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Babcock International Group PLC (BW3) Stock Verdict & Ratings | Investment Bastion

Stock Verdict·Updated today

Babcock International Group PLC

BW3Market cap $5.87BPrice $11.7

Country🇬🇧United Kingdom

SectorIndustrials

IndustryAerospace & Defense

Maintains and engineers critical defense equipment — from nuclear submarines to fighter jets — keeping Britain's military assets running for decades. It's the invisible backbone behind the UK's nuclear deterrent, servicing subs most contractors never even see inside.

In Bastion Portfolios?

52W Return-23%Global Market +16%?

01Key Ratings

How does this stock score across Bastion factors?

Growth

Historical Revenue

Rev CAGR (3y)+8%6

Revenue Forecast

Rev CAGR (1y)+6%4

Rev CAGR (3y)+5%4

Rev CAGR (5y)+2%2

Earnings Forecast

EPS Growth Y+1+55%9

EPS Growth Y+2+10%7

EPS Growth Y+3+9%6

Quality

Margins

EBIT Margin5%3

Net Income Margin4%3

Free Cash Flow Margin5%4

Debt

Net Debt/EBITDA0.96

Efficiency

ROE35%9

ROA6%6

Earnings Stability55

GEAR+WEAK28

Overall rating across all five factors

Value

Price Multiples

P/E Ratio (Forward)146

P/E Ratio (Forward 3y)117

P/BV7.12

EV Multiples

EV/EBITDA Fwd88

EV/EBIT Fwd108

Yield

Free Cash Flow Yield5.8%7

Dividend Yieldna–

Momentum

Short term

1 month return-6%4

3 month return-14%3

YTD return-25%2

Mid term

Price vs 52wHigh58%2

1 year return-28%2

Long term

3 year return+127%8

5 year return+166%8

Risk Shield

Price Risk

Beta1.04

Volatility54%3

Free Cash Flow

Free Cash Flow Margin5%4

Free Cash Flow Yield5.8%7

Quality

ROCE17%8

Earnings Stability55

Net Debt/EBITDA0.96

02Growth

Is it actually growing, and how fast?

BW3Babcock International Group

Revenue FY26$6.9B

GROWTH RATING↗

WEAK32 / 100

REVENUE GROWTH▾SCORE

Revenue, last 3Y, CAGR+8%6

Revenue, next 1Y+6%4

Revenue, next 3Y, CAGR+5%4

Revenue, next 5Y, CAGR+2%2

EARNINGS FORECAST▾SCORE

EPS growth, FY27E+55%9

EPS growth, FY28E+10%7

EPS growth, FY29E+9%6

GROWTH ASSESSMENT

STRENGTHS

Earnings are set to grow faster than sales (EPS about 10%/yr vs revenue 5%/yr), so margins should widen.

WATCH

Revenue grew 8%/yr over the last 3 years and is set to keep growing around 5%/yr.

WEAKNESSES

Growth is the weak spot here, trailing 68% of companies worldwide.

Revenue is set to grow 5%/yr over the next 3 years, behind most of the market.3/10

Over five years revenue is set to grow 2%/yr, behind 80% of companies worldwide.2/10

BOTTOM LINE

Margin Expander

Growth is a weak point here. The one thing to watch: forward revenue growth trails the market.

03Price Momentum

Is the market behind it right now?

BW3Babcock International Group

Total return Current29.0%

Price return Current6.2%

MOMENTUM RATING↗

WEAK28 / 100

SHORT-TERM RETURNS▾SCORE

1-month return-6%4

3-month return-14%3

YTD return-25%2

MID & LONG-TERM▾SCORE

% of 52-week high58%2

1-year return-28%2

3-year return+127%8

5-year return+166%8

MOMENTUM ASSESSMENT

STRENGTHS

Magnificent long-term results. Long-term holders have seen +127% over three years and +166% over five, ahead of 70% of the market.

WATCH

Returns sit at the market level over the past month (-6%).

WEAKNESSES

It's down 28% over the past year, now 42% below its 52-week high. That is lagging the market.

The stock is underperforming over three months (-14%) and so far this year (-25%).

BOTTOM LINE

Outperformer in a Drawdown

A proven multi-year compounder now in a meaningful pullback well below its 52-week high. This is the classic fork: either a buy-the-dip in an intact uptrend, or the early stage of a trend change. Wait for the short-term slide to stabilise before adding. The one thing to watch: the one-year trend is weak.

04Value

Are you paying a fair price for it?

Stop guessing on Babcock International Group PLC. Get the full investment case.

Premium

$20.75/month

Billed annually at $249/year $348

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02Growth

Is it actually growing, and how fast?

BW3Babcock International Group

Revenue FY26$6.9B

GROWTH RATING↗

WEAK32 / 100

REVENUE GROWTH▾SCORE

Revenue, last 3Y, CAGR+8%6

Revenue, next 1Y+6%4

Revenue, next 3Y, CAGR+5%4

Revenue, next 5Y, CAGR+2%2

EARNINGS FORECAST▾SCORE

EPS growth, FY27E+55%9

EPS growth, FY28E+10%7

EPS growth, FY29E+9%6

GROWTH ASSESSMENT

STRENGTHS

Earnings are set to grow faster than sales (EPS about 10%/yr vs revenue 5%/yr), so margins should widen.

WATCH

Revenue grew 8%/yr over the last 3 years and is set to keep growing around 5%/yr.

WEAKNESSES

Growth is the weak spot here, trailing 68% of companies worldwide.

Revenue is set to grow 5%/yr over the next 3 years, behind most of the market.3/10

Over five years revenue is set to grow 2%/yr, behind 80% of companies worldwide.2/10

BOTTOM LINE

Margin Expander

Growth is a weak point here. The one thing to watch: forward revenue growth trails the market.

03Price Momentum

Is the market behind it right now?

BW3Babcock International Group

Total return Current29.0%

Price return Current6.2%

MOMENTUM RATING↗

WEAK28 / 100

SHORT-TERM RETURNS▾SCORE

1-month return-6%4

3-month return-14%3

YTD return-25%2

MID & LONG-TERM▾SCORE

% of 52-week high58%2

1-year return-28%2

3-year return+127%8

5-year return+166%8

MOMENTUM ASSESSMENT

STRENGTHS

Magnificent long-term results. Long-term holders have seen +127% over three years and +166% over five, ahead of 70% of the market.

WATCH

Returns sit at the market level over the past month (-6%).

WEAKNESSES

It's down 28% over the past year, now 42% below its 52-week high. That is lagging the market.

The stock is underperforming over three months (-14%) and so far this year (-25%).

BOTTOM LINE

Outperformer in a Drawdown

04Value

Are you paying a fair price for it?

Stop guessing on Babcock International Group PLC. Get the full investment case.

Premium

$20.75/month

Billed annually at $249/year $348

✓
Stock VerdictValuation and investment strategy for 4,000+ stocks. Days of hedge fund analyst research, done in 2 minutes.
✓
RadarFind your next investment idea: top-ranked stocks across all 9 Bastion strategies.
✓
Portfolio ManagerCheck if Bastion algorithms added the stock you care about to their portfolios.

Secure via Stripe

Trusted by 1,000+ investors in our community