Fact based stock research
Balfour Beatty (LSE:BBY)

GB0000961622

How to read the free ranks

For every stock, we judge its performance against its peers and rank it on a scale of 1 to 100. The higher the rank, the better the stock performs than its peers. And, we do this for six investment strategies:
Value - shows how good of a value the stock is. Green is "inexpensive"; red is "expensive".

Growth - shows a company's growth potential. Green is "high growth" expected; red is "tough times ahead".

Safety - relates to the amount of debt a company has. Green is low debt level; red is high debt level.

Combined Financial - this isn't an average of the first three ranks but rather a consolidated view across several financial indicators. Green = good; red = tread carefully.

(NEW) Sentiment - quantifies professional analyst ratings and holdings as well as market pulse. Green = positive sentiment; red = skepticism (Only available to Premium Subscribers).

(NEW) 360° View - the ultimate rating with all financial and non-financial indicators.

Balfour Beatty stock research in summary

balfourbeatty.com

ANALYSIS: With an Obermatt Combined Rank of 37 (worse than 63% compared with investment alternatives), Balfour Beatty (Construction & Engineering, United Kingdom) shares have somewhat below-average financial characteristics compared with similar stocks. Shares of Balfour Beatty are a good value (attractively priced) with a consolidated Value Rank of 59 (better than 59% of alternatives) but show below-average growth (Growth Rank of 39), and are riskily financed (Safety Rank of 37), which means above-average debt burdens. ...read more

RECOMMENDATION: A Combined Rank of 37, is a hold recommendation based on Balfour Beatty's financial characteristics. As the company Balfour Beatty's key financial metrics exhibit good value (Obermatt Value Rank of 59) but low growth (Obermatt Growth Rank of 39) and risky financing practices (Obermatt Safety Rank of 37), it may be a risky investment, because debt in times of crises can make things worse. The good value, better than 59% of comparable companies, may indicate the company's future is challenging. If you believe that low growth is temporary or just due to a specific current event, you may conclude that the good value of the stock provides an attractive investment opportunity. Obermatt Premium subscribers can further check the stock’s Sentiment Ranks, which also flow into the Obermatt 360° View for investors. ...read more

Latest Obermatt Ranks


360° View^new
Sentiment Rank^new
Value Rank	59
Growth Rank	39
Safety Rank	37
Combined Rank	37

Country	United Kingdom
Industry	Construction & Engineering
Index	FTSE All Shares, FTSE 250, FTSE 350, Customer Focus EU, Employee Focus EU, Human Rights, SDG 11, SDG 12, SDG 13, SDG 8, SDG 9, Water Tech
Size class	X-Large

This stock has achievements: Top 10 Stock.

10-Apr-2025. Stock data may be delayed. Log in or sign up to get the most recent research.

Further information

Multiple opinions. One number.

Analysts rarely agree on a stock’s future. So, who do you believe? Obermatt translates those collective views into a single Sentiment Rank. That plus the financial ranks give you the ultimate 360° View. Sign up to access them.

Why popular stocks have low ratings

It’s easier said than done. When your stock drops, it’s easy to want to sell it and find a better performer. Think twice, or even three times, before trading. Those fees (especially the hidden ones) can eat up your gains.

Review the performance ranks of the individual metrics that form each investment strategy.

Research History: Balfour Beatty

RESEARCH HISTORY	2022	2023	2024	2025
VALUE
VALUE	53	75	51	59
GROWTH
GROWTH	47	5	29	39
SAFETY
SAFETY	23	34	51	37
SENTIMENT
SENTIMENT	56	93	73	^new
360° VIEW
360° VIEW	33	56	41	^new

Most recent update of the stock research: 10-Apr-2025. Financial reporting date used for calculating ranks: 28-Jun-2024. Stock research history is based on the Obermatt Method. The higher the rank, the better Balfour Beatty is in the corresponding investment strategy.
Upgrade to a Premium Account to access the latest ranks.

