Babcock International Group PLC
LSE:BAB

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Babcock International Group PLC Logo
Babcock International Group PLC
LSE:BAB
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Price: 1 361 GBX -0.95%
Market Cap: £6.8B

ROCE

24.3%
Current
Improving
by 9.6%
vs 3-y average of 14.7%

Return on Capital Employed (ROCE) measures how efficiently a company uses its capital to generate profit. It shows how much net income is earned for each dollar of capital employed.

ROCE
24.3%
=
EBIT
£414.4m
/
Avg Capital Employed
£1.7B

Return on Capital Employed (ROCE) measures how efficiently a company uses its capital to generate profit. It shows how much net income is earned for each dollar of capital employed.

ROCE
24.3%
=
EBIT
GBX414.4m
/
Avg Capital Employed
£1.7B

Peer Comparison

Country Company Market Cap ROCE
UK
Babcock International Group PLC
LSE:BAB
6.8B GBP
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US
Raytheon Technologies Corp
NYSE:RTX
263B USD
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US
RTX Corp
LSE:0R2N
259.4B USD
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US
Boeing Co
NYSE:BA
180.6B USD
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NL
Airbus SE
PAR:AIR
146.9B EUR
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FR
Safran SA
PAR:SAF
145.3B EUR
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UK
Rolls-Royce Holdings PLC
LSE:RR
116.6B GBP
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US
Lockheed Martin Corp
NYSE:LMT
149B USD
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US
Howmet Aerospace Inc
NYSE:HWM
104.1B USD
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US
Northrop Grumman Corp
NYSE:NOC
100.2B USD
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US
General Dynamics Corp
NYSE:GD
93B USD
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Market Distribution

Higher than 97% of companies in United Kingdom
Percentile
97th
Based on 3 968 companies
97th percentile
24.3%
Low
-467.8% — 0%
Typical Range
0% — 0.1%
High
0.1% — 10 009.8%
Distribution Statistics
United Kingdom
Min -467.8%
30th Percentile 0%
Median 0.1%
70th Percentile 0.1%
Max 10 009.8%

Babcock International Group PLC
Glance View

Babcock International Group PLC, a stalwart in the realm of engineering support services, operates at the intersection of innovation and tradition. Born in the industrial heartlands of the United Kingdom, it has carved a niche by focusing on essential infrastructure and capabilities crucial to national security and societal functioning. Its expertise is predominantly centered around the defense, emergency services, and civil nuclear sectors. Babcock’s adaptability is exemplified through its involvement in critical projects - whether it’s maintaining naval fleets or ensuring the readiness of military aircrews. In essence, Babcock provides technical support that ensures the seamless operation of some of the most complex and vital systems, making it an indispensable asset to both government and private sectors alike. Through its diverse offerings, Babcock generates revenue primarily by securing long-term contracts for providing services such as engineering support and fleet management. These contracts often come from governmental bodies, ensuring a steady flow of business with low commercial risk and high predictability. Moreover, its strategic focus on sectors that are less prone to economic cycles gives Babcock a stable financial footing. By investing in technology and skills development, the company not only enhances its service propositions but also fortifies relationships with clients, ensuring repeat business and operational scalability. It's this blend of robust sector focus and strategic foresight that enables Babcock International to maintain its pivotal presence in the global engineering services landscape.

BAB Intrinsic Value
985.73 GBX
Overvaluation 28%
Intrinsic Value
Price
What is Return on Capital Employed?
Return on Capital Employed (ROCE) measures how efficiently a company uses its capital to generate profit. It shows how much net income is earned for each dollar of capital employed.
How is ROCE calculated?

ROCE is calculated by dividing the EBIT by the Avg Capital Employed.

ROCE
24.3%
=
EBIT
£414.4m
/
Avg Capital Employed
£1.7B
What is Babcock International Group PLC's current ROCE?

The current ROCE for Babcock International Group PLC is 24.3%, which is above its 3-year median of 14.7%.

How has ROCE changed over time?

Over the last 3 years, Babcock International Group PLC’s ROCE has increased from 1.9% to 24.3%. During this period, it reached a low of 1.9% on Sep 30, 2022 and a high of 23% on Sep 30, 2025.

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