018, … analyst consensus outlook appear cautiously optimistic,

Simply Wall St -

Company Info

Description

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.

Details
Name: Balfour Beatty plc
BBY
Exchange: LSE
Founded: 1909
£1,501,172,071
684,216,988
Website: http://www.balfourbeatty.com
Address: Balfour Beatty plc
5 Churchill Place,
Canary Wharf,
London,
Greater London, E14 5HU,
United Kingdom
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
LSE BBY Ordinary Shares London Stock Exchange GB GBP 01. Jan 1992
OTCPK BAFB.F Ordinary Shares Pink Sheets LLC US USD 01. Jan 1992
DB BIH Ordinary Shares Deutsche Boerse AG DE EUR 01. Jan 1992
BATS-CHIXE BBYL Ordinary Shares BATS 'Chi-X Europe' GB GBP 01. Jan 1992
OTCPK BAFY.Y SPONSORED ADR RE Pink Sheets LLC US USD 10. Jul 2012
LSE BBYB 10.75P GROSS(NET PD)CUM CNV RED PRF 1P London Stock Exchange GB GBP 03. Jan 1995
Number of employees
Current staff
Staff numbers
19,474
Balfour Beatty employees.
Industry
Construction and Engineering
Capital Goods
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/08/18 20:40
End of day share price update: 2019/08/16 00:00
Last estimates confirmation: 2019/08/16
Last earnings filing: 2019/08/14
Last earnings reported: 2019/06/28
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.