OTCPK:BCKI.Y

Stock Analysis Report

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.

Snowflake

Fundamentals

6 star dividend payer and good value.


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


Market Performance


7 Day Return

0%

BCKI.Y

0.9%

US Commercial Services

1.8%

US Market


1 Year Return

-36.1%

BCKI.Y

16.8%

US Commercial Services

7.3%

US Market

Return vs Industry: BCKI.Y underperformed the US Commercial Services industry which returned 16.8% over the past year.

Return vs Market: BCKI.Y underperformed the US Market which returned 7.3% over the past year.


Shareholder returns

BCKI.YIndustryMarket
7 Day0%0.9%1.8%
30 Day0%1.8%-0.7%
90 Day0%1.6%0.06%
1 Year-32.7%-36.1%21.2%16.8%9.7%7.3%
3 Year-49.0%-54.3%71.7%59.9%46.3%36.9%
5 Year-61.7%-67.0%102.3%82.0%64.5%46.5%

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

Valuation

Is Babcock International Group undervalued compared to its fair value and its price relative to the market?

25.4%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: BCKI.Y ($5.94) is trading below our estimate of fair value ($7.96)

Significantly Undervalued: BCKI.Y is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: BCKI.Y is good value based on its PE Ratio (14.2x) compared to the Commercial Services industry average (25.5x).

PE vs Market: BCKI.Y is good value based on its PE Ratio (14.2x) compared to the US market (17.7x).


Price to Earnings Growth Ratio

Low PEG Ratio: BCKI.Y is poor value based on its PEG Ratio (1.3x)


Price to Book Ratio

PB vs Industry: BCKI.Y is good value based on its PB Ratio (1x) compared to the US Commercial Services industry average (1.8x).


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?

11.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: BCKI.Y's forecast earnings growth (11.3% per year) is above the savings rate (2.7%).

Earnings vs Market: BCKI.Y's earnings (11.3% per year) are forecast to grow slower than the US market (14.6% per year).

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

Revenue vs Market: BCKI.Y's revenue (3.6% per year) is forecast to grow slower than the US market (7.3% per year).

High Growth Revenue: BCKI.Y's revenue (3.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: BCKI.Y's Return on Equity is forecast to be low in 3 years time (12.6%).


Next Steps

Past Performance

How has Babcock International Group performed over the past 5 years?

4.5%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: BCKI.Y's earnings have grown by 4.5% per year over the past 5 years.

Accelerating Growth: BCKI.Y's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: BCKI.Y had negative earnings growth (-40.7%) over the past year, making it difficult to compare to the Commercial Services industry average (-2.4%).


Return on Equity

High ROE: BCKI.Y's Return on Equity (6.9%) is considered low.


Return on Assets

ROA vs Industry: BCKI.Y's Return on Assets is below or equal to the Commercial Services industry average last year.


Return on Capital Employed

ROCE Improving: BCKI.Y's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Babcock International Group's financial position?


Financial Position Analysis

Short Term Liabilities: BCKI.Y's short term assets (£1.4B) do not cover its short term liabilities (£1.5B)

Long Term Liabilities: BCKI.Y's short term assets (1.4B) do not cover its long term liabilities (1.8B)


Debt to Equity History and Analysis

Debt Level: BCKI.Y's debt to equity ratio (46.7%) is considered high

Reducing Debt: BCKI.Y's debt to equity ratio has reduced from 64.3% to 46.7% over the past 5 years.

Debt Coverage: BCKI.Y's debt is well covered by operating cash flow (28.7%).

Interest Coverage: BCKI.Y's interest payments on its debt are well covered by EBIT (11.4x coverage).


Balance Sheet

Inventory Level: BCKI.Y has a low level of unsold assets or inventory.

Debt Coverage by Assets: BCKI.Y's debt is covered by short term assets (assets are 1.067520x debt).


Next Steps

Dividend

What is Babcock International Group's current dividend yield, its reliability and sustainability?

5.36%

Current Dividend Yield


Dividend Yield vs Market

company5.4%marketbottom25%1.5%markettop25%3.7%industryaverage1.6%forecastin3Years5.1%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: BCKI.Y's dividend (5.36%) is higher than the bottom 25% of dividend payers in the US market (1.45%).

High Dividend: BCKI.Y's dividend (5.36%) is in the top 25% of dividend payers in the US market (3.72%)

Stable Dividend: BCKI.Y's dividends per share have been stable in the past 10 years.

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


Current Payout to Shareholders

Dividend Coverage: At its current payout ratio (76%), BCKI.Y's payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: BCKI.Y's dividends in 3 years are forecast to be well covered by earnings (40.3% payout ratio).


