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

2.5%

BBA

2.6%

GB Infrastructure

2.0%

GB Market


1 Year Return

23.0%

BBA

7.9%

GB Infrastructure

3.3%

GB Market

Return vs Industry: BBA exceeded the UK Infrastructure industry which returned 7.9% over the past year.

Return vs Market: BBA exceeded the UK Market which returned 3.3% over the past year.


Share holder returns

BBAIndustryMarket
7 Day2.5%2.6%2.0%
30 Day1.5%2.1%-0.6%
90 Day13.6%6.2%-1.5%
1 Year28.2%23.0%11.7%7.9%8.3%3.3%
3 Year38.8%24.7%24.4%13.9%19.0%4.5%
5 Year66.2%-1.0%29.8%-6.4%38.4%8.4%

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?

40.36x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

Undervalued: BBA (£3.2) is trading above our estimate of fair value (£2.17)

Significantly Undervalued: BBA is trading above our estimate of fair value.


Price Based on Earnings

PE vs Industry: BBA is poor value based on its PE Ratio (40.4x) compared to the Infrastructure industry average (23.3x).

PE vs Market: BBA is poor value based on its PE Ratio (40.4x) compared to the UK market (16.4x).


Price Based on Expected Growth

Low PEG Ratio: BBA is poor value based on its PEG Ratio (2.6x)


Price Based on Value of Assets

PB vs Industry: BBA is overvalued based on its PB Ratio (2.2x) compared to the GB Infrastructure industry average (1.9x).


Next Steps

Future Growth

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

15.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Earnings vs Savings Rate: BBA's forecast earnings growth (15.8% per year) is above the savings rate (1.2%).

Earnings vs Market: BBA's earnings (15.8% per year) are forecast to grow faster than the UK market (12.3% per year).

High Growth Earnings: BBA's earnings are forecast to grow, but not significantly.

Revenue vs Market: BBA's revenue is expected to decline over the next 3 years (-0.1% per year).

High Growth Revenue: BBA's revenue is forecast to decline over the next 3 years (-0.1%).


Earnings per Share Growth Estimates


Future Return on Equity

High Future ROE: BBA's Return on Equity is forecast to be low in 3 years time (10.4%).


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

Earnings Trend: BBA's earnings have declined by -1.7% per year over the past 5 years.

Accelerating Growth: BBA's earnings growth over the past year (4.2%) exceeds its 5-year average (-1.7% per year).

Earnings vs Industry: BBA earnings growth over the past year (4.2%) underperformed the Infrastructure industry 9.8%.


Return on Equity

High ROE: BBA's Return on Equity (5.6%) is considered low.


Return on Assets

ROA vs Industry: BBA has a higher Return on Assets than the Infrastructure industry average last year.


Return on Capital Employed

ROCE Improving: BBA has significantly improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is BBA Aviation's financial position?


Financial Position Analysis

Short Term Liabilities: BBA's short term assets (£943.2M) exceeds its short term liabilities (£712.0M)

Long Term Liabilities: BBA's short term assets (£943.2M) do not cover its long term liabilities (£2.8B)


Debt to Equity History and Analysis

Debt Level: BBA's debt to equity ratio (79.7%) is considered high

Reducing Debt: BBA's debt to equity ratio has increased from 69.6% to 79.7% over the past 5 years.

Debt Coverage: BBA's debt is well covered by operating cash flow (31.3%).

Interest Coverage: BBA's interest payments on its debt are not well covered by EBIT (2.3x coverage).


Balance Sheet

Inventory Level: BBA has a high level of physical assets or inventory.

Debt Coverage by Assets: BBA's 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?

3.88%

Expected Dividend Yield


Dividend Yield vs Market

company3.5%marketbottom25%2.0%markettop25%5.4%industryaverage5.9%forecastin3Years3.9%

Current dividend yield vs market & industry


Dividend Yield and Payments Analysis

Notable Dividend: BBA's dividend (3.47%) is higher than the bottom 25% of dividend payers in the UK market (2%).

High Dividend: BBA's dividend (3.47%) is low compared to the top 25% of dividend payers in the UK market (5.42%).

Stable Dividend: BBA's dividend payments have been volatile in the past 10 years.

Growing Dividend: BBA's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (142%), BBA's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: BBA's dividends in 3 years are forecast to be covered by earnings (81.7% payout ratio).


Next Steps

Management

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

1.4yrs

Average management tenure


CEO

Mark Johnstone (50yo)

1.5yrs

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

Compensation vs. Market: Mark has recently become CEO, making it difficult to compare their total compensation against companies of similar size in the UK market.

Compensation vs Earnings: Insufficient data to compare Mark's compensation with company performance.


Management Age and Tenure

1.4yrs

Average Tenure

50yo

Average Age

Experienced Management: BBA's management team is not considered experienced ( 1.4 years average tenure), which suggests a new team.


Board Age and Tenure

2.0yrs

Average Tenure

54yo

Average Age

Experienced Board: BBA's board of directors are not considered experienced ( 2 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


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: 1.5yrs
    • Compensation: US$1.80m
  • Tony Lefebvre (51yo)

    Chief Operating Officer of Signature Flight Support

    • Tenure: 0yrs
  • Hugh McElroy

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

    • Tenure: 1yrs
  • Kate Moy

    Head of Investor Relations & Communications

    • Tenure: 2.1yrs
  • Maria Garton

    Group General Counsel

    • Tenure: 1.2yrs
  • Kevin Erickson

    Group Human Resources Director

    • Tenure: 4.4yrs
  • Erik Keller

    Group Chief Information Officer

    • Tenure: 0yrs
  • David Crook (50yo)

    Group Finance Director & Director

    • Tenure: 2.3yrs
    • Compensation: US$1.08m
  • Shawn Hall

    Chief Commercial Officer of Signature Flight Support

    • Tenure: 1.3yrs
  • Shawn Fallon

    Chief Financial Officer of Signature Flight Support

    • Tenure: 0.8yrs

Board Members

  • Mark Johnstone (50yo)

    Group CEO & Director

    • Tenure: 1.5yrs
    • Compensation: US$1.80m
  • Nigel Rudd (73yo)

    Chairman

    • Tenure: 5.4yrs
    • Compensation: US$295.00k
  • Wayne Edmunds (63yo)

    Non-Executive Director

    • Tenure: 6.2yrs
    • Compensation: US$2.55m
  • Peter Ventress (58yo)

    Non-Executive Director

    • Tenure: 3.8yrs
    • Compensation: US$70.00k
  • Stephen King (58yo)

    Non-Executive Director

    • Tenure: 0.8yrs
  • Peter Edwards (63yo)

    Non-Executive Director

    • Tenure: 3.8yrs
    • Compensation: US$58.00k
  • Amee Chande (45yo)

    Non-Executive Director

    • Tenure: 1.8yrs
    • Compensation: US$58.00k
  • Vicky Jarman (47yo)

    Non-Executive Director

    • Tenure: 0.8yrs
  • David Crook (50yo)

    Group Finance Director & Director

    • Tenure: 2.3yrs
    • Compensation: US$1.08m
  • Emma Gilthorpe (48yo)

    Non-Executive Director

    • Tenure: 1.8yrs
    • 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£3.294b
  • 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 Analysis2019/10/13 21:32
End of Day Share Price2019/10/11 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.

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