DB:BI6

Stock Analysis Report

Executive Summary

Bingo Industries Limited, together with its subsidiaries, provides waste management solutions for domestic and commercial businesses in Australia.


Snowflake Analysis

Solid track record and good value.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: BI6's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

7.8%

BI6

-0.5%

DE Commercial Services

2.2%

DE Market


1 Year Return

6.0%

BI6

-32.0%

DE Commercial Services

-17.2%

DE Market

Return vs Industry: BI6 exceeded the German Commercial Services industry which returned -31.6% over the past year.

Return vs Market: BI6 exceeded the German Market which returned -17.5% over the past year.


Shareholder returns

BI6IndustryMarket
7 Day7.8%-0.5%2.2%
30 Day-33.8%-22.0%-15.7%
90 Day-40.2%-34.0%-24.0%
1 Year7.8%6.0%-29.6%-32.0%-14.9%-17.2%
3 Yearn/a-27.1%-33.4%-16.4%-23.3%
5 Yearn/a-35.0%-44.1%-16.5%-27.8%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

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

49.9%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: BI6 (€1.05) is trading below our estimate of fair value (€2.07)

Significantly Below Fair Value: BI6 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: BI6 is good value based on its PE Ratio (26.2x) compared to the Commercial Services industry average (95.5x).

PE vs Market: BI6 is poor value based on its PE Ratio (26.2x) compared to the German market (16.3x).


Price to Earnings Growth Ratio

PEG Ratio: BI6 is poor value based on its PEG Ratio (1.8x)


Price to Book Ratio

PB vs Industry: BI6 is good value based on its PB Ratio (1.5x) compared to the DE Commercial Services industry average (2.5x).


Next Steps

Future Growth

How is Bingo Industries forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?

14.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: BI6's forecast earnings growth (14.4% per year) is above the savings rate (-0.4%).

Earnings vs Market: BI6's earnings (14.4% per year) are forecast to grow faster than the German market (14.4% per year).

High Growth Earnings: BI6's earnings are forecast to grow, but not significantly.

Revenue vs Market: BI6's revenue (8.4% per year) is forecast to grow faster than the German market (4.1% per year).

High Growth Revenue: BI6's revenue (8.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: BI6's Return on Equity is forecast to be low in 3 years time (9.3%).


Next Steps

Past Performance

How has Bingo Industries performed over the past 5 years?

23.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: BI6 has high quality earnings.

Growing Profit Margin: BI6's current net profit margins (10.2%) are higher than last year (10%).


Past Earnings Growth Analysis

Earnings Trend: BI6's earnings have grown significantly by 23.4% per year over the past 5 years.

Accelerating Growth: BI6's earnings growth over the past year (40.3%) exceeds its 5-year average (23.4% per year).

Earnings vs Industry: BI6 earnings growth over the past year (40.3%) exceeded the Commercial Services industry 10.4%.


Return on Equity

High ROE: BI6's Return on Equity (5.6%) is considered low.


Next Steps

Financial Health

How is Bingo Industries's financial position?


Financial Position Analysis

Short Term Liabilities: BI6's short term assets (A$138.2M) exceed its short term liabilities (A$106.6M).

Long Term Liabilities: BI6's short term assets (A$138.2M) do not cover its long term liabilities (A$419.1M).


Debt to Equity History and Analysis

Debt Level: BI6's debt to equity ratio (39.5%) is considered satisfactory.

Reducing Debt: Insufficient data to determine if BI6's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: BI6's debt is well covered by operating cash flow (29%).

Interest Coverage: BI6's interest payments on its debt are well covered by EBIT (6.3x coverage).


Balance Sheet

Inventory Level: BI6 has a high level of physical assets or inventory.

Debt Coverage by Assets: BI6's debt is not covered by short term assets (assets are 0.4x debt).


Next Steps

Dividend

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

1.96%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: BI6's dividend (1.92%) is higher than the bottom 25% of dividend payers in the German market (1.68%).

High Dividend: BI6's dividend (1.92%) is low compared to the top 25% of dividend payers in the German market (4.97%).


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, BI6 has been paying a dividend for less than 10 years.

