Babcock International Group (BAB) Stock Overview
Engages in the design, development, manufacture, and integration of specialist systems for aerospace, defense, and security in the United Kingdom, rest of Europe, Africa, North America, Australasia, and internationally. More details
| Snowflake Score | |
|---|---|
| Valuation | 4/6 |
| Future Growth | 3/6 |
| Past Performance | 4/6 |
| Financial Health | 4/6 |
| Dividends | 0/6 |
Rewards
Risk Analysis
No risks detected for BAB from our risk checks.
BAB Community Fair Values
Create NarrativeSee what 99 others think this stock is worth. Follow their fair value or set your own to get alerts.
Analyst Price Targets
Babcock International Group PLC Competitors
Price History & Performance
| Historical stock prices | |
|---|---|
| Current Share Price | UK£10.64 |
| 52 Week High | UK£15.27 |
| 52 Week Low | UK£9.07 |
| Beta | 0.89 |
| 1 Month Change | -6.01% |
| 3 Month Change | -24.14% |
| 1 Year Change | 17.77% |
| 3 Year Change | 244.84% |
| 5 Year Change | 255.57% |
| Change since IPO | 209.52% |
Recent News & Updates
Narrative Update • May 17
BAB: Future Defense Contract Support And Buybacks Will Drive Earnings Power
Analysts have trimmed their intrinsic value estimate for Babcock International Group slightly, with the fair value moving from £17.00 to £16.75. Street price targets cluster higher, around £14.00 to £15.00, as analysts factor in updated discount rates, revenue growth and profit margin assumptions.
Narrative Update • Apr 30
BAB: Defence Support Contracts And Citi Upgrade Will Drive Medium-Term Upside
Analysts have slightly increased their price target for Babcock International Group to £15.47 from £15.46, reflecting updated expectations for discount rate, revenue growth, profit margin and future P/E assumptions following recent Street research. Analyst Commentary Bullish Takeaways Bullish analysts view the higher price target as better aligned with updated assumptions on discount rate and future P/E, suggesting the valuation framework now more closely matches their current expectations for the business.Narrative Update • Apr 16
BAB: Defense Contract Extensions And Leadership Transition Will Support Future Earnings Power
Analysts have lifted their blended 12 month price target for Babcock International Group by £205, reflecting updated views on revenue growth, margins and valuation that have also led to recent upgrades and target increases from several banks, partly offset by a downgrade from one broker. Analyst Commentary Recent research points to a generally supportive stance from bullish analysts, with several highlighting valuation, execution and growth prospects as key areas of focus.Recent updates
Narrative Update • May 17
BAB: Future Defense Contract Support And Buybacks Will Drive Earnings Power
Analysts have trimmed their intrinsic value estimate for Babcock International Group slightly, with the fair value moving from £17.00 to £16.75. Street price targets cluster higher, around £14.00 to £15.00, as analysts factor in updated discount rates, revenue growth and profit margin assumptions.Narrative Update • Apr 30
BAB: Defence Support Contracts And Citi Upgrade Will Drive Medium-Term Upside
Analysts have slightly increased their price target for Babcock International Group to £15.47 from £15.46, reflecting updated expectations for discount rate, revenue growth, profit margin and future P/E assumptions following recent Street research. Analyst Commentary Bullish Takeaways Bullish analysts view the higher price target as better aligned with updated assumptions on discount rate and future P/E, suggesting the valuation framework now more closely matches their current expectations for the business.Narrative Update • Apr 16
BAB: Defense Contract Extensions And Leadership Transition Will Support Future Earnings Power
Analysts have lifted their blended 12 month price target for Babcock International Group by £205, reflecting updated views on revenue growth, margins and valuation that have also led to recent upgrades and target increases from several banks, partly offset by a downgrade from one broker. Analyst Commentary Recent research points to a generally supportive stance from bullish analysts, with several highlighting valuation, execution and growth prospects as key areas of focus.Analysis Article • Apr 03
Why Babcock International Group PLC (LON:BAB) Could Be Worth Watching
While Babcock International Group PLC ( LON:BAB ) might not have the largest market cap around , it saw a decent share...
