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Babcock International Group Plc

  • Market Cap: Mid Cap
  • Industry: Automobiles
  • ISIN: GB0009697037
GBP
11.90
0.04 (0.38%)

Aug 06

LON

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  • Price Points
  • Score
  • Mojo Parameters
  • Total Return
  • News and Corporate Actions
  • Key factors
  • Shareholding
  • Financials
  • CompanyCV
stock-recommendationScore
Click here to find our call on this stock
Strong Sell
Sell
Hold
Buy
Strong Buy

Comparison

Company
Score
Quality
Valuation
Financial
Technical
Balfour Beatty Plc
Costain Group Plc
Keller Group Plc
Galliford Try Holdings Plc
Morgan Sindall Group plc
Renew Holdings Plc
The Weir Group Plc
Henry Boot Plc
Babcock International Group Plc
Somero Enterprises, Inc.
Severfield Plc

Why is Babcock International Group Plc ?

1
Poor Management Efficiency with a low ROCE of 21.52%
  • The company has been able to generate a Return on Capital Employed (avg) of 21.52% signifying low profitability per unit of total capital (equity and debt)
2
The company is Net-Debt Free
  • Poor long term growth as Net Sales has grown by an annual rate of 2.62% and Operating profit at 31.45% over the last 5 years
  • The company is Net-Debt Free
  • The company has been able to generate a Return on Equity (avg) of 22.00% signifying low profitability per unit of shareholders funds
3
Poor long term growth as Net Sales has grown by an annual rate of 2.62% and Operating profit at 31.45% over the last 5 years
4
The company has declared negative results in Mar'2026 after 5 consecutive positive quarters
  • ROCE(HY) Lowest at 34.67%
  • INTEREST COVERAGE RATIO(Q) Lowest at 452.73
  • RAW MATERIAL COST(Y) Grown by 49.85% (YoY)
5
With ROE of 39.70%, it has a fair valuation with a 6.67 Price to Book Value
  • Over the past year, while the stock has generated a return of 18.29%, its profits have risen by 48.1% ; the PEG ratio of the company is 0.4
stock-recommendationReal-Time Research Report

Verdict Report

How much should you sell?

  1. All quantity irrespective of whether you are making profits or losses

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

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Babcock International Group Plc for you?

High Risk, High Return

Absolute
Risk Adjusted
Volatility
Babcock International Group Plc
18.29%
2.10
35.70%
FTSE 100
18.59%
1.58
11.75%
stock-recommendationQuality
stock-summaryManagement Risk
stock-summaryGrowth
stock-summaryCapital Structure
stock-recommendation
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)
3.70
Debt to EBITDA (avg)
0.99
Net Debt to Equity (avg)
0.25
Sales to Capital Employed (avg)
3.01
Tax Ratio
26.42%
Dividend Payout Ratio
17.80%
Pledged Shares
0
Institutional Holding
0.00%
ROCE (avg)
30.28%
ROE (avg)
22.00%
stock-recommendationValuation

Valuation Scorecard stock-summary

stock-recommendation
Valuation grade scale :

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

Valuation Key Factors stock-summary

Factor
Value
P/E Ratio
17
Industry P/E
Price to Book Value
6.67
EV to EBIT
11.93
EV to EBITDA
9.10
EV to Capital Employed
5.87
EV to Sales
1.00
PEG Ratio
0.35
Dividend Yield
73.34%
ROCE (Latest)
49.22%
ROE (Latest)
39.70%
stock-recommendationTechnicals

Technical key factors

Indicator
Weekly
Monthly
MACD
Mildly Bearish
Bullish
RSI
No Signal
No Signal
Bollinger Bands
Bearish
Mildly Bullish
Moving Averages
Mildly Bullish (Daily)
KST
Mildly Bearish
Bullish
Dow Theory
Mildly Bearish
Bullish
OBV
Mildly Bearish
Mildly Bearish
stock-recommendation Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish  Turned 
Technical Movement
Analyse All Technical Factors stock-recommendation
stock-recommendationFinancial Trend

