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Balfour Beatty

BATS-CHIXE:BBYL
Snowflake Description

Good value with adequate balance sheet.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
BBYL
BATS-CHIXE
£2B
Market Cap
  1. Home
  2. GB
  3. Capital Goods
Company description

Balfour Beatty plc finances, designs, develops, builds, and maintains infrastructure in the United Kingdom, the United States, and internationally. The last earnings update was 29 days ago. More info.


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BBYL Share Price and Events
7 Day Returns
8.6%
BATS-CHIXE:BBYL
7.1%
GB Construction
5.3%
GB Market
1 Year Returns
-8.7%
BATS-CHIXE:BBYL
-30.4%
GB Construction
-21.5%
GB Market
BBYL Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Balfour Beatty (BBYL) 8.6% 7.8% -9.2% -8.7% -17.8% -1.4%
GB Construction 7.1% -11.5% -19.6% -30.4% -55.5% -54.4%
GB Market 5.3% -6.5% -25.2% -21.5% -22.4% -21.9%
1 Year Return vs Industry and Market
  • BBYL outperformed the Construction industry which returned -30.4% over the past year.
  • BBYL outperformed the Market in United Kingdom of Great Britain and Northern Ireland which returned -21.5% over the past year.
Price Volatility
BBYL
Industry
5yr Volatility vs Market

BBYL Value

 Is Balfour Beatty 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 Balfour Beatty 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 Balfour Beatty.

BATS-CHIXE:BBYL Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 5 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 7.6%
Perpetual Growth Rate 10-Year GB Government Bond Rate 0.5%

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 BATS-CHIXE:BBYL
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year GB Govt Bond Rate 0.5%
Equity Risk Premium S&P Global 6.1%
Construction Unlevered Beta Simply Wall St/ S&P Global 0.89
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.889 (1 + (1- 19%) (50.76%))
1.171
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.17
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 0.53% + (1.171 * 6.07%)
7.64%

Discounted Cash Flow Calculation for BATS-CHIXE:BBYL using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Balfour Beatty 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.

BATS-CHIXE:BBYL DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (GBP, Millions) Source Present Value
Discounted (@ 7.64%)
2020 5.22 Analyst x2 4.85
2021 155.83 Analyst x3 134.51
2022 203.54 Analyst x1 163.22
2023 238.68 Est @ 17.27% 177.82
2024 267.91 Est @ 12.25% 185.44
2025 291.30 Est @ 8.73% 187.33
2026 309.56 Est @ 6.27% 184.95
2027 323.65 Est @ 4.55% 179.65
2028 334.46 Est @ 3.34% 172.48
2029 342.82 Est @ 2.5% 164.25
Present value of next 10 years cash flows £1,554.00
BATS-CHIXE:BBYL DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= £342.82 × (1 + 0.53%) ÷ (7.64% – 0.53%)
£4,850.14
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= £4,850.14 ÷ (1 + 7.64%)10
£2,323.74
BATS-CHIXE:BBYL Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= £1,554.00 + £2,323.74
£3,877.74
Equity Value per Share
(GBP)
= Total value / Shares Outstanding
= £3,877.74 / 684.22
£5.67
BATS-CHIXE:BBYL Discount to Share Price
Calculation Result
Non-primary Listing Adjustment Factor 1 share in BATS-CHIXE:BBYL represents 0.97701x of LSE:BBY
(This could be a different class, a depositary receipt, a different currency, or all of these things.)
0.97701x
Value per Share
(Listing Adjusted, GBP)
= Value per Share (GBP) x Listing Adjustment Factor
= £ 5.67 x 0.97701
£5.54
Value per share (GBP) From above. £5.54
Current discount Discount to share price of £2.38
= -1 x (£2.38 - £5.54) / £5.54
57%

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

Current Discount
Amount off the current price Balfour Beatty is available for.
Intrinsic value
>50%
Share price is £2.38 vs Future cash flow value of £5.54
Current Discount Checks
For Balfour Beatty to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Balfour Beatty's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Balfour Beatty'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 Balfour Beatty's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Balfour Beatty's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
BATS-CHIXE:BBYL PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-12-31) in GBP £0.19
LSE:BBY Share Price ** LSE (2020-04-08) in GBP £2.44
United Kingdom of Great Britain and Northern Ireland Construction Industry PE Ratio Median Figure of 17 Publicly-Listed Construction Companies 7.77x
United Kingdom of Great Britain and Northern Ireland Market PE Ratio Median Figure of 747 Publicly-Listed Companies 13.27x

