Babcock International Group Plc (BAB) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Babcock International Group Plc

Morgan Sindall Group plc

Galliford Try Holdings Plc

Keller Group Plc

Balfour Beatty Plc

The Weir Group Plc

Renew Holdings Plc

Costain Group Plc

Henry Boot Plc

Somero Enterprises, Inc.

Severfield Plc

Why is Babcock International Group Plc ?

With a growth in Net Profit of 43.72%, the company declared Outstanding results in Sep 25

The company has declared positive results for the last 3 consecutive quarters
DEBT-EQUITY RATIO (HY) Lowest at 50.47 %
NET SALES(Q) Highest at GBP 2,538.6 MM
INTEREST COVERAGE RATIO(Q) Highest at 1,110.22

With ROE of 39.70%, it has a fair valuation with a 9.34 Price to Book Value

Over the past year, while the stock has generated a return of 78.24%, its profits have risen by 48.1% ; the PEG ratio of the company is 0.5

Consistent Returns over the last 3 years

Along with generating 78.24% returns in the last 1 year, the stock has outperformed FTSE 100 in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you buy?

Overall Portfolio exposure to Babcock International Group Plc should be less than 10%
Overall Portfolio exposure to Automobiles should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Automobiles)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Babcock International Group Plc for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Babcock International Group Plc

70.23%

2.74

35.19%

FTSE 100

13.98%

1.15

13.60%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

2.62%

EBIT Growth (5y)

31.45%

EBIT to Interest (avg)

1.68

Debt to EBITDA (avg)

2.24

Net Debt to Equity (avg)

0.25

Sales to Capital Employed (avg)

2.86

Tax Ratio

24.17%

Dividend Payout Ratio

13.25%

Pledged Shares

Institutional Holding

0.00%

ROCE (avg)

21.52%

ROE (avg)

22.00%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

9.34

EV to EBIT

16.61

EV to EBITDA

12.66

EV to Capital Employed

8.17

EV to Sales

1.39

PEG Ratio

0.49

Dividend Yield

52.33%

ROCE (Latest)

49.22%

ROE (Latest)

39.70%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bearish

No Trend

OBV

Mildly Bullish

Mildly Bearish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

13What is working for the Company

DEBT-EQUITY RATIO (HY)

Lowest at 50.47 %

NET SALES(Q)

Highest at GBP 2,538.6 MM

INTEREST COVERAGE RATIO(Q)

Highest at 1,110.22

RAW MATERIAL COST(Y)

Fallen by -46.44% (YoY

CASH AND EQV(HY)

Highest at GBP 704.8 MM

OPERATING PROFIT(Q)

Highest at GBP 304.2 MM

OPERATING PROFIT MARGIN(Q)

Highest at 11.98 %

PRE-TAX PROFIT(Q)

Highest at GBP 222.1 MM

NET PROFIT(Q)

Highest at GBP 169.3 MM

EPS(Q)

Highest at GBP 0.33

0What is not working for the Company

NO KEY NEGATIVE TRIGGERS

Here's what is working for Babcock International Group Plc

Net Sales

Highest at GBP 2,538.6 MM and Grown

In each period in the last five periods

MOJO Watch

Near term sales trend is very positive

Net Sales (GBP MM)

Interest Coverage Ratio

Highest at 1,110.22

in the last five periods

MOJO Watch

The company's ability to manage interest payments is improving

Operating Profit to Interest

Debt-Equity Ratio

Lowest at 50.47 % and Grown

In each half year in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Operating Profit

Highest at GBP 304.2 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (GBP MM)

Operating Profit Margin

Highest at 11.98 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Pre-Tax Profit

Highest at GBP 222.1 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (GBP MM)

Net Profit

Highest at GBP 169.3 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (GBP MM)

EPS

Highest at GBP 0.33

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (GBP)

Cash and Eqv

Highest at GBP 704.8 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Raw Material Cost

Fallen by -46.44% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Depreciation

Highest at GBP 69.9 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (GBP MM)