XTRA:BC8

Stock Analysis Report

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Executive Summary

Bechtle AG provides information technology services primarily in Europe.


Snowflake Analysis

Excellent balance sheet with proven 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

2.9%

BC8

3.2%

DE IT

0.7%

DE Market


1 Year Return

62.1%

BC8

48.9%

DE IT

3.9%

DE Market

Return vs Industry: BC8 exceeded the German IT industry which returned 48.9% over the past year.

Return vs Market: BC8 exceeded the German Market which returned 3.9% over the past year.


Shareholder returns

BC8IndustryMarket
7 Day2.9%3.2%0.7%
30 Day11.4%-42.1%5.3%
90 Day25.4%-45.6%17.3%
1 Year63.4%62.1%50.1%48.9%6.2%3.9%
3 Year196.6%188.0%-12.2%-14.0%1.8%-6.2%
5 Year350.9%326.2%53.3%47.5%9.3%-5.4%

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?

39.51x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: BC8 (€164.9) is trading above our estimate of fair value (€80.96)

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 (39.5x) compared to the DE IT industry average (26.6x).

PE vs Market: BC8 is poor value based on its PE Ratio (39.5x) compared to the German market (21x).


Price to Earnings Growth Ratio

PEG Ratio: BC8 is poor value based on its PEG Ratio (3.2x)


Price to Book Ratio

PB vs Industry: BC8 is overvalued based on its PB Ratio (6.6x) compared to the DE IT industry average (3.5x).


Next Steps

Future Growth

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

12.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: BC8's forecast earnings growth (12.2% per year) is above the savings rate (0.2%).

Earnings vs Market: BC8's earnings (12.2% per year) are forecast to grow slower than the German market (22.3% per year).

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

Revenue vs Market: BC8's revenue (10.7% per year) is forecast to grow faster than the German market (5.9% per year).

High Growth Revenue: BC8's revenue (10.7% 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 (16.1%).


Next Steps

Past Performance

How has Bechtle performed over the past 5 years?

15.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: BC8 has high quality earnings.

Growing Profit Margin: BC8's current net profit margins (3.2%) are higher than last year (3.1%).


Past Earnings Growth Analysis

Earnings Trend: BC8's earnings have grown by 15.4% per year over the past 5 years.

Accelerating Growth: BC8's earnings growth over the past year (21.7%) exceeds its 5-year average (15.4% per year).

Earnings vs Industry: BC8 earnings growth over the past year (21.7%) underperformed the IT industry 21.7%.


Return on Equity

High ROE: BC8's Return on Equity (16.6%) is considered low.


Next Steps

Financial Health

How is Bechtle's financial position?


Financial Position Analysis

Short Term Liabilities: BC8's short term assets (€1.6B) exceed its short term liabilities (€806.8M).

Long Term Liabilities: BC8's short term assets (€1.6B) exceed its long term liabilities (€595.9M).


Debt to Equity History and Analysis

Debt Level: BC8's debt to equity ratio (34.7%) is considered satisfactory.

Reducing Debt: BC8's debt to equity ratio has increased from 9.9% to 34.7% over the past 5 years.

Debt Coverage: BC8's debt is well covered by operating cash flow (63%).

Interest Coverage: BC8's interest payments on its debt are well covered by EBIT (45.5x coverage).


Balance Sheet


Next Steps

Dividend

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

0.73%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: BC8's dividend (0.73%) isn’t notable compared to the bottom 25% of dividend payers in the German market (1.24%).

High Dividend: BC8's dividend (0.73%) is low compared to the top 25% of dividend payers in the German market (3.82%).


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 (28.8%), 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 (28.2% payout ratio).


Next Steps

Management

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

11.5yrs

Average management tenure


CEO

Thomas Olemotz (58yo)

no data

Tenure

€3,519,000

Compensation

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


CEO Compensation Analysis

Compensation vs Market: Thomas's total compensation ($USD3.98M) is about average for companies of similar size in the German market ($USD3.68M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Thomas Olemotz
CEO & Chairman of The Executive Boardno data€3.52m0.0018% 124.0k
Jürgen Schäfer
Member of Executive Board11.5yrs€1.01m0.019% 1.3m
Michael Guschlbauer
Member of Executive Board11.5yrs€1.54mno data
Gerhard Schick
Co-Founder & Honorary Chairman of the Supervisory Boardno data€38.61kno data
Stefan Sagowski
Executive Vice President of Finance Division16.33yrsno datano data
Gabi Schepperle
Head of Group Accounting & Treasuryno datano datano data
Martin Link
Head of Investor Relationsno datano datano data
Christine Deutsch
Head of Business Development Servicesno datano datano data
Katja Jager
Head of Sales Controllingno datano datano data
Dilan Günes
Manager of Human Resourcesno datano datano data

11.5yrs

Average Tenure

58yo

Average Age

Experienced Management: BC8's management team is seasoned and experienced (11.5 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Kurt Dobitsch
Member of Supervisory Board21.17yrs€45.00kno data
Klaus Winkler
Chairman of the Supervisory Board2.08yrs€124.00kno data
Daniela Eberle
Employee Representative Member of Supervisory Board16.75yrs€45.00kno data
Uli Drautz
Deputy Chairman of the Supervisory Boardno data€71.00kno data
Thomas Hess
Member of Supervisory Board8.08yrs€45.00kno data
Lars Grünert
Member of Supervisory Board2.08yrs€33.00kno data
Volker Strohfeld
Employee Representative Member of Supervisory Board7.08yrs€34.00kno data
Michael Unser
Employee Representative Member of Supervisory Board7.08yrs€34.00kno data
Sandra Stegmann
Member of Supervisory Board4.08yrs€45.00kno data
Elke Reichart
Member of Supervisory Board2.58yrs€34.00kno data

7.1yrs

Average Tenure

62yo

Average Age

Experienced Board: BC8's board of directors are considered experienced (7.1 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

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: €6.926b
  • 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

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 selling, 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 an online shop 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, trade, finance, and the public sector. 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 Analysis2020/07/12 20:55
End of Day Share Price2020/07/10 00:00
Earnings2020/03/31
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.