ASX:BVS

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Bravura Solutions

Executive Summary

Bravura Solutions Limited provides enterprise software and software-as-a-service (SaaS) to the wealth management, life insurance, and funds administration markets in Australia, New Zealand, the United Kingdom, and internationally.


Snowflake Analysis

Flawless balance sheet with proven track record.


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's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

0.4%

BVS

1.0%

AU Software

3.8%

AU Market


1 Year Return

-14.2%

BVS

7.7%

AU Software

-8.5%

AU Market

Return vs Industry: BVS underperformed the Australian Software industry which returned 6.1% over the past year.

Return vs Market: BVS underperformed the Australian Market which returned -10.6% over the past year.


Shareholder returns

BVSIndustryMarket
7 Day0.4%1.0%3.8%
30 Day6.6%10.4%12.0%
90 Day8.5%8.6%-8.6%
1 Year-12.2%-14.2%8.6%7.7%-4.7%-8.5%
3 Year280.3%246.4%110.7%101.9%13.4%-1.6%
5 Yearn/a128.3%112.9%30.8%2.5%

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?

31.19x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: BVS (A$4.85) is trading above our estimate of fair value (A$2.06)

Significantly Below Fair Value: BVS is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: BVS is good value based on its PE Ratio (31.2x) compared to the Software industry average (32.7x).

PE vs Market: BVS is poor value based on its PE Ratio (31.2x) compared to the Australian market (15.5x).


Price to Earnings Growth Ratio

PEG Ratio: BVS is poor value based on its PEG Ratio (2.5x)


Price to Book Ratio

PB vs Industry: BVS is overvalued based on its PB Ratio (3.9x) compared to the AU Software industry average (3.4x).


Next Steps

Future Growth

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

12.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: BVS's forecast earnings growth (12.5% per year) is above the savings rate (2.3%).

Earnings vs Market: BVS's earnings (12.5% per year) are forecast to grow slower than the Australian market (15% per year).

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

Revenue vs Market: BVS's revenue (9.5% per year) is forecast to grow faster than the Australian market (4.3% per year).

High Growth Revenue: BVS's revenue (9.5% 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 (14.6%).


Next Steps

Past Performance

How has Bravura Solutions performed over the past 5 years?

79.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: BVS has high quality earnings.

Growing Profit Margin: BVS's current net profit margins (13.6%) are higher than last year (11.8%).


Past Earnings Growth Analysis

Earnings Trend: BVS has become profitable over the past 5 years, growing earnings by 79.5% per year.

Accelerating Growth: BVS's earnings growth over the past year (24.5%) is below its 5-year average (79.5% per year).

Earnings vs Industry: BVS earnings growth over the past year (24.5%) exceeded the Software industry 18.6%.


Return on Equity

High ROE: BVS's Return on Equity (11.9%) is considered low.


Next Steps

Financial Health

How is Bravura Solutions's financial position?


Financial Position Analysis

Short Term Liabilities: BVS's short term assets (A$165.9M) exceed its short term liabilities (A$74.2M).

Long Term Liabilities: BVS's short term assets (A$165.9M) exceed its long term liabilities (A$56.4M).


Debt to Equity History and Analysis

Debt Level: BVS is debt free.

Reducing Debt: BVS has no debt compared to 5 years ago when its debt to equity ratio was 374.5%.

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


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Dividend

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

2.12%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: BVS's dividend (2.12%) isn’t notable compared to the bottom 25% of dividend payers in the Australian market (2.6%).

High Dividend: BVS's dividend (2.12%) is low compared to the top 25% of dividend payers in the Australian market (6.75%).


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, BVS has been paying a dividend for less than 10 years.

Growing Dividend: BVS's dividend payments have increased, but the company has only paid a dividend for 3 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (66.2%), 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 (66.6% payout ratio).


