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
ANALYSIS: With an Obermatt Combined Rank of 28 (worse than 72% 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 51 (better than 51% of alternatives), are safely financed (Safety Rank of 51, which means low debt burdens), but show below-average growth (Growth Rank of 29). ...read more
RECOMMENDATION: A Combined Rank of 28, 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 51) but low growth (Obermatt Growth Rank of 29) while being safely financed (Obermatt Safety Rank of 51), it may be a safer investment because companies with low debt can better withstand times of crises. Yet the good value, better than 51% of comparable companies, may also indicate that 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 and the downside is limited due to below-average financing risks. Obermatt Premium subscribers can further check the stock’s Sentiment Ranks, which also flow into the Obermatt 360° View for investors. ...read more
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360° Viewnew| 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.
20-Feb-2025. Stock data may be delayed. Log in or sign up to get the most recent research.
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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 |
|
51 |
|
| GROWTH | ||||||||
| GROWTH | 47 |
|
5 |
|
29 |
|
29 |
|
| SAFETY | ||||||||
| SAFETY | 23 |
|
34 |
|
51 |
|
51 |
|
| SENTIMENT | ||||||||
| SENTIMENT | 56 |
|
93 |
|
73 |
|
new |
|
| 360° VIEW | ||||||||
| 360° VIEW | 33 |
|
56 |
|
41 |
|
new |
|
Combined financial peformance in Detail
ANALYSIS: With an Obermatt Combined Rank of 28 (worse than 72% 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 51 (better than 51% of alternatives), are safely financed (Safety Rank of 51, which means low debt burdens), but show below-average growth (Growth Rank of 29). ...read more
RECOMMENDATION: A Combined Rank of 28, 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 51) but low growth (Obermatt Growth Rank of 29) while being safely financed (Obermatt Safety Rank of 51), it may be a safer investment because companies with low debt can better withstand times of crises. Yet the good value, better than 51% of comparable companies, may also indicate that 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 and the downside is limited due to below-average financing risks. Obermatt Premium subscribers can further check the stock’s Sentiment Ranks, which also flow into the Obermatt 360° View for investors. ...read more
| RESEARCH HISTORY | 2022 | 2023 | 2024 | 2025 | ||||
|---|---|---|---|---|---|---|---|---|
| VALUE | ||||||||
| VALUE | 53 |
|
75 |
|
51 |
|
51 |
|
| GROWTH | ||||||||
| GROWTH | 47 |
|
5 |
|
29 |
|
29 |
|
| SAFETY | ||||||||
| SAFETY | 23 |
|
34 |
|
51 |
|
51 |
|
| COMBINED | ||||||||
| COMBINED | 37 |
|
29 |
|
28 |
|
28 |
|
Value Metrics in Detail
ANALYSIS: With an Obermatt Value Rank of 51 (better than 51% 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 78, which means that the stock price compared with what market professionals expect for future sales is lower than for 78% 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 58% of alternatives. It is also positive for expected dividend yields with a Dividend Yield rank of 38 (dividends are expected to be higher than for 38% 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 56% of all competitors have an even higher price compared with book capital which puts the Price-to-Capital Rank for Balfour Beatty to 44. ...read more
RECOMMENDATION: The overall picture with a consolidated Value Rank of 51, 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 |
|
78 |
|
| PRICE VS. PROFITS (P/E) | ||||||||
| PRICE VS. PROFITS (P/E) | 64 |
|
69 |
|
58 |
|
58 |
|
| PRICE VS. CAPITAL (Market-to-Book) | ||||||||
| PRICE VS. CAPITAL (Market-to-Book) | 67 |
|
62 |
|
44 |
|
44 |
|
| DIVIDEND YIELD | ||||||||
| DIVIDEND YIELD | 39 |
|
56 |
|
38 |
|
38 |
|
| CONSOLIDATED RANK: VALUE | ||||||||
| CONSOLIDATED RANK: VALUE | 53 |
|
75 |
|
51 |
|
51 |
|
Growth Metrics in Detail
