ENXTBR:BEKB

Stock Analysis Report

Executive Summary

NV Bekaert SA provides steel wire transformation and coating technologies worldwide.

Rewards

Trading at 18.5% below its fair value

Earnings are forecast to grow 33.53% per year

Risk Analysis

Has a high level of debt

Dividend of 2.7% is not well covered by earnings

Large one-off items impacting financial results

Profit margins (1%) are lower than last year (3.7%)



Snowflake Analysis

Adequate balance sheet with moderate growth potential.


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ArcelorMittal

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Share Price & News

How has NV Bekaert's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: BEKB has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

9.1%

BEKB

2.5%

BE Metals and Mining

0.06%

BE Market


1 Year Return

19.3%

BEKB

3.6%

BE Metals and Mining

12.1%

BE Market

Return vs Industry: BEKB exceeded the Belgian Metals and Mining industry which returned 3.6% over the past year.

Return vs Market: BEKB exceeded the Belgian Market which returned 12.1% over the past year.


Shareholder returns

BEKBIndustryMarket
7 Day9.1%2.5%0.06%
30 Day-6.6%0.4%0.04%
90 Day0.2%-0.4%-5.6%
1 Year22.0%19.3%10.9%3.6%14.5%12.1%
3 Year-28.4%-32.7%20.5%3.8%-0.6%-7.2%
5 Year10.0%-0.8%56.3%24.2%19.5%5.5%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is NV Bekaert undervalued compared to its fair value and its price relative to the market?

18.5%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: BEKB (€25.96) is trading below our estimate of fair value (€31.86)

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


Price To Earnings Ratio

PE vs Industry: BEKB is poor value based on its PE Ratio (33.7x) compared to the Metals and Mining industry average (9.9x).

PE vs Market: BEKB is poor value based on its PE Ratio (33.7x) compared to the Belgian market (16.7x).


Price to Earnings Growth Ratio

PEG Ratio: BEKB is poor value based on its PEG Ratio (1x)


Price to Book Ratio

PB vs Industry: BEKB is overvalued based on its PB Ratio (1x) compared to the XE Metals and Mining industry average (1x).


Next Steps

Future Growth

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

33.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: BEKB's forecast earnings growth (33.5% per year) is above the savings rate (0.7%).

Earnings vs Market: BEKB's earnings (33.5% per year) are forecast to grow faster than the Belgian market (8% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: BEKB's revenue (1.7% per year) is forecast to grow slower than the Belgian market (4.3% per year).

High Growth Revenue: BEKB's revenue (1.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: BEKB's Return on Equity is forecast to be low in 3 years time (12.1%).


Next Steps

Past Performance

How has NV Bekaert performed over the past 5 years?

4.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: BEKB has a large one-off loss of €64.8M impacting its June 30 2019 financial results.

Growing Profit Margin: BEKB's current net profit margins (1%) are lower than last year (3.7%).


Past Earnings Growth Analysis

Earnings Trend: BEKB's earnings have grown by 4.2% per year over the past 5 years.

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

Earnings vs Industry: BEKB had negative earnings growth (-71.4%) over the past year, making it difficult to compare to the Metals and Mining industry average (-8.4%).


Return on Equity

High ROE: BEKB's Return on Equity (1.3%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is NV Bekaert's financial position?


Financial Position Analysis

Short Term Liabilities: BEKB's short term assets (€2.4B) exceed its short term liabilities (€1.6B).

Long Term Liabilities: BEKB's short term assets (€2.4B) exceed its long term liabilities (€1.3B).


Debt to Equity History and Analysis

Debt Level: BEKB's debt to equity ratio (106.8%) is considered high.

Reducing Debt: BEKB's debt to equity ratio has increased from 81% to 106.8% over the past 5 years.

Debt Coverage: BEKB's debt is well covered by operating cash flow (23.9%).

Interest Coverage: BEKB's interest payments on its debt are well covered by EBIT (3.1x coverage).


Balance Sheet

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

Debt Coverage by Assets: BEKB's debt is covered by short term assets (assets are 1.4x debt).


Next Steps

Dividend

What is NV Bekaert's current dividend yield, its reliability and sustainability?

2.70%

Current Dividend Yield


Dividend Yield vs Market

company2.7%marketbottom25%2.1%markettop25%4.5%industryaverage6.7%forecastin3Years3.2%

Current dividend yield vs market & industry

Notable Dividend: BEKB's dividend (2.7%) is higher than the bottom 25% of dividend payers in the Belgian market (2.12%).

High Dividend: BEKB's dividend (2.7%) is low compared to the top 25% of dividend payers in the Belgian market (4.53%).


Stability and Growth of Payments

Stable Dividend: BEKB's dividend payments have been volatile in the past 10 years.

Growing Dividend: BEKB's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (90.9%), BEKB's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: BEKB's dividends in 3 years are forecast to be well covered by earnings (28.7% payout ratio).


