Babcock International Group PLC BAB.L
Composite 50/100; the shares have moved about 38% annualised. Names that move more contribute more risk for the same amount invested, and our composite reflects how strong the evidence for this one is right now.
Momentum ranks 27/100 — a moderate mark against it.
Quality ranks 68/100 — a moderate point in its favour. Balance-sheet strength ranks 54/100 — a slight point in its favour.
Momentum ranks 27/100 — a moderate mark against it. Income ranks 41/100 — a slight mark against it. Valuation ranks 46/100 — a slight mark against it.
What the company does Babcock International Group PLC designs, develops, and integrates specialist systems for aerospace, defense, and security across global markets. Its four segments—Marine, Nuclear, Land, and Aviation—deliver complex engineering solutions, including frigates, autonomous systems, and vehicle architectures.
Key financials ROE 33.7%, ROCE 43.8%, and net margins of 4.1% reflect strong capital efficiency but thin profitability. Revenue grew 8.9% while EPS fell -63.9%, signaling margin pressure. Debt/Equity stands at 1.75x with interest coverage of 6.02x, and FCF yield is 3.4%.
Stock health Sideravia scores highlight strong quality (68.6) but weak momentum (33.3) and income (48.6). Piotroski F-Score is 7/9 and Altman Z is 3.53, indicating moderate financial health. Current ratio is 0.80, below ideal liquidity levels.
Price vs fair value The stock trades at a PREMIUM of 33.40% to our fair-value estimate of 759.44 and a discount of 26.22% to the 12-month target of 1438.89. - Premium reflects high P/E (27.43) and P/B (8.98) vs fwd P/E (17.57) (Valuation 47.8). - Weak momentum (33.3) and EPS decline (-63.9%) offset quality strengths (Quality 68.6). - Forward PEG of 0.31 suggests undervaluation on growth, but RSI(14) at 64.30 signals overbought conditions.
Looking forward Forward P/E of 17.57 implies earnings recovery expectations, but execution risks remain given thin margins. Analysts (n=9) see 26.22% upside to 1438.89, balancing premium valuation with growth potential.
This is not investment advice. Sideravia provides automated, data-driven analysis for information and education only. Nothing on this page is a personal recommendation or an invitation to buy or sell any security, and it does not consider your objectives or financial situation. Assessments are generated by rules applied uniformly to every covered stock — how our scores work.
Data as of 2026-09-03, compiled from third-party sources; errors and delays are possible and figures are not warranted. Investing puts your capital at risk; past performance does not predict future results. We publish our full track record, including the calls that lost, and our conflicts of interest.