Two FTSE Stocks Getting Investors Attention – Babcock International Group Plc and Evraz Plc

  • Nov 22, 2019 GMT
  • Team Kalkine
Two FTSE Stocks Getting Investors Attention – Babcock International Group Plc and Evraz Plc

Babcock International Group Plc

Babcock International Group Plc (LON: BAB) is a London, the United Kingdom based Aerospace and Defence company, engaged in the business of providing engineering services for various parties within the scope of Marine, Land, Nuclear as well as Aviation segments. The company’s key operating locations include the regions of United Kingdom, Western and Central European countries like Italy, France and Portugal, Scandinavian countries, South Africa, South America, Australasian region, as well as the Northern American countries like the United States of America and Canada. The scope of the company’s products majorly includes Defence products, Civil Nuclear Products, Oil and Gas, Energy and Power, Rail, Marine as well as Emergency services.

BAB Financial Performance

On 20th November 2019, the company announced its results for the half year ended 30th September 2019. The company reported that the underlying revenue declined year on year to £2.457 billion, mainly due to various step-downs. There was also a year on year decline on the underlying operating profit, which was reported at £250.6 million. The company reported the Underlying profit before tax at £202.5 million for the period, and the Basic earnings per share were reported at GBX 32.5 per share for the period ended 30th September 2019. The board proposed an interim dividend of GBX 7.2 per share, a marginal year on year growth as compared to the same period in the previous year when the interim dividend was declared by the management at GBX 7.1 per share.

BAB Share Price Performance

Daily Chart as at 22-November-19, before the market close (Source: Thomson Reuters)

On 22nd November 2019, at 01:14 P.M GMT, By the time of writing, Babcock International Group Plc’s share price has been reported to be trading at GBX 587.80 per share, an increase of 1.77 per cent or GBX 10.2 per share, as compared to the previous day’s closing price, which was reported to be at GBX 577.6 per share. By the time of writing, the Babcock International Group Plc share was reported to be trading 43.33 per cent above the 52-week low share price, which was at GBX 410.10 per share, that the company’s shares reached on May 23, 2019. At the present price, the share was also trading 2.29 per cent below the 52-week high price at GBX 601.60 per share, which the company’s share achieved on November 29, 2018. Babcock International Group Plc’s Market capitalisation (M-Cap) has been reported to be at GBP 2.920 billion.

At the time of writing, 915,340 of the company’s shares had been traded in the market. The company’s share has given a positive return of 1.98 per cent in value in the last one year, from the price of GBX 576.40 per share that the shares achieved on November 22, 2018. The Babcock International Group Plc share has also given a positive return in the last six months of around 27.78 per cent from the share price of GBX 460.00 the company’s share achieved on May 22, 2019. Babcock International Group Plc’s share has also gone up by 6.33 per cent in value in the last one month from the price of GBX 552.800 per share that the shares closed at on October 22, 2019.

The beta of the Babcock International Group Plc’s share was reported to be at 1.1994. From this, it can be inferred that the company’s share price is more volatile, as compared to the benchmark market index’s movement.

 

Evraz Plc

Evraz Plc (LON: EVR) is a Moscow, Russia based mining company, that is engaged in the exploration, as well as manufacturing of Steel, Iron ore, Coal and various products and applications of these metals and minerals. The company’s most significant business segment is the mining and production of steel-based products. The company’s steel assets include Evraz ZSMK, which is the eastern most asset in Russia which has been committed to long products such as low alloy steel, rebar and wire rods, and shaped steel. Evraz NTMK, which mainly engages in the development of railway transport products and Evraz KGOK, which is one of the five largest  ore mining spaces in Russia, with the production of 3.5 million tonnes of Sinter as well as 6.5 million tonnes of pellets reported in the year 2018. This space has a capacity of 55 million tonnes of Iron ore per year. The company’s Coal division engages in the provision of resource materials for the company’s steel assets and allows the supply of coking coal to significant local coke and steel producers and sells its products to global customers. The North American steel segment primarily takes care of the bigger and premium markets in the Western Parts of the United States of America and Canada, supplying high-quality products which include premium infrastructure grade steel, rails, large-diameter pipes and oil country tubular goods.

