Balfour Beatty plc (BBY.L) stock analysis

In our weekly check, Balfour Beatty plc is graded B (A to F). Of 25 checks on debt, profit, cash flow and trend: 18 pass, warnings: 4, red flags: 3.

About Balfour Beatty plc

Balfour Beatty plc is an Industrials company (Engineering & Construction) based in the United Kingdom, listed on LSE as BBY.L.

What our checks show for BBY.L

Red flags

• The net margin is only 2.8%: little room if costs rise.
• The stock has fallen as much as 67% from a peak. Would you have held through that?
• Recovering from its deepest fall took about 9.8 years.

Warning signs

• Analysts expect only about 4.3% a year of growth in revenue.
• Analysts expect the net margin to shrink by 0.1 points from today's 2.8%.
• Net profit fell 3% a year over the last 3 years.
• Return on capital (ROCE) is only 7%.

Strengths

• Debt is low: 0.95x equity.
• The net margin rose by 0.8 points over 5 years, to 2.8%.
• Operating cash flow is 2.63x net profit: the profit arrives as real cash.
• The dividend takes 18% of profit: there is a cushion.
• Beta 0.59: the stock usually moves less than the market.
• The share count fell by 11.8% in 2 years: the company buys back its own shares.

Similar companies

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Questions

What grade does Balfour Beatty plc (BBY.L) have?

In our weekly check, Balfour Beatty plc is graded B (A to F). Of 25 checks on debt, profit, cash flow and trend: 18 pass, warnings: 4, red flags: 3. The grade is a risk check, not a buy or sell recommendation.

What are the main risks of BBY.L stock?

This week's biggest flags for Balfour Beatty plc: Thin margins, Deep past fall, Slow recovery after falls. In total 7 of 25 checks show a warning or a red flag.

What does Balfour Beatty plc do?

Balfour Beatty plc is an Industrials company (Engineering & Construction) based in the United Kingdom, listed on LSE as BBY.L.

The grade is a risk check, not a price forecast, and not investment advice. In our 10-year test (S&P 500, 2016-2026), stocks we graded A or B fell more than 30% 2-3 times less often than D or F, without a lower average return.

Updated 2026-10-31

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