Beacon Lighting Group (ASX:BLX) - Share price, News & Analysis

Q: What is the Fair Price of BLX when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

BLX (A$2.34) is trading below our estimate of [[fair value]] (A$4.65)

BLX fundamental analysis
Snowflake Score
Valuation	3/6
Future Growth	3/6
Past Performance	5/6
Financial Health	6/6
Dividends	3/6

BLX Stock Overview

Beacon Lighting Group Limited retails lighting products in Australia and internationally.

Rewards

Trading at 49.7% below our estimate of its fair value

Earnings are forecast to grow 3.21% per year

Earnings have grown 18.4% per year over the past 5 years

Risk Analysis

Unstable dividend track record

Beacon Lighting Group Competitors

Autosports Group

ASX:ASG

AU$413.7m

Peter Warren Automotive Holdings

ASX:PWR

AU$430.9m

Baby Bunting Group

ASX:BBN

AU$646.4m

Adairs

ASX:ADH

AU$421.4m

Price History & Performance

Summary of all time highs, changes and price drops for Beacon Lighting Group
Historical stock prices
Current Share Price	AU$2.34
52 Week High	AU$3.39
52 Week Low	AU$1.66
Beta	1.41
1 Month Change	23.48%
3 Month Change	14.15%
1 Year Change	30.00%
3 Year Change	136.36%
5 Year Change	91.80%
Change since IPO	120.76%

Recent News & Updates

Jul 30

What Does Beacon Lighting Group Limited's (ASX:BLX) Share Price Indicate?

While Beacon Lighting Group Limited ( ASX:BLX ) might not be the most widely known stock at the moment, it saw a...

Jul 07

Beacon Lighting Group's (ASX:BLX) Returns On Capital Not Reflecting Well On The Business

What trends should we look for it we want to identify stocks that can multiply in value over the long term? Typically...

Jun 15

Here's Why Beacon Lighting Group (ASX:BLX) Can Manage Its Debt Responsibly

Warren Buffett famously said, 'Volatility is far from synonymous with risk.' So it seems the smart money knows that...

Shareholder Returns

	BLX	AU Specialty Retail	AU Market
7D	-0.4%	3.2%	1.1%
1Y	30.0%	-18.1%	-8.1%

Return vs Industry: BLX exceeded the Australian Specialty Retail industry which returned -18.1% over the past year.

Return vs Market: BLX exceeded the Australian Market which returned -8.1% over the past year.

Price Volatility

Is BLX's price volatile compared to industry and market?
BLX volatility
BLX Average Weekly Movement	8.2%
Specialty Retail Industry Average Movement	6.6%
Market Average Movement	10.5%
10% most volatile stocks in AU Market	17.8%
10% least volatile stocks in AU Market	4.7%

Stable Share Price: BLX is not significantly more volatile than the rest of Australian stocks over the past 3 months, typically moving +/- 8% a week.

Volatility Over Time: BLX's weekly volatility (8%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1967	1,100	Glen Robinson	https://www.beaconlightinggroup.com.au

Beacon Lighting Group Limited retails lighting products in Australia and internationally. The company designs, develops, sources, imports, distributes, merchandises, promotes, and sells light fittings, ceiling fans, and light globes, as well as energy products. It provides table and floor lamps, pendants, chandeliers, ceiling lights and fans, downlights, spotlights, bar lights, track lights, strips and cabinet lights, wall lights, bathroom lights, exteriors, LED lights, exhaust fans, bathroom heaters, wall fans, mammoth fans, air purifies, desk lights, garden lights, flush mounts, batten fixes, accessories, and solar panels.

Beacon Lighting Group Fundamentals Summary

How do Beacon Lighting Group's earnings and revenue compare to its market cap?
BLX fundamental statistics
Market Cap	AU$522.57m
Earnings (TTM)	AU$38.03m
Revenue (TTM)	AU$289.29m

13.7x

P/E Ratio

1.8x

P/S Ratio

Is BLX overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
BLX income statement (TTM)
Revenue	AU$289.29m
Cost of Revenue	AU$88.95m
Gross Profit	AU$200.35m
Other Expenses	AU$162.31m
Earnings	AU$38.03m

Last Reported Earnings

Dec 26, 2021

Next Earnings Date

Aug 18, 2022

Earnings per share (EPS)	0.17
Gross Margin	69.25%
Net Profit Margin	13.15%
Debt/Equity Ratio	16.8%

How did BLX perform over the long term?

See historical performance and comparison

Dividends

3.8%

Current Dividend Yield

52%

Payout Ratio

We’ve recently updated our valuation analysis.

Valuation

Is BLX undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for BLX?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for BLX. This is calculated by dividing BLX's market cap by their current preferred multiple.
What is BLX's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	AU$522.57m

BLX key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	2.2x
Enterprise Value/EBITDA	9.8x
PEG Ratio	4.3x

Price to Earnings Ratio vs Peers

How does BLX's PE Ratio compare to its peers?