Next Steps

Management

What is the CEO of NV Bekaert's salary, the management and board of directors tenure and is there insider trading?

1.3yrs

Average management tenure


CEO

Matthew Taylor (59yo)

6.9yrs

Tenure

€1,103,917

Compensation

Mr. Matthew Taylor has been the Chief Executive Officer at Bekaert SA., since May 14, 2014. Mr. Taylor served as the Chief Executive Officer at Edwards Limited from June 2010 to March 2013. He served as th ...


CEO Compensation Analysis

Compensation vs Market: Matthew's total compensation ($USD1.23M) is above average for companies of similar size in the Belgian market ($USD772.18K).

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


Management Age and Tenure

1.3yrs

Average Tenure

57yo

Average Age

Experienced Management: BEKB's management team is not considered experienced ( 1.3 years average tenure), which suggests a new team.


Board Age and Tenure

4.3yrs

Average Tenure

61yo

Average Age

Experienced Board: BEKB's board of directors are considered experienced (4.3 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.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • Lieven Larmuseau (57yo)

    Executive VP of Strategy

    • Tenure: 0.9yrs
  • Matthew Taylor (59yo)

    CEO & Director

    • Tenure: 6.9yrs
    • Compensation: €1.10m
  • Frank Vromant (62yo)

    Executive Vice President

    • Tenure: 0.4yrs
  • Oswald Schmid (60yo)

    Chief Operations Officer

    • Tenure: 0.9yrs
  • Curd Vandekerckhove (54yo)

    Chief Executive Officer of Bridon-Bekaert Ropes Group

    • Tenure: 7.3yrs
  • Piet Van Riet (57yo)

    Executive Vice President of Steel Wire Solutions - South & Central America

    • Tenure: 0.9yrs
  • Stijn Vanneste (47yo)

    Divisional Chief Executive Officer of Steel Wire Solutions

    • Tenure: 3.7yrs
  • Jun Liao (56yo)

    Divisional Chief Executive Officer of Specialty Businesses

    • Tenure: 1.8yrs
  • Rajita D'Souza

    Chief Human Resources Officer

    • Tenure: 2.3yrs
  • Taoufiq Boussaid (48yo)

    Chief Financial Officer

    • Tenure: 0.4yrs

Board Members

  • Celia Baxter (61yo)

    Independent Director

    • Tenure: 3.6yrs
    • Compensation: €82.20k
  • Charles de Liedekerke (66yo)

    Director

    • Tenure: 22.9yrs
    • Compensation: €89.70k
  • Henri Velge (63yo)

    Director

    • Tenure: 3.9yrs
    • Compensation: €67.20k
  • Hubert van Merlen (66yo)

    Director

    • Tenure: 16.9yrs
    • Compensation: €111.20k
  • Matthew Taylor (59yo)

    CEO & Director

    • Tenure: 6.9yrs
    • Compensation: €1.10m
  • Mei Ye (53yo)

    Independent Director

    • Tenure: 5.6yrs
    • Compensation: €67.20k
  • Pamela Knapp (61yo)

    Independent Director

    • Tenure: 3.6yrs
    • Compensation: €97.20k
  • Grégory Dalle (43yo)

    Director

    • Tenure: 4.6yrs
    • Compensation: €80.70k
  • Emilie van de Walle de Ghelcke

    Director

    • Tenure: 3.6yrs
    • Compensation: €67.20k
  • Jürgen Tinggren

    Independent Chairman

    • Tenure: 0.6yrs

Company Information

NV Bekaert SA's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: NV Bekaert SA
  • Ticker: BEKB
  • Exchange: ENXTBR
  • Founded: 1880
  • Industry: Steel
  • Sector: Materials
  • Market Cap: €1.467b
  • Shares outstanding: 56.52m
  • Website: https://www.bekaert.com

Number of Employees


Location

  • NV Bekaert SA
  • Bekaertstraat 2
  • Zwevegem
  • West Flanders
  • 8550
  • Belgium

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
BK8NDB (Deutsche Boerse AG)YesBearer SharesDEEURJan 1992
BEKBENXTBR (Euronext Brussels)YesBearer SharesBEEURJan 1992
0OQJLSE (London Stock Exchange)YesBearer SharesGBEURJan 1992
BEKBBBATS-CHIXE (BATS 'Chi-X Europe')YesBearer SharesGBEURJan 1992
BEKBWBAG (Wiener Boerse AG)YesBearer SharesATEURJan 1992
BEKA.YOTCPK (Pink Sheets LLC)UNSPONSOR ADRUSUSDNov 2008

Biography

NV Bekaert SA provides steel wire transformation and coating technologies worldwide. The company offers filter and fiber media products; heating cables and cords; various wires, cords, and strands; control ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/12 20:36
End of Day Share Price2019/12/12 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.