Babcock International Group PLC
LSE:BAB
Intrinsic Value
Babcock International Group Plc engages in the provision of engineering support services to government organizations and key industries in the private sector. [ Read More ]
The intrinsic value of one
BAB
stock under the Base Case scenario is
1 282.41
GBX.
Compared to the current market price of 519 GBX,
Babcock International Group PLC
is
Undervalued by 60%.
BAB could be a value trap.A value trap occurs when a stock looks inexpensive based on fundamental analysis but fails to reach its intrinsic valuation over time, often due to underlying issues not reflected in quantitative data.
Scrutinize beyond numbers; assess long-term potential.
Babcock International Group PLC's market capitalization is 2.6B GBX.
BAB stock price is 519 GBX.
BAB stock price (519 GBX) is 60% less than its Intrinsic Value (1 282.41 GBX).
BAB has positive Net Debt. This means that the company has more debt (917m GBP) than cash and short-term investments (482m GBP).
BAB's Revenue has been growing by 1% per year for the last 3 years.
BAB's Revenue is forecast to grow at a rate of 2% per year over the next 3 years.
BAB's long-term assets (3B GBP) exceed its long-term liabilties (3B GBP).
BAB's Revenue has grown by 11% over the past 12 months.
BAB has positive Free Cash Flow for the last twelve months.
BAB's ROE (Return on Equity) for the past 12 months is positive and is equal to 7%.
BAB's ROIC (Return on Invested Capital) for the past 12 months is very low and is equal to 1%.
BAB's short-term liabilties (2B GBP) exceed its short-term assets (2B GBP).
BAB has positive Gross Profit for the last twelve months.
BAB's ROIC (Return on Invested Capital) has significantly increased in the last 3 years from -9% to 1%.
BAB has positive Operating Income for the last twelve months.
BAB's ROE (Return on Equity) has significantly increased in the last 3 years from -144% to 7%.
BAB has positive Net Income for the last twelve months.
BAB has negative three-year average ROIC (Return on Invested Capital): -5%. The company is not efficient at using invested capital to generate operating income.
BAB's D/E (Debt to Equity) is very high and is equal to 2.6.
BAB's Altman Z-Score is very low and is equal to 1.28.
BAB has negative three-year average ROE (Return on Equity): -27%. The company is not efficient at transforming stockholders' equity into net income.
BAB generates enough operating income (110m GBP) to cover interest payments on its debt (81m GBP).
Valuation Backtest
Babcock International Group PLC
Run backtest to discover the historical profit from buying and selling
BAB
stocks based on their intrinsic value.
Analyze the historical link between intrinsic value and market price to make more informed investment decisions.
Fundamental Analysis
Babcock International Group PLC
Balance Sheet Decomposition
Babcock International Group PLC
| Current Assets | 1.5B |
| Cash & Short-Term Investments | 481.5m |
| Receivables | 801.5m |
| Other Current Assets | 230.7m |
| Non-Current Assets | 1.8B |
| Long-Term Investments | 63.7m |
| PP&E | 637.7m |
| Intangibles | 925.9m |
| Other Non-Current Assets | 200.4m |
| Current Liabilities | 1.7B |
| Accounts Payable | 265m |
| Accrued Liabilities | 642.1m |
| Other Current Liabilities | 802.1m |
| Non-Current Liabilities | 1.3B |
| Long-Term Debt | 917.3m |
| Other Non-Current Liabilities | 362m |
Earnings Waterfall
Babcock International Group PLC
|
Revenue
|
4.5B
GBP
|
|
Cost of Revenue
|
-4.4B
GBP
|
|
Gross Profit
|
43.8m
GBP
|
|
Operating Expenses
|
66.5m
GBP
|
|
Operating Income
|
110.3m
GBP
|
|
Other Expenses
|
-77.4m
GBP
|
|
Net Income
|
32.9m
GBP
|
Free Cash Flow Analysis
Babcock International Group PLC
BAB Profitability Score
Profitability Due Diligence
Babcock International Group PLC's profitability score is 37/100. The higher the profitability score, the more profitable the company is.
Score
Babcock International Group PLC's profitability score is 37/100. The higher the profitability score, the more profitable the company is.
BAB Solvency Score
Solvency Due Diligence
Babcock International Group PLC's solvency score is 30/100. The higher the solvency score, the more solvent the company is.
Score
Babcock International Group PLC's solvency score is 30/100. The higher the solvency score, the more solvent the company is.
Wall St
Price Targets
BAB Price Targets Summary
Babcock International Group PLC
According to Wall Street analysts, the average 1-year price target for
BAB
is 533.33 GBX
with a low forecast of 449.45 GBX and a high forecast of 598.5 GBX.
Shareholder Return
BAB Price
Babcock International Group PLC
| Average Annual Return | -3.91% |
| Standard Deviation of Annual Returns | 40.48% |
| Max Drawdown | -69% |
| Market Capitalization | 2.6B GBX |
| Shares Outstanding | 504 527 279 |
| Percentage of Shares Shorted |
N/A
|
Company Profile
Babcock International Group PLC
Country
Industry
Market Cap
Dividend Yield
Description
Babcock International Group Plc engages in the provision of engineering support services to government organizations and key industries in the private sector. The firm is engaged in naval business and also provides value-add services across the United Kingdom, France, Canada, Australasia and South Africa. Its reporting segments include Marine, Nuclear, Land and Aviation. The Marine segment is engaged in designing, building and supporting of naval ships, equipment and marine infrastructure. The Nuclear segment provides engineering services in support of decommissioning program and projects, training and operation support, new build program management and design and installation. The Land segment provides vehicle fleet management, equipment supports and training for military and civil customers. The Aviation segment offers engineering services to defense and civil customers, including pilot training, equipment support, airbase management and operation of aviation fleets delivering emergency.
Contact
IPO
Employees
Officers
The intrinsic value of one
BAB
stock under the Base Case scenario is
1 282.41
GBX.
Compared to the current market price of 519 GBX,
Babcock International Group PLC
is
Undervalued by 60%.
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