HLSE:BAS1V

Stock Analysis Report

Executive Summary

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


Snowflake Analysis

Reasonable growth potential and fair value.


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: BAS1V's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

7.1%

BAS1V

4.9%

FI Software

3.8%

FI Market


1 Year Return

-1.7%

BAS1V

12.9%

FI Software

-16.3%

FI Market

Return vs Industry: BAS1V underperformed the Finnish Software industry which returned 6.9% over the past year.

Return vs Market: BAS1V exceeded the Finnish Market which returned -21.6% over the past year.


Shareholder returns

BAS1VIndustryMarket
7 Day7.1%4.9%3.8%
30 Day-20.9%-11.6%-7.3%
90 Day-14.6%-12.3%-17.3%
1 Year-1.7%-1.7%13.6%12.9%-13.5%-16.3%
3 Year-39.3%-39.3%-9.0%-11.0%1.2%-9.7%
5 Year-51.8%-51.8%-29.1%-32.1%7.5%-11.8%

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

Valuation

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

39.7%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: BAS1V (€20) is trading below our estimate of fair value (€33.34)

Significantly Below Fair Value: BAS1V is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: BAS1V is unprofitable, so we can't compare its PE Ratio to the Software industry average.

PE vs Market: BAS1V is unprofitable, so we can't compare its PE Ratio to the Finnish market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate BAS1V's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: BAS1V is good value based on its PB Ratio (3.1x) compared to the FI Software industry average (5.2x).


Next Steps

Future Growth

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

84.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: BAS1V is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (-0.1%).

Earnings vs Market: BAS1V is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: BAS1V's is expected to become profitable in the next 3 years.

Revenue vs Market: BAS1V's revenue (9.2% per year) is forecast to grow faster than the Finnish market (2.9% per year).

High Growth Revenue: BAS1V's revenue (9.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: BAS1V'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: BAS1V is currently unprofitable.

Growing Profit Margin: BAS1V is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: BAS1V is unprofitable, and losses have increased over the past 5 years at a rate of -50.2% per year.

Accelerating Growth: Unable to compare BAS1V's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: BAS1V is unprofitable, making it difficult to compare its past year earnings growth to the Software industry (90%).


Return on Equity

High ROE: BAS1V has a negative Return on Equity (-24.91%), as it is currently unprofitable.


Next Steps

Financial Health

How is Basware Oyj's financial position?


Financial Position Analysis

Short Term Liabilities: BAS1V's short term assets (€68.9M) exceed its short term liabilities (€49.6M).

Long Term Liabilities: BAS1V's short term assets (€68.9M) do not cover its long term liabilities (€80.9M).


Debt to Equity History and Analysis

Debt Level: BAS1V's debt to equity ratio (64.7%) is considered high.

Reducing Debt: BAS1V's debt to equity ratio has increased from 1.2% to 64.7% 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: BAS1V has sufficient cash runway for more than 3 years based on its current free cash flow.

Forecast Cash Runway: Insufficient data to determine if BAS1V 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

Notable Dividend: Unable to evaluate BAS1V's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate BAS1V'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 BAS1V's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if BAS1V's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: BAS1V is not paying a notable dividend for the Finnish market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of BAS1V's dividend in 3 years as they are not forecast to pay a notable one for the Finnish market.


Next Steps

Management

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

2.9yrs

Average management tenure


CEO

Klaus Andersen (55yo)

1.08s

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 ($USD461.43K) is about average for companies of similar size in the Finnish market ($USD503.58K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Klaus Andersen
Chief Executive Officer1.08yrs€426.69k0.073% 212.2k
Tuija Mäntyniemi
Interim Chief Financial Officer VP of Group Controlling0.92yrno datano data
Martti Nurminen
Chief Financial Officer0.33yrno 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 Officer4.25yrsno data0.032% 92.9k
Paul Taylor
Chief Revenue Officer3.83yrsno data0.032% 92.0k
Jane Broberg
Chief HR Officer4.83yrsno data0.020% 59.1k
Jussi Vasama
Chief Customer Officer2.92yrsno data0.020% 57.6k

2.9yrs

Average Tenure

49yo

Average Age

Experienced Management: BAS1V's management team is considered experienced (2.9 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Asko Schrey
Independent Director2.08yrs€44.00k0.055% 159.0k
Daryl Rolley
Independent Director2.08yrs€81.00k0.020% 57.8k
Ilkka Sihvo
Independent Chairmanno data€83.00k6.16% 18.0m
Michael Ingelög
Independent Vice Chairman2.08yrs€52.00k0.049% 141.8k

2.1yrs

Average Tenure

54.5yo

Average Age

Experienced Board: BAS1V's board of directors are not considered experienced ( 2.1 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: BAS1V
  • Exchange: HLSE
  • Founded: 1985
  • Industry: Application Software
  • Sector: Software
  • Market Cap: €291.552m
  • 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 in Finland and internationally. It offers analytics, travel and expense management, sourcing, and e-procurement solutions; and solutions for accounts receivable and payable. The company also provides financing services solutions, including Basware Discount, a solution that offers discount for early payment; and Basware Pay, a payment solution. It serves customers in healthcare, energy and utilities, public sector and non-profit, manufacturing, retail and leisure, construction, transport and logistics, finance and insurance, software and telecoms. 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 Analysis2020/04/07 22:48
End of Day Share Price2020/04/07 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.