The historical rank and industry rank for Babcock International Group's ROE % or its related term are showing as below:
MEX:BABBN'
s ROE % Range Over the Past 10 Years
Min: -141.46 Med: 12.27 Max: 49.75
Current: 32.62
During the past 13 years, Babcock International Group's highest ROE % was 49.75%. The lowest was -141.46%. And the median was 12.27%.
MEX:BABBN's ROE % is ranked better than 93.17% of 1743
companies
in the Construction industry
Industry Median: 6.69
vs MEX:BABBN: 32.62
Babcock International Group (MEX:BABBN) 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 (Mar. 2026) net income data. The Revenue data used here is two times the semi-annual (Mar. 2026) 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.
* 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, Babcock International Group'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.
Babcock International Group ROE % vs Construction Industry
For the Construction industry and Industrials sector, Babcock International Group's ROE % distribution charts can be found below:
* The bar in red indicates where Babcock International Group'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 (Mar. 2026) net income data.
ROE % is displayed in the 30-year financial page.
Babcock International Group (MEX:BABBN) has a ROE % of 12.32% as of Mar. 2026. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Babcock International Group and its competitors. This is near median its historical median of 12.27. According to the industry distribution chart, Babcock International Group ranks #119 out of 1743 companies in the Construction industry, placing it in the top 6.8%.
Is Babcock International Group's ROE % too high?
Babcock International Group's current ROE % of 12.32% is near median its 10-year median of 12.27. The Construction industry median ROE % is 6.69. Babcock International Group's value of 12.32% is 84.2% above this industry median. Based on the distribution chart, Babcock International Group ranks #119 out of 1743 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 67/100, reflecting its overall financial health beyond just this single metric.
How does Babcock International Group's ROE % compare to PWR and FIX?
According to the Construction industry distribution chart, Babcock International Group ranks #119 out of 1743 companies for ROE %. This places Babcock International Group in the top 7% of its industry — outperforming the majority of peers. The industry median ROE % is 6.69. Babcock International Group's value of 12.32% is 84.2% above this benchmark. While the company's 10-year median is 12.27 vs. the industry median of 6.69, Babcock International Group 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 6.69, 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. Babcock International Group's current ROE % of 12.32% is 84.2% 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 Babcock International Group and its competitors. For the Construction industry, the median ROE % is 6.69 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Babcock International Group's current ROE % is 12.32%, which is near median its own 10-year median of 12.27. 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?
Babcock International Group (MEX:BABBN) has a current ROE % of 12.32%. The stock's GF Value™ is MXN52.85, compared to a current price of MXN82.68 — trading 56.4% above its estimated fair value. The current ROE % is 12.32%, which is near median its 10-year median of 12.27 and 84.2% above the Construction industry median of 6.69. Babcock International Group's overall GF Score™ is 67/100 with 2 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 Babcock International Group (MEX:BABBN), the current ROE % is 12.32% 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 (MEX:BABBN) Overvalued in 2026?
Based on GuruFocus' analysis, Babcock International Group stock appears to be overvalued.
The current stock price of MXN82.68 is trading 56.4% above its estimated GF Value™ of MXN52.85.
Key valuation signals for MEX:BABBN:
ROE %: 12.32% (near median its 10-year median of 12.27)
GF Value™: MXN52.85 vs. price of MXN82.68 (56.4% above fair value)
Industry Position: 84.2% above the Construction median (#119 of 1743)
No single metric tells the full story. See the MEX:BABBN 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.
67GF Score
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