Babcock International Group
Market Cap
UK£1.1b
Last Updated
2021/01/24 02:03 UTC
Data Sources
Company Financials +
Executive Summary
Babcock International Group PLC, together with its subsidiaries, provides engineering services for marine, land, aviation, and nuclear sectors in the United Kingdom and internationally. More Details
Rewards
Risk Analysis
Snowflake Analysis
Moderate growth potential and overvalued.
Similar Companies
Share Price & News
How has Babcock International Group's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: BAB is not significantly more volatile than the rest of UK stocks over the past 3 months, typically moving +/- 9% a week.
Volatility Over Time: BAB's weekly volatility (9%) has been stable over the past year.
Market Performance
7 Day Return
-4.4%
BAB
0.07%
GB Commercial Services
-0.5%
GB Market
1 Year Return
-66.0%
BAB
-13.0%
GB Commercial Services
-8.2%
GB Market
Return vs Industry: BAB underperformed the UK Commercial Services industry which returned -13% over the past year.
Return vs Market: BAB underperformed the UK Market which returned -8.2% over the past year.
Shareholder returns
| BAB | Industry | Market | |
|---|---|---|---|
| 7 Day | -4.4% | 0.07% | -0.5% |
| 30 Day | -26.3% | 0.9% | 2.9% |
| 90 Day | -14.6% | 7.4% | 15.2% |
| 1 Year | -66.0%-66.0% | -10.0%-13.0% | -4.5%-8.2% |
| 3 Year | -68.6%-71.7% | 1.9%-8.5% | 3.7%-9.0% |
| 5 Year | -72.8%-77.0% | 33.7%8.0% | 42.1%14.4% |
Long-Term Price Volatility Vs. Market
How volatile is Babcock International Group's share price compared to the market and industry in the last 5 years?
Simply Wall St News
2 months ago | Simply Wall St
Has Babcock International Group (LON:BAB) Got What It Takes To Become A Multi-Bagger?2 months ago | Simply Wall St
What Is The Ownership Structure Like For Babcock International Group PLC (LON:BAB)?3 months ago | Simply Wall St
Need To Know: Babcock International Group PLC (LON:BAB) Insiders Have Been Buying SharesValuation
Is Babcock International Group undervalued compared to its fair value and its price relative to the market?
0.45x
Price to Book (PB) ratio
Share Price vs. Fair Value
Below Fair Value: BAB (£2.11) is trading above our estimate of fair value (£1.89)
Significantly Below Fair Value: BAB is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: BAB is unprofitable, so we can't compare its PE Ratio to the GB Commercial Services industry average.
PE vs Market: BAB is unprofitable, so we can't compare its PE Ratio to the UK market.
Price to Earnings Growth Ratio
PEG Ratio: Insufficient data to calculate BAB's PEG Ratio to determine if it is good value.
Price to Book Ratio
PB vs Industry: BAB is good value based on its PB Ratio (0.4x) compared to the GB Commercial Services industry average (2.1x).
Next Steps
Future Growth
How is Babcock International Group forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?
51.8%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: BAB is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1%).
Earnings vs Market: BAB is forecast to become profitable over the next 3 years, which is considered above average market growth.
High Growth Earnings: BAB's is expected to become profitable in the next 3 years.
Revenue vs Market: BAB's revenue (2.9% per year) is forecast to grow slower than the UK market (6.6% per year).
High Growth Revenue: BAB's revenue (2.9% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: BAB's Return on Equity is forecast to be low in 3 years time (8.7%).
Next Steps
Past Performance
How has Babcock International Group performed over the past 5 years?
-33.8%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: BAB is currently unprofitable.
Growing Profit Margin: BAB is currently unprofitable.
Past Earnings Growth Analysis
Earnings Trend: BAB is unprofitable, and losses have increased over the past 5 years at a rate of 33.8% per year.
Accelerating Growth: Unable to compare BAB's earnings growth over the past year to its 5-year average as it is currently unprofitable
Earnings vs Industry: BAB is unprofitable, making it difficult to compare its past year earnings growth to the Commercial Services industry (-11.4%).
Return on Equity
High ROE: BAB has a negative Return on Equity (-11.31%), as it is currently unprofitable.
Next Steps
Financial Health
How is Babcock International Group's financial position?
Financial Position Analysis
Short Term Liabilities: BAB's short term assets (£2.0B) exceed its short term liabilities (£2.0B).
Long Term Liabilities: BAB's short term assets (£2.0B) do not cover its long term liabilities (£2.3B).
Debt to Equity History and Analysis
Debt Level: BAB's debt to equity ratio (73.4%) is considered high.
Reducing Debt: BAB's debt to equity ratio has increased from 61.5% to 73.4% over the past 5 years.
Debt Coverage: BAB's debt is not well covered by operating cash flow (20%).
Interest Coverage: BAB is unprofitable, therefore interest payments are not well covered by earnings.
