BAB.L - Babcock International Group PLC

LSE - LSE Delayed Price. Currency in GBp
489.30
+1.00 (+0.20%)
At close: 4:29PM BST
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Previous Close488.30
Open485.90
Bid489.40 x 0
Ask489.70 x 0
Day's Range483.00 - 492.30
52 Week Range410.10 - 739.20
Volume909,848
Avg. Volume2,730,923
Market Cap2.474B
Beta (3Y Monthly)1.51
PE Ratio (TTM)12.42
EPS (TTM)39.40
Earnings DateNov 19, 2019 - Nov 25, 2019
Forward Dividend & Yield0.30 (6.30%)
Ex-Dividend Date2019-07-04
1y Target Est779.00
  • Is Babcock International Group PLC (LON:BAB) Trading At A 35% Discount?
    Simply Wall St.

    Is Babcock International Group PLC (LON:BAB) Trading At A 35% Discount?

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  • Is Babcock International Group PLC (LON:BAB) Struggling With Its 7.7% Return On Capital Employed?
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    Is Babcock International Group PLC (LON:BAB) Struggling With Its 7.7% Return On Capital Employed?

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  • How Do Analysts See Babcock International Group PLC (LON:BAB) Performing In The Next 12 Months?
    Simply Wall St.

    How Do Analysts See Babcock International Group PLC (LON:BAB) Performing In The Next 12 Months?

    Based on Babcock International Group PLC's (LON:BAB) earnings update in March 2019, analyst consensus outlook appear...

  • Is Babcock International Group PLC's (LON:BAB) CEO Paid At A Competitive Rate?
    Simply Wall St.

    Is Babcock International Group PLC's (LON:BAB) CEO Paid At A Competitive Rate?

    Archie Bethel has been the CEO of Babcock International Group PLC (LON:BAB) since 2016. This analysis aims first to...

  • Does Market Volatility Impact Babcock International Group PLC's (LON:BAB) Share Price?
    Simply Wall St.

    Does Market Volatility Impact Babcock International Group PLC's (LON:BAB) Share Price?

    Anyone researching Babcock International Group PLC (LON:BAB) might want to consider the historical volatility of the...

  • Bloomberg

    Where Financial Carnage Comes as Part of the Contract

    (Bloomberg Opinion) -- Serco Group Plc CEO Rupert Soames frequently boasts that the U.K. contracting firm was an early adopter of financial carnage – to stress that the business is now the better for it.Pulling through a crisis five years ago has given Soames the credibility to embark on M&A, and he has had his eye on defense contractor Babcock International Group Plc.Contrast this with construction group Kier Group Plc, which on Monday reminded investors just what financial carnage looks as it unveiled a plan to shrink and cut debt.Government contracting is a potentially attractive business – but when it goes wrong, it can be a disaster. Memories of Carillion Plc’s bankruptcy may still be fresh in investors’ minds. At least Serco shows that these businesses can, eventually, pull through.With the shares at a two-year high, Serco is in the luxurious position of being able to fund deals by selling stock. It has come a long way since 2014’s emergency rights offering. A takeover of Babcock – which has a market value of about 2.5 billion pounds ($3.2 billion) against Serco’s 1.7 billion pounds – would be ambitious and involve issuing stock to Babcock shareholders.The move looks opportunistic: The target’s shares have halved in the last two years, its management is out of favor, and a recent investor day prompted a lukewarm response.The combination would seem to offer more to Serco than to Babcock – unless there were a significant premium to compensate, and the relative size of the businesses would make such a thing hard to engineer.Serco hasn’t been fully rehabilitated; its dividend remains suspended. Babcock, which does pay a dividend, has niche businesses in aerospace and defense with better-than-average margins. Much as its shareholders may admire Soames, a deal would surely dilute the quality of the Babcock business. It’s not hard to see why the target rejected talks following an approach earlier this year.Kier, 10%-owned by beleaguered investor Neil Woodford, is finally doing the same things as Serco did during its crisis – selling assets, changing management and raising equity – albeit in the wrong order. December's 250 million-pound rescue rights offering has already been exhausted and the company is only now just embarking on a radical self-help program. Its market value today is just 178 million pounds.It’s now clear there is much that Kier could have done by way of restructuring before asking shareholders to stump up last year. New CEO Andrew Davies is jettisoning businesses, such is its residential property construction arm, that drain working capital and have few synergies with the core contracting operation, which is focused on infrastructure and highways. The dividend is going altogether, as are 1,200 jobs, largely from corporate center.Kier points to the absence of near-term debt maturities, which should give it some breathing space. But the company appears to be a forced seller and will need to attract competing bids to inject some tension into the sale process.This is an uncomfortable position to be in given the uncertainty around Brexit. The financial strains are now dictating strategy after an aggressive program of expansion by acquisition left the company short of cash.It is possible Kier will pull through, its share price will pick up and that one day Davies, like Soames, will be able to look back and joke about financial carnage. For investors right now, that moment seems an incredibly long way off. As for Serco, its acquisition currency may not yet be tempting enough, and its target’s woes not painful enough, to make a deal with Babcock a reality.To contact the author of this story: Chris Hughes at chughes89@bloomberg.netTo contact the editor responsible for this story: Edward Evans at eevans3@bloomberg.netThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Chris Hughes is a Bloomberg Opinion columnist covering deals. He previously worked for Reuters Breakingviews, as well as the Financial Times and the Independent newspaper.For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.

