Obermatt

Babcock

LSE:BAB · GB0009697037
Aerospace & DefenseLarge

360

91
EV / EBIT93
Price / Owner Earnings67
Owner Earnings Yield90
Dividend Yield37
Price/Sales81
EV / Gross Profit66
Price/Book19
Return on Capital99
Cash Return on Capital92
Return on Equity98
EBIT Margin40
Gross Profitability31
Cash Conversion33
Accruals50
Owner Earnings Margin50
Sales growth40
Profit Growth58
Long-Term EPS Growth50
Owner Earnings Growth47
Reinvestment16
Price momentum40
Debt load21
Refinancing11
Debt Payback74
Liquidity56
Analyst ratings77
Opinion Changes81
Price Target Upside85
Market mood83
Value Creation18/20strong value creator
  • Creates more value than its capital costs
  • Owner earnings growing
  • Owner earnings per share growing
  • Reinvests at strong returns
  • Solid earnings base

What this means

Babcock generates returns well above its cost of capital, the foundation of durable shareholder value.

Profile

CountryUK
IndustryAerospace & Defense
SizeLarge
TypePublic Company
ExchangeLSE
Founded1989
Employees12,048
ISINGB0009697037
Last UpdateApr 2, 2026
Themes
Advanced NuclearIndustrial AutomationMarine TransportationSimulationDefenseTechSpaceTechDetectors, Sensors and Mems

Description

Babcock International Group PLC engages in the design, development, manufacture, and integration of specialist systems for aerospace, defence, and security. The company employs engineering and technological expertise to tackle challenges facing clien…

Analysis

Bargain bin

Babcock International Group PLC falls in the bargain bin: the price is low relative to peers, but the business metrics give reason to pause. One caution: reported profits have recently run ahead of actual cash, which we track closely.

The price is fair. You pay 20.9× its owner earnings: the cash an owner could take out each year, which is in the historically fair zone. At today's price, the market is assuming roughly 7% yearly growth; analysts expect 13%. The price, in other words, assumes less than the experts do.

The trajectory is tepid and the balance sheet is sturdy. The company scores 18/20 on our value-creation score: strong value creator. Analysts lean positive.

What to watch: The financial cushion is thinner than comfortable. Reported profits have run ahead of actual cash for several periods. As always: this describes the company's numbers; it is not a recommendation.

360° rank · history

1007550250
24
2023202420252026

All-time high

56

Feb 2026

All-time low

3

Feb 2023

Average rank

25

across all years

Detailed & Historical Ranks

Deep dive into 15 detailed ranks and 3 years of history.

Current202520242023
Price/Sales
81
58
72
83
Price/Earnings
49
57
3
84
Price/Book
19
18
10
20
Dividend Yield
37
16
33
88
Value (overall)
52
36
13
93

Cells are coloured by rank band (red weak → green strong). Sentiment & 360° history begins 2023.

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Make Sense of the Ranks

Every rank runs 1–100 against true peers. Higher is always better.

360° View
1 · Watch OutGood· 100
Value
1 · ExpensiveGood Value· 100
Quality
1 · Weak FundamentalsHigh Quality· 100
Growth
1 · Tough TimesHigh Growth· 100
Safety
1 · High LeverageWell-Financed· 100
Sentiment
1 · SkepticismPositive· 100
Learn More →