Financial Trend Scorecard stock-summary

stock-recommendation
Financial Trend scale:

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

9What is working for the Company
OPERATING CASH FLOW(Y)

Highest at GBP 734.5 MM

NET SALES(Q)

Highest at GBP 2,639.1 MM

DIVIDEND PAYOUT RATIO(Y)

Highest at 59.03%

CASH AND EQV(HY)

Highest at GBP 748.7 MM

DEBTORS TURNOVER RATIO(HY)

Highest at 6.54 times

DIVIDEND PER SHARE(HY)

Highest at GBP 6.54

-16What is not working for the Company
ROCE(HY)

Lowest at 34.67%

INTEREST COVERAGE RATIO(Q)

Lowest at 452.73

RAW MATERIAL COST(Y)

Grown by 49.85% (YoY

OPERATING PROFIT(Q)

Lowest at GBP 140.8 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 5.34 %

PRE-TAX PROFIT(Q)

Lowest at GBP 54.2 MM

NET PROFIT(Q)

Lowest at GBP 41.9 MM

EPS(Q)

Lowest at GBP 0.08

Here's what is working for Babcock International Group Plc

Operating Cash Flow
Highest at GBP 734.5 MM and Grown
In each year in the last three years
MOJO Watch
The company has generated higher cash revenues from business operations

Operating Cash Flows (GBP MM)

Net Sales
Highest at GBP 2,639.1 MM and Grown
In each period in the last five periods
MOJO Watch
Near term sales trend is very positive

Net Sales (GBP MM)

Cash and Eqv
Highest at GBP 748.7 MM
in the last six Semi-Annual periods
MOJO Watch
Short Term liquidity is improving

Cash and Cash Equivalents

Debtors Turnover Ratio
Highest at 6.54 times
in the last five Semi-Annual periods
MOJO Watch
Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Dividend per share
Highest at GBP 6.54
in the last five years
MOJO Watch
Company is distributing higher dividend from profits generated

DPS (GBP)

Dividend Payout Ratio
Highest at 59.03%
in the last five years
MOJO Watch
Company is distributing higher proportion of profits generated as dividend

DPR (%)

Depreciation
Highest at GBP 70 MM
in the last five periods
MOJO Watch
The expenditure on assets done by the company may have gone into operation

Depreciation (GBP MM)

Here's what is not working for Babcock International Group Plc

Pre-Tax Profit
At GBP 54.2 MM has Fallen at -67.13%
Year on Year (YoY)
MOJO Watch
Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (GBP MM)

Net Profit
At GBP 41.9 MM has Fallen at -64.43%
Year on Year (YoY)
MOJO Watch
Near term Net Profit trend is very negative

Net Profit (GBP MM)

Interest Coverage Ratio
Lowest at 452.73
in the last five periods
MOJO Watch
The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Operating Profit
Lowest at GBP 140.8 MM
in the last five periods
MOJO Watch
Near term Operating Profit trend is negative

Operating Profit (GBP MM)

Operating Profit Margin
Lowest at 5.34 %
in the last five periods
MOJO Watch
Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit
Lowest at GBP 54.2 MM
in the last five periods
MOJO Watch
Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (GBP MM)

Net Profit
Lowest at GBP 41.9 MM
in the last five periods
MOJO Watch
Near term Net Profit trend is negative

Net Profit (GBP MM)

EPS
Lowest at GBP 0.08
in the last five periods
MOJO Watch
Declining profitability; company has created lower earnings for shareholders

EPS (GBP)

Raw Material Cost
Grown by 49.85% (YoY)
MOJO Watch
The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin

Raw Material Cost as a percentage of Sales

Non Operating Income
Highest at GBP 0.27 MM
in the last five periods
MOJO Watch
Increased income from non business activities may not be sustainable

Non Operating income

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