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Babcock International Group

BCKIY
37
Engineering & Construction · Industrials
Price
$14.96
-0.14 (-0.93%)
Market Cap
$7.36B
Exchange
Other OTC
Winston Score
37
Winston is serious
Below-average fundamentals — multiple weak pillars.
Data as of Jul 27, 2026 · filings through Mar 31, 2026

Babcock International Group PLC, along with its various operating units, stands as a global provider of specialized services to the aerospace, defense, and security industries. Its operations span a wide geographical area, including the United Kingdom, continental Europe, Africa, North America, and Australasia. The organization is structured into four main divisions: Marine, Nuclear, Land, and Aviation. Babcock's extensive service portfolio encompasses the design, procurement, operation, and management of crucial utility and process equipment. The company also delivers comprehensive asset management, specialized defense and maritime training, intelligence solutions, and facilities and infrastructure services. Furthermore, it excels in designing, manufacturing, and offering through-life support for a wide array of mechanical and electrical systems and equipment, including naval platforms. Additional offerings include naval architecture, detailed engineering, and project management. Within its marine capabilities, Babcock provides intricate submarine services, complex engineering solutions for various decommissioning projects, new build program management, and specialized training and operational support. For both military and civilian clients, Babcock manages critical vehicle fleets and supplies equipment support and training. It also handles the complete lifecycle – from design and assessment to manufacturing, installation, maintenance, and decommissioning – for a variety of specialized vehicles used by police, fire, ambulance, civil service, military, and other security-focused entities. The group is also a key player in rail infrastructure, performing plain line track renewal and providing engineering expertise for track projects, signaling systems, telecommunications, and on-track plant operations. Furthermore, Babcock delivers critical engineering services to both defense and civil sectors, encompassing pilot training, equipment maintenance, and comprehensive airbase management. It also operates essential aviation fleets dedicated to delivering emergency services. Established in 1891, Babcock International Group PLC maintains its headquarters in London, UK.

Winston Score History

Growth Profile

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

+10.6% YoY

YoY Growth Rate

Steady revenue growth

EPS Growth

-63.7% YoY

YoY Growth Rate

Earnings declining

R&D Spend

$0/ year

0.0% of revenue

Below sector average (4%)

Research and development spending

Cash Position

Cash flow positive

$833M cash & investments

Quarterly Free Cash Flow

→ Burn rate stable

Company generates more cash than it spends — no dilution risk from fundraising

Growth + cash flow

Babcock International Group is a rare growth stock that's already generating positive cash flow while growing at 11%. The Winston Score doesn't fully credit this transition from "burner" to "earner."

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Share count broadly stable

0.0% over 4y

The share count has stayed roughly flat over this period — little dilution or buyback activity.

Diluted shares outstanding: 511.2M (2022) → 511.1M (2026)

Score breakdown

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Quality

Gross Margin
2.7%
Thin — 2.7% gross margin
Operating Margin
2.7%
Thin — 2.7% operating margin
ROCE
4.9%
Weak — 4.9% return on capital

ROIC between 0% and 5%. They earn a few cents back per dollar invested in the business.

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Growth

Sales YoY
+7.9%
Steady sales growth (7.9% YoY)
EPS YoY
-15.6%
Earnings shrinking (-15.6% YoY)

Earnings per share down more than 10%. Either a bad year, or a real decline.

EPS Consistency
4/8 quarters
Earnings inconsistent quarter-to-quarter

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Cash Flow

Cash Conversion
197%
Turns 197% of profit into real cash
FCF Margin
5.1%
Thin free cash flow (5.1%)

FCF margin between 0% and 10%. Some cash from sales, but not a lot.

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Stability

Debt / Equity
1.37
Elevated debt (1.37)
Interest Cover
5.19x
Adequate interest coverage (5.2x)

Interest coverage between 3 and 8. Profits cover interest several times over.

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Valuation

P/E Ratio (TTM)
36.2x
Pricey — P/E 36.2

P/E over 35. The market is pricing in heavy, sustained growth.

P/E vs Forward
+13.3
GROWING
Earnings expected to grow meaningfully — cheaper on forward P/E (36.2 → 22.8)

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Dividends

Dividend Yield
0.62%
Small dividend — 0.62% yield

Modest yield. The bulk of any return needs to come from price appreciation.

Dividend Growth
-57.6%
Dividend cut (-57.6% YoY) — warning sign

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