Narrative Update • Apr 01
BAB: Mixed Ratings And Leadership Change Will Test Execution And Cash Delivery
Analysts have lifted their average price target on Babcock International Group by around £2.05 per share, citing refreshed views on revenue growth, margin trajectory and valuation, supported by recent target increases from several major banks alongside at least one more cautious reassessment. Analyst Commentary Recent research updates on Babcock International Group point to a mix of optimism and caution, with several large banks adjusting their price targets and one bearish reassessment cutting against the more upbeat calls.Narrative Update • Mar 18
BAB: Long-Term Defence Contracts And Leadership Transition Will Support Medium-Term Upside
Analysts have trimmed their blended price target for Babcock International Group to £15.46 per share, reflecting small tweaks to discount rate, long term growth and P/E assumptions after a mix of recent target increases from several banks and downgrades from others. Analyst Commentary Recent research shows a split view on Babcock International Group, with some large banks adjusting price targets upward and others turning more cautious on the shares.Narrative Update • Mar 04
BAB: Long-Term Defence Contracts And New Partnerships Will Support Medium-Term Upside
Analysts have lifted their price target on Babcock International Group to about £15.46 from £13.08, reflecting updated assumptions around revenue growth, profit margins and future P/E expectations, despite a mix of recent rating changes across the Street. Analyst Commentary Bullish Takeaways Bullish analysts lifting price targets, including moves to levels such as £16.70, see scope for the shares to better reflect their updated assumptions on earnings and P/E.Narrative Update • Feb 18
BAB: Higher P/E And Mixed Ratings Will Test Execution And Cash Delivery
Narrative Update: Babcock International Group Analyst Target Shift The analyst fair value estimate for Babcock International Group has moved from £11.15 to £12.80. This reflects updated assumptions on revenue growth, profit margins and future P/E multiples, in line with recent target changes from several banks that have raised their price objectives, while others have turned more cautious on the shares.Narrative Update • Feb 04
BAB: Defense Contract Pipeline Will Support Higher Future Earnings Power
The analyst fair value estimate for Babcock International Group has been raised from £16.00 to £17.00, reflecting a series of higher price targets from banks along with updated assumptions on discount rate, revenue growth, profit margin and future P/E. Analyst Commentary Recent Street research on Babcock International Group shows a mix of views, with several bullish analysts lifting price targets and one broker turning more cautious.Analysis Article • Jan 24
Do Babcock International Group's (LON:BAB) Earnings Warrant Your Attention?
The excitement of investing in a company that can reverse its fortunes is a big draw for some speculators, so even...Narrative Update • Jan 21
BAB: Higher P/E Expectations Will Likely Magnify Contract Execution Risks
Narrative Update: Babcock International Group Analysts have lifted their aggregate price target range for Babcock International Group to between £15.00 and £16.70, up from roughly £14.40 to £14.50, citing refined expectations for revenue, profit margins and the future P/E multiple. Analyst Commentary Recent research updates on Babcock International Group highlight a higher range of price targets, with one move to £15.00 and another to £16.70.Analysis Article • Jan 08
Calculating The Intrinsic Value Of Babcock International Group PLC (LON:BAB)
Key Insights Using the 2 Stage Free Cash Flow to Equity, Babcock International Group fair value estimate is UK£13.56...Narrative Update • Jan 06
BAB: Street Upgrade And Defense Contracts Will Support Higher Future Earnings Power
Analysts have lifted their price target on Babcock International Group to £16.00 from £14.50, supported by updated assumptions on discount rate, revenue growth, profit margins and a higher future P/E, along with a recent Street target move to 1,500 GBp from 1,450 GBp. Analyst Commentary Recent Street research on Babcock International Group points to a more constructive tone on the shares, with bullish analysts refining their models and publicly lifting price targets. The move to a £16.00 internal target and the Street target adjustment to 1,500 GBp from 1,450 GBp signal increased confidence in the company’s ability to support higher valuation assumptions tied to its updated discount rate, revenue outlook, profit margins and future P/E.Narrative Update • Dec 19
BAB: Elevated Earnings Multiple Will Likely Expose Execution Risks Ahead
The analyst price target for Babcock International Group has been raised by GBP 50 to GBP 1,500, as analysts factor in a higher fair value and stronger long term earnings multiples, despite only modest tweaks to growth and margin assumptions. Analyst Commentary While the uplift in the price target to GBP 1,500 underlines growing confidence in Babcock International Group's medium term trajectory, research commentary continues to highlight several areas of caution.Analysis Article • Dec 09
Should You Investigate Babcock International Group PLC (LON:BAB) At UK£11.76?
