# Balfour Beatty plc (BBY.L) fundamentals

Data as of 2026-09-08. LSE, United Kingdom. Sector: Industrials / Construction & Engineering. Price 871p, market value 4.1 billionp.

## Valuation
- **P/E (trailing): 16.7×** (5-yr avg 1125.8×, 3-yr avg 1216.7×). Balfour Beatty plc trades at 16.7× trailing earnings, well below its own five-year average of 1125.8×: cheap by its own standards. The Industrials median in the September 2026 study was 25.7×. Forward P/E is 14.8×, lower than trailing, so analysts expect earnings to grow.
- **PEG: 0.28**. A PEG of 0.28 means the P/E is low relative to expected earnings growth: the market is not paying much for that growth.
- **Price / sales: 0.2×**. Each dollar of revenue is priced at 0.2×, a low multiple typical of thin-margin businesses or out-of-favour stocks.
- **Price / book: 3.8×**. The shares trade at 3.8× book value; book value is a meaningful part of the valuation.
- **EV / EBITDA: 6.4×**. Enterprise value is 6.4× operating earnings before depreciation, the multiple that ignores how the company is financed; below 8× is inexpensive for most sectors.
- **Free-cash-flow yield: 20.6%** (5-yr avg 0.1%). Free cash flow equals 20.6% of the market value, above its five-year average of 0.1%, so the shares are cheaper on cash than they have usually been. Above 5% is generally attractive.
- **Earnings yield: 6.0%**. The inverse of the P/E: 6.0% of the price is earned each year.

## Profitability
- **Gross margin: 4.9%**. Balfour Beatty plc keeps 4.9% of revenue after the direct cost of what it sells, a thin margin typical of retail, distribution and commodity businesses.
- **Operating margin: 2.2%**. 2.2% of revenue is left after running the business, which leaves little cushion in a downturn.
- **Net margin: 2.8%**. 2.8% of each dollar of sales reaches the bottom line.
- **Return on equity: 23.0%**. 23.0% on shareholders' equity is excellent if it is not driven by leverage; sustained above 20% usually signals a competitive advantage.
- **Return on invested capital: 105.4%**. Return on all capital, debt included, is 105.4%: comfortably above what that capital costs.
- **Return on assets: 7.2%**. Each dollar of assets produces 7.2% of profit.

## Growth
- **Revenue growth (1 yr): 15.2%** (3-yr 7.5%/yr, 5-yr 5.3%/yr). Revenue grew 15.2% over the last year, against 5.3% a year compounded over five years: growth is accelerating.
- **EPS growth (1 yr): 52.9%** (3-yr 4.2%/yr, 5-yr 64.2%/yr). Earnings per share rose 52.9%, faster than revenue, so margins expanded or the share count shrank.
- **Free-cash-flow growth (3 yr): 67.4%/yr**. Free cash flow has compounded at 67.4% a year over three years, keeping pace with earnings: the growth is real cash.

## Financial health
- **Debt to equity: 0.90**. Debt is 0.90 times equity, moderate leverage.
- **Net debt / EBITDA: net cash**. Balfour Beatty plc holds more cash than debt.
- **Interest coverage: 5.5×**. Operating profit covers interest 5.5× over, a safe margin.
- **Current ratio: 1.02** (quick 0.97). Current assets cover the next year's liabilities 1.02 times.
- **Altman Z-score: 2.43**. A Z-score of 2.43 is in the grey zone; not distressed, not clearly safe.
- **Piotroski F-score: 7/9**. 7 of 9 fundamental checks pass: strong and improving financials.

## Dividends
- **Dividend yield: 1.66%** (0p per share, trailing). Balfour Beatty plc yields 1.66%, a modest yield more typical of a growth-oriented payer.
- **Payout ratio: 24%** (15% of free cash flow). 24% of earnings goes out as dividends, leaving room to keep raising it.
- **Consecutive years of increases: 5**. 5 straight years of increases.
- **Shareholder yield: 8.3%**. Dividends plus net buybacks return 8.3% of the market value a year.

## Price and momentum
- **Total return (1 yr): 46.0%** (YTD 24.1%, 3-mo 7.6%). The shares are up 46.0% over twelve months including dividends.
- **From 52-week high: -10.5%** (42.2% above the low). Trading 11% below its 52-week high.
- **200-day average: above**. The price sits above its 200-day moving average, the usual definition of an uptrend.
- **RSI (14-day): 52**. An RSI of 52 is neutral.
- **Beta (1 yr): 0.90** (volatility 24%). Beta of 0.90 against the FTSE All-Share: the shares move roughly with the market.

Live score and charts: https://foliofundamentals.com/analyzer?s=BBY.L · Page: https://foliofundamentals.com/stocks/bby.l

Not investment advice.