Loading...

You're on the old version of Simply Wall St. We will no longer be supporting this site, so we recommend you switch to our brand new platform.

Babcock International Group

DB:BW3
Snowflake Description

Very undervalued 6 star dividend payer.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
BW3
DB
£2B
Market Cap
  1. Home
  2. DE
  3. Commercial Services
Company description

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 last earnings update was 132 days ago. More info.


Add to Portfolio Compare Print
  • Babcock International Group has significant price volatility in the past 3 months.
BW3 Share Price and Events
7 Day Returns
8.1%
DB:BW3
5.4%
DE Commercial Services
9.9%
DE Market
1 Year Returns
-29.7%
DB:BW3
-31.6%
DE Commercial Services
-17.5%
DE Market
BW3 Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Babcock International Group (BW3) 8.1% -18.8% -43.3% -29.7% -60.2% -70.5%
DE Commercial Services 5.4% -21.4% -33.5% -31.6% -33.3% -43.3%
DE Market 9.9% -16.6% -24.8% -17.5% -24.5% -28.1%
1 Year Return vs Industry and Market
  • BW3 outperformed the Commercial Services industry which returned -31.6% over the past year.
  • BW3 underperformed the Market in Germany which returned -17.5% over the past year.
Price Volatility
BW3
Industry
5yr Volatility vs Market

BW3 Value

 Is Babcock International Group 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 Babcock International Group 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 Babcock International Group.

DB:BW3 Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 10 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 6.6%
Perpetual Growth Rate 10-Year DE Government Bond Rate -0.4%

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 DB:BW3
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year DE Govt Bond Rate -0.4%
Equity Risk Premium S&P Global 6.1%
Commercial Services Unlevered Beta Simply Wall St/ S&P Global 0.61
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.607 (1 + (1- 19%) (125.48%))
1.15
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.15
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= -0.39% + (1.15 * 6.07%)
6.59%

Discounted Cash Flow Calculation for DB:BW3 using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Babcock International Group 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.

DB:BW3 DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (GBP, Millions) Source Present Value
Discounted (@ 6.59%)
2020 208.22 Analyst x7 195.35
2021 237.72 Analyst x7 209.24
2022 281.82 Analyst x7 232.72
2023 312.32 Est @ 10.82% 241.96
2024 335.62 Est @ 7.46% 243.94
2025 352.74 Est @ 5.1% 240.54
2026 364.93 Est @ 3.46% 233.46
2027 373.33 Est @ 2.3% 224.07
2028 378.91 Est @ 1.49% 213.36
2029 382.43 Est @ 0.93% 202.03
Present value of next 10 years cash flows £2,236.00
DB:BW3 DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= £382.43 × (1 + -0.39%) ÷ (6.59% – -0.39%)
£5,458.24
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= £5,458.24 ÷ (1 + 6.59%)10
£2,883.50
DB:BW3 Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= £2,236.00 + £2,883.50
£5,119.50
Equity Value per Share
(GBP)
= Total value / Shares Outstanding
= £5,119.50 / 505.36
£10.13
DB:BW3 Discount to Share Price
Calculation Result
Non-primary Listing Adjustment Factor 1 share in DB:BW3 represents 1.07255x of LSE:BAB
(This could be a different class, a depositary receipt, a different currency, or all of these things.)
1.07255x
Value per Share
(Listing Adjusted, EUR)
= Value per Share (GBP) x Listing Adjustment Factor
= £ 10.13 x 1.07255
€10.87
Value per share (EUR) From above. €10.87
Current discount Discount to share price of €4.11
= -1 x (€4.11 - €10.87) / €10.87
62.2%