ANALYSIS: With an Obermatt Growth Rank of 29 (better than 29% 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 three out of four indicators below average for Balfour Beatty. Sales Growth has a below market rank of 47, which means that, currently, professionals expect the company to grow less than 53% of its competitors. The same is valid for Capital Growth, with a rank of 10, and Profit Growth, with a rank of 43. Currently, professionals expect the company to grow its profits less than 57% of its competitors). Only shareholders are optimistic. Stock Returns are above average at a rank of 71, which means that the stock returns have recently been above 71% of alternative investments. ...read more
RECOMMENDATION: The overall picture with a consolidated Growth Rank of 29, is a hold recommendation for growth and momentum investors. That picture may be the result for a company that has reached the bottom. All went south for Balfour Beatty, and it still looks bad, but some investors already see light at the end of the tunnel, rewarding the stock with recent above-market stock returns. It could also mean that investors are correcting an overreaction to negative news. If that were the case, the positive stock returns are not yet a sign of recovery. Investors should look closely at the Value and Sentiment indicators before they make a stock purchasing decision, because growth is unlikely to be the driving argument behind this investment. 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 low here. ...read more
| GROWTH METRICS | 2022 | 2023 | 2024 | 2025 | ||||
|---|---|---|---|---|---|---|---|---|
| REVENUE GROWTH | ||||||||
| REVENUE GROWTH | 34 |
|
17 |
|
47 |
|
47 |
|
| PROFIT GROWTH | ||||||||
| PROFIT GROWTH | 98 |
|
15 |
|
43 |
|
43 |
|
| CAPITAL GROWTH | ||||||||
| CAPITAL GROWTH | 31 |
|
21 |
|
10 |
|
10 |
|
| STOCK RETURNS | ||||||||
| STOCK RETURNS | 17 |
|
23 |
|
71 |
|
71 |
|
| CONSOLIDATED RANK: GROWTH | ||||||||
| CONSOLIDATED RANK: GROWTH | 47 |
|
5 |
|
29 |
|
29 |
|
Safety Metrics in Detail
ANALYSIS: With an Obermatt Safety Rank of 51 (better than 51% compared with alternatives), the company Balfour Beatty has financing practices on the safer side, which mean that their overall debt burden is lower than average. This doesn't mean that the business of Balfour Beatty is safe, it only means that the company is on the safer side regarding possible bankruptcy, assuming that public reporting is correct. The Safety Rank is based on consolidating three financing indicators, with just one indicator above average for Balfour Beatty and the other two below average. Leverage is at a rank of 55 meaning the company has a below-average debt-to-equity ratio. It has less debt than 55% of its competitors.Refinancing is at a rank of 34, which means that the portion of the debt about to be refinanced is above-average. It has more debt in the refinancing stage than 66% of its competitors. Liquidity is at a rank of 41, meaning that the company generates less profit to service its debt than 59% of its competitors. ...read more
RECOMMENDATION: With a consolidated Safety Rank of 51 (better than 51% compared with alternatives), Balfour Beatty has a financing structure that is safer than that of its competitors. This is an indication that the company is on the riskier side when it comes to debt service. There is only below-market average liquidity, and a short-term refinancing issue might be around the corner. But in the long-term, the debt levels of Balfour Beatty are on the safer side. Investors may have a short-term debt challenge and liquidity issues with Balfour Beatty and should also compare Obermatt’s Value, Growth, and Sentiment Ranks before making a decision. ...read more
| SAFETY METRICS | 2022 | 2023 | 2024 | 2025 | ||||
|---|---|---|---|---|---|---|---|---|
| LEVERAGE | ||||||||
| LEVERAGE | 72 |
|
68 |
|
55 |
|
55 |
|
| REFINANCING | ||||||||
| REFINANCING | 11 |
|
18 |
|
34 |
|
34 |
|
| LIQUIDITY | ||||||||
| LIQUIDITY | 16 |
|
30 |
|
41 |
|
41 |
|
| CONSOLIDATED RANK: SAFETY | ||||||||
| CONSOLIDATED RANK: SAFETY | 23 |
|
34 |
|
51 |
|
51 |
|
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 |
|
Free stock analysis by the purely fact based Obermatt Method for Balfour Beatty from February 20, 2025.
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