BST:86B

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Executive Summary

Biffa plc provides waste management services in the United Kingdom. More Details


Snowflake Analysis

Reasonable growth potential and slightly overvalued.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: 86B is more volatile than 75% of German stocks over the past 3 months, typically moving +/- 9% a week.

Volatility Over Time: 86B's weekly volatility (9%) has been stable over the past year, but is still higher than 75% of German stocks.


Market Performance


7 Day Return

-12.6%

86B

5.2%

DE Commercial Services

1.4%

DE Market


1 Year Return

-14.9%

86B

-1.1%

DE Commercial Services

0.9%

DE Market

Return vs Industry: 86B underperformed the German Commercial Services industry which returned -2.9% over the past year.

Return vs Market: 86B underperformed the German Market which returned 0.6% over the past year.


Shareholder returns

86BIndustryMarket
7 Day-12.6%5.2%1.4%
30 Day9.4%18.4%8.7%
90 Day12.4%15.7%2.3%
1 Year-14.9%-14.9%0.8%-1.1%4.1%0.9%
3 Year-4.7%-11.4%2.4%-5.3%3.9%-5.1%
5 Yearn/a-5.5%-16.6%24.8%7.1%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

Is Biffa 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: 86B (€2.46) is trading below our estimate of fair value (€13.77)

Significantly Below Fair Value: 86B is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 86B is unprofitable, so we can't compare its PE Ratio to the XE Commercial Services industry average.

PE vs Market: 86B is unprofitable, so we can't compare its PE Ratio to the German market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 86B's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 86B is overvalued based on its PB Ratio (1.5x) compared to the DE Commercial Services industry average (1.1x).


Next Steps

Future Growth

How is Biffa forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

58.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 86B is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (0.2%).

Earnings vs Market: 86B is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: 86B's is expected to become profitable in the next 3 years.

Revenue vs Market: 86B's revenue (10.8% per year) is forecast to grow faster than the German market (5.8% per year).

High Growth Revenue: 86B's revenue (10.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 86B's Return on Equity is forecast to be low in 3 years time (14.1%).


Next Steps

Past Performance

How has Biffa performed over the past 5 years?

29.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 86B is currently unprofitable.

Growing Profit Margin: 86B is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: 86B is unprofitable, but has reduced losses over the past 5 years at a rate of 29.4% per year.

Accelerating Growth: Unable to compare 86B's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: 86B is unprofitable, making it difficult to compare its past year earnings growth to the Commercial Services industry (-7.3%).


Return on Equity

High ROE: 86B has a negative Return on Equity (-4.22%), as it is currently unprofitable.


Next Steps

Financial Health

How is Biffa's financial position?


Financial Position Analysis

Short Term Liabilities: 86B's short term assets (£346.8M) do not cover its short term liabilities (£381.5M).

Long Term Liabilities: 86B's short term assets (£346.8M) do not cover its long term liabilities (£511.6M).


Debt to Equity History and Analysis

Debt Level: 86B's debt to equity ratio (45.2%) is considered high.

Reducing Debt: 86B had negative shareholder equity 5 years ago, but is now positive and has therefore improved.

Debt Coverage: 86B's debt is well covered by operating cash flow (92.1%).

Interest Coverage: Insufficient data to determine if 86B's interest payments on its debt are well covered by EBIT.


Balance Sheet


Next Steps

Dividend

What is Biffa current dividend yield, its reliability and sustainability?

2.46%

Forecast Dividend Yield


Dividend Yield vs Market

Notable Dividend: Unable to evaluate 86B's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate 86B's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if 86B's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 86B's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: 86B is not paying a notable dividend for the German market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of 86B's dividend in 3 years as they are not forecast to pay a notable one for the German market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

5.7yrs

Average management tenure


CEO

Michael Robert Topham (48 yo)

2.17yrs

Tenure

UK£1,587,422

Compensation

Mr. Michael Robert Mason Topham serves as Chief Executive Officer and Director at Biffa Group Limited since September 29, 2018. Mr. Topham serves as Chief Executive Officer at Biffa Municipal Limited. He h...


CEO Compensation Analysis

Compensation vs Market: Michael Robert's total compensation ($USD2.12M) is above average for companies of similar size in the German market ($USD1.28M).

Compensation vs Earnings: Michael Robert's compensation has increased whilst the company is unprofitable.


Leadership Team

NamePositionTenureCompensationOwnership
Michael Robert Topham
CEO & Executive Director2.17yrsUK£1.59m0.34%
£ 2.7m
Richard Pike
CFO & Director2.17yrsUK£657.52k0.15%
£ 1.2m
David Gooding
Chief Information Officer0.58yrno data0.035%
£ 273.5k
Sarah Parsons
General Counsel & Company Secretary1.42yrsno datano data
Jane Pateman
Group Human Resource Director9.92yrsno data0.030%
£ 231.1k
Jeff Anderson
Chief Operating Officer of Collections9.17yrsno data0.18%
£ 1.4m
Roger Edwards
Managing Director of Municipal Division10.08yrsno data0.00019%
£ 1.5k
Mick Davis
Chief Operating Officer of Resources & Energy10.17yrsno data0.10%
£ 775.4k
Mike Thair
Director of Business Development & Treatmentno datano datano data
Jeff Rhodes
Head of Environment & External Affairsno datano datano data

5.7yrs

Average Tenure

51yo

Average Age

Experienced Management: 86B's management team is seasoned and experienced (5.7 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Michael Robert Topham
CEO & Executive Director2.17yrsUK£1.59m0.34%
£ 2.7m
Richard Pike
CFO & Director2.17yrsUK£657.52k0.15%
£ 1.2m
Kenneth Lever
Independent Non-Executive Chairmanno dataUK£180.00k0.030%
£ 231.0k
Carol Chesney
Independent Non-Executive Director2.33yrsUK£57.00k0.0027%
£ 21.1k
Michael Charles Averill
Independent Non-Executive Director4.17yrsUK£57.00k0.025%
£ 195.3k
David Martin
Senior Independent Non-Executive Directorno dataUK£67.00k0.0099%
£ 76.7k

3.3yrs

Average Tenure

62yo

Average Age

Experienced Board: 86B's board of directors are considered experienced (3.3 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

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


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 20.7%.


Top Shareholders

Company Information

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


Key Information

  • Name: Biffa plc
  • Ticker: 86B
  • Exchange: BST
  • Founded: 1912
  • Industry: Environmental and Facilities Services
  • Sector: Commercial Services
  • Market Cap: UK£689.441m
  • Listing Market Cap: UK£772.020m
  • Shares outstanding: 301.72m
  • Website: https://www.biffa.co.uk

Number of Employees


Location

  • Biffa plc
  • Coronation Road
  • Cressex
  • High Wycombe
  • Buckinghamshire
  • HP12 3TZ
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
86BBST (Boerse-Stuttgart)YesOrdinary SharesDEEUROct 2016
BIFFLSE (London Stock Exchange)YesOrdinary SharesGBGBPOct 2016
BIFFLBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBGBPOct 2016
BFFB.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDOct 2016

Biography

Biffa plc provides waste management services in the United Kingdom. The company operates in two segments, Collections and Resources & Energy. It is involved in the collection, recycling, treatment, process...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/11/26 22:31
End of Day Share Price2020/11/26 00:00
Earnings2020/09/25
Annual Earnings2020/03/27


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.