Combined financial peformance in Detail

RESEARCH HISTORY	2022	2023	2024	2025
VALUE
VALUE	53	75	51	59
GROWTH
GROWTH	47	5	29	39
SAFETY
SAFETY	23	34	51	37
COMBINED
COMBINED	37	29	28	37

Last update of combined financial performance: 10-Apr-2025. Stock analysis on combined financial performance: The higher the rank of Balfour Beatty the better the performance.

Value Metrics in Detail

ANALYSIS: With an Obermatt Value Rank of 59 (better than 59% compared with alternatives), Balfour Beatty shares are more attractively priced than the majority of comparable stocks. The Value Rank is based on consolidating four value indicators, where half the indicators are below and half are above average for Balfour Beatty. Price-to-Sales (P/S) is 79, which means that the stock price compared with what market professionals expect for future sales is lower than for 79% of comparable companies, indicating a good value concerning Balfour Beatty's revenue size. The same is valid for expected Price-to-Profits (or Price / Earnings, P/E), more favorable than for 71% of alternatives. It is also positive for expected dividend yields with a Dividend Yield rank of 36 (dividends are expected to be higher than for 36% of other stocks). But, compared with other companies in the same industry, the Price-to-Book Capital ratio (also referred to as market-to-book ratio) is higher than average, making the stock more expensive. Only 58% of all competitors have an even higher price compared with book capital which puts the Price-to-Capital Rank for Balfour Beatty to 42. ...read more

RECOMMENDATION: The overall picture with a consolidated Value Rank of 59, is a buy recommendation based on Balfour Beatty's stock price compared with the company's operational size and dividend yields. A low level of book capital means that the company has a business that is leaner on assets than its competitors. For instance, the company could be leasing its production facilities, or be more focussed on intellectual property, such as its brand and software, which is less visible in its book capital. If that is the case, the low Dividend Yield is also explained as such companies tend to invest their income into market development. The other good value ranks for Sales and Profits are encouraging indicators for the stock price value. We recommend further analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks, including the 360° View, before making an investment decision. ...read more

VALUE METRICS	2022	2023	2024	2025
PRICE VS. REVENUES (P/S)
PRICE VS. REVENUES (P/S)	81	81	78	79
PRICE VS. PROFITS (P/E)
PRICE VS. PROFITS (P/E)	64	69	58	71
PRICE VS. CAPITAL (Market-to-Book)
PRICE VS. CAPITAL (Market-to-Book)	67	62	44	42
DIVIDEND YIELD
DIVIDEND YIELD	39	56	38	36
CONSOLIDATED RANK: VALUE
CONSOLIDATED RANK: VALUE	53	75	51	59

Last update of Value Rank: 10-Apr-2025. Stock analysis on value ratios: The higher the rank, the lower the value ratio of Balfour Beatty; except for dividend yield where the rank is higher, the higher the yield.

Growth Metrics in Detail

ANALYSIS: With an Obermatt Growth Rank of 39 (better than 39% compared with alternatives), Balfour Beatty shows a below-average growth dynamic in its industry. There is limited momentum in this company. The Growth Rank is based on consolidating four value indicators, with half of the indicators below and half above average for Balfour Beatty. Capital Growth has a rank of 83, which means that currently professionals expect the company to grow its invested capital more than 26% of its competitors. Investors welcomed this, visible in the Stock Returns rank of 55 (above 55% of alternative investments). But Sales Growth has only a rank of 23, which means that, currently, professionals expect the company to grow less than 77% of its competitors, and Profit Growth is also low at a rank of 26. ...read more

