DB:BSS

Stock Analysis Report

Beta Systems Software

Executive Summary

Beta Systems Software AG develops software products in Germany and internationally.

Rewards

Trading at 20.1% below its fair value

Earnings grew by 51.6% over the past year

Risk Analysis

No risks detected for BSS from our risk checks.


Snowflake Analysis

Undervalued with solid track record.

Share Price & News

How has Beta Systems Software's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: BSS has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

4.7%

BSS

-1.3%

DE Software

-0.6%

DE Market


1 Year Return

9.3%

BSS

-4.8%

DE Software

-20.9%

DE Market

Return vs Industry: BSS exceeded the German Software industry which returned -6% over the past year.

Return vs Market: BSS exceeded the German Market which returned -20.6% over the past year.


Shareholder returns

BSSIndustryMarket
7 Day4.7%-1.3%-0.6%
30 Day-11.9%-12.0%-20.0%
90 Day-11.9%-17.3%-26.3%
1 Year10.6%9.3%-3.5%-4.8%-18.6%-20.9%
3 Year7.9%4.7%14.2%9.7%-19.0%-25.8%
5 Year166.2%130.2%57.4%46.2%-21.1%-31.8%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Beta Systems Software undervalued compared to its fair value and its price relative to the market?

20.1%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: BSS (€19.9) is trading below our estimate of fair value (€24.9)

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


Price To Earnings Ratio

PE vs Industry: BSS is good value based on its PE Ratio (15.8x) compared to the Software industry average (36.6x).

PE vs Market: BSS is good value based on its PE Ratio (15.8x) compared to the German market (16.6x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate BSS's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: BSS is good value based on its PB Ratio (1.8x) compared to the DE Software industry average (2.3x).


Next Steps

Future Growth

How is Beta Systems Software forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

19.0%

Forecasted Software industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Beta Systems Software has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has Beta Systems Software performed over the past 5 years?

15.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: BSS has high quality earnings.

Growing Profit Margin: BSS's current net profit margins (11.3%) are higher than last year (8.7%).


Past Earnings Growth Analysis

Earnings Trend: BSS has become profitable over the past 5 years, growing earnings by 15.5% per year.

Accelerating Growth: BSS's earnings growth over the past year (51.6%) exceeds its 5-year average (15.5% per year).

Earnings vs Industry: BSS earnings growth over the past year (51.6%) exceeded the Software industry 19.1%.


Return on Equity

High ROE: BSS's Return on Equity (11.5%) is considered low.


Next Steps

  • Explore strong past performing companies in the Software industry.

Financial Health

How is Beta Systems Software's financial position?


Financial Position Analysis

Short Term Liabilities: BSS's short term assets (€58.1M) exceed its short term liabilities (€22.6M).

Long Term Liabilities: BSS's short term assets (€58.1M) exceed its long term liabilities (€11.9M).


Debt to Equity History and Analysis

Debt Level: BSS's debt to equity ratio (14.5%) is considered satisfactory.

Reducing Debt: BSS's debt to equity ratio has increased from 0.3% to 14.5% over the past 5 years.

Debt Coverage: BSS's debt is well covered by operating cash flow (107.2%).

Interest Coverage: BSS earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: BSS has a low level of unsold assets or inventory.

Debt Coverage by Assets: BSS's debt is covered by short term assets (assets are 7.6x debt).


Next Steps

Dividend

What is Beta Systems Software's current dividend yield, its reliability and sustainability?

1.01%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: BSS's dividend (1.01%) isn’t notable compared to the bottom 25% of dividend payers in the German market (1.69%).

High Dividend: BSS's dividend (1.01%) is low compared to the top 25% of dividend payers in the German market (4.85%).


Stability and Growth of Payments

Stable Dividend: BSS has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: BSS has only been paying a dividend for 2 years, and since then payments have fallen.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (15.9%), BSS's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

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


CEO

Beta Systems Software has no CEO, or we have no data on them.


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

Beta Systems Software AG's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Beta Systems Software AG
  • Ticker: BSS
  • Exchange: DB
  • Founded: 1983
  • Industry: Application Software
  • Sector: Software
  • Market Cap: €97.581m
  • Shares outstanding: 4.78m
  • Website: https://www.betasystems.com

Number of Employees


Location

  • Beta Systems Software AG
  • Alt-Moabit 90d
  • Berlin
  • Berlin
  • 10559
  • Germany

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
BSSDB (Deutsche Boerse AG)YesOrdinary SharesDEEURJul 1997

Biography

Beta Systems Software AG develops software products in Germany and internationally. It offers identity access management solution that reduces the risk of financial loss or damage to the corporate image resulting from breaches in compliance-critical areas. The company also provides data center intelligence solutions, including output management and archiving solutions comprising professional design and automated distribution of documents; log management and security information management system that searches application logs across all platforms; workload automation and job management solutions; Z/OS mainframe access management solutions; and professional and consulting services. It serves banks, insurance agencies, industrial, trade and service companies, healthcare organizations, public administration authorities, as well as church and social institutions. The company was founded in 1983 and is headquartered in Berlin, Germany. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/03 20:49
End of Day Share Price2020/04/03 00:00
Earnings2019/09/30
Annual Earnings2019/09/30


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.