DB:B2K

Stock Analysis Report

Executive Summary

Bell Equipment Limited manufactures and distributes materials handling equipment primarily for agriculture, forestry, waste-handling, and construction industries worldwide.

Snowflake

Fundamentals

Fair value with acceptable track record.

Risks

  • Bell Equipment has significant price volatility in the past 3 months.
  • Bell Equipment is not covered by any analysts.

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

-3.5%

DB:B2K

0.3%

DE Machinery

-0.7%

DE Market


1 Year Return

-37.7%

DB:B2K

-35.4%

DE Machinery

-10.8%

DE Market

B2K underperformed the Machinery industry which returned -35.2% over the past year.

B2K underperformed the Market in Germany which returned -10% over the past year.


Share holder returns

B2KIndustryMarket
7 Day-3.5%0.3%-0.7%
30 Day-23.9%-6.8%-3.9%
90 Day-20.1%-16.6%-4.3%
1 Year-34.9%-37.7%-33.3%-35.4%-8.0%-10.8%
3 Year-24.3%-31.1%-23.7%-29.2%9.8%0.3%
5 Year-48.5%-53.1%2.4%-9.2%24.0%6.8%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

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

3.36x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

Bell Equipment's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).

Bell Equipment's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).


Price Based on Earnings

Bell Equipment is good value based on earnings compared to the DE Machinery industry average.

Bell Equipment is good value based on earnings compared to the Germany market.


Price Based on Expected Growth

Unable to calculate PEG ratio for Bell Equipment, we can't assess if its growth is good value.


Price Based on Value of Assets

Bell Equipment is good value based on assets compared to the DE Machinery industry average.


Next Steps

Future Growth

How is Bell Equipment expected to perform in the next 1 to 3 years based on estimates from 0 analysts?

16.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Unable to determine if Bell Equipment is high growth as no revenue estimate data is available.

Bell Equipment's earnings are expected to grow by 16.5% yearly, however this is not considered high growth (20% yearly).

Unable to compare Bell Equipment's revenue growth to the Germany market average as no estimate data is available.

Bell Equipment's earnings growth is expected to exceed the Germany market average.

Bell Equipment's earnings growth is expected to exceed the low risk savings rate of 0.2%.


Earnings per Share Growth Estimates


Future Return on Equity

Unable to establish if Bell Equipment will efficiently use shareholders’ funds in the future without estimates of Return on Equity.


Next Steps

Past Performance

How has Bell Equipment performed over the past 5 years?

20.8%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Bell Equipment has delivered over 20% year on year earnings growth in the past 5 years.

Bell Equipment's 1-year earnings growth is less than its 5-year average (3.6% vs 20.8%)

Bell Equipment's earnings growth has exceeded the DE Machinery industry average in the past year (3.6% vs -11.8%).


Return on Equity

Bell Equipment has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Bell Equipment used its assets less efficiently than the DE Machinery industry average last year based on Return on Assets.


Return on Capital Employed

Bell Equipment has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Bell Equipment's financial position?


Financial Position Analysis

Bell Equipment is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Bell Equipment's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

Bell Equipment's level of debt (46.1%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has increased over the past 5 years (42.6% vs 46.1% today).

Operating cash flow is negative therefore debt is not well covered.

Interest payments on debt are well covered by earnings (EBIT is 9.4x coverage).


Balance Sheet

High level of physical assets or inventory.

Debt is covered by short term assets, assets are 3.3x debt.


Next Steps

Dividend

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

4.74%

Current Dividend Yield


Dividend Yield and Payments Analysis

Bell Equipment's pays a higher dividend yield than the bottom 25% of dividend payers in Germany (1.52%).

Bell Equipment's dividend is above the markets top 25% of dividend payers in Germany (4.2%).

Bell Equipment has been paying a dividend for less than 10 years and during this time payments have been volatile (annual drop of over 20%).

Dividend payments have increased, but Bell Equipment only paid a dividend in the past 6 years.


Current Payout to Shareholders

Dividends paid are well covered by earnings (6.3x coverage).


Future Payout to Shareholders

Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.


Next Steps

Management

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

3.3yrs

Average management tenure


CEO

Leon Goosen (47yo)

1.2yrs

Tenure

SAR4,470,000

Compensation

Mr. Leon Goosen serves as the Chief Executive Officer at Bell Equipment Ltd. since June 1, 2018. Mr. Goosen served Group Commercial Director of Bell Equipment Ltd. He served as Commercial Director of BECSA ...


