company background image
BBN

Baby Bunting GroupASX:BBN Stock Report

Last Price

AU$5.30

Market Cap

AU$701.8m

7D

0.6%

1Y

-1.5%

Updated

23 Jan, 2022

Data

Company Financials +
BBN fundamental analysis
Snowflake Score
Valuation2/6
Future Growth5/6
Past Performance4/6
Financial Health4/6
Dividends2/6

BBN Stock Overview

Baby Bunting Group Limited, together with its subsidiaries, operates as specialty retailer of maternity and baby goods in Australia.

Baby Bunting Group Competitors

Michael Hill International

ASX:MHJ

AU$522.2m

Wesfarmers

ASX:WES

AU$60.2b

Coles Group

ASX:COL

AU$21.6b

Harvey Norman Holdings

ASX:HVN

AU$6.3b

Price History & Performance

Summary of all time highs, changes and price drops for Baby Bunting Group
Historical stock prices
Current Share PriceAU$5.30
52 Week HighAU$6.65
52 Week LowAU$4.87
Beta0.80
1 Month Change-4.51%
3 Month Change-7.83%
1 Year Change-1.49%
3 Year Change151.19%
5 Year Change130.44%
Change since IPO189.62%

Recent News & Updates

Aug 15
Baby Bunting Group's (ASX:BBN) Upcoming Dividend Will Be Larger Than Last Year's

Baby Bunting Group's (ASX:BBN) Upcoming Dividend Will Be Larger Than Last Year's

Baby Bunting Group Limited's ( ASX:BBN ) dividend will be increasing to AU$0.083 on 10th of September. This takes the...

Jun 10
We Think Baby Bunting Group (ASX:BBN) Can Manage Its Debt With Ease

We Think Baby Bunting Group (ASX:BBN) Can Manage Its Debt With Ease

Legendary fund manager Li Lu (who Charlie Munger backed) once said, 'The biggest investment risk is not the volatility...

May 30
Is There Now An Opportunity In Baby Bunting Group Limited (ASX:BBN)?

Is There Now An Opportunity In Baby Bunting Group Limited (ASX:BBN)?

Baby Bunting Group Limited ( ASX:BBN ), is not the largest company out there, but it received a lot of attention from a...

May 19
Here's Why I Think Baby Bunting Group (ASX:BBN) Is An Interesting Stock

Here's Why I Think Baby Bunting Group (ASX:BBN) Is An Interesting Stock

It's only natural that many investors, especially those who are new to the game, prefer to buy shares in 'sexy' stocks...

Mar 30
Baby Bunting Group (ASX:BBN) Is Looking To Continue Growing Its Returns On Capital

Baby Bunting Group (ASX:BBN) Is Looking To Continue Growing Its Returns On Capital

If we want to find a stock that could multiply over the long term, what are the underlying trends we should look for...

Shareholder Returns

BBNAU Specialty RetailAU Market
7D0.6%-0.3%-2.8%
1Y-1.5%7.7%5.8%

Return vs Industry: BBN underperformed the Australian Specialty Retail industry which returned 7.7% over the past year.

Return vs Market: BBN underperformed the Australian Market which returned 5.8% over the past year.

Price Volatility

Is BBN's price volatile compared to industry and market?
BBN volatility
BBN Average Weekly Movement3.2%
Specialty Retail Industry Average Movement5.5%
Market Average Movement8.6%
10% most volatile stocks in AU Market15.4%
10% least volatile stocks in AU Market3.7%

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

Volatility Over Time: BBN's weekly volatility (3%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
19791,383Matt Spencerhttps://www.babybunting.com.au

Baby Bunting Group Limited, together with its subsidiaries, operates as specialty retailer of maternity and baby goods in Australia. The company’s principal product categories include prams, cots and nursery furniture, car safety, toys, babywear, feeding, nappies, and Manchester and associated accessories. Its products primarily cater to parents with children from newborn to three years of age, and parents-to-be.

Baby Bunting Group Fundamentals Summary

How do Baby Bunting Group's earnings and revenue compare to its market cap?
BBN fundamental statistics
Market CapAU$701.85m
Earnings (TTM)AU$17.53m
Revenue (TTM)AU$468.38m

40.0x

P/E Ratio

1.5x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
BBN income statement (TTM)
RevenueAU$468.38m
Cost of RevenueAU$294.71m
Gross ProfitAU$173.67m
ExpensesAU$156.13m
EarningsAU$17.53m

Last Reported Earnings

Jun 27, 2021

Next Earnings Date

Feb 11, 2022

Earnings per share (EPS)0.13
Gross Margin37.08%
Net Profit Margin3.74%
Debt/Equity Ratio9.2%

How did BBN perform over the long term?

