XTRA:BC8

Stock Analysis Report

Executive Summary

Bechtle AG provides information technology services primarily in Europe.

Rewards

Earnings are forecast to grow 10.14% per year

Earnings grew by 27.6% over the past year

Pays a reliable dividend of 0.78%

Risk Analysis

Highly volatile share price over past 3 months



Snowflake Analysis

Excellent balance sheet with solid track record and pays a dividend.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: BC8's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-0.6%

BC8

1.6%

DE IT

-2.4%

DE Market


1 Year Return

95.8%

BC8

0.5%

DE IT

11.8%

DE Market

Return vs Industry: BC8 exceeded the German IT industry which returned 8.7% over the past year.

Return vs Market: BC8 exceeded the German Market which returned 17.1% over the past year.


Shareholder returns

BC8IndustryMarket
7 Day-0.6%1.6%-2.4%
30 Day5.4%15.2%-1.1%
90 Day38.3%19.8%3.0%
1 Year97.6%95.8%1.0%0.5%15.3%11.8%
3 Year196.7%186.7%150.3%143.5%14.4%4.4%
5 Year282.8%258.1%235.9%222.2%23.8%7.0%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

35.27x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: BC8 (€128.5) is trading above our estimate of fair value (€101.89)

Significantly Below Fair Value: BC8 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: BC8 is poor value based on its PE Ratio (35.3x) compared to the IT industry average (34.2x).

PE vs Market: BC8 is poor value based on its PE Ratio (33.7x) compared to the German market (20.6x).


Price to Earnings Growth Ratio

PEG Ratio: BC8 is poor value based on its PEG Ratio (3.3x)


Price to Book Ratio

PB vs Industry: BC8 is overvalued based on its PB Ratio (5.6x) compared to the DE IT industry average (4.4x).


Next Steps

Future Growth

How is Bechtle forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?

10.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: BC8's forecast earnings growth (10.1% per year) is above the savings rate (-0.4%).

Earnings vs Market: BC8's earnings (10.1% per year) are forecast to grow slower than the German market (13.2% per year).

High Growth Earnings: BC8's earnings are forecast to grow, but not significantly.

Revenue vs Market: BC8's revenue (7.2% per year) is forecast to grow faster than the German market (4.8% per year).

High Growth Revenue: BC8's revenue (7.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: BC8's Return on Equity is forecast to be low in 3 years time (16.5%).


Next Steps

Past Performance

How has Bechtle performed over the past 5 years?

14.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: BC8 has high quality earnings.

Growing Profit Margin: BC8's current net profit margins (3.1%) are higher than last year (3.1%).


Past Earnings Growth Analysis

Earnings Trend: BC8's earnings have grown by 14.4% per year over the past 5 years.

Accelerating Growth: BC8's earnings growth over the past year (27.6%) exceeds its 5-year average (14.4% per year).

Earnings vs Industry: BC8 earnings growth over the past year (27.6%) exceeded the IT industry 16.1%.


Return on Equity

High ROE: BC8's Return on Equity (16.8%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Bechtle's financial position?


Financial Position Analysis

Short Term Liabilities: BC8's short term assets (€1.4B) exceed its short term liabilities (€647.2M).

Long Term Liabilities: BC8's short term assets (€1.4B) exceed its long term liabilities (€546.6M).


Debt to Equity History and Analysis

Debt Level: BC8's debt to equity ratio (33.1%) is considered satisfactory.

Reducing Debt: BC8's debt to equity ratio has increased from 11% to 33.1% over the past 5 years.

Debt Coverage: BC8's debt is well covered by operating cash flow (43.3%).

Interest Coverage: BC8's interest payments on its debt are well covered by EBIT (48.9x coverage).


Balance Sheet

Inventory Level: BC8 has a high level of physical assets or inventory.

Debt Coverage by Assets: BC8's debt is covered by short term assets (assets are 4.3x debt).


Next Steps

Dividend

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

0.74%

Current Dividend Yield


Dividend Yield vs Market

company0.7%marketbottom25%1.4%markettop25%3.6%industryaverage0.5%forecastin3Years1.1%

Current dividend yield vs market & industry

Notable Dividend: BC8's dividend (0.78%) isn’t notable compared to the bottom 25% of dividend payers in the German market (1.38%).

High Dividend: BC8's dividend (0.78%) is low compared to the top 25% of dividend payers in the German market (3.53%).


Stability and Growth of Payments

Stable Dividend: BC8's dividends per share have been stable in the past 10 years.

Growing Dividend: BC8's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (26.2%), BC8's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: BC8's dividends in 3 years are forecast to be well covered by earnings (32% payout ratio).


Next Steps

Management

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

13.4yrs

Average management tenure


CEO

Thomas Olemotz (57yo)

0yrs

Tenure

€3,268,000

Compensation

Dr. Thomas Olemotz, Dipl.-Kfm, has been the Chairman of the Executive Board since October 2010 and Member of its Executive Board since March 2006 and serves as its Chief Executive Officer. Dr. Olemotz serv ...


CEO Compensation Analysis

Compensation vs Market: Thomas's total compensation ($USD3.64M) is about average for companies of similar size in the German market ($USD3.59M).