  • Is Babcock International Group PLC (LON:BAB) A Financially Sound Company?
    Simply Wall St.

    Is Babcock International Group PLC (LON:BAB) A Financially Sound Company?

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  • Thomson Reuters StreetEvents

    Edited Transcript of BAB.L earnings conference call or presentation 22-May-19 8:00am GMT

    Full Year 2019 Babcock International Group PLC Earnings Presentation

  • Brexit worries hit domestic stocks but sterling slide lifts FTSE 100
    Reuters

    Brexit worries hit domestic stocks but sterling slide lifts FTSE 100

    The main index, whose companies earn more than two-thirds of their profit from abroad, ended 0.1% higher, while the more domestically-focused FTSE 250 slipped 0.7%. A slump in sterling lifted internationally-exposed companies GlaxoSmithKline, Unilever and AstraZeneca, the biggest boosts to the FTSE 100. Stocks most sensitive to the any increased risk of a hard Brexit stumbled after multiple media reported rumours May's ministers could oust her in a row over her latest deal to exit the European Union.

  • Reuters

    Babcock shares slide after warning that profit and revenue to fall

    British engineering services group Babcock said on Wednesday it expected revenue and underlying operating profit to fall in 2019/2020 as it reshapes its business in response to a tough domestic market. Babcock shares tumbled more than 9 percent by 0825 GMT, touching their lowest levels so far this year and taking the decline over the past year to almost 40 percent. Government contractors have been hit by a slowdown in decision-making because of Britain's impending exit from the European Union, which has forced a strategy rethink by Babcock whose structure has become increasingly complex.

  • What does Babcock International Group PLC's (LON:BAB) Balance Sheet Tell Us About Its Future?
    Simply Wall St.

    What does Babcock International Group PLC's (LON:BAB) Balance Sheet Tell Us About Its Future?

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  • Does Babcock International Group PLC's (LON:BAB) P/E Ratio Signal A Buying Opportunity?
    Simply Wall St.

    Does Babcock International Group PLC's (LON:BAB) P/E Ratio Signal A Buying Opportunity?

    Want to participate in a short research study? Help shape the future of investing tools and you could win a $250 gift card! Today, we'll introduce the concept of the P/E ratio for those who are learning about investing...

  • These Fundamentals Make Babcock International Group PLC (LON:BAB) Truly Worth Looking At
    Simply Wall St.

    These Fundamentals Make Babcock International Group PLC (LON:BAB) Truly Worth Looking At

    Building up an investment case requires looking at a stock holistically. Today I've chosen to put the spotlight on Babcock International Group PLC (LON:BAB) due to its excellent fundamentals in more than one area. BAB...

  • Reuters

    Babcock names Rolls-Royce director Ruth Cairnie as first female chair

    Babcock, a key supplier to Britain's ministry of defence, said on Wednesday Cairnie will assume the role on Turner's retirement at the annual general meeting on July 18. Turner's resignation in January came amid a decline in Babcock's share price and company warnings that income from nuclear decommissioning would fall sharply.

  • Why Babcock International Group PLC (LON:BAB) Should Be In Your Portfolio
    Simply Wall St.

    Why Babcock International Group PLC (LON:BAB) Should Be In Your Portfolio

    Want to participate in a research study? Help shape the future of investing tools and earn a $60 gift card! Over the past 10 years Babcock International Group PLC (LON:BAB) has been paying dividends to shareholders...

  • Reuters

    FTSE 100 up as miners, banks rally; easyJet warning tugs airlines

    The FTSE 100 ended 0.5 percent higher after rallying as much as 1 percent with gains capped due to investors shunning defensive stocks, and the midcaps added 0.6 percent. UK markets joined a global rally sparked by data showing Chinese factory activity grew for the first time in four months in March, as well as hopes of a resolution to a prolonged trade dispute between Washington and Beijing. Also driving sentiment was a survey that showed UK manufacturing growth at an unexpected 13-month high last month as the country stockpiles for Brexit.

  • Who Has Been Buying Babcock International Group PLC (LON:BAB) Shares?
    Simply Wall St.

    Who Has Been Buying Babcock International Group PLC (LON:BAB) Shares?

    We often see insiders buying up shares in companies that perform well over the long term. On the other hand, we'd be remiss not to mention that insider sales haveRead More...