While Babcock International Group PLC ( LON:BAB ) might not have the largest market cap around , it saw a double-digit...Narrative Update • Dec 05
BAB: Medium-Term Prospects Will Improve As Long-Term Defence Contracts Mature
The analyst price target for Babcock International Group has been raised from £14.50 to £15.00, as analysts cite sustained revenue growth expectations and slightly higher valuation multiples despite a modestly lower projected profit margin. Analyst Commentary Bullish analysts highlight that the successive price target increases reflect rising confidence in Babcock International Group's ability to deliver on its medium term growth plan, even as margin expectations normalize.Analysis Article • Nov 24
Is Babcock International Group (LON:BAB) A Risky Investment?
David Iben put it well when he said, 'Volatility is not a risk we care about. What we care about is avoiding the...Narrative Update • Nov 21
BAB: Medium-Term Prospects Will Strengthen With Recent Sector Partnerships
Analysts have increased their price target for Babcock International Group to approximately £12.74 per share, up from £12.50. They cite modest improvements in revenue growth and profit margins as key drivers of the slight upward revision.Analysis Article • Oct 17
Do Babcock International Group's (LON:BAB) Earnings Warrant Your Attention?
Investors are often guided by the idea of discovering 'the next big thing', even if that means buying 'story stocks...Analysis Article • Sep 29
Babcock International Group PLC (LON:BAB) Stock Rockets 25% As Investors Are Less Pessimistic Than Expected
Babcock International Group PLC ( LON:BAB ) shares have had a really impressive month, gaining 25% after a shaky period...Narrative Update • Sep 23
Skynet Success And Global Partnerships Ignite Growth In Aerospace And Defense
Babcock International’s consensus price target has been raised to £12.50, as analysts cite upgrades to guidance, strong results, improved contract execution, and increased confidence in management and margins, despite some caution over the rapid share rally. Analyst Commentary Upgrades to guidance and strong financial results have driven bullish analysts to raise price targets.Analysis Article • Sep 18
Increases to CEO Compensation Might Be Put On Hold For Now at Babcock International Group PLC (LON:BAB)
Key Insights Babcock International Group will host its Annual General Meeting on 25th of September Total pay for CEO...Narrative Update • Sep 02
Skynet Success And Global Partnerships Ignite Growth In Aerospace And Defense
Upward revisions in Babcock International Group’s price target reflect strong results, upgraded guidance, and improved operational confidence, with the consensus fair value rising from £11.58 to £11.87. Analyst Commentary Bullish analysts cited strong company results and upgraded future guidance as a key driver for raising price targets.Analysis Article • Aug 26
Calculating The Fair Value Of Babcock International Group PLC (LON:BAB)
Key Insights The projected fair value for Babcock International Group is UK£11.89 based on 2 Stage Free Cash Flow to...Analysis Article • Aug 10
Investor Optimism Abounds Babcock International Group PLC (LON:BAB) But Growth Is Lacking
LSE:BAB 1 Year Share Price vs Fair Value Explore Babcock International Group's Fair Values from the Community and...Analysis Article • Jul 26
Is There Now An Opportunity In Babcock International Group PLC (LON:BAB)?
Babcock International Group PLC ( LON:BAB ), is not the largest company out there, but it saw a significant share price...Analysis Article • Jun 26
Babcock International Group (LON:BAB) Seems To Use Debt Rather Sparingly
Some say volatility, rather than debt, is the best way to think about risk as an investor, but Warren Buffett famously...Analysis Article • Jun 02
Here's Why Babcock International Group (LON:BAB) Has Caught The Eye Of Investors
For beginners, it can seem like a good idea (and an exciting prospect) to buy a company that tells a good story to...
