ASX:BAP

Stock Analysis Report

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Executive Summary

Bapcor Limited sells and distributes automotive aftermarket parts, accessories, equipment, and services in Australia, New Zealand, and Thailand. More Details


Snowflake Analysis

Excellent balance sheet second-rate dividend payer.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: BAP has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

2.7%

BAP

-1.3%

AU Retail Distributors

-1.6%

AU Market


1 Year Return

-1.8%

BAP

-2.7%

AU Retail Distributors

-10.9%

AU Market

Return vs Industry: BAP matched the Australian Retail Distributors industry which returned -2.7% over the past year.

Return vs Market: BAP exceeded the Australian Market which returned -10.9% over the past year.


Shareholder returns

BAPIndustryMarket
7 Day2.7%-1.3%-1.6%
30 Day0.6%-1.5%-3.7%
90 Day15.7%13.1%-1.4%
1 Year0.7%-1.8%-0.2%-2.7%-7.7%-10.9%
3 Year43.5%33.0%41.9%31.4%16.2%1.3%
5 Year116.4%92.0%112.4%87.9%37.8%9.6%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

24.8%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: BAP (A$6.93) is trading below our estimate of fair value (A$9.22)

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


Price To Earnings Ratio

PE vs Industry: BAP is poor value based on its PE Ratio (25.7x) compared to the XX Retail Distributors industry average (17.7x).

PE vs Market: BAP is poor value based on its PE Ratio (25.7x) compared to the Australian market (20x).


Price to Earnings Growth Ratio

PEG Ratio: BAP is poor value based on its PEG Ratio (1.9x)


Price to Book Ratio

PB vs Industry: BAP's PB Ratio (2.4x) is in line with the AU Retail Distributors industry average.


Next Steps

Future Growth

How is Bapcor forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?

13.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: BAP's forecast earnings growth (13.8% per year) is above the savings rate (2.3%).

Earnings vs Market: BAP's earnings (13.8% per year) are forecast to grow slower than the Australian market (17.3% per year).

High Growth Earnings: BAP's earnings are forecast to grow, but not significantly.

Revenue vs Market: BAP's revenue (6.3% per year) is forecast to grow faster than the Australian market (4.5% per year).

High Growth Revenue: BAP's revenue (6.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: BAP's Return on Equity is forecast to be low in 3 years time (11.5%).


Next Steps

Past Performance

How has Bapcor performed over the past 5 years?

24.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: BAP has high quality earnings.

Growing Profit Margin: BAP's current net profit margins (5.4%) are lower than last year (7.5%).


Past Earnings Growth Analysis

Earnings Trend: BAP's earnings have grown significantly by 24.1% per year over the past 5 years.

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

Earnings vs Industry: BAP had negative earnings growth (-18.4%) over the past year, making it difficult to compare to the Retail Distributors industry average (-0.5%).


Return on Equity

High ROE: BAP's Return on Equity (8%) is considered low.


Next Steps

Financial Health

How is Bapcor's financial position?


Financial Position Analysis

Short Term Liabilities: BAP's short term assets (A$653.8M) exceed its short term liabilities (A$329.4M).

Long Term Liabilities: BAP's short term assets (A$653.8M) exceed its long term liabilities (A$368.5M).


Debt to Equity History and Analysis

Debt Level: BAP's debt to equity ratio (23.3%) is considered satisfactory.

Reducing Debt: BAP's debt to equity ratio has increased from 1.1% to 23.3% over the past 5 years.

Debt Coverage: BAP's debt is well covered by operating cash flow (87.4%).

Interest Coverage: BAP's interest payments on its debt are well covered by EBIT (7x coverage).


Balance Sheet


Next Steps

Dividend

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

2.53%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: BAP's dividend (2.53%) is higher than the bottom 25% of dividend payers in the Australian market (2.34%).

High Dividend: BAP's dividend (2.53%) is low compared to the top 25% of dividend payers in the Australian market (5.7%).


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, BAP has been paying a dividend for less than 10 years.

