DB:BDB

Stock Analysis Report

Executive Summary

Balta Group NV produces and sells textile floor coverings primarily in Europe.

Snowflake

Fundamentals

Very undervalued with reasonable growth potential.

Risks

  • Balta Group is covered by less than 3 analysts.

Similar Companies

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

-0.4%

DB:BDB

2.6%

DE Consumer Durables

0.8%

DE Market


1 Year Return

-48.2%

DB:BDB

-14.0%

DE Consumer Durables

-10.9%

DE Market

BDB underperformed the Consumer Durables industry which returned -13.9% over the past year.

BDB underperformed the Market in Germany which returned -10.9% over the past year.


Share holder returns

BDBIndustryMarket
7 Day-0.4%2.6%0.8%
30 Day-6.6%-4.6%-5.0%
90 Day-16.2%-13.2%-2.9%
1 Year-48.2%-48.2%-11.9%-14.0%-8.1%-10.9%
3 Yearn/a-8.4%-15.8%10.4%0.9%
5 Yearn/a24.0%7.5%25.5%8.1%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

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

40%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Balta Group's share price is below the future cash flow value, and at a moderate discount (> 20%).

Balta Group's share price is below the future cash flow value, and at a substantial discount (> 40%).


Price Based on Earnings

Balta Group is good value based on earnings compared to the DE Consumer Durables industry average.

Balta Group is good value based on earnings compared to the Germany market.


Price Based on Expected Growth

Balta Group is good value based on expected growth next year.


Price Based on Value of Assets

Balta Group is good value based on assets compared to the DE Consumer Durables industry average.


Next Steps

Future Growth

How is Balta Group expected to perform in the next 1 to 3 years based on estimates from 2 analysts?

58.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Balta Group's revenue is expected to grow by 5.6% yearly, however this is not considered high growth (20% yearly).

Balta Group's earnings are expected to grow significantly at over 20% yearly.

Balta Group's revenue growth is expected to exceed the Germany market average.

Balta Group's earnings growth is expected to exceed the Germany market average.

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


Earnings per Share Growth Estimates


Future Return on Equity

Balta Group is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


Next Steps

Past Performance

How has Balta Group performed over the past 5 years?

62.7%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Balta Group has delivered over 20% year on year earnings growth in the past 5 years.

Balta Group's 1-year earnings growth exceeds its 5-year average (149.4% vs 62.7%)

Balta Group's earnings growth has exceeded the DE Consumer Durables industry average in the past year (149.4% vs 6.3%).


Return on Equity

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


Return on Assets

Balta Group used its assets more efficiently than the DE Consumer Durables industry average last year based on Return on Assets.


Return on Capital Employed

Balta Group's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Balta Group's financial position?


Financial Position Analysis

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

Balta Group's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

Balta Group's level of debt (105.3%) compared to net worth is high (greater than 40%).

Balta Group had negative shareholder equity 5 years ago, it is now positive therefore their debt level has improved.

Debt is not well covered by operating cash flow (17.3%, less than 20% of total debt).

Interest payments on debt are not well covered by earnings (EBIT is 1.9x annual interest expense, ideally 3x coverage).


Balance Sheet

High level of physical assets or inventory.

Debt is not covered by short term assets, assets are 0.9x debt.


Next Steps

Dividend

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

12.33%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Unable to evaluate Balta Group's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.

Unable to evaluate Balta Group's dividend against the top 25% market benchmark as the company has not reported any payouts.

Unable to perform a dividend volatility check as Balta Group has not reported any payouts.

Unable to verify if Balta Group's dividend has been increasing as the company has not reported any payouts.


Current Payout to Shareholders

Unable to calculate sustainability of dividends as Balta Group has not reported any payouts.


Future Payout to Shareholders

Dividends after 3 years are expected to be covered by earnings (1.6x coverage).


Next Steps

Management

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

0.2yrs

Average management tenure


CEO

Cyrille Ragoucy (62yo)

1.0yrs

Tenure

€1,642,023

Compensation

Mr. Cyrille Ragoucy has been Chief Executive Officer of Balta Group NV since April 1, 2019 and serves as its Non-Executive Chairman and Chairman of Management Committee. Mr. Ragoucy serves as the Chief Exe ...


CEO Compensation Analysis

Cyrille's remuneration is higher than average for companies of similar size in Germany.

Insufficient data for Cyrille to compare compensation growth.


Management Age and Tenure

0.2yrs

Average Tenure

60yo

Average Age

The average tenure for the Balta Group management team is less than 2 years, this suggests a new team.


Board Age and Tenure

2.6yrs

Average Tenure

49yo

Average Age

The average tenure for the Balta Group board of directors is less than 3 years, this suggests a new board.


Insider Trading

No 3 month open market individual insider trading information.


Ownership Breakdown


Management Team

  • Cyrille Ragoucy (62yo)

    Chairman

    • Tenure: 1.0yrs
    • Compensation: €1.64m
  • Jim Harley (60yo)

    President of Bentley Mills

    • Tenure: 0.1yrs
  • Stefan Claeys

    Managing Director of Modulyss

    • Tenure: 0.3yrs
  • Marc Dessein (60yo)

    MD of Balta Home & Member of Management Committee

    • Tenure: 0.0yrs
  • Rupen Shah

    Corporate Development & Investor Relations Director

    • Tenure: 0.0yrs
  • Annelies Willemyns

    General Counsel

    • Tenure: 0.0yrs
  • Geert Bossche

    Marketing Director

    • Tenure: 0.0yrs
  • Jan-Christian Werner

    Chief Financial Officer

    • Tenure: 0.1yrs
  • Kris Willaert

    Human Resources Director

    • Tenure: 0.2yrs

Board Members

  • Cyrille Ragoucy (62yo)

    Chairman

    • Tenure: 1.0yrs
    • Compensation: €1.64m
  • Patrick Lebreton (51yo)

    Non-Executive Director

    • Tenure: 2.6yrs
  • Michael Kolbeck (49yo)

    Non-Executive Director

    • Tenure: 2.6yrs
  • Sarah Hedger (54yo)

    Independent Director

    • Tenure: 2.2yrs
    • Compensation: €53.50k
  • Nicolas Van den Abeele (47yo)

    Independent Director

    • Tenure: 2.2yrs
    • Compensation: €60.00k
  • Hannah Strong (35yo)

    Non-Executive Director

    • Tenure: 2.6yrs
  • Jeremy Fryzuk (34yo)

    Non-Executive Director

    • Tenure: 2.6yrs
  • Neal Morar

    Non-Executive Director

    • Tenure: 1.4yrs

Company Information

Balta Group NV's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Balta Group NV
  • Ticker: BDB
  • Exchange: DB
  • Founded: 1964
  • Industry: Home Furnishings
  • Sector: Consumer Durables
  • Market Cap: €94.711m
  • Shares outstanding: 35.94m
  • Website: https://www.baltagroup.com

Number of Employees


Location

  • Balta Group NV
  • Wakkensteenweg 2
  • Sint-Baafs-Vijve
  • West Flanders
  • 8710
  • Belgium

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
BALTAENXTBR (Euronext Brussels)YesOrdinary SharesBEEURJun 2017
BDBDB (Deutsche Boerse AG)YesOrdinary SharesDEEURJun 2017
0RQKLSE (London Stock Exchange)YesOrdinary SharesGBEURJun 2017

Biography

Balta Group NV produces and sells textile floor coverings primarily in Europe. The company operates through four segments: Rugs, Residential, Commercial, and Non-Woven. The Rugs segment designs, manufactur ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/08/24 21:52
End of Day Share Price2019/08/23 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.