RECOMMENDATION: The overall picture with a consolidated Growth Rank of 39, is a hold recommendation for growth and momentum investors. This is an ambiguous picture. Revenue growth and capital growth are strong, but the growth in profit, which seems good, can also be an indication that growth momentum may be negative. The fact that stock returns have been above average doesn't help much, as stock returns are less reliable in showing a company’s future growth potential. Prices may perform well for the simple reason that investors were too pessimistic in the past and are now correcting their opinions and moving the stock price to a more reasonable level. As the growth picture is mixed for Balfour Beatty, investors may want to look at value and sentiment indicators for a well-rounded picture of this stock. While momentum is a popular investment factor, the value aspect might be the more important one, in the longer term. We recommend analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks to arrive at a 360° View of the stock purchase case, especially since the growth performance is mixed here. ...read more

GROWTH METRICS	2022	2023	2024	2025
REVENUE GROWTH
REVENUE GROWTH	34	17	47	23
PROFIT GROWTH
PROFIT GROWTH	98	15	43	26
CAPITAL GROWTH
CAPITAL GROWTH	31	21	10	83
STOCK RETURNS
STOCK RETURNS	17	23	71	55
CONSOLIDATED RANK: GROWTH
CONSOLIDATED RANK: GROWTH	47	5	29	39

Last update of Growth Rank: 10-Apr-2025. Stock analysis on growth metrics: The higher the rank, the higher the growth and returns of Balfour Beatty.

Safety Metrics in Detail

ANALYSIS: With an Obermatt Safety Rank of 37 (better than 37% compared with alternatives), the company Balfour Beatty has financing practices on the riskier side, which means that their overall debt burden is above the industry average. This doesn't mean that the business of Balfour Beatty is also risky, it only means that the company is on the riskier side in respect to bankruptcy in case things turn sour, assuming that public reporting is correct. The Safety Rank is based on consolidating three financing indicators, with all three metrics below average for Balfour Beatty. Liquidity is at 35, meaning that the company generates less profit to service its debt than 65% of its competitors. This indicates that the company is on the riskier side when it comes to debt service. Even worse, Leverage is at a rank of 41, meaning the company has an above-average debt-to-equity ratio. It has more debt than 59% of its competitors. Finally, Refinancing is at a rank of 41 which means that the portion of the debt about to be refinanced is above average. It has more debt in the refinancing stage than 59% of its competitors. ...read more

RECOMMENDATION: With a consolidated Safety Rank of 37 (worse than 63% compared with alternatives), Balfour Beatty has a financing structure that is riskier than that of its competitors. This combination is rather dangerous in most situations. Only very promising companies with bright future outlooks and stellar reputations can operate with such risky financing. Investors should look at Obermatt’s Value, Growth, and Sentiment Ranks to confirm a very positive outlook or be careful with investing in stocks of Balfour Beatty because it may suffer significantly in case of future difficulties. ...read more

SAFETY METRICS	2022	2023	2024	2025
LEVERAGE
LEVERAGE	72	68	55	41
REFINANCING
REFINANCING	11	18	34	41
LIQUIDITY
LIQUIDITY	16	30	41	35
CONSOLIDATED RANK: SAFETY
CONSOLIDATED RANK: SAFETY	23	34	51	37

Last update of Safety Rank: 10-Apr-2025. Stock analysis on safety metrics: The higher the rank, the lower the leverage of Balfour Beatty and the more cash is available to service its debt.

Sentiment Metrics in Detail

SENTIMENT	2022	2023	2024	2025
ANALYST OPINIONS
ANALYST OPINIONS	n/a	97	95	^new
OPINIONS CHANGE
OPINIONS CHANGE	50	98	40	^new
PRO HOLDINGS
PRO HOLDINGS	13	42	70	^new
MARKET PULSE
MARKET PULSE	79	73	50	^new
CONSOLIDATED RANK: SENTIMENT
CONSOLIDATED RANK: SENTIMENT	56	93	73	^new

Last update of Sentiment Rank: 10-Apr-2025. Stock analysis on sentiment metrics: The higher the rank, the more positive the sentiment for Balfour Beatty.
Upgrade to a Premium Account to access the latest ranks.