Balfour Beatty plc
Balfour Beatty plc Fundamental Analysis
Balfour Beatty plc (BAFBF) shows moderate financial fundamentals with a PE ratio of 16.02, profit margin of 2.94%, and ROE of 19.17%. The company generates $7.1B in annual revenue with moderate year-over-year growth of 3.02%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 41.7/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze BAFBF's fundamental strength across five key dimensions:
Efficiency Score
WeakBAFBF struggles to generate sufficient returns from assets.
Valuation Score
ExcellentBAFBF trades at attractive valuation levels.
Growth Score
WeakBAFBF faces weak or negative growth trends.
Financial Health Score
ExcellentBAFBF maintains a strong and stable balance sheet.
Profitability Score
ModerateBAFBF maintains healthy but balanced margins.
Key Financial Metrics
Is BAFBF Expensive or Cheap?
P/E Ratio
BAFBF trades at 16.02 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, BAFBF's PEG of 0.15 indicates potential undervaluation.
Price to Book
The market values Balfour Beatty plc at 2.98 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 21.55 times EBITDA. This signals the market has high growth expectations.
How Well Does BAFBF Make Money?
Net Profit Margin
For every $100 in sales, Balfour Beatty plc keeps $2.94 as profit after all expenses.
Operating Margin
Core operations generate 2.24 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $19.17 in profit for every $100 of shareholder equity.
ROA
Balfour Beatty plc generates $3.49 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Balfour Beatty plc generates limited operating cash flow of $434.69M, signaling weaker underlying cash strength.
Free Cash Flow
Balfour Beatty plc produces free cash flow of $397.77M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $0.82 in free cash annually.
FCF Yield
BAFBF converts 12.08% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
16.02
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.15
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.98
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.46
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.90
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.02
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.19
vs 25 benchmark
ROA
Return on assets percentage
0.03
vs 25 benchmark
ROCE
Return on capital employed
0.06
vs 25 benchmark
How BAFBF Stacks Against Its Sector Peers
| Metric | BAFBF Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 16.02 | 25.83 | Better (Cheaper) |
| ROE | 19.17% | 1291.00% | Weak |
| Net Margin | 2.94% | -43845.00% (disorted) | Weak |
| Debt/Equity | 0.90 | 0.80 | Neutral |
| Current Ratio | 1.02 | 10.66 | Neutral |
| ROA | 3.49% | -1540652.00% (disorted) | Weak |
BAFBF outperforms its industry in 1 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Balfour Beatty plc's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
48.06%
Industry Style: Cyclical, Value, Infrastructure
High GrowthEPS CAGR
80.02%
Industry Style: Cyclical, Value, Infrastructure
High GrowthFCF CAGR
65.13%
Industry Style: Cyclical, Value, Infrastructure
High Growth