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

** Primary Listing of Balfour Beatty.

BATS-CHIXE:BBYL PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

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

= 2.44 ÷ 0.19

12.84x

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

  • Balfour Beatty is overvalued based on earnings compared to the GB Construction industry average.
  • Balfour Beatty is good value based on earnings compared to the United Kingdom of Great Britain and Northern Ireland market.
Price based on expected Growth
Does Balfour Beatty's expected growth come at a high price?
Raw Data
BATS-CHIXE:BBYL PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 12.84x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 5 Analysts
14.3%per year
United Kingdom of Great Britain and Northern Ireland Construction Industry PEG Ratio Median Figure of 9 Publicly-Listed Construction Companies 0.88x
United Kingdom of Great Britain and Northern Ireland Market PEG Ratio Median Figure of 513 Publicly-Listed Companies 1.03x

*Line of best fit is calculated by linear regression .

BATS-CHIXE:BBYL PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 12.84x ÷ 14.3%

0.9x

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

  • Balfour Beatty is good value based on expected growth next year.
Price based on value of assets
What value do investors place on Balfour Beatty's assets?
Raw Data
BATS-CHIXE:BBYL PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-12-31) in GBP £2.00
LSE:BBY Share Price * LSE (2020-04-08) in GBP £2.44
United Kingdom of Great Britain and Northern Ireland Construction Industry PB Ratio Median Figure of 19 Publicly-Listed Construction Companies 1.09x
United Kingdom of Great Britain and Northern Ireland Market PB Ratio Median Figure of 1,322 Publicly-Listed Companies 1.13x
BATS-CHIXE:BBYL PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

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

= 2.44 ÷ 2.00

1.22x

* Primary Listing of Balfour Beatty.

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

  • Balfour Beatty is overvalued based on assets compared to the GB Construction industry average.
X
Value checks
We assess Balfour Beatty'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 Construction 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 Construction industry average (and greater than 0)? (1 check)
  5. Balfour Beatty has a total score of 4/6, 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.

BBYL Future Performance

 How is Balfour Beatty expected to perform in the next 1 to 3 years based on estimates from 5 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
14.3%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Balfour Beatty expected to grow at an attractive rate?
  • Balfour Beatty's earnings growth is expected to exceed the low risk savings rate of 0.5%.
Growth vs Market Checks
  • Balfour Beatty's earnings growth is positive but not above the United Kingdom of Great Britain and Northern Ireland market average.
  • Balfour Beatty's revenue growth is expected to exceed the United Kingdom of Great Britain and Northern Ireland market average.
Annual Growth Rates Comparison
Raw Data
BATS-CHIXE:BBYL Future Growth Rates Data Sources
Data Point Source Value (per year)
BATS-CHIXE:BBYL Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 5 Analysts 14.3%
BATS-CHIXE:BBYL Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 5 Analysts 6.6%
United Kingdom of Great Britain and Northern Ireland Construction Industry Earnings Growth Rate Market Cap Weighted Average 16%
United Kingdom of Great Britain and Northern Ireland Construction Industry Revenue Growth Rate Market Cap Weighted Average 3.9%
United Kingdom of Great Britain and Northern Ireland Market Earnings Growth Rate Market Cap Weighted Average 15.4%
United Kingdom of Great Britain and Northern Ireland Market Revenue Growth Rate Market Cap Weighted Average 2.5%

*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
BATS-CHIXE:BBYL Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 5 Analyst Estimates (S&P Global) See Below
All numbers in GBP Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
BATS-CHIXE:BBYL Future Estimates Data
Date (Data in GBP Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2023-12-31 9,669 201 1
2022-12-31 9,045 184 214 3
2021-12-31 8,569 181 164 5
2020-12-31 8,135 81 135 5
2020-04-09
BATS-CHIXE:BBYL Past Financials Data
Date (Data in GBP Millions) Revenue Cash Flow Net Income *
2019-12-31 7,313 211 130
2019-09-30 7,062 104 121
2019-06-28 6,811 -4 112
2019-03-28 6,723 -67 124
2018-12-31 6,634 -130 135
2018-09-30 6,613 -68 176
2018-06-29 6,592 -6 217
2018-03-29 6,754 16 190
2017-12-31 6,916 38 162
2017-09-30 7,030 -1 93
2017-06-30 7,144 -39 23
2017-03-31 7,034 -88 13