CEO Compensation Analysis

Leon's remuneration is about average for companies of similar size in Germany.

Leon's compensation has increased by more than 20% in the past year whilst earnings grew less than 20%.


Management Age and Tenure

3.3yrs

Average Tenure

50yo

Average Age

The tenure for the Bell Equipment management team is about average.


Board Age and Tenure

3.0yrs

Average Tenure

49.5yo

Average Age

The tenure for the Bell Equipment board of directors is about average.


Insider Trading

No 3 month open market individual insider trading information.


Ownership Breakdown


Management Team

  • Bokkie Coertze (68yo)

    Managing Director of Africa Sales and Distribution

    • Tenure: 3.3yrs
  • Rino D’Alessandro (56yo)

    Director of After Market

    • Tenure: 3.3yrs
  • Karen van Haght (52yo)

    Group Finance Director & Executive Director

    • Tenure: 13.6yrs
    • Compensation: SAR3.01m
  • Neville Paynter (55yo)

    Managing Director of Bell Equipment North America

    • Tenure: 0.0yrs
    • Compensation: SAR5.22m
  • Leon Goosen (47yo)

    CEO & & Executive Director

    • Tenure: 1.2yrs
    • Compensation: SAR4.47m
  • Diana McIlrath (45yo)

    Company Secretary

    • Tenure: 3.4yrs
  • Avishkar Goordeen (39yo)

    Chief Strategy Officer & Alternate Executive Director

    • Tenure: 1.8yrs
    • Compensation: SAR2.55m
  • Ashley Bell (36yo)

    Executive Director

    • Tenure: 4.4yrs
    • Compensation: SAR465.00k
  • Johan Wyngaardt (50yo)

    Director of Group Human Resources

    • Tenure: 3.3yrs
  • D. Morris

    Executive Officer

    • Tenure: 0.0yrs
    • Compensation: SAR2.43m

Board Members

  • Hennie van der Merwe (71yo)

    Independent Non-Executive Director

    • Tenure: 3.6yrs
    • Compensation: SAR474.00k
  • Gary Bell (66yo)

    Non-Executive Chairman of the Board

    • Tenure: 1.2yrs
    • Compensation: SAR5.23m
  • Karen van Haght (52yo)

    Group Finance Director & Executive Director

    • Tenure: 13.6yrs
    • Compensation: SAR3.01m
  • Leon Goosen (47yo)

    CEO & & Executive Director

    • Tenure: 1.2yrs
    • Compensation: SAR4.47m
  • John Barton (71yo)

    Lead Independent Non-Executive Director

    • Tenure: 1.2yrs
    • Compensation: SAR641.00k
  • Avishkar Goordeen (39yo)

    Chief Strategy Officer & Alternate Executive Director

    • Tenure: 1.8yrs
    • Compensation: SAR2.55m
  • Derek Lawrance (72yo)

    Independent Non-Executive Director

    • Tenure: 3.6yrs
    • Compensation: SAR651.00k
  • Ashley Bell (36yo)

    Executive Director

    • Tenure: 4.4yrs
    • Compensation: SAR465.00k
  • Mamokete Ramathe (39yo)

    Independent Non-Executive Director

    • Tenure: 2.4yrs
    • Compensation: SAR530.00k
  • Raj Naidu (46yo)

    Independent Non-Executive Director

    • Tenure: 2.4yrs
    • Compensation: SAR503.00k

Company Information

Bell Equipment Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Bell Equipment Limited
  • Ticker: B2K
  • Exchange: DB
  • Founded: 1954
  • Industry: Construction Machinery and Heavy Trucks
  • Sector: Capital Goods
  • Market Cap: SAR908.479m
  • Listing Market Cap: SAR53.357m
  • Shares outstanding: 95.63m
  • Website: https://www.bellequipment.com

Number of Employees


Location

  • Bell Equipment Limited
  • 13 - 19 Carbonode Cell Road
  • Alton
  • Richards Bay
  • KwaZulu-Natal
  • 3900
  • South Africa

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
BELJSE (The Johannesburg Securities Exchange)YesOrdinary SharesZAZARJun 1995
B2KDB (Deutsche Boerse AG)YesOrdinary SharesDEEURJun 1995

Biography

Bell Equipment Limited manufactures and distributes materials handling equipment primarily for agriculture, forestry, waste-handling, and construction industries worldwide. The company offers articulated d ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/08/20 20:53
End of Day Share Price2019/08/20 00:00
Earnings2018/12/31
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.