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

Current Discount
Amount off the current price Babcock International Group is available for.
Intrinsic value
>50%
Share price is €4.11 vs Future cash flow value of €10.87
Current Discount Checks
For Babcock International Group to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Babcock International Group's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Babcock International Group's share price is below the future cash flow value, and at a substantial discount (> 40%).
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 Babcock International Group's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Babcock International Group's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
DB:BW3 PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-09-30) in GBP £0.54
LSE:BAB Share Price ** LSE (2020-03-31) in GBP £3.83
Germany Commercial Services Industry PE Ratio Median Figure of 6 Publicly-Listed Commercial Services Companies 95.54x
Germany Market PE Ratio Median Figure of 399 Publicly-Listed Companies 16.31x

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

** Primary Listing of Babcock International Group.

DB:BW3 PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

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

= 3.83 ÷ 0.54

7.16x

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

  • Babcock International Group is good value based on earnings compared to the DE Commercial Services industry average.
  • Babcock International Group is good value based on earnings compared to the Germany market.
Price based on expected Growth
Does Babcock International Group's expected growth come at a high price?
Raw Data
DB:BW3 PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 7.16x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 10 Analysts
10.2%per year
Europe Commercial Services Industry PEG Ratio Median Figure of 50 Publicly-Listed Commercial Services Companies 1.06x
Germany Market PEG Ratio Median Figure of 255 Publicly-Listed Companies 1.18x

*Line of best fit is calculated by linear regression .

DB:BW3 PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 7.16x ÷ 10.2%

0.7x

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

  • Babcock International Group is good value based on expected growth next year.
Price based on value of assets
What value do investors place on Babcock International Group's assets?
Raw Data
DB:BW3 PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-09-30) in GBP £5.61
LSE:BAB Share Price * LSE (2020-03-31) in GBP £3.83
Germany Commercial Services Industry PB Ratio Median Figure of 9 Publicly-Listed Commercial Services Companies 2.48x
Germany Market PB Ratio Median Figure of 571 Publicly-Listed Companies 1.43x
DB:BW3 PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

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

= 3.83 ÷ 5.61

0.68x

* Primary Listing of Babcock International Group.

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

  • Babcock International Group is good value based on assets compared to the DE Commercial Services industry average.
X
Value checks
We assess Babcock International Group'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 Commercial Services 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 Commercial Services industry average (and greater than 0)? (1 check)
  5. Babcock International Group has a total score of 6/6, 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.

BW3 Future Performance

 How is Babcock International Group expected to perform in the next 1 to 3 years based on estimates from 10 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
10.2%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Babcock International Group expected to grow at an attractive rate?
  • Babcock International Group's earnings growth is expected to exceed the low risk savings rate of -0.4%.
Growth vs Market Checks
  • Babcock International Group's earnings growth is positive but not above the Germany market average.
  • Babcock International Group's revenue growth is positive but not above the Germany market average.
Annual Growth Rates Comparison
Raw Data
DB:BW3 Future Growth Rates Data Sources
Data Point Source Value (per year)
DB:BW3 Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 10 Analysts 10.2%
DB:BW3 Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 10 Analysts 3.2%
Germany Commercial Services Industry Earnings Growth Rate Market Cap Weighted Average 22%
Germany Commercial Services Industry Revenue Growth Rate Market Cap Weighted Average 2.9%
Germany Market Earnings Growth Rate Market Cap Weighted Average 14.4%
Germany Market Revenue Growth Rate Market Cap Weighted Average 4.1%

*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
DB:BW3 Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (6 months ago) See Below
Future Estimates Average of up to 10 Analyst Estimates (S&P Global) See Below
All numbers in GBP Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
DB:BW3 Future Estimates Data
Date (Data in GBP Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2024-03-31 5,297 355 1
2023-03-31 5,141 339 1
2022-03-31 5,145 547 317 10
2021-03-31 4,821 505 288 10
2020-03-31
2020-03-31 4,827 442 229 10
DB:BW3 Past Financials Data
Date (Data in GBP Millions) Revenue Cash Flow Net Income *
2019-09-30 4,415 305 271
2019-06-30 4,445 346 235
2019-03-31 4,475 386 199
2018-12-31 4,536 388 220
2018-09-30 4,598 390 241
2018-06-30 4,629 355 288
2018-03-31 4,660 320 336
2017-12-31 4,675 305 330
2017-09-30 4,691 291 323
2017-06-30 4,619 341 317
2017-03-31 4,547 391 312
2016-12-31 4,420 387 309