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Balfour Beatty's earnings are expected to grow by 14.3% yearly, however this is not considered high growth (20% yearly).
  • Balfour Beatty's revenue is expected to grow by 6.6% 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
BATS-CHIXE:BBYL Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 5 Analyst Estimates (S&P Global) See Below

All data from Balfour Beatty Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

BATS-CHIXE:BBYL Future Estimates Data
Date (Data in GBP Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2023-12-31
2022-12-31 0.30 0.31 0.28 2.00
2021-12-31 0.24 0.30 0.16 3.00
2020-12-31 0.19 0.25 0.15 3.00
2020-04-09
BATS-CHIXE:BBYL Past Financials Data
Date (Data in GBP Millions) EPS *
2019-12-31 0.19
2019-09-30 0.18
2019-06-28 0.16
2019-03-28 0.18
2018-12-31 0.20
2018-09-30 0.26
2018-06-29 0.32
2018-03-29 0.28
2017-12-31 0.24
2017-09-30 0.14
2017-06-30 0.03
2017-03-31 0.02

*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.
  • Balfour Beatty is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Balfour Beatty'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 United Kingdom of Great Britain and Northern Ireland market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United Kingdom of Great Britain and Northern Ireland 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.
Balfour Beatty has a total score of 2/6, 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.

BBYL Past Performance

  How has Balfour Beatty 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 Balfour Beatty's growth in the last year to its industry (Construction).
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.
  • Balfour Beatty has delivered over 20% year on year earnings growth in the past 5 years.
  • Balfour Beatty's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • Balfour Beatty's 1-year earnings growth is negative, it can't be compared to the GB Construction industry average.
Earnings and Revenue History
Balfour Beatty'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 Balfour Beatty Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

BATS-CHIXE:BBYL Past Revenue, Cash Flow and Net Income Data
Date (Data in GBP Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-12-31 7,313.00 130.00
2019-09-30 7,062.00 121.00
2019-06-28 6,811.00 112.00
2019-03-28 6,722.50 123.50
2018-12-31 6,634.00 135.00
2018-09-30 6,613.00 176.00 1.50
2018-06-29 6,592.00 217.00 3.00
2018-03-29 6,754.00 189.50 4.50
2017-12-31 6,916.00 162.00 6.00
2017-09-30 7,030.00 92.50 5.50
2017-06-30 7,144.00 23.00 5.00
2017-03-31 7,033.50 12.50 4.50
2016-12-31 6,923.00 2.00 4.00
2016-09-30 6,867.50 -30.00 3.50
2016-07-01 6,812.00 -62.00 3.00
2016-04-01 6,883.50 -134.00 3.00
2015-12-31 6,955.00 -206.00 3.00
2015-09-30 7,374.50 -281.00 6.50
2015-06-26 7,175.00 -410.00 10.00
2015-03-26 7,219.50 -356.00 13.00
2014-12-31 7,264.00 -302.00 16.00
2014-09-30 6,688.50 -231.00 13.50
2014-06-27 6,732.00 -106.00 11.00
2014-03-27 7,110.00 -79.50 10.00
2013-12-31 7,488.00 -53.00 9.00
2013-09-30 8,006.50 -3.50 9.50
2013-06-28 8,525.00 46.00 10.00

*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.
  • Balfour Beatty has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Balfour Beatty used its assets less efficiently than the GB Construction industry average last year based on Return on Assets.
  • Balfour Beatty has become profitable over the past 3 years. This is considered to be a significant improvement in its use of capital (Return on Capital Employed).
X
Past performance checks
We assess Balfour Beatty'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 Construction 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.
Balfour Beatty has a total score of 2/6, 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.