Next Steps

Management

What is the CEO of Babcock International Group's salary, the management and board of directors tenure and is there insider trading?

3.2yrs

Average management tenure


CEO

Archie Bethel (66yo)

3yrs

Tenure

UK£1,981,000

Compensation

Mr. Archibald Bethel, also known as Archie, CBE has been Chief Executive of Babcock International Group plc since September 1, 2016 and served as its Chief Operating Officer from April 1, 2016 to September ...


CEO Compensation Analysis

Compensation vs. Market: Archie's total compensation ($USD2.47M) is about average for companies of similar size in the US market ($USD5.11M).

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


Management Age and Tenure

3.2yrs

Average Tenure

58yo

Average Age

Experienced Management: BCKI.Y's management team is considered experienced (3.2 years average tenure).


Board Age and Tenure

5.3yrs

Average Tenure

61yo

Average Age

Experienced Board: BCKI.Y's board of directors are considered experienced (5.3 years average tenure).


Insider Trading

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


Ownership Breakdown


Management Team

  • Roger Hardy

    Chief Executive of Aviation

    • Tenure: 2.4yrs
  • Archie Bethel (66yo)

    CEO & Executive Director

    • Tenure: 3yrs
    • Compensation: UK£1.98m
  • John Howie

    Chief Executive of Marine & Technology Division

    • Tenure: 0yrs
  • Jon Hall

    Managing Director of Technology

    • Tenure: 11.7yrs
  • Bob Whiley

    Managing Director of Babcock Networks

    • Tenure: 0yrs
  • John Davies (56yo)

    Chief Executive of Land & Executive Director

    • Tenure: 6.7yrs
    • Compensation: UK£971.00k
  • Kate Hill

    Group Director of Communications

    • Tenure: 2.4yrs
  • Franco Martinelli (58yo)

    Group Finance Director & Executive Director

    • Tenure: 5.1yrs
    • Compensation: UK£1.03m
  • Jack Borrett

    Group Company Secretary & General Counsel

    • Tenure: 3.4yrs
  • Simon McGough

    Director of Investor Relations

    • Tenure: 0yrs

Board Members

  • Kjersti Wiklund (56yo)

    Independent Non-Executive Director

    • Tenure: 1.4yrs
    • Compensation: UK£60.00k
  • Ian Duncan (58yo)

    Independent Non-Executive Director

    • Tenure: 8.8yrs
    • Compensation: UK£75.00k
  • Myles Lee (66yo)

    Independent Non-Executive Director

    • Tenure: 4.4yrs
    • Compensation: UK£64.00k
  • Victoire de Margerie (56yo)

    Independent Non-Executive Director

    • Tenure: 3.6yrs
    • Compensation: UK£64.00k
  • Archie Bethel (66yo)

    CEO & Executive Director

    • Tenure: 3yrs
    • Compensation: UK£1.98m
  • Jeff Randall (64yo)

    Independent Non-Executive Director

    • Tenure: 5.4yrs
    • Compensation: UK£75.00k
  • David Omand (72yo)

    Senior Independent Director

    • Tenure: 7.7yrs
    • Compensation: UK£71.00k
  • Linda Cairnie (65yo)

    Chairman

    • Tenure: 0.2yrs
  • John Davies (56yo)

    Chief Executive of Land & Executive Director

    • Tenure: 6.7yrs
    • Compensation: UK£971.00k
  • Franco Martinelli (58yo)

    Group Finance Director & Executive Director

    • Tenure: 5.1yrs
    • Compensation: UK£1.03m

Company Information

Babcock International Group PLC's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Babcock International Group PLC
  • Ticker: BCKI.Y
  • Exchange: OTCPK
  • Founded: 1891
  • Industry: Diversified Support Services
  • Sector: Commercial Services
  • Market Cap: UK£2.830b
  • Listing Market Cap: UK£3.535b
  • Shares outstanding: 505.36m
  • Website: https://www.babcockinternational.com

Number of Employees


Location

  • Babcock International Group PLC
  • 33 Wigmore Street
  • London
  • Greater London
  • W1U 1QX
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
BABLSE (London Stock Exchange)YesOrdinary SharesGBGBPJan 1992
BCKI.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJan 1992
BW3DB (Deutsche Boerse AG)YesOrdinary SharesDEEURJan 1992
BABLBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBGBPJan 1992
BABB NBMV (Bolsa Mexicana de Valores)YesOrdinary SharesMXMXNJan 1992
BCKI.YOTCPK (Pink Sheets LLC)ADRUSUSDApr 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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/09/22 00:44
End of Day Share Price2019/06/24 00:00
Earnings2019/03/31
Annual Earnings2019/03/31


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.