LSE:BBA

Stock Analysis Report

Executive Summary

BBA Aviation plc provides aviation support and aftermarket services to the business and general aviation (B&GA) markets in the United Kingdom, Mainland Europe, North America, and internationally.

Snowflake

Fundamentals

Acceptable track record second-rate dividend payer.


Similar Companies

Share Price & News

How has BBA Aviation's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

4.7%

LSE:BBA

2.7%

GB Infrastructure

1.1%

GB Market


1 Year Return

-0.8%

LSE:BBA

-4.4%

GB Infrastructure

-4.8%

GB Market

BBA outperformed the Infrastructure industry which returned -6% over the past year.

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


Share holder returns

BBAIndustryMarket
7 Day4.7%2.7%1.1%
30 Day6.8%2.0%-3.5%
90 Day17.8%7.9%-0.7%
1 Year3.3%-0.8%-0.7%-4.4%-0.3%-4.8%
3 Year35.2%21.3%26.5%13.9%19.4%5.3%
5 Year56.4%-6.6%13.2%-16.6%27.8%0.9%

Price Volatility Vs. Market

How volatile is BBA Aviation's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

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

37.44x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

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

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


Price Based on Earnings

BBA Aviation is overvalued based on earnings compared to the GB Infrastructure industry average.

BBA Aviation is overvalued based on earnings compared to the United Kingdom of Great Britain and Northern Ireland market.


Price Based on Expected Growth

BBA Aviation is poor value based on expected growth next year.


Price Based on Value of Assets

BBA Aviation is good value based on assets compared to the GB Infrastructure industry average.


Next Steps

Future Growth

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

18.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

BBA Aviation's revenue is expected to grow by 1.6% yearly, however this is not considered high growth (20% yearly).

BBA Aviation's earnings are expected to grow by 18.2% yearly, however this is not considered high growth (20% yearly).

BBA Aviation's revenue growth is positive but not above the United Kingdom of Great Britain and Northern Ireland market average.

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

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


Earnings per Share Growth Estimates


Future Return on Equity

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


Next Steps

Past Performance

How has BBA Aviation performed over the past 5 years?

-1.7%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

BBA Aviation's year on year earnings growth rate was negative over the past 5 years, however the most recent earnings are above average.

BBA Aviation's 1-year earnings growth exceeds its 5-year average (4.2% vs -1.7%)

BBA Aviation's earnings growth has not exceeded the Europe Infrastructure industry average in the past year (4.2% vs 6.8%).


Return on Equity

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


Return on Assets

BBA Aviation used its assets more efficiently than the GB Infrastructure industry average last year based on Return on Assets.


Return on Capital Employed

BBA Aviation has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is BBA Aviation's financial position?


Financial Position Analysis

BBA Aviation is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

BBA Aviation's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

BBA Aviation's level of debt (79.7%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has increased over the past 5 years (69.6% vs 79.7% today).

Debt is well covered by operating cash flow (31.3%, greater than 20% of total debt).

Interest payments on debt are not well covered by earnings (EBIT is 2.3x annual interest expense, ideally 3x coverage).


Balance Sheet

High level of physical assets or inventory.

Debt is not covered by short term assets, assets are 0.6x debt.


Next Steps

Dividend

What is BBA Aviation's current dividend yield, its reliability and sustainability?

4.20%

Expected Dividend Yield


Upcoming Dividend Payment

Purchase BBA Aviation before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield and Payments Analysis

BBA Aviation's pays a higher dividend yield than the bottom 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (2.1%).

BBA Aviation's dividend is below the markets top 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (5.72%).

Dividends per share have been volatile in the past 10 years (annual drop of over 20%).

Dividends per share have increased over the past 10 years.


Current Payout to Shareholders

Dividends paid are not well covered by earnings (0.7x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be covered by earnings (1.5x coverage).


Next Steps

Management

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

1.2yrs

Average management tenure


CEO

Mark Johnstone (50yo)

1.3yrs

Tenure

US$1,801,162

Compensation

Mr. Mark R. Johnstone is the Group Chief Executive Officer and Director of BBA Aviation Plc since April 1, 2018. He was Chief Operating Officer of Engine Repair & Overhaul Division at BBA Aviation plc unti ...


CEO Compensation Analysis

Mark's remuneration is about average for companies of similar size in United Kingdom of Great Britain and Northern Ireland.

