BST:1BZ

Stock Analysis Report

Executive Summary

Beeks Trading Corporation Ltd. provides virtual private server and infrastructure solutions for traders and broker partners worldwide.

Rewards

Trading at 41.3% below its fair value

Earnings are forecast to grow 38.08% per year

Earnings grew by 40.4% over the past year

Risk Analysis

High level of non-cash earnings

Shareholders have been substantially diluted in the past year

Highly volatile share price over past 3 months

Does not have a meaningful market cap (€63M)



Snowflake Analysis

Exceptional growth potential with excellent balance sheet.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: 1BZ's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

3.3%

1BZ

0.6%

DE IT

1.7%

DE Market


1 Year Return

22.2%

1BZ

50.5%

DE IT

15.0%

DE Market

Return vs Industry: 1BZ underperformed the German IT industry which returned 50.5% over the past year.

Return vs Market: 1BZ exceeded the German Market which returned 15% over the past year.


Shareholder returns

1BZIndustryMarket
7 Day3.3%0.6%1.7%
30 Day15.6%8.6%0.8%
90 Day52.7%16.9%3.7%
1 Year22.7%22.2%51.5%50.5%18.5%15.0%
3 Yearn/a159.4%152.4%17.1%6.9%
5 Yearn/a243.9%229.9%24.3%7.3%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

Is Beeks Trading undervalued compared to its fair value and its price relative to the market?

41.3%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 1BZ (€1.41) is trading below our estimate of fair value (€2.39)

Significantly Below Fair Value: 1BZ is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 1BZ is poor value based on its PE Ratio (59.3x) compared to the IT industry average (33.5x).

PE vs Market: 1BZ is poor value based on its PE Ratio (59.3x) compared to the German market (21.1x).


Price to Earnings Growth Ratio

PEG Ratio: 1BZ is poor value based on its PEG Ratio (1.6x)


Price to Book Ratio

PB vs Industry: 1BZ is overvalued based on its PB Ratio (11.2x) compared to the DE IT industry average (4.6x).


Next Steps

Future Growth

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

38.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 1BZ's forecast earnings growth (38.1% per year) is above the savings rate (-0.4%).

Earnings vs Market: 1BZ's earnings (38.1% per year) are forecast to grow faster than the German market (13.3% per year).

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

Revenue vs Market: 1BZ's revenue (29.3% per year) is forecast to grow faster than the German market (5% per year).

High Growth Revenue: 1BZ's revenue (29.3% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 1BZ's Return on Equity is forecast to be high in 3 years time (36.4%)


Next Steps

Past Performance

How has Beeks Trading performed over the past 5 years?

46.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 1BZ has a high level of non-cash earnings.

Growing Profit Margin: 1BZ's current net profit margins (14.5%) are higher than last year (13.6%).


Past Earnings Growth Analysis

Earnings Trend: 1BZ's earnings have grown significantly by 46.9% per year over the past 5 years.

Accelerating Growth: 1BZ's earnings growth over the past year (40.4%) is below its 5-year average (46.9% per year).

Earnings vs Industry: 1BZ earnings growth over the past year (40.4%) exceeded the IT industry 16.1%.


Return on Equity

High ROE: 1BZ's Return on Equity (18.9%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Beeks Trading's financial position?


Financial Position Analysis

Short Term Liabilities: 1BZ's short term assets (£3.4M) exceed its short term liabilities (£1.9M).

Long Term Liabilities: 1BZ's short term assets (£3.4M) exceed its long term liabilities (£747.0K).


Debt to Equity History and Analysis

Debt Level: 1BZ's debt to equity ratio (17.7%) is considered satisfactory.

Reducing Debt: Insufficient data to determine if 1BZ's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: 1BZ's debt is well covered by operating cash flow (210.5%).

Interest Coverage: 1BZ's interest payments on its debt are well covered by EBIT (15.9x coverage).


Balance Sheet

Inventory Level: 1BZ has a high level of physical assets or inventory.

Debt Coverage by Assets: 1BZ's debt is covered by short term assets (assets are 3.5x debt).


Next Steps

Dividend

What is Beeks Trading's current dividend yield, its reliability and sustainability?

0.24%

Current Dividend Yield


Dividend Yield vs Market

company0.2%marketbottom25%1.3%markettop25%3.6%industryaverage0.5%forecastin3Years0.6%

Current dividend yield vs market & industry

Notable Dividend: 1BZ's dividend (0.24%) isn’t notable compared to the bottom 25% of dividend payers in the German market (1.31%).

High Dividend: 1BZ's dividend (0.24%) is low compared to the top 25% of dividend payers in the German market (3.59%).


Stability and Growth of Payments

Stable Dividend: 1BZ is not paying a notable dividend for the German market, therefore no need to check if payments are stable.

Growing Dividend: 1BZ is not paying a notable dividend for the German market, therefore no need to check if payments are increasing.


Current Payout to Shareholders

Dividend Coverage: 1BZ is not paying a notable dividend for the German market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of 1BZ'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?

UK£79k

CEO Compensation


CEO

Gordon McArthur (43yo)

UK£79,000

Compensation

Mr. Gordon McArthur has been the Chief Executive Officer at Beeks Trading Corporation Ltd. and BeeksFX VPS since January 2011. Mr. McArthur is the owner of BeeksFX VPS. He established BeeksFX in 2011 after ...


CEO Compensation Analysis

Compensation vs Market: Gordon's total compensation ($USD102.81K) is below average for companies of similar size in the German market ($USD412.37K).

Compensation vs Earnings: Gordon's compensation has been consistent with company performance over the past year.


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 been substantially diluted in the past year, with total shares outstanding growing by 58.7%.


Top Shareholders

Company Information

Beeks Trading Corporation Ltd.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Beeks Trading Corporation Ltd.
  • Ticker: 1BZ
  • Exchange: BST
  • Founded: 2010
  • Industry: Internet Services and Infrastructure
  • Sector: Software
  • Market Cap: UK£63.327m
  • Listing Market Cap: UK£76.066m
  • Shares outstanding: 50.86m
  • Website: https://www.beeksfinancialcloud.com

Number of Employees


Location

  • Beeks Trading Corporation Ltd.
  • St James Business Park
  • Suite 1
  • Paisley
  • Renfrewshire
  • PA3 3AT
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
BKSAIM (London Stock Exchange AIM Market)YesOrdinary SharesGBGBPNov 2017
1BZBST (Boerse-Stuttgart)YesOrdinary SharesDEEURNov 2017

Biography

Beeks Trading Corporation Ltd. provides virtual private server and infrastructure solutions for traders and broker partners worldwide. The company also offers co-location services; dedicated server packages; and server installation services. In addition, it provides institutional venue connections and retail broker connections through its Equinix platform; and Beeks Marketplace, a cloud-based portal that enables real-time connectivity to various exchanges, data feeds, trading tools, and news services for institutional traders, proprietary trading firms, brokers, wealth managers, and high-end retail traders. The company was incorporated in 2010 and is based in Paisley, United Kingdom with additional offices in Austria, Chicago, the United Kingdom, Indonesia, New York, and Tokyo. Beeks Trading Corporation Ltd. operates as a subsidiary of Beeks Financial Cloud Group Limited. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/17 22:43
End of Day Share Price2020/02/17 00:00
Earnings2019/06/30
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.