Balfour Beatty plc
Balfour Beatty plc Fundamental Analysis
Balfour Beatty plc (BAFYY) shows weak financial fundamentals with a PE ratio of 19.71, profit margin of 2.46%, and ROE of 15.30%. The company generates $3.9B in annual revenue with N/A year-over-year growth of N/A.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 43.2/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze BAFYY's fundamental strength across five key dimensions:
Efficiency Score
WeakBAFYY struggles to generate sufficient returns from assets.
Valuation Score
ExcellentBAFYY trades at attractive valuation levels.
Growth Score
ModerateBAFYY shows steady but slowing expansion.
Financial Health Score
ExcellentBAFYY maintains a strong and stable balance sheet.
Profitability Score
ModerateBAFYY maintains healthy but balanced margins.
Key Financial Metrics
Is BAFYY Expensive or Cheap?
P/E Ratio
BAFYY trades at 19.71 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, BAFYY's PEG of 0.26 indicates potential undervaluation.
Price to Book
The market values Balfour Beatty plc at 3.24 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 6.82 times EBITDA. This is generally considered low.
How Well Does BAFYY Make Money?
Net Profit Margin
For every $100 in sales, Balfour Beatty plc keeps $2.46 as profit after all expenses.
Operating Margin
Core operations generate 1.94 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $15.30 in profit for every $100 of shareholder equity.
ROA
Balfour Beatty plc generates $3.74 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 $171.28M, signaling weaker underlying cash strength.
Free Cash Flow
Balfour Beatty plc generates weak or negative free cash flow of $103.36M, restricting financial flexibility.
FCF Per Share
Each share generates $0.38 in free cash annually.
FCF Yield
BAFYY converts 10.98% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
19.71
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.26
vs 25 benchmark
P/B Ratio
Price to book value ratio
3.24
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.24
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.82
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.01
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.15
vs 25 benchmark
ROA
Return on assets percentage
0.04
vs 25 benchmark
ROCE
Return on capital employed
0.06
vs 25 benchmark
How BAFYY Stacks Against Its Sector Peers
| Metric | BAFYY Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 19.71 | 25.83 | Better (Cheaper) |
| ROE | 15.30% | 1291.00% | Weak |
| Net Margin | 2.46% | -43845.00% (disorted) | Weak |
| Debt/Equity | 0.82 | 0.80 | Neutral |
| Current Ratio | 1.01 | 10.66 | Neutral |
| ROA | 3.74% | -1540652.00% (disorted) | Weak |
BAFYY 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
N/A
Industry Style: Cyclical, Value, Infrastructure
EPS CAGR
N/A
Industry Style: Cyclical, Value, Infrastructure
FCF CAGR
N/A
Industry Style: Cyclical, Value, Infrastructure