ASX:BSA

Stock Analysis Report

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Executive Summary

BSA Limited, together with its subsidiaries, operates as a technical services contracting company in Australia. More Details


Snowflake Analysis

Flawless balance sheet and undervalued.


Similar Companies

Share Price & News

How has BSA's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: BSA is less volatile than 75% of Australian stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: BSA's weekly volatility (5%) has been stable over the past year.


Market Performance


7 Day Return

1.8%

BSA

0.2%

AU Commercial Services

2.4%

AU Market


1 Year Return

-30.1%

BSA

-13.7%

AU Commercial Services

-0.6%

AU Market

Return vs Industry: BSA underperformed the Australian Commercial Services industry which returned -13.7% over the past year.

Return vs Market: BSA underperformed the Australian Market which returned -0.6% over the past year.


Shareholder returns

BSAIndustryMarket
7 Day1.8%0.2%2.4%
30 Day5.5%7.3%8.0%
90 Day-1.7%2.2%8.8%
1 Year-27.3%-30.1%-11.5%-13.7%2.7%-0.6%
3 Year-16.0%-21.6%8.9%-2.3%24.3%9.0%
5 Year117.4%100.0%36.4%13.7%56.9%25.7%

Long-Term Price Volatility Vs. Market

How volatile is BSA's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is BSA undervalued compared to its fair value and its price relative to the market?

38.0%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: BSA (A$0.29) is trading below our estimate of fair value (A$0.47)

Significantly Below Fair Value: BSA is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: BSA is good value based on its PE Ratio (16x) compared to the AU Commercial Services industry average (19x).

PE vs Market: BSA is good value based on its PE Ratio (16x) compared to the Australian market (22.8x).


Price to Earnings Growth Ratio

PEG Ratio: BSA is good value based on its PEG Ratio (0.6x)


Price to Book Ratio

PB vs Industry: BSA is overvalued based on its PB Ratio (3.9x) compared to the AU Commercial Services industry average (2.1x).


Next Steps

Future Growth

How is BSA forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

25.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: BSA's forecast earnings growth (25.9% per year) is above the savings rate (2.3%).

Earnings vs Market: BSA's earnings (25.9% per year) are forecast to grow faster than the Australian market (17.8% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: BSA's revenue (1.9% per year) is forecast to grow slower than the Australian market (5.1% per year).

High Growth Revenue: BSA's revenue (1.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: BSA's Return on Equity is forecast to be high in 3 years time (26.6%)


Next Steps

Past Performance

How has BSA performed over the past 5 years?

39.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: BSA has a large one-off gain of A$4.3M impacting its June 30 2020 financial results.

Growing Profit Margin: BSA's current net profit margins (1.6%) are lower than last year (2.3%).


Past Earnings Growth Analysis

Earnings Trend: BSA has become profitable over the past 5 years, growing earnings by 39.8% per year.

Accelerating Growth: BSA's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: BSA had negative earnings growth (-27.5%) over the past year, making it difficult to compare to the Commercial Services industry average (2.6%).


Return on Equity

High ROE: BSA's Return on Equity (24.2%) is considered high.


Next Steps

Financial Health

How is BSA's financial position?


Financial Position Analysis

Short Term Liabilities: BSA's short term assets (A$100.6M) exceed its short term liabilities (A$98.9M).

Long Term Liabilities: BSA's short term assets (A$100.6M) exceed its long term liabilities (A$16.3M).


Debt to Equity History and Analysis

Debt Level: BSA's debt to equity ratio (6.6%) is considered satisfactory.

Reducing Debt: BSA's debt to equity ratio has reduced from 11.7% to 6.6% over the past 5 years.

Debt Coverage: BSA's debt is well covered by operating cash flow (1478.5%).

Interest Coverage: BSA's interest payments on its debt are well covered by EBIT (4.7x coverage).


Balance Sheet


Next Steps

Dividend

What is BSA current dividend yield, its reliability and sustainability?

3.45%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: BSA's dividend (3.45%) is higher than the bottom 25% of dividend payers in the Australian market (2.08%).

High Dividend: BSA's dividend (3.45%) is low compared to the top 25% of dividend payers in the Australian market (5.05%).


Stability and Growth of Payments

Stable Dividend: BSA's dividend payments have been volatile in the past 10 years.

Growing Dividend: BSA's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (55.2%), BSA's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: BSA's dividends in 3 years are forecast to be well covered by earnings (32.3% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

1.3yrs

Average management tenure


CEO

Tim Harris (49 yo)

0.67

Tenure

AU$893,816

Compensation

Mr. Timothy M. Harris, also known as Tim, BA (Hons.) ACA, has been Managing Director and Chief Executive Officer at BSA Limited since March 09, 2020 and serves as its Executive Director since April 2020. M...


CEO Compensation Analysis

Compensation vs Market: Tim's total compensation ($USD657.46K) is above average for companies of similar size in the Australian market ($USD280.63K).

Compensation vs Earnings: Tim's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Timothy Harris
MD, CEO & Executive Director0.67yrAU$893.82k0.13%
A$ 157.0k
Arno Becker
Chief Financial Officer0.67yrAU$305.48kno data
Nicholas Benson
Chief Strategy Officer2yrsAU$473.39k0.32%
A$ 396.2k
Graham Seppelt
Company Secretary14.75yrsAU$40.00kno data
Leaston Paull
General Manager of Subscription TVno dataAU$276.30kno data
Younis Tehfe
Regional General Manager of NSW & WA HVACno dataAU$355.45kno data
Frank Wiedermann
General Manager of Allstaff Airconditioning VICno dataAU$332.11kno data

1.3yrs

Average Tenure

Experienced Management: BSA's management team is not considered experienced ( 1.3 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Timothy Harris
MD, CEO & Executive Director0.67yrAU$893.82k0.13%
A$ 157.0k
Paul Teisseire
Independent Non-Executive Director15.67yrsAU$99.50k0.16%
A$ 193.8k
Michael Givoni
Independent Non-Executive Chairman5.58yrsAU$167.52k0.34%
A$ 416.6k
Mark Lowe
Independent Non-Executive Director13.25yrsAU$99.08k2.38%
A$ 2.9m
Nicholas Kelvin Yates
Non-Executive Director6.67yrsAU$1.02m0.98%
A$ 1.2m
David Prescott
Non-Executive Director1.42yrsAU$34.34kno data
Christopher Halios-Lewis
Non-Executive Director1.17yrsno datano data

5.6yrs

Average Tenure

Experienced Board: BSA's board of directors are considered experienced (5.6 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

BSA Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: BSA Limited
  • Ticker: BSA
  • Exchange: ASX
  • Founded: 1999
  • Industry: Diversified Support Services
  • Sector: Commercial Services
  • Market Cap: AU$123.464m
  • Shares outstanding: 433.21m
  • Website: https://www.bsa.com.au

Location

  • BSA Limited
  • 3 Thomas Holt Drive
  • Level 7
  • Macquarie Park
  • New South Wales
  • 2113
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
BSAASX (Australian Securities Exchange)YesOrdinary SharesAUAUDNov 1999
BSACHIA (Chi-X Australia)YesOrdinary SharesAUAUDNov 1999

Biography

BSA Limited, together with its subsidiaries, operates as a technical services contracting company in Australia. It operates through BSA Communications & Utility Infrastructure, and BSA Advanced Property So...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/11/26 07:01
End of Day Share Price2020/11/26 00:00
Earnings2020/06/30
Annual Earnings2020/06/30


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.