Insufficient data for Mark to compare compensation growth.


Management Age and Tenure

1.2yrs

Average Tenure

50yo

Average Age

The average tenure for the BBA Aviation management team is less than 2 years, this suggests a new team.


Board Age and Tenure

1.9yrs

Average Tenure

54yo

Average Age

The average tenure for the BBA Aviation board of directors is less than 3 years, this suggests a new board.


Insider Trading

No 3 month open market individual insider trading information.


Recent Insider Transactions

BuyUS$150,98402 Apr 19
Stephen King
EntityIndividual
Role
Member of the Board of Directors
Non-Executive Director
Shares60,000
Max PriceUS$2.52

Ownership Breakdown


Management Team

  • Mark Johnstone (50yo)

    Group CEO & Director

    • Tenure: 1.3yrs
    • Compensation: US$1.80m
  • Tony Lefebvre (51yo)

    Chief Operating Officer of Signature Flight Support

    • Tenure: 0.0yrs
  • Hugh McElroy

    President & COO of BBA Aviation’s Global Engine Services Companies

    • Tenure: 0.8yrs
  • Kate Moy

    Head of Investor Relations & Communications

    • Tenure: 1.9yrs
  • Maria Garton

    Group General Counsel

    • Tenure: 1.0yrs
  • Kevin Erickson

    Group Human Resources Director

    • Tenure: 4.3yrs
  • Erik Keller

    Group Chief Information Officer

    • Tenure: 0.0yrs
  • David Crook (50yo)

    Group Finance Director & Director

    • Tenure: 2.2yrs
    • Compensation: US$1.08m
  • Shawn Hall

    Chief Commercial Officer of Signature Flight Support

    • Tenure: 1.1yrs
  • Shawn Fallon

    Chief Financial Officer of Signature Flight Support

    • Tenure: 0.6yrs

Board Members

  • Mark Johnstone (50yo)

    Group CEO & Director

    • Tenure: 1.3yrs
    • Compensation: US$1.80m
  • Nigel Rudd (73yo)

    Chairman

    • Tenure: 5.3yrs
    • Compensation: US$295.00k
  • Wayne Edmunds (63yo)

    Non-Executive Director

    • Tenure: 6.0yrs
    • Compensation: US$7.56m
  • Peter Ventress (58yo)

    Non-Executive Director

    • Tenure: 3.6yrs
    • Compensation: US$70.00k
  • Stephen King (58yo)

    Non-Executive Director

    • Tenure: 0.6yrs
  • Peter Edwards (63yo)

    Non-Executive Director

    • Tenure: 3.6yrs
    • Compensation: US$58.00k
  • Amee Chande (45yo)

    Non-Executive Director

    • Tenure: 1.6yrs
    • Compensation: US$58.00k
  • Vicky Jarman (47yo)

    Non-Executive Director

    • Tenure: 0.6yrs
  • David Crook (50yo)

    Group Finance Director & Director

    • Tenure: 2.2yrs
    • Compensation: US$1.08m
  • Emma Gilthorpe (48yo)

    Non-Executive Director

    • Tenure: 1.6yrs
    • Compensation: US$58.00k

Company Information

BBA Aviation plc's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: BBA Aviation plc
  • Ticker: BBA
  • Exchange: LSE
  • Founded: 1879
  • Industry: Airport Services
  • Sector: Transportation
  • Market Cap: UK£3.190b
  • Shares outstanding: 1.03b
  • Website: https://www.bbaaviation.com

Number of Employees


Location

  • BBA Aviation plc
  • 105 Wigmore Street
  • London
  • Greater London
  • W1U 1QY
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
BBAV.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJan 1980
BBALSE (London Stock Exchange)YesOrdinary SharesGBGBPJan 1980
43BDB (Deutsche Boerse AG)YesOrdinary SharesDEEURJan 1980
BBALBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBGBPJan 1980
BBAV.YOTCPK (Pink Sheets LLC)ADRUSUSDMay 2008

Biography

BBA Aviation plc provides aviation support and aftermarket services to the business and general aviation (B&GA) markets in the United Kingdom, Mainland Europe, North America, and internationally. It operat ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/08/21 20:56
End of Day Share Price2019/08/21 00:00
Earnings2019/06/30
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.