Growing Dividend: BAP's dividend payments have increased, but the company has only paid a dividend for 6 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (64.9%), BAP's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: BAP's dividends in 3 years are forecast to be covered by earnings (54.4% payout ratio).


Next Steps

Management

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

1.7yrs

Average management tenure


CEO

Darryl Abotomey (64 yo)

9yrs

Tenure

AU$2,833,824

Compensation

Mr. Darryl G. Abotomey, BCom, FCPA, MAICD, has been the Chief Executive Officer and Managing Director of Bapcor Limited since October 2011. Mr. Abotomey has been the Chief Executive Officer and Managing Di ...


CEO Compensation Analysis

Compensation vs Market: Darryl's total compensation ($USD2.03M) is above average for companies of similar size in the Australian market ($USD1.42M).

Compensation vs Earnings: Darryl's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Darryl Abotomey
MD, CEO & Director9yrsAU$2.83m0.42%
A$ 9.7m
Jeff Nicol
Chief Operating Officer1.25yrsAU$651.75kno data
Alison Laing
Executive General Manager of Human Resources3.42yrsAU$669.85kno data
Craig Magill
Executive General Manager of Trade1.75yrsAU$1.09m0.13%
A$ 3.0m
Mathew Cooper
Executive General Manager of Specialist Wholesale Group – Mechanicalno dataAU$870.23k0.0081%
A$ 186.9k
Martin Storey
Executive General Manager - Bapcor New Zealand2yrsAU$729.61kno data
Tim Cockayne
Executive General Manager of Retail1.5yrsAU$720.57kno data
Steve Drummy
Executive General Manager of Specialist Wholesale Group - Engine Management1.67yrsAU$690.33kno data
Noel Meehan
CFO & Company Secretary0.25yrno datano data
Scott Elliott
Executive General Manager of Strategic Development & Investor Relations0.25yrno datano data

1.7yrs

Average Tenure

Experienced Management: BAP's management team is not considered experienced ( 1.7 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Darryl Abotomey
MD, CEO & Director9yrsAU$2.83m0.42%
A$ 9.7m
Mark Powell
Independent Non-Executive Director0.083yrno datano data
James Scott Todd
Independent Non-Executive Director0.083yrno data0.0029%
A$ 68.0k
Andrew Harrison
Independent Non-Executive Chairman2.5yrsAU$270.02k0.025%
A$ 579.8k
Jennifer Mitchell MacDonald
Independent Non–Executive Director2.08yrsAU$137.04k0.0069%
A$ 158.6k
Margaret Haseltine
Independent Non-Executive Director4.42yrsAU$127.47k0.012%
A$ 270.6k
Therese Ryan
Independent Non-Executive Director6.58yrsAU$137.04k0.012%
A$ 273.3k

2.5yrs

Average Tenure

Experienced Board: BAP's board of directors are not considered experienced ( 2.5 years average tenure), which suggests a new board.


Ownership

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


Insider Trading Volume

Insider Buying: BAP insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 19.3%.


Top Shareholders

Company Information

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


Key Information

  • Name: Bapcor Limited
  • Ticker: BAP
  • Exchange: ASX
  • Founded: 1971
  • Industry: Distributors
  • Sector: Retail
  • Market Cap: AU$2.305b
  • Shares outstanding: 339.41m
  • Website: https://www.bapcor.com.au

Number of Employees


Location

  • Bapcor Limited
  • 61 Gower Street
  • Preston
  • Victoria
  • 3072
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
BAPASX (Australian Securities Exchange)YesOrdinary SharesAUAUDApr 2014
BAPCHIA (Chi-X Australia)YesOrdinary SharesAUAUDApr 2014
0BSDB (Deutsche Boerse AG)YesOrdinary SharesDEEURApr 2014

Biography

Bapcor Limited sells and distributes automotive aftermarket parts, accessories, equipment, and services in Australia, New Zealand, and Thailand. The company operates in four segments: Trade, Bapcor NZ, Spe ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/01 10:41
End of Day Share Price2020/10/01 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.