Balfour Beatty BBY.L
United KingdomIndustrials · Engineering & ConstructionLondon Stock Exchange · GBP
10.06 GBP (+15.1%)
10 analysts
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Balfour Beatty is a British infrastructure company that designs, builds, and maintains buildings, roads, railways, and other public and private assets, operating mainly in the UK, the US, and Hong Kong.
Listed on London Stock Exchange · Symbol BBY.L · LON: BBY · Currency GBP
Key points
from its scores- ✓Favourable backdrop8.1
- ✓Good share-price trend8.0
- !Average business quality5.3
- !Moderate growth5.8
- !Modest dividend5.8
AI analysis
bottom line, main risk, context and newsThe company has a healthy balance sheet and good cash generation, but its low margin and flat earnings growth limit the potential for re-rating in the short term.
Balfour Beatty has a solid financial position with net cash (Net Debt/EBITDA of -5.35) and a high ROE of 23.52%, although its operating margin is very low (1.71%). Valuation is reasonable (P/E 16.82) and momentum is strong (31.30%), but earnings growth is flat (1.00%).
The main risk is its low operating margin (1.71%), which makes it vulnerable to cost inflation and competition in the construction sector, where contracts tend to be low-margin and subject to cost overruns.
Context and risks
Balfour Beatty operates in the UK, a country with moderate governance risk. Its construction and infrastructure business depends on public investment and government contracts, exposing it to changes in fiscal policy and project reviews, a risk not captured by financial metrics.
Is Balfour Beatty stock cheap or expensive?
at the analysis dateOn P/E and EV / EBITDA, it trades in line with the Industrials median (within 15%).
| Multiple | Company | Sector | Difference |
|---|---|---|---|
| P/E | 16.8 | 25.4 | −34% |
| EV / EBITDA | 17.1 | 14.5 | +18% |
| Price / book | 3.8 | 4.1 | −7% |
| Price / sales | 0.4 | 2.1 | −80% |
Sector: median of the 388 Industrials companies analysed. In bold, the multiples used for the comparison.
Valuation score: 6.7 out of 10 (median for Industrials: 5.0).
Average analyst target: 10.06 GBP, +15.1% versus the price.
Classic formulas with standard assumptions (10.0% growth, 8-9% discount rate). Indicative only: they change a lot with the assumptions and are not a recommendation.
Work out its fair value yourself →How much would you have made investing every month? →
Comparing it with its sector does not say whether it is a good buy: this is not investment advice.
Score by category
0 to 10 · hover overtap each one to see what it measuresKey metrics
at the analysis date · compared with the Industrials medianValuation
- P/E
- 16.8
- Forward P/E
- 14.8
- EV / EBITDA
- 17.1
- Price / book
- 3.8
- Price / sales
- 0.4
- PEG
- 14.83
- Market cap
- 4.1B GBP
- Enterprise value
- 3.2B GBP
Profitability
- ROE
- 23.5%
- ROA
- 1.5%
- ROIC (approx.)
- 7.9%
- Gross margin
- 4.7%
- Operating margin
- 1.7%
- Net margin
- 2.6%
- Free cash flow
- 350.0M GBP
- FCF yield
- 8.5%
- Cash conversion
- 185%
Solvency
- Total debt
- 1.1B GBP
- Net debt
- −1.0B GBP
- Cash
- 2.1B GBP
- EBITDA
- 189.0M GBP
- Net debt / EBITDA
- −5.35
- Debt / equity
- 94.77
- Current ratio
- 0.98
- Quick ratio
- 0.89
Growth
- Revenue growth
- +10.1%
- Earnings growth
- +1.0%
- EPS (TTM)
- 0.52 GBP
- EPS (forward)
- 0.59 GBP
Dividend
- Dividend yield
- 1.6%
- Payout
- 26.8%
Risk and market
- Beta
- 0.56
- Analyst consensus
- Buy (10)
- Target price
- 10.06 GBP
Recent news
All BBY.L news →Compare it with its sector
All 388 in Industrials →Frequently asked questions about Balfour Beatty
Is Balfour Beatty stock cheap or expensive?
On P/E and EV / EBITDA, it trades in line with the Industrials median (within 15%). Valuation score: 6.7 out of 10 (median for Industrials: 5.0). Average analyst target: 10.06 GBP, +15.1% versus the price. This is not investment advice.
What score does Balfour Beatty get on MeridIAn Screener?
It scores 6.4 out of 10, rank 609 of 2,130 (better than 68% of the companies analysed). Its strongest category is Risk & Context (8.1) and its weakest, Quality / Moat (5.3). Analysis of 08/10/2026.
What is Balfour Beatty's P/E ratio?
Its P/E is 16.8: the share price equals 16.8 times earnings per share over the last 12 months. The Industrials median is 25.4. Based on the earnings analysts expect, the forward P/E is 14.8.
How much is Balfour Beatty worth on the stock market?
Its market capitalisation is 4.1B GBP and its enterprise value, debt included, is 3.2B GBP.
How much debt does Balfour Beatty have?
It has more cash than debt: net cash of 1.0B GBP.
Does Balfour Beatty pay a dividend?
Yes: its dividend yield is 1.60% and it pays out 27% of its earnings.
How has Balfour Beatty stock performed over the last year?
It has risen 33.4% over the last year, excluding dividends. Over the last 52 weeks it has traded between 0.00 and 9.73 GBP. Past performance does not guarantee future results.
What do analysts think of Balfour Beatty?
10 analysts cover it; their average recommendation is “Buy” and their average target is 10.06 GBP (+15.1% versus the price). It is an estimate, not market data.