DB:BWV

Stock Analysis Report

Executive Summary

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

Rewards

Trading at 30.6% below its fair value

Earnings are forecast to grow 89.41% per year

Risk Analysis

No risks detected for BWV from our risk checks.


Snowflake Analysis

Reasonable growth potential and slightly overvalued.


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

1.7%

BWV

3.4%

DE Software

2.0%

DE Market


1 Year Return

-25.5%

BWV

36.1%

DE Software

15.1%

DE Market

Return vs Industry: BWV underperformed the German Software industry which returned 35.8% over the past year.

Return vs Market: BWV underperformed the German Market which returned 15% over the past year.


Shareholder returns

BWVIndustryMarket
7 Day1.7%3.4%2.0%
30 Day8.7%1.6%1.0%
90 Day26.1%5.2%3.8%
1 Year-25.5%-25.5%37.9%36.1%18.6%15.1%
3 Year-23.1%-23.1%58.1%51.8%16.8%6.6%
5 Year-28.4%-28.4%130.4%114.0%23.7%6.7%

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?

30.0%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: BWV (€27.65) is trading below our estimate of fair value (€39.85)

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


Price To Earnings Ratio

PE vs Industry: BWV is unprofitable, so we can't compare its PE Ratio to the 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 (4.3x) compared to the DE Software industry average (3.2x).


Next Steps

Future Growth

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

89.4%

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 (-0.4%).

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 (9.6% per year) is forecast to grow faster than the German market (5% per year).

High Growth Revenue: BWV's revenue (9.6% 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 (7%).


Next Steps

Past Performance

How has Basware Oyj performed over the past 5 years?

-50.2%

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 -50.2% 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 (14.6%).


Return on Equity

High ROE: BWV has a negative Return on Equity (-24.91%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Basware Oyj's financial position?


Financial Position Analysis

Short Term Liabilities: BWV's short term assets (€68.9M) exceed its short term liabilities (€49.6M).

Long Term Liabilities: BWV's short term assets (€68.9M) do not cover its long term liabilities (€80.9M).


Debt to Equity History and Analysis

Debt Level: BWV's debt to equity ratio (64.7%) is considered high.

Reducing Debt: BWV's debt to equity ratio has increased from 1.2% to 64.7% over the past 5 years.


Balance Sheet

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

Debt Coverage by Assets: BWV's debt is covered by short term assets (assets are 1.1x debt).


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: BWV has sufficient cash runway for more than 3 years based on its current free cash flow.

Forecast Cash Runway: Insufficient data to determine if BWV has enough cash runway if its free cash flow continues to grow or shrink based on historical rates.


Next Steps

Dividend

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


Dividend Yield vs Market

company0%marketbottom25%1.3%markettop25%3.6%industryaverage1.2%forecastin3Years0%

Current dividend yield vs market & industry

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

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

0.9yrs

Average management tenure


CEO

Klaus Andersen (55yo)

0.9yrs

Tenure

0

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 ...


Leadership Team

NamePositionTenureCompensationOwnership
Klaus Andersen
Chief Executive Officer0.9yrsno datano data
Tuija Mäntyniemi
Interim Chief Financial Officer VP of Group Controlling0.8yrsno datano data
Martti Nurminen
Chief Financial Officer0.2yrsno datano data
Ben Selby
Vice President of IR & Treasury0yrsno datano data
Sami Takila
General Counsel0yrsno datano data
Jukka Jänönen
Director of Corporate Communications0yrsno datano data
Lars Madsen
Chief Marketing Officer4.1yrsno data0.020% 80.5k
Paul Taylor
Chief Revenue Officer3.7yrsno data0.020% 79.2k
Jane Broberg
Chief HR Officer4.7yrsno data0.012% 47.9k
Niclas Rosenlew
0.8yrsno data0.066% 266.3k

0.9yrs

Average Tenure

50yo

Average Age

Experienced Management: BWV's management team is not considered experienced ( 0.9 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Asko Schrey
Director1.9yrsno data0.0090% 36.5k
Daryl Rolley
Director1.9yrsno data0.0021% 8.3k
Ilkka Sihvo
Chairman0yrsno data6.15% 24.9m
Michael Ingelög
Vice Chairman1.9yrsno data0.035% 140.5k

1.9yrs

Average Tenure

54.5yo

Average Age

Experienced Board: BWV's board of directors are not considered experienced ( 1.9 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: €404.574m
  • Shares outstanding: 14.40m
  • Website: https://www.basware.com

Number of Employees


Location

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

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
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 for organizations in Finland and internationally. It offers analytics and business consulting solutions; AP Automation, an accounts payable automation software; Purchase Manager, an e-procurement solution; Travel & Expense, a solution to control travel and expense costs, and reimburse employees; and InvoiceReady, a solution for invoice handling. The company also provides e-invoice, PDF e-invoice, and paper invoice sending and receiving, as well as invoice archiving, in-house scanning, and paper invoice scanning and capturing solutions; supplier management solutions for supplier engagement and supplier data enrichment; and eMarketplace, an e-procurement solution. In addition, it offers financing services solutions, including Basware Discount, a solution that offers discount for early payment; and Basware Pay, an e-payment solution. The company was founded in 1985 and is headquartered in Espoo, Finland. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/18 22:00
End of Day Share Price2020/02/18 00:00
Earnings2019/12/31
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.