ASX:BBN

Stock Analysis Report

Baby Bunting Group

Executive Summary

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

Snowflake

Fundamentals

Flawless balance sheet with solid track record.


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


Market Performance


7 Day Return

-2.0%

BBN

-3.3%

AU Specialty Retail

0.7%

AU Market


1 Year Return

33.9%

BBN

20.0%

AU Specialty Retail

11.0%

AU Market

Return vs Industry: BBN exceeded the Australian Specialty Retail industry which returned 20% over the past year.

Return vs Market: BBN exceeded the Australian Market which returned 11% over the past year.


Shareholder returns

BBNIndustryMarket
7 Day-2.0%-3.3%0.7%
30 Day-4.2%2.2%-0.2%
90 Day48.5%16.1%-0.1%
1 Year38.1%33.9%25.5%20.0%17.4%11.0%
3 Year32.5%20.1%19.4%4.1%36.3%18.0%
5 Yearn/a84.3%50.1%51.4%17.3%

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?

9.3%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: BBN (A$3.4) is trading below our estimate of fair value (A$3.75)

Significantly Undervalued: 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 (34.6x) compared to the Specialty Retail industry average (15.5x).

PE vs Market: BBN is poor value based on its PE Ratio (34.6x) compared to the Australian market (17.7x).


Price to Earnings Growth Ratio

Low PEG Ratio: BBN is poor value based on its PEG Ratio (1.4x)


Price to Book Ratio

PB vs Industry: BBN is overvalued based on its PB Ratio (4.4x) compared to the AU Specialty Retail industry average (2.1x).


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?

25.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: BBN's forecast earnings growth (25.2% per year) is above the savings rate (2.3%).

Earnings vs Market: BBN's earnings (25.2% per year) are forecast to grow faster than the Australian market (10.2% per year).

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

Revenue vs Market: BBN's revenue (11.2% per year) is forecast to grow faster than the Australian market (3.6% per year).

High Growth Revenue: BBN's revenue (11.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: BBN's Return on Equity is forecast to be high in 3 years time (24%)


Next Steps

Past Performance

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

15.2%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: BBN's earnings have grown by 15.2% per year over the past 5 years.

Accelerating Growth: BBN's earnings growth over the past year (42.7%) exceeds its 5-year average (15.2% per year).

Earnings vs Industry: BBN earnings growth over the past year (42.7%) exceeded the Specialty Retail industry -2.1%.


Return on Equity

High ROE: BBN's Return on Equity (12.6%) is considered low.


Return on Assets

ROA vs Industry: BBN has a higher Return on Assets than the Specialty Retail industry average last year.


Return on Capital Employed

ROCE Improving: BBN has improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is Baby Bunting Group's financial position?


Financial Position Analysis

Short Term Liabilities: BBN's short term assets (A$79.7M) exceeds its short term liabilities (A$53.8M)

Long Term Liabilities: BBN's short term assets (79.7M) exceeds its long term liabilities (7.1M)


Debt to Equity History and Analysis

Debt Level: BBN's debt to equity ratio (3.2%) is considered satisfactory

Reducing Debt: BBN's debt to equity ratio has reduced from 13% to 3.2% over the past 5 years.

Debt Coverage: BBN's debt is well covered by operating cash flow (809.3%).

Interest Coverage: BBN's interest payments on its debt are well covered by EBIT (28.5x coverage).


Balance Sheet

Inventory Level: BBN has a high level of physical assets or inventory.

Debt Coverage by Assets: BBN's debt is covered by short term assets (assets are 25.423230x debt).


Next Steps

Dividend

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

3.00%

Current Dividend Yield


Dividend Yield vs Market

company3.0%marketbottom25%2.5%markettop25%5.6%industryaverage4.0%forecastin3Years4.0%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: BBN's dividend (3%) is higher than the bottom 25% of dividend payers in the Australian market (2.49%).

High Dividend: BBN's dividend (3%) is low compared to the top 25% of dividend payers in the Australian market (5.56%).

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 3 years.


Current Payout to Shareholders

Dividend Coverage: At its current payout ratio (85.4%), BBN's payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: BBN's dividends in 3 years are forecast to be covered by earnings (69.1% payout ratio).


Next Steps

Management

What is the CEO of Baby Bunting Group's salary, the management and board of directors tenure and is there insider trading?

6.1yrs

Average management tenure


CEO

Matt Spencer 0

7.7yrs

Tenure

AU$686,173

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 Director since April 23, 2012. 


CEO Compensation Analysis

Compensation vs. Market: Matt's total compensation ($USD463.98K) is about average for companies of similar size in the Australian market ($USD453.20K).

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


Management Age and Tenure

6.1yrs

Average Tenure

Experienced Management: BBN's management team is seasoned and experienced (6.1 years average tenure).


Board Age and Tenure

3.3yrs

Average Tenure

Experienced Board: BBN's board of directors are considered experienced (3.3 years average tenure).


