ASX:BCC

Stock Analysis Report

Beam Communications Holdings

Executive Summary

Beam Communications Holdings Limited designs, develops, manufactures, and distributes a range of satellite communication terminals, docking units, and handheld phone accessories.

Rewards

Trading at 77% below its fair value

Became profitable this year

Risk Analysis

Earnings have declined by -52.98% per year over past 5 years

Highly volatile share price over past 3 months

Shareholders have been diluted in the past year

Does not have a meaningful market cap (A$16M)



Snowflake Analysis

Flawless balance sheet and fair value.

Share Price & News

How has Beam Communications Holdings's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: BCC's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

4.8%

BCC

-2.2%

AU Communications

0.4%

AU Market


1 Year Return

n/a

BCC

8.5%

AU Communications

19.5%

AU Market

Return vs Industry: Insufficient data to determine how BCC performed against the Australian Communications industry.

Return vs Market: Insufficient data to determine how BCC performed against the Australian Market.


Shareholder returns

BCCIndustryMarket
7 Day4.8%-2.2%0.4%
30 Day38.3%-3.9%4.4%
90 Day30.0%-5.4%5.0%
1 Yearn/a10.4%8.5%24.9%19.5%
3 Year80.6%80.6%31.5%24.7%38.6%19.9%
5 Year150.0%150.0%46.1%31.5%60.0%24.0%

Price Volatility Vs. Market

How volatile is Beam Communications Holdings's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Beam Communications Holdings undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: BCC (A$0.3) is trading below our estimate of fair value (A$1.28)

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


Price To Earnings Ratio

PE vs Industry: BCC is poor value based on its PE Ratio (46x) compared to the Communications industry average (30x).

PE vs Market: BCC is poor value based on its PE Ratio (46x) compared to the Australian market (18.9x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate BCC's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: BCC is good value based on its PB Ratio (2x) compared to the AU Communications industry average (3.9x).


Next Steps

Future Growth

How is Beam Communications Holdings forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

21.0%

Forecasted Tech industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Beam Communications Holdings has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has Beam Communications Holdings performed over the past 5 years?

-53.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: BCC has high quality earnings.

Growing Profit Margin: BCC became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: BCC's earnings have declined by -53% per year over the past 5 years.

Accelerating Growth: BCC has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: BCC has become profitable in the last year, making it difficult to compare its past year earnings growth to the Communications industry (6.8%).


Return on Equity

High ROE: BCC's Return on Equity (4.4%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Beam Communications Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: BCC's short term assets (A$7.5M) exceed its short term liabilities (A$5.6M).

Long Term Liabilities: BCC's short term assets (A$7.5M) exceed its long term liabilities (A$674.4K).


Debt to Equity History and Analysis

Debt Level: BCC's debt to equity ratio (20.4%) is considered satisfactory.

Reducing Debt: BCC's debt to equity ratio has reduced from 389% to 20.4% over the past 5 years.

Debt Coverage: BCC's debt is well covered by operating cash flow (129.3%).

Interest Coverage: BCC's interest payments on its debt are well covered by EBIT (8.8x coverage).


Balance Sheet

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

Debt Coverage by Assets: BCC's debt is covered by short term assets (assets are 4.7x debt).


Next Steps

Dividend

What is Beam Communications Holdings's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%2.3%markettop25%5.5%industryaverage2.5%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate BCC's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate BCC's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if BCC's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if BCC's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of BCC's dividend in 3 years as they are not forecast to pay a notable one for the Australian market.


Next Steps

Management

What is the CEO of Beam Communications Holdings's salary, the management and board of directors tenure and is there insider trading?

11.8yrs

Average management tenure


CEO

Michael Capocchi (48yo)

11.8yrs

Tenure

AU$735,574

Compensation

Mr. Michael Ian Capocchi has been the Managing Director of World Reach Limited (formerly Tele Ip Ltd) since March 20, 2008 and serves as its Chief Executive Officer. Mr. Capocchi served as the Acting Chief ...