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Babcock International Group's earnings are expected to grow by 10.2% yearly, however this is not considered high growth (20% yearly).
  • Babcock International Group's revenue is expected to grow by 3.2% 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
DB:BW3 Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (6 months ago) See Below
Future Estimates Average of up to 10 Analyst Estimates (S&P Global) See Below

All data from Babcock International Group Company Filings, last reported 6 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

DB:BW3 Future Estimates Data
Date (Data in GBP Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2024-03-31 0.70 0.70 0.70 1.00
2023-03-31 0.67 0.67 0.67 1.00
2022-03-31 0.62 0.64 0.58 3.00
2021-03-31 0.56 0.58 0.54 3.00
2020-03-31
2020-03-31 0.48 0.58 0.40 4.00
DB:BW3 Past Financials Data
Date (Data in GBP Millions) EPS *
2019-09-30 0.54
2019-06-30 0.47
2019-03-31 0.39
2018-12-31 0.44
2018-09-30 0.48
2018-06-30 0.57
2018-03-31 0.67
2017-12-31 0.65
2017-09-30 0.64
2017-06-30 0.63
2017-03-31 0.62
2016-12-31 0.61

*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.
  • Babcock International Group is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Babcock International Group'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 Germany market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Germany 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.
Babcock International Group has a total score of 1/6, 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.

BW3 Past Performance

  How has Babcock International Group 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 Babcock International Group's growth in the last year to its industry (Commercial Services).
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.
  • Babcock International Group's year on year earnings growth rate has been positive over the past 5 years.
  • Babcock International Group's 1-year earnings growth exceeds its 5-year average (12.5% vs 0.2%)
  • Babcock International Group's earnings growth has exceeded the Europe Commercial Services industry average in the past year (12.5% vs 10.4%).
Earnings and Revenue History
Babcock International Group'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 Babcock International Group Company Filings, last reported 6 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

DB:BW3 Past Revenue, Cash Flow and Net Income Data
Date (Data in GBP Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-09-30 4,414.80 270.60 263.50
2019-06-30 4,444.80 235.00 270.65
2019-03-31 4,474.80 199.40 277.80
2018-12-31 4,536.25 219.95 296.20
2018-09-30 4,597.70 240.50 314.60
2018-06-30 4,628.65 288.40 317.10
2018-03-31 4,659.60 336.30 319.60
2017-12-31 4,675.15 329.70 311.20
2017-09-30 4,690.70 323.10 302.80
2017-06-30 4,618.90 317.45 306.85
2017-03-31 4,547.10 311.80 310.90
2016-12-31 4,419.60 308.50 367.15
2016-09-30 4,292.10 305.20 423.40
2016-06-30 4,225.25 295.90 342.55
2016-03-31 4,158.40 286.60 261.70
2015-12-31 4,126.50 278.40 271.45
2015-09-30 4,094.60 270.20 281.20
2015-06-30 4,045.60 265.20 282.65
2015-03-31 3,996.60 260.20 284.10
2014-12-31 3,837.70 231.60 249.00
2014-09-30 3,678.80 203.00 213.90
2014-06-30 3,499.90 191.75 213.85
2014-03-31 3,321.00 180.50 213.80
2013-12-31 3,241.85 178.80 209.55
2013-09-30 3,162.70 177.10 205.30
2013-06-30 3,096.05 167.50 205.55

*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.
  • Babcock International Group has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Babcock International Group used its assets more efficiently than the DE Commercial Services industry average last year based on Return on Assets.
  • Babcock International Group's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Babcock International Group'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 Commercial Services 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.
Babcock International Group has a total score of 4/6, 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.

