ASX:BVS

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Bravura Solutions

Market Cap

AU$865.8m

Last Updated

2021/06/22 15:44 UTC

Data Sources

Company Financials +

Executive Summary

Bravura Solutions Limited engages in the development, licensing, and maintenance of administration and management software applications for the wealth management and funds administration sectors in Australia, New Zealand, the United Kingdom, and internationally. More Details


Snowflake Analysis

Flawless balance sheet and fair value.


Similar Companies

Share Price & News

How has Bravura Solutions's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: BVS is not significantly more volatile than the rest of Australian stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: BVS's weekly volatility (6%) has been stable over the past year.


Market Performance


7 Day Return

-7.2%

BVS

1.1%

AU Software

-0.7%

AU Market


1 Year Return

-18.6%

BVS

38.0%

AU Software

26.8%

AU Market

Return vs Industry: BVS underperformed the Australian Software industry which returned 38% over the past year.

Return vs Market: BVS underperformed the Australian Market which returned 26.8% over the past year.


Shareholder returns

BVSIndustryMarket
7 Day-7.2%1.1%-0.7%
30 Day8.0%10.9%4.0%
90 Day31.6%10.0%7.6%
1 Year-16.5%-18.6%39.1%38.0%31.0%26.8%
3 Year17.9%10.1%99.7%93.9%34.0%17.9%
5 Yearn/a248.5%226.5%73.0%41.2%

Long-Term Price Volatility Vs. Market

How volatile is Bravura Solutions's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Bravura Solutions undervalued compared to its fair value and its price relative to the market?

8.4%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: BVS (A$3.5) is trading below our estimate of fair value (A$3.82)

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


Price To Earnings Ratio

PE vs Industry: BVS is good value based on its PE Ratio (29.2x) compared to the Australian Software industry average (30.2x).

PE vs Market: BVS is poor value based on its PE Ratio (29.2x) compared to the Australian market (20.4x).


Price to Earnings Growth Ratio

PEG Ratio: BVS is poor value based on its PEG Ratio (1.9x)


Price to Book Ratio

PB vs Industry: BVS is good value based on its PB Ratio (2.8x) compared to the AU Software industry average (4.8x).


Future Growth

How is Bravura Solutions forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

15.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: BVS's forecast earnings growth (15.3% per year) is above the savings rate (1.9%).

Earnings vs Market: BVS's earnings (15.3% per year) are forecast to grow faster than the Australian market (13.7% per year).

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

Revenue vs Market: BVS's revenue (7.3% per year) is forecast to grow faster than the Australian market (5.4% per year).

High Growth Revenue: BVS's revenue (7.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: BVS's Return on Equity is forecast to be low in 3 years time (12.9%).


Past Performance

How has Bravura Solutions performed over the past 5 years?

38.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: BVS has high quality earnings.

Growing Profit Margin: BVS's current net profit margins (11.5%) are lower than last year (13.6%).


Past Earnings Growth Analysis

Earnings Trend: BVS has become profitable over the past 5 years, growing earnings by 38.6% per year.

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

Earnings vs Industry: BVS had negative earnings growth (-19.1%) over the past year, making it difficult to compare to the Software industry average (32.9%).


Return on Equity

High ROE: BVS's Return on Equity (9.6%) is considered low.


Financial Health

How is Bravura Solutions's financial position?


Financial Position Analysis

Short Term Liabilities: BVS's short term assets (A$130.9M) exceed its short term liabilities (A$77.3M).

Long Term Liabilities: BVS's short term assets (A$130.9M) exceed its long term liabilities (A$52.9M).


Debt to Equity History and Analysis

Debt Level: BVS is debt free.

Reducing Debt: BVS currently has no debt however we can't compare to 5 years ago as we have no data for that period.

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

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


Balance Sheet


Dividend

What is Bravura Solutions's current dividend yield, its reliability and sustainability?

2.31%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: BVS's dividend (2.31%) is higher than the bottom 25% of dividend payers in the Australian market (1.99%).

High Dividend: BVS's dividend (2.31%) is low compared to the top 25% of dividend payers in the Australian market (5%).


Stability and Growth of Payments

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

Growing Dividend: BVS's dividend payments have increased, but the company has only paid a dividend for 4 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (67.6%), BVS's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: BVS's dividends in 3 years are forecast to be covered by earnings (75.3% payout ratio).


Next Steps

Management

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

4.6yrs

Average management tenure


CEO

Tony Klim

10.08yrs

Tenure

AU$1,831,290

Compensation

Mr. Anthony Brian Klim, BSc. Hons (Physics) also known as Tony, has been the Chief Executive Officer of Bravura Solutions Limited since May 18, 2011 and its Managing Director and Director since June 30, 20...


CEO Compensation Analysis

Compensation vs Market: Tony's total compensation ($USD1.37M) is above average for companies of similar size in the Australian market ($USD870.64K).

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


Leadership Team

Experienced Management: BVS's management team is considered experienced (4.6 years average tenure).


Board Members

Experienced Board: BVS's board of directors are considered experienced (5.1 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.


Top Shareholders

Company Information

Bravura Solutions Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Bravura Solutions Limited
  • Ticker: BVS
  • Exchange: ASX
  • Founded: 2004
  • Industry: Application Software
  • Sector: Software
  • Market Cap: AU$865.766m
  • Shares outstanding: 247.36m
  • Website: https://bravurasolutions.com

Number of Employees


Location

  • Bravura Solutions Limited
  • 345 George Street
  • Level 6
  • Sydney
  • New South Wales
  • 2000
  • Australia

Listings


Biography

Bravura Solutions Limited engages in the development, licensing, and maintenance of administration and management software applications for the wealth management and funds administration sectors in Austral...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/06/22 15:44
End of Day Share Price2021/06/22 00:00
Earnings2020/12/31
Annual Earnings2020/06/30


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.