BBYL Health

 How is Balfour Beatty'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 Balfour Beatty's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Balfour Beatty's short term (1 year) commitments are greater than its holdings of cash and other short term assets.
  • Balfour Beatty's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Balfour Beatty'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.
  • Low level of unsold assets.
  • Debt is covered by short term assets, assets are 3.1x 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 Balfour Beatty Company Filings, last reported 3 months ago.

BATS-CHIXE:BBYL Past Debt and Equity Data
Date (Data in GBP Millions) Total Equity Total Debt Cash & Short Term Investments
2019-12-31 1,377.00 710.00 778.00
2019-09-30 1,377.00 710.00 778.00
2019-06-28 1,232.00 776.00 730.00
2019-03-28 1,232.00 776.00 730.00
2018-12-31 1,241.00 768.00 661.00
2018-09-30 1,241.00 768.00 661.00
2018-06-29 1,240.00 1,022.00 926.00
2018-03-29 1,240.00 1,022.00 926.00
2017-12-31 1,066.00 1,075.00 968.00
2017-09-30 1,066.00 1,075.00 968.00
2017-06-30 765.00 1,108.00 843.00
2017-03-31 765.00 1,108.00 843.00
2016-12-31 762.00 965.00 770.00
2016-09-30 762.00 965.00 770.00
2016-07-01 834.00 1,211.00 728.00
2016-04-01 834.00 1,211.00 728.00
2015-12-31 830.00 1,043.00 667.00
2015-09-30 830.00 1,032.00 666.00
2015-06-26 854.00 972.00 740.00
2015-03-26 854.00 972.00 740.00
2014-12-31 1,230.00 1,142.00 733.00
2014-09-30 1,230.00 1,142.00 733.00
2014-06-27 965.00 1,204.00 457.00
2014-03-27 965.00 1,204.00 457.00
2013-12-31 1,035.00 1,184.00 606.00
2013-09-30 1,035.00 1,184.00 606.00
2013-06-28 1,192.00 1,326.00 564.00
  • Balfour Beatty's level of debt (51.6%) 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 (92.9% vs 51.6% today).
  • Debt is well covered by operating cash flow (29.7%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 5.2x coverage).
X
Financial health checks
We assess Balfour Beatty'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. Balfour Beatty has a total score of 4/6, 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.

BBYL Dividends

 What is Balfour Beatty'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
2.63%
Current annual income from Balfour Beatty dividends. Estimated to be 3.22% next year.
If you bought £2,000 of Balfour Beatty shares you are expected to receive £53 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?
  • Balfour Beatty's pays a higher dividend yield than the bottom 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (2.49%).
  • Balfour Beatty's dividend is below the markets top 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (6.84%).
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
BATS-CHIXE:BBYL 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 5 Analyst Estimates (S&P Global) See Below
United Kingdom of Great Britain and Northern Ireland Construction Industry Average Dividend Yield Market Cap Weighted Average of 13 Stocks 5.4%
United Kingdom of Great Britain and Northern Ireland Market Average Dividend Yield Market Cap Weighted Average of 575 Stocks 5.5%
United Kingdom of Great Britain and Northern Ireland Minimum Threshold Dividend Yield 10th Percentile 1.3%
United Kingdom of Great Britain and Northern Ireland Bottom 25% Dividend Yield 25th Percentile 2.5%
United Kingdom of Great Britain and Northern Ireland Top 25% Dividend Yield 75th Percentile 6.8%

Industry and Market average data is calculated daily.

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

BATS-CHIXE:BBYL Future Dividends Estimate Data
Date (Data in £) Dividend per Share (annual) Avg. No. Analysts
2023-12-31 0.10 1.00
2022-12-31 0.09 5.00
2021-12-31 0.08 7.00
2020-12-31 0.06 7.00
2020-04-09
BATS-CHIXE:BBYL Past Annualized Dividends Data
Date (Data in £) Dividend per share (annual) Avg. Yield (%)
2020-03-11 0.064 2.908
2019-04-04 0.048 2.024
2019-03-13 0.048 1.793
2018-03-14 0.036 1.294
2017-03-16 0.027 0.987
2016-08-17 0.018 0.659
2016-04-12 0.000 0.000
2016-03-15 0.000 0.000
2015-08-12 0.000 0.000
2015-04-02 0.000 0.000
2015-03-25 0.000 0.000
2014-03-18 0.141 6.485
2014-03-06 0.141 4.922
2013-03-07 0.141 5.467
2012-03-27 0.138 4.896
2012-03-08 0.138 4.759
2011-03-03 0.127 4.548
2011-03-02 0.127 3.650
2010-03-22 0.120 4.328
2010-03-04 0.120 4.235
2009-08-11 0.132 4.636