BW3 Health

 How is Babcock International Group'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 Babcock International Group's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Babcock International Group is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Babcock International Group's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of Babcock International Group'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.
  • High level of physical assets or inventory.
  • Debt is not covered by short term assets, assets are 0.9x 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 Babcock International Group Company Filings, last reported 6 months ago.

DB:BW3 Past Debt and Equity Data
Date (Data in GBP Millions) Total Equity Total Debt Cash & Short Term Investments
2019-09-30 2,854.90 1,813.80 458.60
2019-06-30 2,854.90 1,813.80 458.60
2019-03-31 2,884.90 1,347.60 275.20
2018-12-31 2,884.90 1,347.60 275.20
2018-09-30 2,874.30 1,675.10 293.20
2018-06-30 2,874.30 1,675.10 293.20
2018-03-31 2,911.00 1,433.30 286.30
2017-12-31 2,911.00 1,433.30 286.30
2017-09-30 2,714.30 1,656.30 209.30
2017-06-30 2,714.30 1,656.30 209.30
2017-03-31 2,692.20 1,435.60 191.40
2016-12-31 2,692.20 1,435.60 191.40
2016-09-30 2,430.70 1,615.10 152.60
2016-06-30 2,430.70 1,615.10 152.60
2016-03-31 2,356.30 1,397.20 185.90
2015-12-31 2,356.30 1,397.20 185.90
2015-09-30 2,274.00 1,540.10 141.40
2015-06-30 2,274.00 1,540.10 141.40
2015-03-31 2,198.10 1,412.10 130.60
2014-12-31 2,198.10 1,412.10 130.60
2014-09-30 2,088.10 1,511.40 167.30
2014-06-30 2,088.10 1,511.40 167.30
2014-03-31 1,026.10 658.50 86.30
2013-12-31 1,026.10 658.50 86.30
2013-09-30 896.90 689.10 105.30
2013-06-30 896.90 689.10 105.30
  • Babcock International Group's level of debt (63.5%) 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 (67.3% vs 63.5% today).
  • Debt is not well covered by operating cash flow (16.8%, less than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 7.6x coverage).
X
Financial health checks
We assess Babcock International Group'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. Babcock International Group 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.

BW3 Dividends

 What is Babcock International Group'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
7.83%
Current annual income from Babcock International Group dividends. Estimated to be 7.89% next year.
If you bought €2,000 of Babcock International Group shares you are expected to receive €157 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?
  • Babcock International Group's pays a higher dividend yield than the bottom 25% of dividend payers in Germany (1.68%).
  • Babcock International Group's dividend is above the markets top 25% of dividend payers in Germany (4.97%).
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
DB:BW3 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 10 Analyst Estimates (S&P Global) See Below
Germany Commercial Services Industry Average Dividend Yield Market Cap Weighted Average of 6 Stocks 4.9%
Germany Market Average Dividend Yield Market Cap Weighted Average of 323 Stocks 3.8%
Germany Minimum Threshold Dividend Yield 10th Percentile 0.9%
Germany Bottom 25% Dividend Yield 25th Percentile 1.7%
Germany Top 25% Dividend Yield 75th Percentile 5%

Industry and Market average data is calculated daily.

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

DB:BW3 Future Dividends Estimate Data
Date (Data in £) Dividend per Share (annual) Avg. No. Analysts
2024-03-31 0.33 1.00
2023-03-31 0.32 2.00
2022-03-31 0.31 11.00
2021-03-31 0.29 11.00
2020-03-31
2020-03-31 0.30 11.00
DB:BW3 Past Annualized Dividends Data
Date (Data in £) Dividend per share (annual) Avg. Yield (%)
2019-06-13 0.300 5.952
2019-05-22 0.300 6.492
2018-06-14 0.295 4.940
2018-05-23 0.295 3.512
2017-06-12 0.282 3.729
2017-05-24 0.282 3.040
2016-06-16 0.258 2.709
2016-05-25 0.258 2.529
2015-06-17 0.236 2.424
2015-05-18 0.236 2.101
2014-09-22 0.214 2.051
2014-06-17 0.214 1.926
2014-05-19 0.214 1.761
2013-05-14 0.263 2.101
2012-06-06 0.227 2.343
2012-05-15 0.227 2.684
2011-06-06 0.194 2.747
2011-05-17 0.194 2.817
2010-11-08 0.180 3.123
2010-06-09 0.176 3.104
2010-05-11 0.176 3.076
2009-11-10 0.152 2.616
2009-06-08 0.144 2.777
2009-05-12 0.144 2.979