Growing Dividend: BI6's dividend payments have increased, but the company has only paid a dividend for 2 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (56.9%), BI6's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: BI6's dividends in 3 years are forecast to be well covered by earnings (42.5% payout ratio).


Next Steps

Management

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

1.3yrs

Average management tenure


CEO

Daniel Tartak

4.75s

Tenure

AU$1,151,173

Compensation

Mr. Daniel Tartak has been the Chief Executive Officer of Bingo Industries Limited since July 2015 and has been its Managing Director and Executive Director since March 03, 2017. Mr. Tartak has experience  ...


CEO Compensation Analysis

Compensation vs Market: Daniel's total compensation ($USD709.07K) is below average for companies of similar size in the German market ($USD1.34M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Daniel Tartak
MD, CEO & Executive Director4.75yrsAU$1.15m19.82% A$137.5m
Chris Jeffrey
Chief Financial Officer0.42yrAU$640.99k0.044% A$304.4k
Geoffrey Hill
Chief Executive of Victoriano dataAU$537.49k0.012% A$80.8k
Rodney Johnson
Chief Executive of B&D NSW1.25yrsAU$332.46kno data
Declan Hogan
Chief Information Officerno datano datano data
Tara Osborne
General Manager of Strategy & Investor Relationsno datano datano data
Stephen Schmidhofer
General Counsel & Joint Company Secretaryno datano datano data
Amanda Schmidhofer
General Manger of Marketingno datano datano data
Elise Heydon
Chief People & Culture Officerno datano datano data
Jim Sarkis
Chief Safetyno datano datano data

1.3yrs

Average Tenure

Experienced Management: BI6's management team is not considered experienced ( 1.2 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Daniel Tartak
MD, CEO & Executive Director4.75yrsAU$1.15m19.82% A$137.5m
Maria Atkinson
Independent Non-Executive Director3.08yrsAU$131.43k0.013% A$90.2k
Elizabeth Crouch
Non-Executive Director0.50yrno data0.00061% A$4.2k
Michael Coleman
Independent Non Executive Chairmanno dataAU$197.50k0.031% A$214.6k
Daniel Girgis
Non-Executive Director3.08yrsAU$159.32k0.0085% A$58.9k
Ian Malouf
Non-Executive Director1.08yrsAU$27.50k11.82% A$82.0m
Barry Buffier
Independent Non-Executive Director1.75yrsAU$107.85k0.018% A$127.3k

2.4yrs

Average Tenure

Experienced Board: BI6's board of directors are not considered experienced ( 2.3 years average tenure), which suggests a new board.


Ownership

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


Insider Trading Volume

Insider Buying: BI6 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 36%.


Top Shareholders

Company Information

Bingo Industries Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Bingo Industries Limited
  • Ticker: BI6
  • Exchange: DB
  • Founded: 2017
  • Industry: Environmental and Facilities Services
  • Sector: Commercial Services
  • Market Cap: AU$1.242b
  • Listing Market Cap: AU$693.479m
  • Shares outstanding: 653.81m
  • Website: https://www.bingoindustries.com.au

Number of Employees


Location

  • Bingo Industries Limited
  • 305 Parramatta Road
  • Auburn
  • New South Wales
  • 2144
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
BINCHIA (Chi-X Australia)YesOrdinary SharesAUAUDMay 2017
BINASX (Australian Securities Exchange)YesOrdinary SharesAUAUDMay 2017
BI6DB (Deutsche Boerse AG)YesOrdinary SharesDEEURMay 2017

Biography

Bingo Industries Limited, together with its subsidiaries, provides waste management solutions for domestic and commercial businesses in Australia. It operates through three segments: Collections, Post Collections, and Other. It collects and transports building, demolition, industrial, and commercial waste from customers to post-collection facilities; and provides bins on hire. The company also diverts waste from landfill by sorting and processing mixed waste received from customers to be reused, recycled, or sent to other facilities for further processing; and manufactures and supplies bins. It operates through a network of 15 sites in New South Wales (NSW); and truck fleet of approximately 350 trucks in NSW and Victoria. Bingo Industries Limited was incorporated in 2017 and is based in Auburn, Australia. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/01 02:54
End of Day Share Price2020/03/31 00:00
Earnings2019/12/31
Annual Earnings2019/06/30


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.