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Baby Bunting Group

Executive Summary

Baby Bunting Group Limited operates as specialty retailer of baby goods in Australia. More Details


Snowflake Analysis

Flawless balance sheet with high growth potential.


Similar Companies

Share Price & News

How has Baby Bunting Group's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: BBN's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-0.7%

BBN

0.3%

AU Specialty Retail

1.2%

AU Market


1 Year Return

27.9%

BBN

0.2%

AU Specialty Retail

-10.3%

AU Market

Return vs Industry: BBN exceeded the Australian Specialty Retail industry which returned 0.2% over the past year.

Return vs Market: BBN exceeded the Australian Market which returned -10.3% over the past year.


Shareholder returns

BBNIndustryMarket
7 Day-0.7%0.3%1.2%
30 Day1.1%-1.9%-1.9%
90 Day41.0%21.4%4.8%
1 Year31.4%27.9%3.9%0.2%-7.1%-10.3%
3 Year168.1%145.4%66.1%45.6%18.6%3.3%
5 Yearn/a77.5%42.8%46.1%15.4%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

12.8%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: BBN (A$4.54) is trading below our estimate of fair value (A$5.2)

Significantly Below Fair Value: BBN is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: BBN is poor value based on its PE Ratio (57.9x) compared to the AU Specialty Retail industry average (18.7x).

PE vs Market: BBN is poor value based on its PE Ratio (57.9x) compared to the Australian market (20.2x).


Price to Earnings Growth Ratio

PEG Ratio: BBN is poor value based on its PEG Ratio (1.8x)


Price to Book Ratio

PB vs Industry: BBN is overvalued based on its PB Ratio (6.2x) compared to the AU Specialty Retail industry average (2.3x).


Next Steps

Future Growth

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

32.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: BBN's forecast earnings growth (32.3% per year) is above the savings rate (2.3%).

Earnings vs Market: BBN's earnings (32.3% per year) are forecast to grow faster than the Australian market (17.2% per year).

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

Revenue vs Market: BBN's revenue (9.7% per year) is forecast to grow faster than the Australian market (4.4% per year).

High Growth Revenue: BBN's revenue (9.7% 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 (27.5%)


Next Steps

Past Performance

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

9.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: BBN has a large one-off loss of A$5.8M impacting its June 28 2020 financial results.

Growing Profit Margin: BBN's current net profit margins (2.5%) are lower than last year (3.2%).


Past Earnings Growth Analysis

Earnings Trend: BBN's earnings have grown by 9.6% per year over the past 5 years.

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

Earnings vs Industry: BBN had negative earnings growth (-14.2%) over the past year, making it difficult to compare to the Specialty Retail industry average (-3.9%).


Return on Equity

High ROE: BBN's Return on Equity (10.7%) is considered low.


Next Steps

Financial Health

How is Baby Bunting Group's financial position?


Financial Position Analysis

Short Term Liabilities: BBN's short term assets (A$86.1M) exceed its short term liabilities (A$83.2M).

Long Term Liabilities: BBN's short term assets (A$86.1M) exceed its long term liabilities (A$81.6M).


Debt to Equity History and Analysis

Debt Level: BBN is debt free.

Reducing Debt: BBN has no debt compared to 5 years ago when its debt to equity ratio was 11%.

Debt Coverage: BBN has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: BBN has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet


Next Steps

Dividend

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

2.31%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: BBN's dividend (2.31%) isn’t notable compared to the bottom 25% of dividend payers in the Australian market (2.38%).

High Dividend: BBN's dividend (2.31%) is low compared to the top 25% of dividend payers in the Australian market (5.6%).


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 4 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (133.8%), 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 (69.2% payout ratio).


Next Steps

Management

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

7.0yrs

Average management tenure


CEO

Matt Spencer

8.58yrs

Tenure

AU$1,028,156

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 ($USD721.26K) is about average for companies of similar size in the Australian market ($USD720.16K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Matthew Spencer
CEO, MD & Executive Director8.58yrsAU$1.03m0.87%
A$ 5.0m
Darin Hoekman
CFO & Company Secretary6.67yrsAU$721.12k0.17%
A$ 969.3k
Michael Pane
General Manager of Operationsno datano datano data
Corey Lewis
Group Legal Counsel & Company Secretary4.58yrsno datano data
Scott Teal
General Manager of Merchandise & Marketing7.33yrsno datano data
Sandy Nikakis
General Manager of Human Resourcesno datano datano data

7.0yrs

Average Tenure

Experienced Management: BBN's management team is seasoned and experienced (7 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Matthew Spencer
CEO, MD & Executive Director8.58yrsAU$1.03m0.87%
A$ 5.0m
Gary Levin
Independent Non-Executive Director6.08yrsAU$95.00k0.16%
A$ 900.0k
Gary Kent
Independent Non-Executive Director1.75yrsAU$87.50k0.016%
A$ 90.0k
Ian Cornell
Independent Non-Executive Chairman3.83yrsAU$142.50k0.71%
A$ 4.0m
Donna Player
Independent Non-Executive Director3.67yrsAU$87.50k0.028%
A$ 162.0k
Melanie Wilson
Independent Non-Executive Director4.58yrsAU$102.50k0.016%
A$ 90.0k

4.2yrs

Average Tenure

Experienced Board: BBN's board of directors are considered experienced (4.2 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: BBN insiders have only sold shares 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

Baby Bunting Group Limited's company bio, 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
  • Market Cap: AU$574.045m
  • Shares outstanding: 127.57m
  • Website: https://www.babybuntingcorporate.com.au

Number of Employees


Location

  • Baby Bunting Group Limited
  • 955 Taylors Road
  • Dandenong South
  • Victoria
  • 3175
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
BBNASX (Australian Securities Exchange)YesOrdinary SharesAUAUDOct 2015
BBNCHIA (Chi-X Australia)YesOrdinary SharesAUAUDOct 2015
B14DB (Deutsche Boerse AG)YesOrdinary SharesDEEUROct 2015

Biography

Baby Bunting Group Limited operates as specialty retailer of baby goods in Australia. The company’s principal product categories include prams, cots and nursery furniture, car safety, toys, babywear, feedi ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/09/28 10:36
End of Day Share Price2020/09/28 00:00
Earnings2020/06/28
Annual Earnings2020/06/28


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.