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

  • Dividends per share have been stable in the past 10 years.
  • Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of Babcock International Group's earnings are paid to the shareholders as a dividend.
  • Dividends paid are covered by earnings (1.8x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (2.5x coverage).
X
Income/ dividend checks
We assess Babcock International Group's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.9%) - 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 Babcock International Group afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Babcock International Group has a total score of 6/6, see the detailed checks below.


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

BW3 Management

 What is the CEO of Babcock International Group'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
Archie Bethel
COMPENSATION £1,981,000
AGE 66
TENURE AS CEO 3.4 years
CEO Bio

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 1, 2016. Mr. Bethel served as the Chief Executive of Marine & Technology Division at Babcock International Group plc from June 2007 to April 1, 2016. Mr. Bethel served as Chief Executive Officer of FBM Babcock Marine Ltd. Mr. Bethel is the Divisional Chief Executive of Marine and Technology Division and Director at Babcock Southern Holdings Limited. He is President of the Society of Maritime Industries and is a Lay Member of the Court of the University of Strathclyde. He held various senior roles working for Vetco Gray, Lanarkshire Development Agency and Motherwell Bridge. Mr. Bethel served as the Chief Operating Officer of Engineering at Motherwell Bridge. Mr. Bethel joined Babcock in January 2004 and served as its Chief Executive of Marine since mid-June 2007. He has been an Executive Director of Babcock International Group plc since May 2010. He has been a Fellow of the Royal Academy of Engineering since 2003. Mr. Bethel is a Chartered Mechanical Engineer/Chartered Engineer and a graduate of the University of Strathclyde (BSc, MBA and DSc).

CEO Compensation
  • Archie's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Archie's remuneration is lower than average for companies of similar size in Germany.
Management Team Tenure

Average tenure and age of the Babcock International Group management team in years:

3.6
Average Tenure
58
Average Age
  • The tenure for the Babcock International Group management team is about average.
Management Team

Archie Bethel

TITLE
CEO & Executive Director
COMPENSATION
£2M
AGE
66
TENURE
3.4 yrs

Franco Martinelli

TITLE
Group Finance Director & Executive Director
COMPENSATION
£1M
AGE
58
TENURE
5.6 yrs

John Davies

TITLE
Chief Executive of Land & Executive Director
COMPENSATION
£971K
AGE
56

Jon Hall

TITLE
Managing Director of Technology
TENURE
12.2 yrs

Simon McGough

TITLE
Director of Investor Relations

Jack Borrett

TITLE
Group Company Secretary & General Counsel
TENURE
3.8 yrs

Kate Hill

TITLE
Group Director of Communications
TENURE
2.8 yrs

Bob Whiley

TITLE
Managing Director of Babcock Networks

Roger Hardy

TITLE
Chief Executive of Aviation
TENURE
2.8 yrs

John Howie

TITLE
Chief Executive of Marine & Technology Division
Board of Directors Tenure

Average tenure and age of the Babcock International Group board of directors in years:

5.7
Average Tenure
61
Average Age
  • The tenure for the Babcock International Group board of directors is about average.
Board of Directors