EVR Trading Update

On 1st November 2019, the company reported its trading update for the third quarter of 2019, which contained the details for the production during the period. It was reported that the company’s accumulated crude steel production declined quarter on quarter by 3.4 per cent during the period, majorly driven by the lower production volumes at the EVRAZ ZSMK asset in the midst of planned repairs. The company highlighted that the production during the period was also affected by a reduction in the quantity at EVRAZ' US and Canadian mills post previous planned shut-downs as well as a decline in the demand. The company also provided details of the steel production during the quarter, where it mentioned that the total steel product sales remained flat quarter on quarter. The company highlighted that the revenue from the unfinished items grew by approximately 5.6 per cent in comparison with the previous quarter, mainly because of a better economic climate. Albeit, there was also a 3.1 per cent downfall in the finished goods in comparison with the previous quarter, mainly because of lower sales of flat-rolled products.

Product, kt Q3 2019 Q2 2019 Change 9m 2019 9m 2018 Change
Total crude steel production 3,380 3,498 -3.40 % 10,366 9,917 4.50 %
Russia 2,953 3,006 -1.80 % 8,945 8,368 6.90 %
Ukraine 0 0 n/a 0 154 -100.00 %
North America 427 492 -13.20 % 1,421 1,395 1.90 %
Total raw coking coal mined 6,319 6,996 -9.70 % 20,159 17,335 16.30 %
Total coking coal concentrate 4,244 4,458 -4.80 % 12,386 11,967 3.50 %
production
Iron ore products production 3,319 3,533 -6.10 % 10,488 10,148 3.40 %
Total sales of steel products1 3,385 3,371 0.40 % 9,893 9,328 6.10 %
   Semi-finished products2,3 1,443 1,367 5.60 % 4,146 3,726 11.30 %
   Finished products3 1,942 2,004 -3.10 % 5,747 5,602 2.60 %
Total sales of third-party steel 225 196 14.80 % 601 672 -10.60 %
products3
Sales of coking coal products 2,953 2,929 0.80 % 8,539 8,244 3.60 %
Sales of iron ore products2 162 235 -31.10 % 861 1,514 -43.10 %
Sales of vanadium in slag2 1,693 1,660 2.00 % 4,528 4,760 -4.90 %
Sales of vanadium final products4 3,585 3,266 9.80 % 9,369 9,693 -3.30 %

Source: Company Website

 

EVR Share Price Performance

Daily Chart as at 22-November-19, before the market close (Source: Thomson Reuters)

On 22nd November 2019, at 01:26 P.M GMT, By the time of writing, Evraz Plc’s share price has been reported to be trading at GBX 351.0 per share, a decrease of 0.59 per cent or GBX 2.1 per share, as compared to the previous day’s closing price, which was reported to be at GBX 353.10 per share. By the time of writing, the Evraz Plc share was reported to be trading 3.11 per cent above the 52-week low share price, which was at GBX 340.40 per share, that the company’s shares reached on November 21, 2019. At the present price, the share was also 50.58 per cent below the 52-week high price at GBX 710.20 per share, which the company’s share achieved on June 17, 2019. Evraz Plc’s Market capitalisation (M-Cap) has been reported to be at GBP 5.126 billion.

At the time of writing, 1.08 million of the company’s shares had been traded in the market. The company’s share has given a negative return of 28.57 per cent in value in the last one year, from the price of GBX 491.40 per share that the shares achieved on November 22, 2018. The Evraz Plc share has also given a negative return in the last six months of around 40.45 per cent from the share price of GBX 589.40 per share the company’s share achieved on May 22, 2019. Evraz Plc’s share has also declined by 7.68 per cent in value in the last one month from the price of GBX 380.20 per share that the shares closed at on October 22, 2019.

The beta of the Evraz Plc’s share was reported to be at 2.11 From this; it can be inferred that the company’s share price is twice as more volatile, as compared to the benchmark market index’s movement.

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