BLX PE Ratio vs Peers

The above table shows the PE ratio for BLX vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	16.5x
ASG Autosports Group	9x	-6.0%	AU$413.7m
PWR Peter Warren Automotive Holdings	10.7x	-3.8%	AU$430.9m
BBN Baby Bunting Group	35.1x	27.8%	AU$646.4m
ADH Adairs	11.2x	14.5%	AU$421.4m
BLX Beacon Lighting Group	13.7x	3.2%	AU$522.6m

Price-To-Earnings vs Peers: BLX is good value based on its Price-To-Earnings Ratio (13.7x) compared to the peer average (16.5x).

Price to Earnings Ratio vs Industry

How does BLX's PE Ratio compare vs other companies in the AU Specialty Retail Industry?

Price-To-Earnings vs Industry: BLX is expensive based on its Price-To-Earnings Ratio (13.7x) compared to the Australian Specialty Retail industry average (10.5x)

Price to Earnings Ratio vs Fair Ratio

What is BLX's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

BLX PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	13.7x
Fair PE Ratio	12.9x

Price-To-Earnings vs Fair Ratio: BLX is expensive based on its Price-To-Earnings Ratio (13.7x) compared to the estimated Fair Price-To-Earnings Ratio (12.9x).

Share Price vs Fair Value

What is the Fair Price of BLX when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: BLX (A$2.34) is trading below our estimate of fair value (A$4.65)

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

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Target price is less than 20% higher than the current share price.

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Future Growth

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

Future Growth Score

3/6

Future Growth Score 3/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

3.2%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: BLX's forecast earnings growth (3.2% per year) is above the savings rate (1.8%).

Earnings vs Market: BLX's earnings (3.2% per year) are forecast to grow slower than the Australian market (6.2% per year).

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

Revenue vs Market: BLX's revenue (7.7% per year) is forecast to grow faster than the Australian market (5.8% per year).

High Growth Revenue: BLX's revenue (7.7% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: BLX's Return on Equity is forecast to be high in 3 years time (21.5%)

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Past Performance

How has Beacon Lighting Group performed over the past 5 years?

Past Performance Score

5/6

Past Performance Score 5/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

18.4%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: BLX has high quality earnings.

Growing Profit Margin: BLX's current net profit margins (13.1%) are higher than last year (11.3%).

Past Earnings Growth Analysis

Earnings Trend: BLX's earnings have grown by 18.4% per year over the past 5 years.

Accelerating Growth: BLX's earnings growth over the past year (20.1%) exceeds its 5-year average (18.4% per year).

Earnings vs Industry: BLX earnings growth over the past year (20.1%) underperformed the Specialty Retail industry 22.8%.

Return on Equity

High ROE: BLX's Return on Equity (30.6%) is considered high.

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Financial Health

How is Beacon Lighting Group's financial position?

Financial Health Score

6/6

Financial Health Score 6/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: BLX's short term assets (A$127.4M) exceed its short term liabilities (A$91.9M).

Long Term Liabilities: BLX's short term assets (A$127.4M) exceed its long term liabilities (A$102.4M).

Debt to Equity History and Analysis

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

Reducing Debt: BLX's debt to equity ratio has reduced from 35.6% to 16.8% over the past 5 years.

Debt Coverage: BLX's debt is well covered by operating cash flow (256.4%).

Interest Coverage: BLX's interest payments on its debt are well covered by EBIT (10.4x coverage).

Balance Sheet

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Dividend

What is Beacon Lighting Group current dividend yield, its reliability and sustainability?

Dividend Score

3/6

Dividend Score 3/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Cash Flow Coverage

3.80%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: BLX's dividend (3.8%) is higher than the bottom 25% of dividend payers in the Australian market (2.64%).

High Dividend: BLX's dividend (3.8%) is low compared to the top 25% of dividend payers in the Australian market (6.4%).

Stability and Growth of Payments

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

Growing Dividend: BLX's dividend payments have increased, but the company has only paid a dividend for 8 years.

Earnings Payout to Shareholders

Earnings Coverage: With its reasonable payout ratio (52.2%), BLX's dividend payments are covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: With its reasonably low cash payout ratio (46.2%), BLX's dividend payments are well covered by cash flows.

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Management

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

8.5yrs

Average board tenure

CEO

Glen Robinson (40 yo)

9.08yrs

Tenure

AU$681,290

Compensation

Mr. Glen Robinson has been the Chief Executive Officer at Beacon Lighting Group Limited since July 2013. Mr. Robinson has a strong understanding of all aspects of the business with a particular passion for...

CEO Compensation Analysis

Compensation vs Market: Glen's total compensation ($USD474.83K) is below average for companies of similar size in the Australian market ($USD771.05K).

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

Board Members

Experienced Board: BLX's board of directors are considered experienced (8.5 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 not been meaningfully diluted in the past year.

Data	Last Updated (UTC time)
Company Analysis	2022/08/10 00:00
End of Day Share Price	2022/08/10 00:00
Earnings	2021/12/26
Annual Earnings	2021/06/27