Babcock International GroupBCKIF +9.24%69 Return-on-Tangible-Equity is Negative Tangible Equity% as of Mar. 2026. GuruFocus rates BCKIF with a GF Score™ of 69/100 and a GF Value™ of $8.47 (Significantly Overvalued). The stock has 2 warning signs investors should review. Among 1,704 Construction companies, Babcock International Group ranks better than 99.94% on this metric.
Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. Babcock International Group's annualized net income for the quarter that ended in Mar. 2026 was $112 Mil. Babcock International Group's average shareholder tangible equity for the quarter that ended in Mar. 2026 was $-330 Mil. Therefore, Babcock International Group's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was Negative Tangible Equity%.
The historical rank and industry rank for Babcock International Group's Return-on-Tangible-Equity or its related term are showing as below:
BCKIF'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 0 Med: 0 Max: 0
Current: Negative Tangible Equity
BCKIF's Return-on-Tangible-Equity is ranked better than 99.94% of 1704
companies
in the Construction industry
Industry Median: 8.245
vs BCKIF: Negative Tangible Equity
Babcock International Group (OTCPK:BCKIF) Return-on-Tangible-Equity Explanation
Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.
Be Aware
Net Income is used.
Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their Return-on-Tangible-Equitys can be extremely high.
Babcock International Group Return-on-Tangible-Equity Related Terms
Babcock International Group Return-on-Tangible-Equity Historical Data
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Babcock International Group Return-on-Tangible-Equity Chart
BCKIF vs PWR, FIX, EME: Return-on-Tangible-Equity Comparison
For the Engineering & Construction subindustry, Babcock International Group's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Babcock International Group Return-on-Tangible-Equity vs Construction Industry
For the Construction industry and Industrials sector, Babcock International Group's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Babcock International Group's Return-on-Tangible-Equity falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
In the calculation of annual Return-on-Tangible-Equity, the net income of the last fiscal year and the average total shareholder tangible equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is two times the semi-annual (Mar. 2026) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of Negative Tangible Equity% mean?
Babcock International Group (BCKIF) has a Return-on-Tangible-Equity of Negative Tangible Equity% as of Mar. 2026. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Babcock International Group and its competitors. According to the industry distribution chart, Babcock International Group ranks #1 out of 1704 companies in the Construction industry, placing it in the top 0.099999999999994%.
Is Babcock International Group's Return-on-Tangible-Equity too high?
Babcock International Group's current Return-on-Tangible-Equity is Negative Tangible Equity%. Based on the distribution chart, Babcock International Group ranks #1 out of 1704 companies in the Construction industry, which is in the top quartile — a strong position relative to peers. Overall, Babcock International Group has a GF Score™ of 69/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Babcock International Group's Return-on-Tangible-Equity compare to PWR and FIX?
According to the Construction industry distribution chart, Babcock International Group ranks #1 out of 1704 companies for Return-on-Tangible-Equity. This places Babcock International Group in the top 0% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Equity is 8.25. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Return-on-Tangible-Equity for a Construction company?
The median Return-on-Tangible-Equity among Construction companies is 8.25, based on 1,704 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Equity significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Equity should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Return-on-Tangible-Equity mean?
A high Return-on-Tangible-Equity can signal that a stock is expensive relative to its fundamentals. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Babcock International Group and its competitors. For the Construction industry, the median Return-on-Tangible-Equity is 8.25 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Babcock International Group's current Return-on-Tangible-Equity is Negative Tangible Equity%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Babcock International Group stock overvalued right now?
Based on GuruFocus' analysis, Babcock International Group (BCKIF) is currently considered Significantly Overvalued. The stock's GF Value™ is $8.47, compared to a current price of $14.20 — trading 67.7% above its estimated fair value. The current Return-on-Tangible-Equity is Negative Tangible Equity%. Babcock International Group's overall GF Score™ is 69/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Return-on-Tangible-Equity calculated?
Return-on-Tangible-Equity is calculated from a company's financial statements. For Babcock International Group (BCKIF), the current Return-on-Tangible-Equity is Negative Tangible Equity% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Babcock International Group (BCKIF) Overvalued in 2026?
Based on GuruFocus' analysis, Babcock International Group stock appears to be overvalued.
The current stock price of $14.20 is trading 67.7% above its estimated GF Value™ of $8.47.
GuruFocus considers Babcock International Group to be Significantly Overvalued.
No single metric tells the full story. See the BCKIF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Babcock International Group PLC is a British engineering company specializing in the construction and decommissioning of nuclear power plants and submarines; maintenance support; fleet management for aviation, marine, and land; and provision of technical training and emergency services. The company's operating segments include Marine, Land, Aviation, and Nuclear. It generates maximum revenue from the Nuclear segment, which is engaged in providing engineering support to the United Kingdom's nuclear submarine fleet, decommissioning nuclear facilities, supporting nuclear generation, and new build projects. Geographically, it derives a majority of its revenue from the United Kingdom and also has a presence in the Rest of Europe, Africa, North America, Australasia, and the Rest of the World.
69GF Score
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