Next Steps

Management

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

5.6yrs

Average management tenure


CEO

Tony Klim

9yrs

Tenure

AU$1,558,406

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 has been its Managing Director since June 30, 2011. ...


CEO Compensation Analysis

Compensation vs Market: Tony's total compensation ($USD1.03M) is about average for companies of similar size in the Australian market ($USD1.01M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Anthony Klim
CEO, MD & Director9yrsAU$1.56m0.49% A$5.8m
Martin Deda
CFO, Company Secretary & Executive Director5.58yrsAU$803.32k0.23% A$2.8m
Nick Parsons
Global Chief Technology Officerno dataAU$955.86k0.47% A$5.6m
Terry McCann
Chief Information Officer5.75yrsno datano data
Rahul Badethalav
Head of Strategyno datano datano data
Nigel Liddell
General Counsel & Joint Company Secretaryno datano datano data
Paul Dunn
Clients Relations and Sales Director1.33yrsno datano data
Richard Laidlaw
Global Head of HR1.17yrsno datano data
Arnold Marais
Head of Service Delivery -NZno datano datano data
Jason Martin
Head of Product - Talismanno datano datano data

5.6yrs

Average Tenure

Experienced Management: BVS's management team is seasoned and experienced (5.6 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Anthony Klim
CEO, MD & Director9yrsAU$1.56m0.49% A$5.8m
Martin Deda
CFO, Company Secretary & Executive Director5.58yrsAU$803.32k0.23% A$2.8m
Neil Broekhuizen
Independent Non-Executive Chairman0.75yrAU$117.85k0.088% A$1.0m
Peter Mann
Independent Non-Executive Director4.42yrsAU$109.68k0.012% A$141.0k
Alexa Henderson
Independent Non-Executive Director3.58yrsAU$103.72k0.029% A$344.3k
Libby Roy
Independent Non-Executive Directorno datano datano data

4.4yrs

Average Tenure

Experienced Board: BVS's board of directors are considered experienced (4.4 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$1.185b
  • Shares outstanding: 244.34m
  • Website: https://bravurasolutions.com

Number of Employees


Location

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

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
BRADB (Deutsche Boerse AG)YesOrdinary SharesDEEURNov 2016
BVSASX (Australian Securities Exchange)YesOrdinary SharesAUAUDNov 2016
BVSCHIA (Chi-X Australia)YesOrdinary SharesAUAUDNov 2016

Biography

Bravura Solutions Limited provides enterprise software and software-as-a-service (SaaS) to the wealth management, life insurance, and funds administration markets in Australia, New Zealand, the United Kingdom, and internationally. It operates through two segments, Wealth Management and Funds Administration. The company offers Sonata, a wealth management administration system that supports various business lines, including pensions and retirement savings, life insurance, investment, and wrap and platform; SonataWeb, a personalized front end portal for use across its business lines; Sonata Digital, a digital service that enhances customer experience; and ePASS, an online portal that provides online services for superannuation members and employers. It also provides SaaS solutions comprising Rufus Admin that offers funds administration functionality for transfer agents; Rufus Digital, which accommodates the needs of intermediaries and investors supporting the real-time, and integrated data and services; and Rufus Messaging, an automated STP messaging solution that connects third party message providers with Rufus Admin. In addition, the company offers enterprise funds administration platform, which supports the administration requirements of a range of investment vehicles that include UCITS compliant vehicles, which comprise SICAVS, OEICS, and other umbrella structures, as well as unit trusts, cash, constant, and variable NAV money market funds and investment trusts. Further, it provides professional services consisting of BPO partnering, consulting, data migration, implementation, software development, support, and training services; and managed application services. The company was formerly known as Bravura Solutions Holdings Pty Ltd and changed its name to Bravura Solutions Limited on October 13, 2016. Bravura Solutions Limited was founded in 2004 and is headquartered in Sydney, Australia. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/05/31 10:56
End of Day Share Price2020/05/29 00:00
Earnings2019/12/31
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.