DB:BDB

Stock Analysis Report

Executive Summary

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

Rewards

Trading at 61.4% below its fair value

Earnings are forecast to grow 31.63% per year

Earnings grew by 41.6% over the past year

Risk Analysis

Interest payments are not well covered by earnings

Highly volatile share price over past 3 months

Large one-off items impacting financial results

Does not have a meaningful market cap (€32M)



Snowflake Analysis

Very undervalued with proven track record.


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

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


Market Performance


7 Day Return

-18.1%

BDB

9.7%

DE Consumer Durables

2.2%

DE Market


1 Year Return

-73.1%

BDB

-24.7%

DE Consumer Durables

-17.2%

DE Market

Return vs Industry: BDB underperformed the German Consumer Durables industry which returned -22.3% over the past year.

Return vs Market: BDB underperformed the German Market which returned -17.5% over the past year.


Shareholder returns

BDBIndustryMarket
7 Day-18.1%9.7%2.2%
30 Day-60.8%-14.3%-15.7%
90 Day-67.5%-20.8%-24.0%
1 Year-73.1%-73.1%-22.8%-24.7%-14.9%-17.2%
3 Yearn/a-18.5%-25.4%-16.4%-23.3%
5 Yearn/a-7.8%-20.5%-16.5%-27.8%

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 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: BDB (€0.91) is trading below our estimate of fair value (€2.36)

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


Price To Earnings Ratio

PE vs Industry: BDB is good value based on its PE Ratio (3.1x) compared to the Consumer Durables industry average (11.2x).

PE vs Market: BDB is good value based on its PE Ratio (3.1x) compared to the German market (16.3x).


Price to Earnings Growth Ratio

PEG Ratio: BDB is good value based on its PEG Ratio (0.1x)


Price to Book Ratio

PB vs Industry: BDB is good value based on its PB Ratio (0.1x) compared to the DE Consumer Durables industry average (1.3x).


Next Steps

Future Growth

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

31.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: BDB's forecast earnings growth (31.6% per year) is above the savings rate (-0.4%).

Earnings vs Market: BDB's earnings (31.6% per year) are forecast to grow faster than the German market (14.4% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: BDB's revenue (2.3% per year) is forecast to grow slower than the German market (4.1% per year).

High Growth Revenue: BDB's revenue (2.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: BDB's Return on Equity is forecast to be low in 3 years time (10%).


Next Steps

Past Performance

How has Balta Group performed over the past 5 years?

23.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: BDB has a large one-off loss of €6.6M impacting its December 31 2019 financial results.

Growing Profit Margin: BDB's current net profit margins (1.5%) are higher than last year (1.1%).


Past Earnings Growth Analysis

Earnings Trend: BDB's earnings have grown significantly by 23.1% per year over the past 5 years.

Accelerating Growth: BDB's earnings growth over the past year (41.6%) exceeds its 5-year average (23.1% per year).

Earnings vs Industry: BDB earnings growth over the past year (41.6%) exceeded the Consumer Durables industry -15.9%.


Return on Equity

High ROE: BDB's Return on Equity (4%) is considered low.


Next Steps

Financial Health

How is Balta Group's financial position?


Financial Position Analysis

Short Term Liabilities: BDB's short term assets (€231.5M) exceed its short term liabilities (€199.0M).

Long Term Liabilities: BDB's short term assets (€231.5M) do not cover its long term liabilities (€328.8M).


Debt to Equity History and Analysis

Debt Level: BDB's debt to equity ratio (104.5%) is considered high.

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

Debt Coverage: BDB's debt is not well covered by operating cash flow (18.1%).

Interest Coverage: BDB's interest payments on its debt are not well covered by EBIT (1.4x coverage).


Balance Sheet

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

Debt Coverage by Assets: BDB's 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?


Dividend Yield vs Market

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

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


Stability and Growth of Payments

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

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


Current Payout to Shareholders

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


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of BDB'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?

0.8yrs

Average management tenure


CEO

Cyrille Ragoucy (62yo)

1.67s

Tenure

€872,275

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

Compensation vs Market: Cyrille's total compensation ($USD962.35K) is above average for companies of similar size in the German market ($USD431.45K).

Compensation vs Earnings: Insufficient data to compare Cyrille's compensation with company performance.


Leadership Team

NamePositionTenureCompensationOwnership
Cyrille Ragoucy
Chairman1.67yrs€872.28kno data
Jan-Christian Werner
Chief Financial Officer0.75yrno datano data
Marc Dessein
MD of Balta Home & Member of Management Committeeno datano data0.24% 76.0k
James Harley
President of Bentley Mills & Member of Management Committee0.75yrno data0.056% 18.2k
Rupen Shah
Corporate Development & Investor Relations Directorno datano datano data
Annelies Willemyns
General Counselno datano datano data
Geert Bossche
Marketing Directorno datano datano data
Kris Willaert
Human Resources Director0.83yrno datano data
Oliver Forberich
Managing Director of Balta carpets0.58yrno datano data
Stefan Claeys
Managing Director of Modulyss1yrno datano data

0.8yrs

Average Tenure

60yo

Average Age

Experienced Management: BDB's management team is not considered experienced ( 0.7 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Cyrille Ragoucy
Chairman1.67yrs€872.28kno data
Patrick Lebreton
Non-Executive Director3.25yrsno datano data
Michael Kolbeck
Non-Executive Director3.25yrsno datano data
Sarah Hedger
Independent Director2.83yrs€53.50kno data
Nicolas Van den Abeele
Independent Director2.83yrs€60.00kno data
Hannah Strong
Non-Executive Director3.25yrsno datano data
Jeremy Fryzuk
Non-Executive Director3.25yrsno datano data
Neal Morar
Non-Executive Director2.08yrsno datano data

3.3yrs

Average Tenure

49yo

Average Age

Experienced Board: BDB's board of directors are considered experienced (3.2 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.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

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: €32.313m
  • 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
BALTABBATS-CHIXE (BATS 'Chi-X Europe')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, manufactures, and distributes a range of machine-made rugs to retailers, such as home improvement, furniture, specialist, discount, and DIY stores, as well as e-commerce players and wholesalers under the Balta home brand name. The Residential segment designs, manufactures, and distributes branded broadloom carpets under the Balta Carpets and ITC brands; and tiles to retailers and wholesalers. The Commercial segment designs, manufactures, and distributes modular carpet tiles for offices and public projects under the modulyss and Bentley brands; and broadloom carpets for the hospitality sector under the arc edition brand to architects, designers, contractors, and distributors. The Non-Woven segment designs, manufactures, and distributes soft flooring for events, such as fairs and expositions; specialized fabrics for insulation, lining, cars, carpet backings, and banners under the Captiqs brand name; and needle felt products. The company also exports its products to 130 countries worldwide. Balta Group NV was founded in 1964 and is headquartered in Sint-Baafs-Vijve, Belgium. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/01 08:18
End of Day Share Price2020/03/31 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.