CEO Compensation Analysis

Compensation vs Market: Michael's total compensation ($USD507.64K) is above average for companies of similar size in the Australian market ($USD262.68K).

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


Management Age and Tenure

11.8yrs

Average Tenure

Experienced Management: BCC's management team is seasoned and experienced (11.8 years average tenure).


Board Age and Tenure

3.1yrs

Average Tenure

46.5yo

Average Age

Experienced Board: BCC's board of directors are considered experienced (3.1 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyAU$37,52517 Oct 19
David Paul Stewart
EntityIndividual
Role
Member of the Board of Directors
Non-Executive Director
Shares169,000
Max PriceAU$0.22
BuyAU$45,32517 Oct 19
David Paul Stewart
EntityIndividual
Role
Member of the Board of Directors
Non-Executive Director
Shares196,000
Max PriceAU$0.23
BuyAU$4,08610 Oct 19
Simon Wallace
EntityIndividual
Role
Chairman of the Board
Independent Non-Executive Chairman
Shares21,400
Max PriceAU$0.19
SellAU$958,33501 Aug 19
Cheung Hung
EntityIndividual
Role
Member of the Board of Directors
Non-Executive Director
Shares3,833,333
Max PriceAU$0.25

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 3.8%.


Management Team

  • Michael Capocchi (48yo)

    CEO, MD & Executive Director

    • Tenure: 11.8yrs
    • Compensation: AU$735.57k
  • D. Cooke

    Manager of Marketing & Business Solutions

    • Dennis Payne (70yo)

      CFO & Company Secretary

      • Tenure: 15yrs
      • Compensation: AU$198.03k
    • W. Christie

      Chief Technical Officer

      • Tenure: 5.4yrs
      • Compensation: AU$185.08k

    Board Members

    • David Paul Stewart (65yo)

      Non-Executive Director

      • Tenure: 2.2yrs
      • Compensation: AU$41.67k
    • Michael Capocchi (48yo)

      CEO, MD & Executive Director

      • Tenure: 11.8yrs
      • Compensation: AU$735.57k
    • Simon Wallace (45yo)

      Independent Non-Executive Chairman

      • Tenure: 3.1yrs
      • Compensation: AU$41.67k
    • Carl Hung (35yo)

      Non-Executive Director

      • Tenure: 6.9yrs
      • Compensation: AU$41.67k

    Company Information

    Beam Communications Holdings Limited's company bio, employee growth, exchange listings and data sources


    Key Information

    • Name: Beam Communications Holdings Limited
    • Ticker: BCC
    • Exchange: ASX
    • Founded: 1985
    • Industry: Communications Equipment
    • Sector: Tech
    • Market Cap: AU$17.184m
    • Shares outstanding: 52.87m
    • Website: https://www.beamcommunications.com

    Number of Employees


    Location

    • Beam Communications Holdings Limited
    • Unit 5/8 Anzed Court
    • Mulgrave
    • Victoria
    • 3170
    • Australia

    Listings

    TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
    BCCASX (Australian Securities Exchange)YesOrdinary SharesAUAUDAug 1994
    BCCCHIA (Chi-X Australia)YesOrdinary SharesAUAUDAug 1994

    Biography

    Beam Communications Holdings Limited designs, develops, manufactures, and distributes a range of satellite communication terminals, docking units, and handheld phone accessories. It also offers push-to-talk products, modems, antennas, and cables; gateways and cellular antennas; and data airtime services. In addition, the company sells its products through SatPhone Shop, an online store. It operates in Australia, the United States, the United Arab Emirates, the United Kingdom, China, Canada, Japan, and internationally. The company was formerly known as World Reach Limited and changed its name to Beam Communications Holdings Limited in November 2018. Beam Communications Holdings Limited was incorporated in 1985 and is based in Mulgrave, Australia. 


    Company Analysis and Financial Data Status

    All financial data provided by Standard & Poor's Capital IQ.
    DataLast Updated (UTC time)
    Company Analysis2020/01/25 10:35
    End of Day Share Price2020/01/24 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.