Babcock International Group PLC

BAB.L: LSE
57Total

Lowest reading is at 32 out of 100. All scores are out of 100.

About The Company

CEO

Mr. Harry Holt O.B.E.

Market Cap

4.84 Billion GBp

Sector

Industrials

Website

https://www.babcockinternational.com

Last Update

26/09/2026, 10:19:25

Description

Babcock International Group PLC, together with its subsidiaries, engages in the design, development, manufacture, and integration of specialist systems for aerospace, defense, and security in the United Kingdom, rest of Europe, Africa, North America, Australasia, and internationally.

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Strongest readings

  • ✔Dividend growth averages 122.04% per year
  • ✔Return on capital employed of 19.25% is above the market average of 10.00%
  • ✔Cashflow and earnings growth is strong (growth score 77 out of 100)
  • ✔Share count has been falling at 0.10% per year

Weakest readings

  • ✘The current price sits above estimated fair value (margin of safety -51.24%)
  • ✘Short-term liabilities exceed short-term assets (current ratio 0.80)
  • ✘Price-to-earnings of 23.5 is above the market average of 19.6

Key Figures

StatusMetricValueReadingMarket avg
✘
Price / earnings (TTM)
23.47x
19.60x
✘
Margin of safety (DCF)
-51.24%
17.95%
✘
Revenue growth (5y average)
7.17%
10.97%
✘
Dividend yield (TTM)
0.72%
1.85%
✔
Share count, per year
-0.10%
0.00%
✔Return on capital employed19.25%
10.00%

The bar shows how good a reading is, so a longer bar is always better. The tick marks the benchmark.

Valuation

32 / 100

Priced above the market on most measures.

StatusMetricValueReadingMarket avg
✘
Price / earnings
23.47x
19.60x
✔Free cashflow yield5.00%
4.70%
Price / earnings growthN/A1.50x
Price / book769.79x
—
✘
Margin of safety
-51.24%
17.95%

The bar shows how good a reading is, so a longer bar is always better. The tick marks the benchmark.

  • ✘Estimated intrinsic value of 481.83 GBp is below the current price of 988.20 GBp

Desired Margin Of Safety

0%

▼

Tip: Set your desired Margin Of Safety

Free Cash Flow Type

Annual Cashflow Growth

0%

Discount Rate

0%

Estimated Fair Value: 377.9 GBp ✘

Current Price: 988.2 GBp

How Does This Work?

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This calculator helps investors estimate the Intrinsic Value of a company based on the current value of future cash flows. To use the tool, simply input a desired Margin Of Safety, which is an additional discount applied to the present value of the expected future cash flows. The tool calculates the present value using a discount rate that reflects the risk and time value of money, and provides an estimated fair value for the company based on the selected margin of safety. The calculator defaults to using 5 Year Free Cash Flow Growth % and a discount rate based on the US 10-year treasury bond coupon rate. Use our performance analyser to get a feel for the impact this has on longterm investment returns and find a margin of safety you are comfortable with.

Growth

77 / 100

Growing faster than the market on most measures.

StatusMetricValueReadingMarket avg
✘
Revenue growth
7.17%
10.97%
✔Earnings growth49.24%
14.48%
✔Cashflow growth26.51%
12.35%

The bar shows how good a reading is, so a longer bar is always better. The tick marks the benchmark.

    Health

    41 / 100

    Balance sheet is stretched on several measures.

    Measured on Leverage and capital, Funding and liquidity, Earnings quality.

    StatusMetricValueReadingThreshold
    ✘Altman-Z score0.98
    3.00
    ✔Piotroski score6.00
    5.00
    Debt / equityN/A0.80x
    ✘Current ratio0.80x
    1.00x
    ✔Interest coverage6.15x
    2.50x
    Free cashflow / debtN/A0.15x
    Debt / capitalN/A1.00x

    The bar shows how good a reading is, so a longer bar is always better. The tick marks the benchmark.

      Dividend

      61 / 100

      Covered, with limited headroom.

      StatusMetricValueReadingMarket avg
      ✘
      Dividend yield
      0.72%
      1.85%
      ✔Dividend growth29.96%
      0.00%
      ✔Payout ratio (earnings)16.43%
      40.00%
      ✔Payout ratio (cashflow)14.33%
      65.00%
      Worst year, last 5 yearsN/A-2.00%

      The bar shows how good a reading is, so a longer bar is always better. The tick marks the benchmark.

      • ✘Dividend growth has been slowing recently

      Management

      79 / 100

      Returns on capital are at or above the market.

      StatusMetricValueReadingMarket avg
      Return on equityN/A15.00%
      ✔Return on capital employed19.25%
      10.00%
      Return on assets5.37%
      —
      Free cashflow return on capital15.28%
      —
      ✔Return on capital, 5y change8.57%
      0.00%
      ✔
      Share count, per year
      -0.10%
      0.00%
      Share count, recentN/A0.00%
      Realized buyback returnN/A0.00%
      ✔Goodwill erosion / equity0.52%
      2.00%
      Price volatility, 5 year32.97%
      —

      The bar shows how good a reading is, so a longer bar is always better. The tick marks the benchmark.

      • ✘Shares were repurchased while the value score was only 32 out of 100

      Analysts

      not enough data
      StatusMetricValueReadingNeutral
      Analyst opinion scoreN/A50

      The bar shows how good a reading is, so a longer bar is always better. The tick marks the benchmark.

      Financial History

      Annual figures across the full reporting history we hold.

      Market Peers

      BAB.L

      SEC Filings

      Find yearly (10-K), quaterly (10-Q) and disclosure (8-K) report here, on the Securities and Exchange Commission's EDGAR database. If reading through reports isn't your cup of tea, don't worry. We've made it easy for you by summarizing all the important bits.

      See 35+ Years Annual Reports

      Other Information

      Company Name

      Babcock International Group PLC

      Currency

      GBp

      Beta

      0.864

      Vol Avg

      2259544

      Ceo

      Mr. Harry Holt O.B.E.

      Cik

      Cusip

      Exchange

      LSE

      Full Time Employees

      30481

      Industry

      Engineering & Construction

      Sector

      Industrials

      Ipo Date

      Address

      33 Wigmore Street

      City

      London

      State

      Country

      United Kingdom

      Zip

      W1U 1QX

      Phone

      44 20 7355 5300

      Analysis Last Updated

      26/09/2026, 10:19:25

      Financial data compiled from SEC EDGAR filings and Yahoo Finance.

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