See historical performance and comparison

Dividends

2.7%

Current Dividend Yield

104%

Payout Ratio

Valuation

Is Baby Bunting Group undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: BBN (A$5.3) is trading below our estimate of fair value (A$10.96)

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


Price To Earnings Ratio

PE vs Industry: BBN is poor value based on its PE Ratio (40x) compared to the Australian Specialty Retail industry average (11.2x).

PE vs Market: BBN is poor value based on its PE Ratio (40x) compared to the Australian market (18.6x).


Price to Earnings Growth Ratio

PEG Ratio: BBN is poor value based on its PEG Ratio (1.5x)


Price to Book Ratio

PB vs Industry: BBN is overvalued based on its PB Ratio (6.5x) compared to the AU Specialty Retail industry average (3.5x).


Future Growth

How is Baby Bunting Group forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

26.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: BBN's forecast earnings growth (26.1% per year) is above the savings rate (1.9%).

Earnings vs Market: BBN's earnings (26.1% per year) are forecast to grow faster than the Australian market (10.9% per year).

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

Revenue vs Market: BBN's revenue (10.5% per year) is forecast to grow faster than the Australian market (4.9% per year).

High Growth Revenue: BBN's revenue (10.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: BBN's Return on Equity is forecast to be high in 3 years time (30.3%)


Past Performance

How has Baby Bunting Group performed over the past 5 years?

6.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: BBN has high quality earnings.

Growing Profit Margin: BBN's current net profit margins (3.7%) are higher than last year (2.5%).


Past Earnings Growth Analysis

Earnings Trend: BBN's earnings have grown by 6.7% per year over the past 5 years.

Accelerating Growth: BBN's earnings growth over the past year (75.4%) exceeds its 5-year average (6.7% per year).

Earnings vs Industry: BBN earnings growth over the past year (75.4%) underperformed the Specialty Retail industry 91.8%.


Return on Equity

High ROE: BBN's Return on Equity (16.3%) is considered low.


Financial Health

How is Baby Bunting Group's financial position?


Financial Position Analysis

Short Term Liabilities: BBN's short term assets (A$100.8M) exceed its short term liabilities (A$83.2M).

Long Term Liabilities: BBN's short term assets (A$100.8M) do not cover its long term liabilities (A$110.4M).


Debt to Equity History and Analysis

Debt Level: BBN has more cash than its total debt.

Reducing Debt: Insufficient data to determine if BBN's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: BBN's debt is well covered by operating cash flow (371%).

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


Balance Sheet


Dividend

What is Baby Bunting Group current dividend yield, its reliability and sustainability?

2.66%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: BBN's dividend (2.66%) is higher than the bottom 25% of dividend payers in the Australian market (2.25%).

High Dividend: BBN's dividend (2.66%) is low compared to the top 25% of dividend payers in the Australian market (5.56%).


Stability and Growth of Payments

Stable Dividend: BBN has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: BBN's dividend payments have increased, but the company has only paid a dividend for 5 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (103.5%), BBN's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: BBN's dividends in 3 years are forecast to be covered by earnings (71.7% payout ratio).


Next Steps

Management

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

8.3yrs

Average management tenure


CEO

Matt Spencer

9.92yrs

Tenure

AU$2,770,667

Compensation

Mr. Matthew Spencer, also known as Matt, has been the Chief Executive Officer and Managing Director of Baby Bunting Group Limited since February 2012 and has been its Executive Director since April 23, 201...


CEO Compensation Analysis

Compensation vs Market: Matt's total compensation ($USD2.00M) is above average for companies of similar size in the Australian market ($USD745.23K).

Compensation vs Earnings: Matt's compensation has increased by more than 20% in the past year.


Leadership Team

Experienced Management: BBN's management team is seasoned and experienced (8.3 years average tenure).


Board Members

Experienced Board: BBN's board of directors are considered experienced (5 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 been diluted in the past year, with total shares outstanding growing by 2.5%.


Top Shareholders

Company Information

Baby Bunting Group Limited's employee growth, exchange listings and data sources


Key Information

  • Name: Baby Bunting Group Limited
  • Ticker: BBN
  • Exchange: ASX
  • Founded: 1979
  • Industry: Specialty Stores
  • Sector: Retail
  • Implied Market Cap: AU$701.848m
  • Shares outstanding: 132.42m
  • Website: https://www.babybunting.com.au

Number of Employees


Location

  • Baby Bunting Group Limited
  • 153 National Drive
  • Dandenong
  • Victoria
  • 3175
  • Australia

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/01/23 07:02
End of Day Share Price2022/01/21 00:00
Earnings2021/06/27
Annual Earnings2021/06/27


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.