Insider Trading

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


Recent Insider Transactions

SellAU$600,23523 Sep 19
Vinva Investment Management
EntityCompany
Shares198,486
Max PriceAU$3.02
BuyAU$21,214,59623 Sep 19
Vinva Investment Management
EntityCompany
Shares6,761,145
Max PriceAU$3.14
SellAU$896,38020 Sep 19
Morgan Stanley, Investment Banking and Brokerage Investments
EntityCompany
Shares322,942
Max PriceAU$2.78
BuyAU$3,748,38517 Sep 19
OC Funds Management Limited
EntityCompany
Shares1,689,096
Max PriceAU$2.73
SellAU$4,202,08216 Sep 19
Perennial Value Management Limited
EntityCompany
Shares1,288,319
Max PriceAU$3.35
BuyAU$3,49216 Sep 19
Perennial Value Management Limited
EntityCompany
Shares1,172
Max PriceAU$2.98
BuyAU$28,70009 Sep 19
Gary Kent
EntityIndividual
Role
Member of the Board of Directors
Independent Non-Executive Director
Shares10,000
Max PriceAU$2.87
BuyAU$296,86030 Aug 19
Matthew Spencer
EntityIndividual
Role
Chief Executive Officer
CEO, MD & Director
Shares100,000
Max PriceAU$2.97
BuyAU$14,85029 Aug 19
Gary Kent
EntityIndividual
Role
Member of the Board of Directors
Independent Non-Executive Director
Shares5,000
Max PriceAU$2.97
BuyAU$560,55414 Aug 19
Yarra Funds Management Limited
EntityCompany
Shares241,565
Max PriceAU$2.32
SellAU$679,24514 Aug 19
Yarra Funds Management Limited
EntityCompany
Shares301,821
Max PriceAU$2.25
BuyAU$1,259,07305 Aug 19
Realindex Investments Pty Limited
EntityCompany
Shares570,819
Max PriceAU$2.32
BuyAU$4,913,62026 Jun 19
Perennial Value Management Limited
EntityCompany
Shares2,260,439
Max PriceAU$2.26
SellAU$1,810,00926 Jun 19
Perennial Value Management Limited
EntityCompany
Shares750,764
Max PriceAU$2.41
SellAU$222,55606 Mar 19
Matthew Spencer
EntityIndividual
Role
Chief Executive Officer
CEO, MD & Director
Shares95,000
Max PriceAU$2.34
BuyAU$4,004,81825 Feb 19
Yarra Funds Management Limited
EntityCompany
Shares1,863,544
Max PriceAU$2.15
BuyAU$4,474,34221 Feb 19
Perennial Value Management Limited
EntityCompany
Shares2,053,369
Max PriceAU$2.20
SellAU$466,24621 Feb 19
Realindex Investments Pty Limited
EntityCompany
Shares224,705
Max PriceAU$2.07
SellAU$347,47121 Feb 19
Colonial First State Asset Management (Australia) Limited
EntityCompany
Shares164,904
Max PriceAU$2.11
BuyAU$722,14821 Feb 19
Realindex Investments Pty Limited
EntityCompany
Shares385,044
Max PriceAU$1.88
BuyAU$2,512,29521 Feb 19
Colonial First State Asset Management (Australia) Limited
EntityCompany
Shares1,306,185
Max PriceAU$1.92
BuyAU$2,926,94513 Dec 18
Perennial Value Management Limited
EntityCompany
Shares1,336,349
Max PriceAU$2.31
SellAU$229,00003 Dec 18
Matthew Spencer
EntityIndividual
Role
Chief Executive Officer
CEO, MD & Director
Shares100,000
Max PriceAU$2.29
BuyAU$7,201,91031 Oct 18
OC Funds Management Limited
EntityCompany
Shares3,981,559
Max PriceAU$2.20
BuyAU$15,399,09529 Oct 18
Perennial Value Management Limited
EntityCompany
Shares6,532,571
Max PriceAU$2.36

Ownership Breakdown


Management Team

  • Matt Spencer

    CEO, MD & Director

    • Tenure: 7.7yrs
    • Compensation: AU$686.17k
  • Darin Hoekman

    CFO & Company Secretary

    • Tenure: 5.8yrs
    • Compensation: AU$395.88k
  • Corey Lewis

    Group Legal Counsel & Company Secretary

    • Tenure: 3.7yrs
  • Scott Teal

    General Manager of Merchandise & Marketing

    • Tenure: 6.4yrs
  • Sandy Nikakis

    General Manager of Human Resources

    • Tenure: 0yrs
  • Michael Pane

    General Manager of Operations

    • Tenure: 0yrs

Board Members

  • Gary Levin (64yo)

    Independent Non-Executive Director

    • Tenure: 5.2yrs
    • Compensation: AU$80.00k
  • Gary Kent

    Independent Non-Executive Director

    • Tenure: 0.8yrs
  • Ian Cornell (64yo)

    Independent Non-Executive Chairman

    • Tenure: 2.9yrs
    • Compensation: AU$125.00k
  • Donna Player

    Independent Non-Executive Director

    • Tenure: 2.8yrs
    • Compensation: AU$70.00k
  • Matt Spencer

    CEO, MD & Director

    • Tenure: 7.7yrs
    • Compensation: AU$686.17k
  • Melanie Wilson

    Independent Non-Executive Director

    • Tenure: 3.7yrs
    • Compensation: AU$85.00k

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$426.731m
  • Shares outstanding: 126.63m
  • 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 Analysis2019/10/16 10:39
End of Day Share Price2019/10/16 00:00
Earnings2019/06/30
Annual Earnings2019/06/30


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.