Balfour BeattyBAFBF 77 ROE % is 29.04% as of Dec. 2025, which is 114% above its 10-year median of 13.56. GuruFocus rates BAFBF with a GF Score™ of 77/100 and a GF Value™ of $7.81 (Significantly Overvalued). The stock has 7 warning signs investors should review. Among 1,743 Construction companies, Balfour Beatty ranks better than 88.12% on this metric.
ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Balfour Beatty's annualized net income for the quarter that ended in Dec. 2025 was $434 Mil. Balfour Beatty's average Total Stockholders Equity over the quarter that ended in Dec. 2025 was $1,494 Mil. Therefore, Balfour Beatty's annualized ROE % for the quarter that ended in Dec. 2025 was 29.04%.
The historical rank and industry rank for Balfour Beatty's ROE % or its related term are showing as below:
BAFBF'
s ROE % Range Over the Past 10 Years
Min: 2.22 Med: 13.56 Max: 23.64
Current: 23.64
During the past 13 years, Balfour Beatty's highest ROE % was 23.64%. The lowest was 2.22%. And the median was 13.56%.
BAFBF's ROE % is ranked better than 88.12% of 1743
companies
in the Construction industry
Industry Median: 6.71
vs BAFBF: 23.64
Balfour Beatty (OTCPK:BAFBF) ROE % Explanation
ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.
The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:
Note:
The net income data used here is two times the semi-annual (Dec. 2025) net income data. The Revenue data used here is two times the semi-annual (Dec. 2025) revenue data. The same rule applies to Pre-Tax Income and Operating Income.
* In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.
* 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.
Be Aware
Net Income is used.
Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % 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 ROE %s can be extremely high.
Balfour Beatty ROE % Related Terms
Balfour Beatty ROE % Historical Data
* Premium members only.
The historical data trend for Balfour Beatty's ROE % can be seen below:
* 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.
For the Engineering & Construction subindustry, Balfour Beatty's ROE %, along with its competitors' market caps and ROE % 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.
Balfour Beatty ROE % vs Construction Industry
For the Construction industry and Industrials sector, Balfour Beatty's ROE % distribution charts can be found below:
* The bar in red indicates where Balfour Beatty's ROE % 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 ROE %, the net income of the last fiscal year and the average total shareholder equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is two times the semi-annual (Dec. 2025) net income data.
ROE % is displayed in the 30-year financial page.
Balfour Beatty (BAFBF) has a ROE % of 29.04% as of Dec. 2025. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Balfour Beatty and its competitors. This is 114% above median its historical median of 13.56. Over the past decade, Balfour Beatty's ROE % has ranged from 2.22 to 23.64. According to the industry distribution chart, Balfour Beatty ranks #207 out of 1743 companies in the Construction industry, placing it in the top 11.9%.
Is Balfour Beatty's ROE % too high?
Balfour Beatty's current ROE % of 29.04% is 114% above median its 10-year median of 13.56. Over the past 10 years, this metric has ranged from a low of 2.22 to a high of 23.64. The Construction industry median ROE % is 6.71. Balfour Beatty's value of 29.04% is 332.8% above this industry median. Based on the distribution chart, Balfour Beatty ranks #207 out of 1743 companies in the Construction industry, which is in the top quartile — a strong position relative to peers. Overall, Balfour Beatty has a GF Score™ of 77/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Balfour Beatty's ROE % compare to PWR and FIX?
According to the Construction industry distribution chart, Balfour Beatty ranks #207 out of 1743 companies for ROE %. This places Balfour Beatty in the top 12% of its industry — outperforming the majority of peers. The industry median ROE % is 6.71. Balfour Beatty's value of 29.04% is 332.8% above this benchmark. Historically, Balfour Beatty's own ROE % has ranged from 2.22 to 23.64 over the past decade. While the company's 10-year median is 13.56 vs. the industry median of 6.71, Balfour Beatty has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROE % for a Construction company?
The median ROE % among Construction companies is 6.71, based on 1,743 companies in the industry. Companies in the top quartile (top 25%) have a ROE % significantly above this median, while those in the bottom quartile fall well below. However, ROE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Balfour Beatty's current ROE % of 29.04% is 332.8% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high ROE % mean?
A high ROE % can signal that a stock is expensive relative to its fundamentals. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Balfour Beatty and its competitors. For the Construction industry, the median ROE % is 6.71 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Balfour Beatty's current ROE % is 29.04%, which is 114% above median its own 10-year median of 13.56. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Balfour Beatty stock overvalued right now?
Based on GuruFocus' analysis, Balfour Beatty (BAFBF) is currently considered Significantly Overvalued. The stock's GF Value™ is $7.81, compared to a current price of $10.56 — trading 35.2% above its estimated fair value. The current ROE % is 29.04%, which is 114% above median its 10-year median of 13.56 and 332.8% above the Construction industry median of 6.71. Balfour Beatty's overall GF Score™ is 77/100 with 7 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROE % calculated?
ROE % is calculated from a company's financial statements. For Balfour Beatty (BAFBF), the current ROE % is 29.04% as of Dec. 2025. 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 Balfour Beatty (BAFBF) Overvalued in 2026?
Based on GuruFocus' analysis, Balfour Beatty stock appears to be overvalued.
The current stock price of $10.56 is trading 35.2% above its estimated GF Value™ of $7.81.
GuruFocus considers Balfour Beatty to be Significantly Overvalued.
Key valuation signals for BAFBF:
ROE %: 29.04% (114% above median its 10-year median of 13.56)
GF Value™: $7.81 vs. price of $10.56 (35.2% above fair value)
Industry Position: 332.8% above the Construction median (#207 of 1743)
No single metric tells the full story. See the BAFBF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Balfour Beatty PLC finances builds, and maintains infrastructure projects. It finances, develops, builds, maintains, and operates the increasingly complex and critical infrastructure that supports national economies and delivers projects at the heart of local communities. It operates three business segments: Construction services (majority of total revenue), Support services, and Infrastructure investments. It will invest directly in infrastructure assets also invests in real estate-type assets, in particular private residential and student accommodation assets. The majority of sales are derived from the United Kingdom and the United States.
77GF Score
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