Balance Sheet
Next Steps
Dividend
What is Babcock International Group current dividend yield, its reliability and sustainability?
5.04%
Forecast Dividend Yield
Dividend Yield vs Market
Notable Dividend: Unable to evaluate BAB's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.
High Dividend: Unable to evaluate BAB'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 BAB's dividends per share have been stable in the past.
Growing Dividend: Insufficient data to determine if BAB's dividend payments have been increasing.
Current Payout to Shareholders
Dividend Coverage: BAB is not paying a notable dividend for the UK market.
Future Payout to Shareholders
Future Dividend Coverage: No need to calculate the sustainability of BAB'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?
2.7yrs
Average management tenure
CEO
David Lockwood (58 yo)
0.33
Tenure
Mr. David C. Lockwood, OBE, BA, FCA, FRSA, FAeS, has been Director of Babcock International Group PLC since August 17, 2020 and its Chief Executive Officer since September 14, 2020. Mr. Lockwood was the Ch...
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Chief Executive Officer of Land Sector | no data | UK£804.00k | 0.043% £ 458.6k | |
| CEO & Director | 0.33yr | no data | 0.043% £ 457.0k | |
| Chief Financial Officer | 0.17yr | no data | 0.0082% £ 87.0k | |
| Chief Innovation & Technology Officer | 13yrs | no data | no data | |
| Director of Investor Relations | no data | no data | no data | |
| Group Company Secretary & General Counsel | 4.75yrs | no data | no data | |
| Chief Human Resources Officer | no data | no data | no data | |
| Managing Director of Babcock Networks | no data | no data | no data | |
| Chief Corporate Affairs Officer | no data | no data | 0.030% £ 324.0k | |
| Chief Executive of Cavendish Nuclear | no data | no data | no data | |
| Managing Director of Aviation Onshore | 2.67yrs | no data | no data | |
| Managing Director of Aviation Offshore | 2.67yrs | no data | no data |
2.7yrs
Average Tenure
57yo
Average Age
Experienced Management: BAB's management team is considered experienced (2.7 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| CEO & Director | 0.33yr | no data | 0.043% £ 457.0k | |
| Senior Independent Director | 0.42yr | no data | 0.0020% £ 21.1k | |
| Independent Non-Executive Director | 2.75yrs | UK£61.00k | 0.00042% £ 4.5k | |
| Independent Non-Executive Director | 5.75yrs | UK£65.00k | 0.0079% £ 84.2k | |
| Independent Non-Executive Director | 4.92yrs | UK£65.00k | 0.0014% £ 14.9k | |
| Independent Non-Executive Director | 0.75yr | no data | no data | |
| Independent Director | 11.75yrs | UK£72.00k | no data | |
| Independent Chairman | 1.5yrs | UK£253.00k | 0.019% £ 200.2k | |
| Independent Non-Executive Director | 2.75yrs | UK£61.00k | 0.00099% £ 10.5k | |
| Independent Non-Executive Director | 0.17yr | no data | no data |
2.1yrs
Average Tenure
59.5yo
Average Age
Experienced Board: BAB's board of directors are not considered experienced ( 2.1 years average tenure), which suggests a new board.
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: BAB 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
Babcock International Group PLC's company bio, employee growth, exchange listings and data sources
Key Information
- Name: Babcock International Group PLC
- Ticker: BAB
- Exchange: LSE
- Founded: 1891
- Industry: Diversified Support Services
- Sector: Commercial Services
- Market Cap: UK£1.065b
- Shares outstanding: 505.38m
- Website: https://www.babcockinternational.com
Number of Employees
Location
- Babcock International Group PLC
- 33 Wigmore Street
- London
- Greater London
- W1U 1QX
- United Kingdom
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| BAB | LSE (London Stock Exchange) | Yes | Ordinary Shares | GB | GBP | Jan 1992 |
| BCKI.F | OTCPK (Pink Sheets LLC) | Yes | Ordinary Shares | US | USD | Jan 1992 |
| BW3 | DB (Deutsche Boerse AG) | Yes | Ordinary Shares | DE | EUR | Jan 1992 |
| BABL | BATS-CHIXE (BATS 'Chi-X Europe') | Yes | Ordinary Shares | GB | GBP | Jan 1992 |
| BABB N | BMV (Bolsa Mexicana de Valores) | Yes | Ordinary Shares | MX | MXN | Jan 1992 |
| BCKI.Y | OTCPK (Pink Sheets LLC) | ADR | US | USD | Apr 2011 |
Biography
Babcock International Group PLC, together with its subsidiaries, provides engineering services for marine, land, aviation, and nuclear sectors in the United Kingdom and internationally. The company’s Marin...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/01/24 02:03 |
| End of Day Share Price | 2021/01/22 00:00 |
| Earnings | 2020/09/30 |
| Annual Earnings | 2020/03/31 |
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.