New Narrative • Dec 26
Skynet Success And Global Partnerships Ignite Growth In Aerospace And Defense
Strong operational performance and successful contract deliveries are expected to positively impact revenue growth and improve margins across sectors.Shareholder Returns
| BAB | GB Aerospace & Defense | GB Market | |
|---|---|---|---|
| 7D | 11.1% | 8.9% | 2.5% |
| 1Y | 17.8% | 29.6% | 19.4% |
Return vs Industry: BAB underperformed the UK Aerospace & Defense industry which returned 29.6% over the past year.
Return vs Market: BAB underperformed the UK Market which returned 19.4% over the past year.
Price Volatility
| BAB volatility | |
|---|---|
| BAB Average Weekly Movement | 5.6% |
| Aerospace & Defense Industry Average Movement | 6.5% |
| Market Average Movement | 5.7% |
| 10% most volatile stocks in GB Market | 12.0% |
| 10% least volatile stocks in GB Market | 3.0% |
Stable Share Price: BAB has not had significant price volatility in the past 3 months compared to the UK market.
Volatility Over Time: BAB's weekly volatility (6%) has been stable over the past year.
About the Company
| Founded | Employees | CEO | Website |
|---|---|---|---|
| 1891 | 27,000 | David Lockwood | www.babcockinternational.com |
Babcock International Group PLC, together with its subsidiaries, engages in the design, development, manufacture, and integration of specialist systems for aerospace, defense, and security in the United Kingdom, rest of Europe, Africa, North America, Australasia, and internationally. It operates through four segments: Marine, Nuclear, Land, and Aviation. The company offers type 31 frigates, project lurcher, jackal contract, ground deployed advanced mortar system, general logistics vehicle, Babcock's LGE, and armored land cruiser 300.
Babcock International Group PLC Fundamentals Summary
| BAB fundamental statistics | |
|---|---|
| Market cap | UK£5.20b |
| Earnings (TTM) | UK£287.10m |
| Revenue (TTM) | UK£4.96b |
18.1x
P/E Ratio1.0x
P/S RatioIs BAB overvalued?
See Fair Value and valuation analysisEarnings & Revenue
| BAB income statement (TTM) | |
|---|---|
| Revenue | UK£4.96b |
| Cost of Revenue | UK£4.53b |
| Gross Profit | UK£426.10m |
| Other Expenses | UK£139.00m |
| Earnings | UK£287.10m |
Last Reported Earnings
Sep 30, 2025
Next Earnings Date
n/a
| Earnings per share (EPS) | 0.59 |
| Gross Margin | 8.59% |
| Net Profit Margin | 5.79% |
| Debt/Equity Ratio | 104.4% |
How did BAB perform over the long term?
See historical performance and comparisonDividends
0.7%
Current Dividend Yield12%
Payout RatioCompany Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2026/05/24 02:38 |
| End of Day Share Price | 2026/05/22 00:00 |
| Earnings | 2025/09/30 |
| Annual Earnings | 2025/03/31 |
Data Sources
The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.
| Package | Data | Timeframe | Example US Source * |
|---|---|---|---|
| Company Financials | 10 years |
| |
| Analyst Consensus Estimates | +3 years |
|
|
| Market Prices | 30 years |
| |
| Ownership | 10 years |
| |
| Management | 10 years |
| |
| Key Developments | 10 years |
|
* Example for US securities, for non-US equivalent regulatory forms and sources are used.
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more.
Analysis Model and Snowflake
Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.
Learn about the world class team who designed and built the Simply Wall St analysis model.
Industry and Sector Metrics
Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on Github.
Analyst Sources
Babcock International Group PLC is covered by 25 analysts. 9 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.
| Analyst | Institution |
|---|---|
| George Mcwhirter | Berenberg |
| Allen Wells | BNP Paribas |
| Carlos Iranzo Peris | BofA Global Research |