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

  • Dividends per share have been volatile in the past 10 years (annual drop of over 20%).
  • Dividends per share have fallen over the past 10 years.
Current Payout to shareholders
What portion of Balfour Beatty's earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by earnings (3x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (3.1x coverage).
X
Income/ dividend checks
We assess Balfour Beatty's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.3%) - 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 Balfour Beatty afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Balfour Beatty has a total score of 3/6, see the detailed checks below.


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

BBYL Management

 What is the CEO of Balfour Beatty'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
Leo Quinn
COMPENSATION £4,341,480
AGE 62
TENURE AS CEO 5.3 years
CEO Bio

Mr. Leo M. Quinn, MSc, BSc (Hons) has been the Chief Executive Officer of Balfour Beatty plc since January 1, 2015. Mr. Quinn served as the Chief Executive Officer of QinetiQ Group Plc from November 16, 2009 to December 31, 2014. Mr. Quinn served as the President of Tridium, Inc. Mr. Quinn served as an Chief Executive of De La Rue Plc from May 31, 2004 to December 31, 2004. He served as the President of Honeywell's International Enterprise Solutions division in the USA since 2000. Mr. Quinn was employed at Invensys Limited (alternate name, Invensys plc), where he served as the Chief Operating Officer of the Product Management Division, based in Massachusetts, USA. He has considerable operational experience, having spent 16 years with Honeywell Inc., the engineering Group from 2001 to 2004, initially in the UK, but also held a variety of senior management roles in the USA, Europe, the Middle East and Africa including Global President of Home & Business Controls Enterprise Solutions. He has been an Independent Non-Executive Director of Betfair Group PLC since March 05, 2014, The Sporting Exchange Limited since March 2014 and Betfair Limited since March 2014. He has been an Executive Director of Balfour Beatty plc since January 1, 2015. He served as Executive Director of QinetiQ Group Plc until December 31, 2014. He held a number of general management roles around the world with Honeywell International Inc. He served as an Independent Non-Executive Director of Tomkins Limited (alternate name, Tomkins PLC) from July 6, 2007 to November 3, 2009. He served as Independent Non-Executive Director of Pinafore Holdings B.V. from July 6, 2007 to November 3, 2009. He served as a Director of Wyless Plc. He served as an Executive Director of De La Rue plc from March 29, 2004 to December 31, 2008. Mr. Quinn received a Matching Award to mirror its Performance Share Plan in respect of this share purchase, subject to normal vesting and performance conditions. He was educated at both Imperial College and Portsmouth University and holds an MSc in Management Science and a BSc in Civil Engineering.

CEO Compensation
  • Leo's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Leo's remuneration is higher than average for companies of similar size in United Kingdom of Great Britain and Northern Ireland.
Management Team Tenure

Average tenure and age of the Balfour Beatty management team in years:

4.8
Average Tenure
62
Average Age
  • The tenure for the Balfour Beatty management team is about average.
Management Team

Leo Quinn

TITLE
Group Chief Executive & Executive Director
COMPENSATION
£4M
AGE
62
TENURE
5.3 yrs

Phil Harrison

TITLE
CFO & Executive Director
COMPENSATION
£1M
AGE
58
TENURE
4.8 yrs

William Weir

TITLE
Honorary President
COMPENSATION
£64K
AGE
86
TENURE
16.9 yrs

John Tarpey

TITLE
Chief of Organization Development

Chris Johnson

TITLE
Chief Technology Officer
TENURE
0.3 yrs

Louise McCulloch

TITLE
Group Head of Communications
TENURE
1.5 yrs

Paul Raby

TITLE
Human Resources Director
TENURE
15.3 yrs

Neil Patterson

TITLE
Regional Managing Director of London and South East for UK Construction Business

