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.

Risks

  • Baby Bunting Group has significant price volatility in the past 3 months.

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

17.9%

ASX:BBN

-0.03%

AU Specialty Retail

0.5%

AU Market


1 Year Return

51.1%

ASX:BBN

14.6%

AU Specialty Retail

6.3%

AU Market

BBN outperformed the Specialty Retail industry which returned 15.4% over the past year.

BBN outperformed the Market in Australia which returned 6.3% over the past year.


Share holder returns

BBNIndustryMarket
7 Day17.9%-0.03%0.5%
30 Day31.5%11.7%4.6%
90 Day57.8%16.4%2.1%
1 Year55.9%51.1%19.9%14.6%12.3%6.3%
3 Year31.4%19.1%15.7%1.0%41.4%22.4%
5 Yearn/a76.3%43.7%49.4%16.6%

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 based on future cash flows and its price relative to the stock market?

36.09x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

Baby Bunting Group's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).

Baby Bunting Group's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).


Price Based on Earnings

Baby Bunting Group is overvalued based on earnings compared to the AU Specialty Retail industry average.

Baby Bunting Group is overvalued based on earnings compared to the Australia market.


Price Based on Expected Growth

Unable to calculate PEG ratio for Baby Bunting Group, we can't assess if its growth is good value.


Price Based on Value of Assets

Baby Bunting Group is overvalued based on assets compared to the AU Specialty Retail industry average.


Next Steps

Future Growth

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

11.2%

Forecasted annual revenue growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Baby Bunting Group's revenue is expected to grow by 11.2% yearly, however this is not considered high growth (20% yearly).

Unable to determine if Baby Bunting Group is high growth as no earnings estimate data is available.

Baby Bunting Group's revenue growth is expected to exceed the Australia market average.

Unable to compare Baby Bunting Group's earnings growth to the Australia market average as no estimate data is available.

Unable to compare Baby Bunting Group's earnings growth to the low risk savings rate as no estimate data is available.


Earnings per Share Growth Estimates


Future Return on Equity

Baby Bunting Group is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).


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

Baby Bunting Group's year on year earnings growth rate has been positive over the past 5 years.

Baby Bunting Group's 1-year earnings growth exceeds its 5-year average (42.7% vs 15.2%)

Baby Bunting Group's earnings growth has exceeded the AU Specialty Retail industry average in the past year (42.7% vs -2.6%).


Return on Equity

Baby Bunting Group has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Baby Bunting Group used its assets more efficiently than the AU Specialty Retail industry average last year based on Return on Assets.


Return on Capital Employed

Baby Bunting Group has improved its use of capital last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Baby Bunting Group's financial position?


Financial Position Analysis

Baby Bunting Group is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Baby Bunting Group's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

Baby Bunting Group's level of debt (3.2%) compared to net worth is satisfactory (less than 40%).

The level of debt compared to net worth has been reduced over the past 5 years (13% vs 3.2% today).

Debt is well covered by operating cash flow (809.3%, greater than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 28.5x coverage).


Balance Sheet

High level of physical assets or inventory.

Debt is covered by short term assets, assets are 25.4x debt.


Next Steps

Dividend

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

3.76%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Baby Bunting Group's pays a higher dividend yield than the bottom 25% of dividend payers in Australia (2.44%).

Baby Bunting Group's dividend is below the markets top 25% of dividend payers in Australia (5.52%).

Baby Bunting Group has been paying a dividend for less than 10 years and during this time payments have been volatile (annual drop of over 20%).

Dividend payments have increased, but Baby Bunting Group only paid a dividend in the past 3 years.


Current Payout to Shareholders

Dividends paid are covered by earnings (1.2x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be covered by earnings (1.4x coverage).


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?

6.0yrs

Average management tenure


CEO

Matt Spencer 0

7.6yrs

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

Matt's remuneration is about average for companies of similar size in Australia.

Matt's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

6.0yrs

Average Tenure

The average tenure for the Baby Bunting Group management team is over 5 years, this suggests they are a seasoned and experienced team.


Board Age and Tenure

3.2yrs

Average Tenure

The tenure for the Baby Bunting Group board of directors is about average.


Insider Trading

More shares have been bought than sold by Baby Bunting Group individual insiders in the past 3 months.


Recent Insider Transactions

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
SellAU$679,24514 Aug 19
Yarra Funds Management Limited
EntityCompany
Shares301,821
Max PriceAU$2.25
BuyAU$560,55414 Aug 19
Yarra Funds Management Limited
EntityCompany
Shares241,565
Max PriceAU$2.32
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
BuyAU$2,512,29521 Feb 19
Colonial First State Asset Management (Australia) Limited
EntityCompany
Shares1,306,185
Max PriceAU$1.92
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$2,926,94513 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
BuyAU$4,320,51810 Oct 18
AustralianSuper Pty Ltd
EntityCompany
Shares1,807,748
Max PriceAU$2.39

Ownership Breakdown


Management Team

  • Matt Spencer

    CEO, MD & Director

    • Tenure: 7.6yrs
    • Compensation: AU$686.17k
  • Darin Hoekman

    CFO & Company Secretary

    • Tenure: 5.7yrs
    • Compensation: AU$395.88k
  • Corey Lewis

    Group Legal Counsel & Company Secretary

    • Tenure: 3.6yrs
  • Scott Teal

    General Manager of Merchandise & Marketing

    • Tenure: 6.3yrs
  • 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: 5.1yrs
    • Compensation: AU$80.00k
  • Gary Kent

    Independent Non-Executive Director

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

    Independent Non-Executive Chairman

    • Tenure: 2.8yrs
    • Compensation: AU$125.00k
  • Donna Player

    Independent Non-Executive Director

    • Tenure: 2.7yrs
    • Compensation: AU$70.00k
  • Matt Spencer

    CEO, MD & Director

    • Tenure: 7.6yrs
    • Compensation: AU$686.17k
  • Melanie Wilson

    Independent Non-Executive Director

    • Tenure: 3.6yrs
    • 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$433.693m
  • Shares outstanding: 126.44m
  • 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 Analysis2019/09/16 10:39
End of Day Share Price2019/09/16 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.