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


Management Age and Tenure

13.4yrs

Average Tenure

59yo

Average Age

Experienced Management: BC8's management team is seasoned and experienced (13.4 years average tenure).


Board Age and Tenure

6.6yrs

Average Tenure

Experienced Board: BC8's board of directors are considered experienced (6.6 years average tenure).


Insider Trading

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.


Management Team

  • Thomas Olemotz (57yo)

    CEO & Chairman of The Executive Board

    • Compensation: €3.27m
  • Gerhard Schick (79yo)

    Co-Founder & Honorary Chairman of the Supervisory Board

    • Compensation: €38.61k
  • Jürgen Schäfer (61yo)

    Member of Executive Board

    • Tenure: 11yrs
    • Compensation: €1.11m
  • Gerhard Marz (63yo)

    Executive Vice President of Public Sector Division

    • Tenure: 16yrs
  • Stefan Sagowski (55yo)

    Executive Vice President of Finance Division

    • Tenure: 15.8yrs
  • Michael Guschlbauer (55yo)

    Member of Executive Board

    • Tenure: 11yrs
    • Compensation: €1.64m
  • Gabi Schepperle

    Head of Group Accounting & Treasury

    • Christine Deutsch

      Head of Business Development Services

      • Katja Jager

        Head of Sales Controlling

        • Martin Link

          Head of Investor Relations


          Board Members

          • Kurt Dobitsch (65yo)

            Member of Supervisory Board

            • Tenure: 20.7yrs
            • Compensation: €46.00k
          • Klaus Winkler

            Chairman of the Supervisory Board

            • Tenure: 1.6yrs
            • Compensation: €70.00k
          • Daniela Eberle

            Employee Representative Member of Supervisory Board

            • Tenure: 16.3yrs
            • Compensation: €46.00k
          • Uli Drautz

            Deputy Chairman of the Supervisory Board

            • Compensation: €72.00k
          • Thomas Hess

            Member of Supervisory Board

            • Tenure: 7.6yrs
            • Compensation: €41.00k
          • Lars Grünert (51yo)

            Member of Supervisory Board

            • Tenure: 1.6yrs
            • Compensation: €18.00k
          • Volker Strohfeld

            Employee Representative Member of Supervisory Board

            • Tenure: 6.6yrs
            • Compensation: €34.00k
          • Michael Unser

            Employee Representative Member of Supervisory Board

            • Tenure: 6.6yrs
            • Compensation: €33.00k
          • Sandra Stegmann

            Member of Supervisory Board

            • Tenure: 3.6yrs
            • Compensation: €40.00k
          • Elke Reichart

            Member of Supervisory Board

            • Tenure: 1.1yrs
            • Compensation: €35.00k

          Company Information

          Bechtle AG's company bio, employee growth, exchange listings and data sources


          Key Information

          • Name: Bechtle AG
          • Ticker: BC8
          • Exchange: XTRA
          • Founded: 1983
          • Industry: IT Consulting and Other Services
          • Sector: Software
          • Market Cap: €5.620b
          • Shares outstanding: 42.00m
          • Website: https://www.bechtle.com

          Number of Employees


          Location

          • Bechtle AG
          • Bechtle Platz 1
          • Neckarsulm
          • Baden-Württemberg
          • 74172
          • Germany

          Listings

          TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
          BC8DB (Deutsche Boerse AG)YesOrdinary SharesDEEURMar 2000
          BC8XTRA (XETRA Trading Platform)YesOrdinary SharesDEEURMar 2000
          0DPMLSE (London Stock Exchange)YesOrdinary SharesGBEURMar 2000
          BC8DBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBEURMar 2000
          BC8SWX (SIX Swiss Exchange)YesOrdinary SharesCHCHFMar 2000
          BC8WBAG (Wiener Boerse AG)YesOrdinary SharesATEURMar 2000
          BC8ETLX (Eurotlx)YesOrdinary SharesITEURMar 2000

          Biography

          Bechtle AG provides information technology services primarily in Europe. The company operates in two segments, IT System House & Managed Services, and IT E-Commerce. The IT System House & Managed Services segment offers IT strategy consulting, hardware and software, project planning and implementation, system integration, IT services, and training for IT operation. It provides applications for customer relationship management, enterprise resource planning, computer-aided design/computer-aided manufacturing, product life-cycle management, collaboration, enterprise content management, business intelligence, virtual reality, and artificial intelligence; and modern workplace solutions. This segment also offers data center, networking, security, managed, professional, financial, and remarketing services. The IT E-Commerce segment provides hardware and software products, and peripherals with a multi-brand portfolio that comprises approximately 70,000 products through Internet and telesales. This segment also offers e-procurement services. The company also provides design, development, and implementation of software services. It serves customers in the fields of industry and trade, the public sector, and the financial industry. Bechtle AG was founded in 1983 and is headquartered in Neckarsulm, Germany. 


          Company Analysis and Financial Data Status

          All financial data provided by Standard & Poor's Capital IQ.
          DataLast Updated (UTC time)
          Company Analysis2020/01/28 21:11
          End of Day Share Price2020/01/28 00:00
          Earnings2019/09/30
          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.