Steve Tarr

TITLE
Managing Director of Major Projects
TENURE
4.7 yrs

Dean Banks

TITLE
Chief Executive Officer of UK Construction Services
TENURE
4.8 yrs
Board of Directors Tenure

Average tenure and age of the Balfour Beatty board of directors in years:

4.8
Average Tenure
62.5
Average Age
  • The tenure for the Balfour Beatty board of directors is about average.
Board of Directors

Phil Aiken

TITLE
Non-Executive Chairman
COMPENSATION
£274K
AGE
70
TENURE
5.1 yrs

Leo Quinn

TITLE
Group Chief Executive & Executive Director
COMPENSATION
£4M
AGE
62
TENURE
5.3 yrs

Phil Harrison

TITLE
CFO & Executive Director
COMPENSATION
£1M
AGE
58
TENURE
4.8 yrs

Stephen Billingham

TITLE
Senior Independent Director
COMPENSATION
£73K
AGE
61
TENURE
0.9 yrs

Anne Drinkwater

TITLE
Non-Executive Director
COMPENSATION
£5K
AGE
63
TENURE
1.3 yrs

Stuart Doughty

TITLE
Non-Executive Director
COMPENSATION
£73K
AGE
75
TENURE
5 yrs

Barbara Moorhouse

TITLE
Non-Executive Director
COMPENSATION
£61K
AGE
61
TENURE
2.8 yrs

Mike Lucki

TITLE
Non-Executive Director
COMPENSATION
£68K
AGE
63
TENURE
2.8 yrs

Mark Layman

TITLE
Director of Balfour Beatty Construction Services US
TENURE
6.3 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month open market individual insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (£) Value (£)
19. Nov 19 Buy Leo Quinn Individual 15. Nov 19 15. Nov 19 66 £2.27 £150
X
Management checks
We assess Balfour Beatty'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. Balfour Beatty 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.

BBYL News

Simply Wall St News

BBYL Company Info

Description

Balfour Beatty plc finances, designs, develops, builds, and maintains infrastructure in the United Kingdom, the United States, and internationally. It operates through Construction Services, Support Services, and Infrastructure Investments segments. The Construction Services segment provides civil engineering, building, ground engineering, mechanical and electrical installation, refurbishment and fit-out, and rail engineering services. The Support Services segment designs, upgrades, manages, and maintains water, gas, and electricity networks; and undertakes highways network management, operation, and maintenance works, as well as provides rail technology and rail renewal services. The Infrastructure Investments segment engages in the acquisition, operation, and disposal of infrastructure assets, such as roads, hospitals, student accommodation, military housing, offshore transmission networks, waste and biomass, and other concessions. This segment also develops and finances public and private infrastructure projects. Balfour Beatty plc was founded in 1909 and is based in London, the United Kingdom.

Details
Name: Balfour Beatty plc
BBYL
Exchange: BATS-CHIXE
Founded: 1909
£1,635,278,601
684,216,988
Website: http://www.balfourbeatty.com
Address: Balfour Beatty plc
5 Churchill Place,
Canary Wharf,
London,
Greater London, E14 5HU,
United Kingdom
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
LSE BBY Ordinary Shares London Stock Exchange GB GBP 01. Jan 1992
OTCPK BAFB.F Ordinary Shares Pink Sheets LLC US USD 01. Jan 1992
DB BIH Ordinary Shares Deutsche Boerse AG DE EUR 01. Jan 1992
BRSE BIH Ordinary Shares Berne Stock Exchange CH CHF 01. Jan 1992
BATS-CHIXE BBYL Ordinary Shares BATS 'Chi-X Europe' GB GBP 01. Jan 1992
OTCPK BAFY.Y SPONSORED ADR RE Pink Sheets LLC US USD 10. Jul 2012
LSE BBYB 10.75P GROSS(NET PD)CUM CNV RED PRF 1P London Stock Exchange GB GBP 03. Jan 1995
Number of employees
Current staff
Staff numbers
19,474
Balfour Beatty employees.
Industry
Construction and Engineering
Capital Goods
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2020/04/09 19:35
End of day share price update: 2020/04/08 00:00
Last estimates confirmation: 2020/04/06
Last earnings filing: 2020/03/11
Last earnings reported: 2019/12/31
Last annual earnings reported: 2019/12/31


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.