DB:BWV

Stock Analysis Report

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Executive Summary

Basware Oyj provides networked purchase-to-pay solutions, and e-invoicing and financing services in Finland and internationally. More Details

Rewards

Earnings are forecast to grow 85.02% per year

Risk Analysis

No risks detected for BWV from our risk checks.


Snowflake Analysis

Reasonable growth potential with mediocre balance sheet.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

4.7%

BWV

-0.1%

DE Software

-0.7%

DE Market


1 Year Return

104.7%

BWV

19.0%

DE Software

3.9%

DE Market

Return vs Industry: BWV exceeded the German Software industry which returned 19% over the past year.

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


Shareholder returns

BWVIndustryMarket
7 Day4.7%-0.1%-0.7%
30 Day6.9%-1.6%-0.5%
90 Day10.0%-3.9%-0.04%
1 Year104.7%104.7%20.7%19.0%7.1%3.9%
3 Year-7.0%-7.0%46.3%40.4%3.2%-5.8%
5 Year6.6%6.6%107.0%92.8%24.2%6.4%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

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

6.49x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: BWV (€38.6) is trading above our estimate of fair value (€32.16)

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


Price To Earnings Ratio

PE vs Industry: BWV is unprofitable, so we can't compare its PE Ratio to the DE Software industry average.

PE vs Market: BWV is unprofitable, so we can't compare its PE Ratio to the German market.


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: BWV is overvalued based on its PB Ratio (6.5x) compared to the DE Software industry average (3.5x).


Next Steps

Future Growth

How is Basware Oyj forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

85.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: BWV is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (0.2%).

Earnings vs Market: BWV is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: BWV's is expected to become profitable in the next 3 years.

Revenue vs Market: BWV's revenue (10.8% per year) is forecast to grow faster than the German market (6.1% per year).

High Growth Revenue: BWV's revenue (10.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: BWV's Return on Equity is forecast to be low in 3 years time (1.8%).


Next Steps

Past Performance

How has Basware Oyj performed over the past 5 years?

-37.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: BWV is currently unprofitable.

Growing Profit Margin: BWV is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: BWV is unprofitable, and losses have increased over the past 5 years at a rate of 37.6% per year.

Accelerating Growth: Unable to compare BWV's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: BWV is unprofitable, making it difficult to compare its past year earnings growth to the Software industry (37.9%).


Return on Equity

High ROE: BWV has a negative Return on Equity (-12.06%), as it is currently unprofitable.


Next Steps

Financial Health

How is Basware Oyj's financial position?


Financial Position Analysis

Short Term Liabilities: BWV's short term assets (€74.7M) exceed its short term liabilities (€56.6M).

Long Term Liabilities: BWV's short term assets (€74.7M) do not cover its long term liabilities (€83.5M).


Debt to Equity History and Analysis

Debt Level: BWV's debt to equity ratio (74.1%) is considered high.

Reducing Debt: BWV's debt to equity ratio has increased from 10.7% to 74.1% over the past 5 years.


Balance Sheet


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: Whilst unprofitable BWV has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: BWV is unprofitable but has sufficient cash runway for more than 3 years, even with free cash flow being positive and shrinking by 26.9% per year.


Next Steps

Dividend

What is Basware Oyj current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

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

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


Stability and Growth of Payments

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

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


Current Payout to Shareholders

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


Future Payout to Shareholders

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

2.5yrs

Average management tenure


CEO

Klaus Andersen (56 yo)

1.58yrs

Tenure

€426,688

Compensation

Mr. Klaus Andersen serves as the Chief Executive Officer at Basware Oyj since June 20, 2019 and was the Interim Chief Executive Officer since March 11, 2019 until June 20, 2019. Mr. Andersen joined Basware ...


CEO Compensation Analysis

Compensation vs Market: Klaus's total compensation ($USD499.87K) is below average for companies of similar size in the German market ($USD1.29M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Klaus Andersen
Chief Executive Officer1.58yrs€426.69k0.073%
€ 412.9k
Tuija Mäntyniemi
Interim Chief Financial Officer VP of Group Controlling1.42yrsno datano data
Martti Nurminen
Chief Financial Officer0.83yrno datano data
Mogens Pedersen
Chief Technology Officer0.083yrno datano data
Ben Selby
Vice President of IR & Treasuryno datano datano data
Sami Takila
General Counselno datano datano data
Jukka Jänönen
Director of Corporate Communicationsno datano datano data
Lars Madsen
Chief Marketing Officer4.75yrsno data0.032%
€ 180.8k
Paul Taylor
Chief Revenue Officer4.33yrsno data0.032%
€ 179.0k
Jane Broberg
Chief HR Officer5.33yrsno data0.020%
€ 115.1k
Perttu Nihti
Chief Product Officerno datano datano data
Jussi Vasama
Chief Customer Officer3.42yrsno data0.020%
€ 111.9k

2.5yrs

Average Tenure

48.5yo

Average Age

Experienced Management: BWV's management team is considered experienced (2.5 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Asko Schrey
Independent Director2.58yrs€44.00k0.054%
€ 309.4k
Daryl Rolley
Independent Director2.58yrs€81.00k0.020%
€ 112.5k
Ilkka Sihvo
Independent Vice Chairman0.33yr€83.00k6.16%
€ 35.0m
Minna Smedsten
Director0.33yrno datano data
Michael Ingelög
Independent Chairman0.33yr€52.00k0.049%
€ 275.8k

0.3yrs

Average Tenure

53yo

Average Age

Experienced Board: BWV's board of directors are not considered experienced ( 0.3 years average tenure), which suggests a new board.


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

Basware Oyj's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Basware Oyj
  • Ticker: BWV
  • Exchange: DB
  • Founded: 1985
  • Industry: Application Software
  • Sector: Software
  • Market Cap: €567.969m
  • Shares outstanding: 14.42m
  • Website: https://www.basware.com

Number of Employees


Location

  • Basware Oyj
  • Building Cello
  • Linnoitustie 2
  • Espoo
  • Uusimaa
  • 2601
  • Finland

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
BOYJ.FOTCPK (Pink Sheets LLC)YesShare CapitalUSUSDFeb 2000
BAS1VHLSE (OMX Nordic Exchange Helsinki)YesShare CapitalFIEURFeb 2000
0DP4LSE (London Stock Exchange)YesShare CapitalGBEURFeb 2000
BWVDB (Deutsche Boerse AG)YesShare CapitalDEEURFeb 2000
BAS1VHBATS-CHIXE (BATS 'Chi-X Europe')YesShare CapitalGBEURFeb 2000

Biography

Basware Oyj provides networked purchase-to-pay solutions, and e-invoicing and financing services in Finland and internationally. It offers analytics, travel and expense management, sourcing, and e-procurem ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/18 21:20
End of Day Share Price2020/10/16 00:00
Earnings2020/06/30
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.