Linda Cairnie

TITLE
Independent Chairman
AGE
65
TENURE
0.7 yrs

Archie Bethel

TITLE
CEO & Executive Director
COMPENSATION
£2M
AGE
66
TENURE
9.8 yrs

Franco Martinelli

TITLE
Group Finance Director & Executive Director
COMPENSATION
£1M
AGE
58
TENURE
5.6 yrs

John Davies

TITLE
Chief Executive of Land & Executive Director
COMPENSATION
£971K
AGE
56
TENURE
7.2 yrs

Ian Duncan

TITLE
Independent Non-Executive Director
COMPENSATION
£75K
AGE
58
TENURE
9.3 yrs

Jeff Randall

TITLE
Independent Non-Executive Director
COMPENSATION
£75K
AGE
64
TENURE
5.8 yrs

David Omand

TITLE
Senior Independent Director
COMPENSATION
£71K
AGE
72
TENURE
8.2 yrs

Myles Lee

TITLE
Independent Non-Executive Director
COMPENSATION
£64K
AGE
66
TENURE
4.8 yrs

Victoire de Margerie

TITLE
Independent Non-Executive Director
COMPENSATION
£64K
AGE
56
TENURE
4 yrs

Kjersti Wiklund

TITLE
Independent Non-Executive Director
COMPENSATION
£60K
AGE
56
TENURE
1.8 yrs
Who owns this company?
Recent Insider Trading
  • More shares have been bought than sold by Babcock International Group individual insiders in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (€) Value (€)
19. Mar 20 Buy Linda Cairnie Individual 19. Mar 20 19. Mar 20 20,000 €3.47 €68,539
12. Feb 20 Buy Myles Lee Individual 12. Feb 20 12. Feb 20 5,000 €6.35 €31,766
20. Nov 19 Buy Linda Cairnie Individual 20. Nov 19 20. Nov 19 5,000 €6.09 €30,417
X
Management checks
We assess Babcock International Group'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. Babcock International Group 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.

BW3 News

Simply Wall St News

BW3 Company Info

Description

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 Marine segment offers life support services for submarines, naval ships, and infrastructure. Its Land segment offers large-scale critical vehicle fleet management, equipment support, and technical training services for military engineers, as well as delivers engineering services. The company’s Aviation segment provides critical engineering services to defense and civil customers, including pilot training, equipment support, and airbase management. It also operates aviation fleets that provide delivering emergency and offshore services. The company’s Nuclear segment offers various engineering services in support of decommissioning programs and projects. It is also involved in the provision of nuclear engineering services in training and operation support; new build program management, design, and installation; and critical safety training for public and private customers. Babcock International Group PLC was founded in 1891 and is headquartered in London, the United Kingdom.

Details
Name: Babcock International Group PLC
BW3
Exchange: DB
Founded: 1891
£2,193,996,062
505,356,735
Website: http://www.babcockinternational.com
Address: Babcock International Group PLC
33 Wigmore Street,
London,
Greater London, W1U 1QX,
United Kingdom
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
LSE BAB Ordinary Shares London Stock Exchange GB GBP 01. Jan 1992
OTCPK BCKI.F Ordinary Shares Pink Sheets LLC US USD 01. Jan 1992
DB BW3 Ordinary Shares Deutsche Boerse AG DE EUR 01. Jan 1992
BMV BABB N Ordinary Shares Bolsa Mexicana de Valores MX MXN 01. Jan 1992
BATS-CHIXE BABL Ordinary Shares BATS 'Chi-X Europe' GB GBP 01. Jan 1992
OTCPK BCKI.Y ADR Pink Sheets LLC US USD 06. Apr 2011
Number of employees
Current staff
Staff numbers
34,578
Babcock International Group employees.
Industry
Diversified Support Services
Commercial Services
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2020/03/31 22:05
End of day share price update: 2020/03/31 00:00
Last estimates confirmation: 2020/03/30
Last earnings filing: 2019/11/20
Last earnings reported: 2019/09/30
Last annual earnings reported: 2019/03/31


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.