DB:21T

Stock Analysis Report

Executive Summary

Bodycote plc provides thermal processing services worldwide.

Snowflake

Fundamentals

Established dividend payer and fair value.


Similar Companies

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

4.4%

21T

-0.05%

DE Machinery

1.4%

DE Market


1 Year Return

-14.6%

21T

-16.3%

DE Machinery

3.7%

DE Market

Return vs Industry: 21T exceeded the German Machinery industry which returned -16.3% over the past year.

Return vs Market: 21T underperformed the German Market which returned 3.7% over the past year.


Shareholder returns

21TIndustryMarket
7 Day4.4%-0.05%1.4%
30 Day-8.1%-5.5%1.8%
90 Day-9.9%-5.3%3.4%
1 Year-10.5%-14.6%-13.6%-16.3%7.0%3.7%
3 Yearn/a-17.2%-23.1%18.5%8.3%
5 Yearn/a18.4%4.5%42.2%22.9%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

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

28.8%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: 21T (€7.69) is trading below our estimate of fair value (€10.79)

Significantly Undervalued: 21T is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: 21T is good value based on its PE Ratio (13x) compared to the Machinery industry average (14.3x).

PE vs Market: 21T is good value based on its PE Ratio (13x) compared to the German market (19.3x).


Price to Earnings Growth Ratio

Low PEG Ratio: 21T is poor value based on its PEG Ratio (3x)


Price to Book Ratio

PB vs Industry: 21T is overvalued based on its PB Ratio (1.9x) compared to the DE Machinery industry average (1.3x).


Next Steps

Future Growth

How is Bodycote forecast to perform in the next 1 to 3 years based on estimates from 16 analysts?

4.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 21T's forecast earnings growth (4.3% per year) is above the savings rate (0.2%).

Earnings vs Market: 21T's earnings (4.3% per year) are forecast to grow slower than the German market (12.6% per year).

High Growth Earnings: 21T's earnings are forecast to grow, but not significantly.

Revenue vs Market: 21T's revenue (3.2% per year) is forecast to grow slower than the German market (5% per year).

High Growth Revenue: 21T's revenue (3.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: 21T's Return on Equity is forecast to be low in 3 years time (13.7%).


Next Steps

Past Performance

How has Bodycote performed over the past 5 years?

10.3%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: 21T's earnings have grown by 10.3% per year over the past 5 years.

Accelerating Growth: 21T's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 21T had negative earnings growth (-4.1%) over the past year, making it difficult to compare to the Machinery industry average (-9.7%).


Return on Equity

High ROE: 21T's Return on Equity (14.3%) is considered low.


Return on Assets

ROA vs Industry: 21T has a higher Return on Assets than the Machinery industry average last year.


Return on Capital Employed

ROCE Improving: 21T has improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is Bodycote's financial position?


Financial Position Analysis

Short Term Liabilities: 21T's short term assets (£195.5M) do not cover its short term liabilities (£212.9M)

Long Term Liabilities: 21T's short term assets (195.5M) exceeds its long term liabilities (165.7M)


Debt to Equity History and Analysis

Debt Level: 21T's debt to equity ratio (5.4%) is considered satisfactory

Reducing Debt: 21T's debt to equity ratio has increased from 1.1% to 5.4% over the past 5 years.

Debt Coverage: 21T's debt is well covered by operating cash flow (460.8%).

Interest Coverage: Insufficient data to determine if 21T's interest payments on its debt are well covered by EBIT.


Balance Sheet

Inventory Level: 21T has a high level of physical assets or inventory.

Debt Coverage by Assets: 21T's debt is covered by short term assets (assets are 5.144730x debt).


Next Steps

Dividend

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

5.71%

Current Dividend Yield


Dividend Yield vs Market

company5.7%marketbottom25%1.5%markettop25%3.8%industryaverage2.4%forecastin3Years3.2%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: 21T's dividend (5.71%) is higher than the bottom 25% of dividend payers in the German market (1.46%).

High Dividend: 21T's dividend (5.71%) is in the top 25% of dividend payers in the German market (3.8%)

Stable Dividend: 21T's dividend payments have been volatile in the past 10 years.

Growing Dividend: 21T's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (36.8%), 21T's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 21T's dividends in 3 years are forecast to be well covered by earnings (38.6% payout ratio).


Next Steps

Management

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

3.0yrs

Average board tenure


CEO

Stephen Harris (61yo)

10.8yrs

Tenure

UK£2,649,000

Compensation

Mr. Stephen C. Harris, MA, MBA, C.Eng. has been the Group Chief Executive Officer at Bodycote plc since January 12, 2009. Mr. Harris served as Business Group Director of Spectris Plc and was responsible fo ...


CEO Compensation Analysis

Compensation vs. Market: Insufficient data to establish whether Stephen's total compensation is reasonable compared to companies of similar size in the German market.

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


Board Age and Tenure

3.0yrs

Average Tenure

61yo

Average Age

Experienced Board: 21T's board of directors are considered experienced (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


Management Team

  • Stephen Harris (61yo)

    Group CEO & Executive Director

    • Tenure: 10.8yrs
    • Compensation: UK£2.65m
  • Ute Ball (58yo)

    Group Company Secretary

    • Tenure: 0yrs
  • Mike Hallas

    MD of Nordic UK SBU & Member of Senior Operating Board

    • Tenure: 0yrs
    • Compensation: UK£152.00k
  • Dominique de Lisle Yates (51yo)

    CFO & Executive Director

    • Tenure: 2.9yrs
    • Compensation: UK£900.00k

Board Members

  • Ian Duncan (58yo)

    Senior Independent Director

    • Tenure: 3.4yrs
    • Compensation: UK£74.00k
  • Pat Larmon (66yo)

    Non-Executive Director

    • Tenure: 3.1yrs
    • Compensation: UK£58.00k
  • Stephen Harris (61yo)

    Group CEO & Executive Director

    • Tenure: 10.8yrs
    • Compensation: UK£2.65m
  • Anne Quinn (67yo)

    Non-Executive Chairman

    • Tenure: 1.8yrs
    • Compensation: UK£225.00k
  • Dominique de Lisle Yates (51yo)

    CFO & Executive Director

    • Tenure: 2.9yrs
    • Compensation: UK£900.00k
  • Lili Chahbazi

    Non-Executive Director

    • Tenure: 1.8yrs
    • Compensation: UK£56.00k

Company Information

Bodycote plc's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Bodycote plc
  • Ticker: 21T
  • Exchange: DB
  • Founded: 1923
  • Industry: Industrial Machinery
  • Sector: Capital Goods
  • Market Cap: UK£1.295b
  • Listing Market Cap: UK£1.497b
  • Shares outstanding: 189.62m
  • Website: https://www.bodycote.com

Number of Employees


Location

  • Bodycote plc
  • Springwood Court
  • Springwood Close
  • Macclesfield
  • Cheshire
  • SK10 2XF
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
BYPL.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJan 1992
BOYLSE (London Stock Exchange)YesOrdinary SharesGBGBPJan 1992
BOYLBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBGBPJan 1992
21TDB (Deutsche Boerse AG)YesOrdinary SharesDEEURJan 1992

Biography

Bodycote plc provides thermal processing services worldwide. The company operates in two business areas, Aerospace, Defence & Energy; and Automotive & General Industrial. It offers heat treatment services, ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/19 21:11
End of Day Share Price2019/10/18 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.