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

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Morgan Sindall Group plc

Galliford Try Holdings Plc

Babcock International Group Plc

Keller Group Plc

Balfour Beatty Plc

Costain Group Plc

Henry Boot Plc

The Weir Group Plc

Renew Holdings Plc

Somero Enterprises, Inc.

Severfield Plc

Why is Babcock International Group Plc ?

High Debt Company with a Debt to Equity ratio (avg) at times

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
High Debt Company with a Debt to Equity ratio (avg) at times
The company has been able to generate a Return on Equity (avg) of 22.00% signifying low profitability per unit of shareholders funds

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 has declared Positive results for the last 3 consecutive quarters

ROCE(HY) Highest at 49.75%
DEBT-EQUITY RATIO (HY) Lowest at 61.22 %
INTEREST COVERAGE RATIO(Q) Highest at 889.59

With ROE of 41.18%, it has a expensive valuation with a 10.71 Price to Book Value

Over the past year, while the stock has generated a return of 117.44%, its profits have risen by 48% ; the PEG ratio of the company is 0.5

Consistent Returns over the last 3 years

Along with generating 117.44% 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 hold?

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

117.44%

1.97

34.80%

FTSE 100

15.94%

1.23

12.99%

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

10.71

EV to EBIT

18.18

EV to EBITDA

13.73

EV to Capital Employed

8.85

EV to Sales

1.37

PEG Ratio

0.54

Dividend Yield

66.41%

ROCE (Latest)

48.71%

ROE (Latest)

41.18%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bullish

No Trend

OBV

Mildly Bullish

No Trend

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

ROCE(HY)

Highest at 49.75%

DEBT-EQUITY RATIO (HY)

Lowest at 61.22 %

INTEREST COVERAGE RATIO(Q)

Highest at 889.59

PRE-TAX PROFIT(Q)

At GBP 164.9 MM has Grown at 113.05%

RAW MATERIAL COST(Y)

Fallen by -444.92% (YoY

DEBTORS TURNOVER RATIO(HY)

Highest at 6.34%

DIVIDEND PER SHARE(HY)

Highest at GBP 6.34

NET SALES(Q)

Highest at GBP 2,422.4 MM

NET PROFIT(Q)

At GBP 117.8 MM has Grown at 86.39%

-1What is not working for the Company

INVENTORY TURNOVER RATIO(HY)

Lowest at 25.56%

Here's what is working for Babcock International Group Plc

Interest Coverage Ratio

Highest at 889.59

in the last five periods

MOJO Watch

The company's ability to manage interest payments is improving

Operating Profit to Interest

Pre-Tax Profit

At GBP 164.9 MM has Grown at 113.05%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (GBP MM)

Debt-Equity Ratio

Lowest at 61.22 % 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

Net Sales

Highest at GBP 2,422.4 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (GBP MM)

Net Profit

At GBP 117.8 MM has Grown at 86.39%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is positive

Net Profit (GBP MM)

Debtors Turnover Ratio

Highest at 6.34%

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 6.34

in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (GBP)

Raw Material Cost

Fallen by -444.92% (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

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

Inventory Turnover Ratio

Lowest at 25.56%

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio