DB:29B

Stock Analysis Report

Executive Summary

Bufab AB (publ) operates as a trading company that provides solutions for sourcing, quality control, and logistics for C-parts in Sweden and internationally.

Snowflake

Fundamentals

Good value with mediocre balance sheet.

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

-1.2%

29B

1.7%

DE Trade Distributors

2.8%

DE Market


1 Year Return

-2.6%

29B

-10.6%

DE Trade Distributors

3.0%

DE Market

Return vs Industry: 29B exceeded the German Trade Distributors industry which returned -10.6% over the past year.

Return vs Market: 29B underperformed the German Market which returned 3% over the past year.


Share holder returns

29BIndustryMarket
7 Day-1.2%1.7%2.8%
30 Day-6.9%-5.6%0.2%
90 Day-6.8%2.3%1.3%
1 Year-0.4%-2.6%-7.9%-10.6%6.2%3.0%
3 Yearn/a-7.0%-13.7%18.2%8.0%
5 Yearn/a28.0%14.1%43.1%23.6%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

Is Bufab undervalued based on future cash flows and its price relative to the stock market?

>50%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Undervalued: 29B (€8.8) is trading below our estimate of fair value (€18.53)

Significantly Undervalued: 29B is trading below fair value by more than 20%.


Price Based on Earnings

PE vs Industry: 29B is good value based on its PE Ratio (13.6x) compared to the Trade Distributors industry average (15.3x).

PE vs Market: 29B is good value based on its PE Ratio (13.6x) compared to the German market (19.7x).


Price Based on Expected Growth

Low PEG Ratio: 29B is poor value based on its PEG Ratio (1.1x)


Price Based on Value of Assets

PB vs Industry: 29B is overvalued based on its PB Ratio (2.2x) compared to the DE Trade Distributors industry average (1.3x).


Next Steps

Future Growth

How is Bufab expected to perform in the next 1 to 3 years based on estimates from 1 analyst?

12.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Earnings vs Savings Rate: 29B's forecast earnings growth (12.3% per year) is above the savings rate (0.2%).

Earnings vs Market: 29B's earnings (12.3% per year) are forecast to grow slower than the German market (12.8% per year).

High Growth Earnings: 29B's earnings are forecast to grow, but not significantly.

Revenue vs Market: 29B's revenue (7.9% per year) is forecast to grow faster than the German market (5% per year).

High Growth Revenue: 29B's revenue (7.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Estimates


Future Return on Equity

High Future ROE: 29B's Return on Equity is forecast to be low in 3 years time (17.1%).


Next Steps

Past Performance

How has Bufab performed over the past 5 years?

18.1%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: 29B's earnings have grown by 18.1% per year over the past 5 years.

Accelerating Growth: 29B's earnings growth over the past year (12.1%) is below its 5-year average (18.1% per year).

Earnings vs Industry: 29B earnings growth over the past year (12.1%) underperformed the Trade Distributors industry 17.4%.


Return on Equity

High ROE: 29B's Return on Equity (15.9%) is considered low.


Return on Assets

ROA vs Industry: 29B has a higher Return on Assets than the Trade Distributors industry average last year.


Return on Capital Employed

ROCE Improving: 29B's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Bufab's financial position?


Financial Position Analysis

Short Term Liabilities: 29B's short term assets (€2.4B) exceeds its short term liabilities (€870.0M)

Long Term Liabilities: 29B's short term assets (€2.4B) exceeds its long term liabilities (€1.7B)


Debt to Equity History and Analysis

Debt Level: 29B's debt to equity ratio (101.3%) is considered high

Reducing Debt: 29B's debt to equity ratio has increased from 61.5% to 101.3% over the past 5 years.

Debt Coverage: 29B's debt is not well covered by operating cash flow (14.1%).

Interest Coverage: 29B's interest payments on its debt are well covered by EBIT (14x coverage).


Balance Sheet

Inventory Level: 29B has a high level of physical assets or inventory.

Debt Coverage by Assets: 29B's debt is covered by short term assets (assets are 1.412900x debt).


Next Steps

Dividend

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

3.38%

Expected Dividend Yield


Dividend Yield vs Market

company2.6%marketbottom25%1.5%markettop25%3.9%industryaverage3.0%forecastin3Years3.4%

Current dividend yield vs market & industry


Dividend Yield and Payments Analysis

Notable Dividend: 29B's dividend (2.56%) is higher than the bottom 25% of dividend payers in the German market (1.46%).

High Dividend: 29B's dividend (2.56%) is low compared to the top 25% of dividend payers in the German market (3.86%).

Stable Dividend: Whilst dividend payments have been stable, 29B has been paying a dividend for less than 10 years.

Growing Dividend: 29B's dividend payments have increased, but the company has only paid a dividend for 5 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (35%), 29B's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 29B's dividends in 3 years are forecast to be well covered by earnings (36.9% payout ratio).


Next Steps

Management

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

3.2yrs

Average management tenure


CEO

Jörgen Rosengren (52yo)

7.8yrs

Tenure

kr7,000,000

Compensation

Mr. Jörgen Rosengren has been the Chief Executive Officer at Bufab AB (publ) since 2012. Mr. Rosengren has been employed by the Husqvarna Group since 2004, as Global Head of its handheld products, e g chai ...


CEO Compensation Analysis

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

Compensation vs Earnings: Jörgen's compensation has increased by more than 20% in the past year.


Management Age and Tenure

3.2yrs

Average Tenure

51yo

Average Age

Experienced Management: 29B's management team is considered experienced (3.2 years average tenure).


Board Age and Tenure

4.4yrs

Average Tenure

55yo

Average Age

Experienced Board: 29B's board of directors are considered experienced (4.4 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

Buykr886,79127 Aug 19
Liljedahl Group AB
EntityCompany
Shares100,000
Max Pricekr8.87
Buykr7,069,17525 Feb 19
Bengt Liljedahl
EntityIndividual
Role
Member of the Board of Directors
Director
Shares750,000
Max Pricekr9.43
Buykr12,79026 Oct 18
Johanna Hagelberg
EntityIndividual
Role
Member of the Board of Directors
Director
Shares1,500
Max Pricekr8.53
Buykr9,82626 Oct 18
Marcus Andersson
EntityIndividual
Role
Chief Financial Officer
Chief Financial Officer
Shares1,150
Max Pricekr8.57

Ownership Breakdown


Management Team

  • Jesper Blomquist (51yo)

    Chief Operating Officer

    • Tenure: 6.8yrs
  • Jörgen Rosengren (52yo)

    President & CEO

    • Tenure: 7.8yrs
    • Compensation: kr7.00m
  • Jaroslaw Bazeli

    MD of Bufab Poland & Regional Director of East

    • Tenure: 0yrs
  • Jörn Maurer

    MD of Bufab Germany & Regional Director of Central

    • Tenure: 0yrs
  • Willy Einungbrekke

    MD of Bufab Norge & Director of UK

    • Tenure: 3.2yrs
  • Mathias Torstensson

    MD of Bufab Shanghai & Regional Director of Asia Pacific

    • Tenure: 0yrs
  • Andreas Algerbo

    Managing Director of Bufab Kit

    • Tenure: 0yrs
  • Niclas Mårtensson

    MD of Bufab Lann & Regional Director of North

    • Tenure: 3.2yrs
  • Marcus Andersson (36yo)

    Chief Financial Officer

    • Tenure: 1.9yrs
  • Terece Hjerpe

    Global HR Director

    • Tenure: 0.8yrs

Board Members

  • Hans Björstrand (69yo)

    Senior Advisor & Director

    • Tenure: 13.8yrs
    • Compensation: kr200.00k
  • Johan Sjö (52yo)

    Director

    • Tenure: 0.8yrs
    • Compensation: kr200.00k
  • Bengt Liljedahl (72yo)

    Director

    • Tenure: 3.8yrs
    • Compensation: kr200.00k
  • Anna Liljedahl (45yo)

    Director

    • Tenure: 0.8yrs
  • Johanna Hagelberg (47yo)

    Director

    • Tenure: 4.4yrs
    • Compensation: kr200.00k
  • Sven-Olof Kulldorff (65yo)

    Chairman

    • Tenure: 13yrs
    • Compensation: kr400.00k
  • Eva Nilsagård (55yo)

    Director

    • Tenure: 4.4yrs
    • Compensation: kr200.00k

Company Information

Bufab AB (publ)'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Bufab AB (publ)
  • Ticker: 29B
  • Exchange: DB
  • Founded: 1977
  • Industry: Trading Companies and Distributors
  • Sector: Capital Goods
  • Market Cap: kr3.653b
  • Listing Market Cap: kr337.792m
  • Shares outstanding: 37.47m
  • Website: https://www.bufab.com

Number of Employees


Location

  • Bufab AB (publ)
  • Stenfalksvägen 1
  • Värnamo
  • Jönköping County
  • 331 41
  • Sweden

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
BUFABOM (OMX Nordic Exchange Stockholm)YesCommon SharesSESEKFeb 2014
0QRALSE (London Stock Exchange)YesCommon SharesGBSEKFeb 2014
BUFABsBATS-CHIXE (BATS 'Chi-X Europe')YesCommon SharesGBSEKFeb 2014
29BDB (Deutsche Boerse AG)YesCommon SharesDEEURFeb 2014

Biography

Bufab AB (publ) operates as a trading company that provides solutions for sourcing, quality control, and logistics for C-parts in Sweden and internationally. The company offers metal or plastic fasteners,  ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/12 23:31
End of Day Share Price2019/10/11 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.

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