ENXTPA:BB

Stock Analysis Report

Executive Summary

Société BIC SA manufactures and sells stationery, lighter, shaver, and other products in Europe, North America, and internationally.

Rewards

Trading at 38.7% below its fair value

Earnings are forecast to grow 6.02% per year

Pays a high and reliable dividend of 5.7%

Risk Analysis

No risks detected for BB from our risk checks.


Snowflake Analysis

Flawless balance sheet 6 star dividend payer.


Similar Companies

Share Price & News

How has Société BIC's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

-1.7%

BB

-0.7%

FR Commercial Services

0.4%

FR Market


1 Year Return

-34.1%

BB

3.7%

FR Commercial Services

23.3%

FR Market

Return vs Industry: BB underperformed the French Commercial Services industry which returned 6.3% over the past year.

Return vs Market: BB underperformed the French Market which returned 24.9% over the past year.


Shareholder returns

BBIndustryMarket
7 Day-1.7%-0.7%0.4%
30 Day-3.1%-0.8%1.3%
90 Day-5.7%1.4%7.8%
1 Year-30.6%-34.1%7.5%3.7%27.6%23.3%
3 Year-44.4%-50.9%-14.2%-21.9%44.3%30.6%
5 Year-42.2%-52.2%-19.9%-32.8%63.2%39.8%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Société BIC 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: BB (€60.5) is trading below our estimate of fair value (€98.7)

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


Price To Earnings Ratio

PE vs Industry: BB is good value based on its PE Ratio (13.5x) compared to the Commercial Services industry average (16.7x).

PE vs Market: BB is good value based on its PE Ratio (13.5x) compared to the French market (18.1x).


Price to Earnings Growth Ratio

PEG Ratio: BB is poor value based on its PEG Ratio (2.2x)


Price to Book Ratio

PB vs Industry: BB is overvalued based on its PB Ratio (1.7x) compared to the FR Commercial Services industry average (1.5x).


Next Steps

Future Growth

How is Société BIC forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?

6.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: BB's forecast earnings growth (6% per year) is above the savings rate (-0.1%).

Earnings vs Market: BB's earnings (6% per year) are forecast to grow slower than the French market (11.7% per year).

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

Revenue vs Market: BB's revenue (0.6% per year) is forecast to grow slower than the French market (4.7% per year).

High Growth Revenue: BB's revenue (0.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: BB's Return on Equity is forecast to be low in 3 years time (13.1%).


Next Steps

Past Performance

How has Société BIC performed over the past 5 years?

-8.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: BB has high quality earnings.

Growing Profit Margin: BB's current net profit margins (10.3%) are lower than last year (12%).


Past Earnings Growth Analysis

Earnings Trend: BB's earnings have declined by -8.1% per year over the past 5 years.

Accelerating Growth: BB's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: BB had negative earnings growth (-11.9%) over the past year, making it difficult to compare to the Commercial Services industry average (-6.8%).


Return on Equity

High ROE: BB's Return on Equity (12.7%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Société BIC's financial position?


Financial Position Analysis

Short Term Liabilities: BB's short term assets (€1.3B) exceed its short term liabilities (€535.6M).

Long Term Liabilities: BB's short term assets (€1.3B) exceed its long term liabilities (€314.0M).


Debt to Equity History and Analysis

Debt Level: BB is debt free.

Reducing Debt: BB currently has no debt however we can't compare to 5 years ago as we have no data for that period.

Debt Coverage: BB has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: BB has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: BB has a high level of physical assets or inventory.

Debt Coverage by Assets: BB's debt is not covered by short term assets (assets are -29.5x debt).


Next Steps

Dividend

What is Société BIC's current dividend yield, its reliability and sustainability?

5.80%

Current Dividend Yield


Dividend Yield vs Market

company5.8%marketbottom25%1.5%markettop25%4.4%industryaverage3.4%forecastin3Years5.6%

Current dividend yield vs market & industry

Notable Dividend: BB's dividend (5.7%) is higher than the bottom 25% of dividend payers in the French market (1.46%).

High Dividend: BB's dividend (5.7%) is in the top 25% of dividend payers in the French market (4.43%)


Stability and Growth of Payments

Stable Dividend: BB's dividends per share have been stable in the past 10 years.

Growing Dividend: BB's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: At its current payout ratio (76.9%), BB's payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: BB's dividends in 3 years are forecast to be covered by earnings (63.7% payout ratio).


Next Steps

Management

What is the CEO of Société BIC's salary, the management and board of directors tenure and is there insider trading?

0.9yrs

Average management tenure


CEO

Gonzalve Bich (40yo)

1.7yrs

Tenure

€2,389,385

Compensation

Mr. Gonzalve Bich serves as CEO & Director of Société BIC SA since May 16, 2018. He was Chief Operating Officer at Société BIC SA from January 01, 2017 until May 16, 2018 and as its Executive Vice Presiden ...


CEO Compensation Analysis

Compensation vs Market: Gonzalve's total compensation ($USD2.66M) is above average for companies of similar size in the French market ($USD1.66M).

Compensation vs Earnings: Gonzalve's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Management Age and Tenure

0.9yrs

Average Tenure

55.5yo

Average Age

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


Board Age and Tenure

4.7yrs

Average Tenure

57.5yo

Average Age

Experienced Board: BB's board of directors are considered experienced (4.7 years average tenure).


Insider Trading

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.


Management Team

  • Sara LaPorta (58yo)

    Chief Strategy & Business Development Officer

    • Tenure: 0.3yrs
  • Alison James (53yo)

    Chief Human Resources Officer

    • Ed Dougherty

      Strategic Advisor

      • Jim DiPietro (58yo)

        CFO & Executive VP

        • Tenure: 18yrs
        • Compensation: €1.59m
      • Peter Dalsberg

        Group Supply Chain Officer

        • Benoit Marotte

          Group Commercial Officer

          • Gonzalve Bich (40yo)

            CEO & Director

            • Tenure: 1.7yrs
            • Compensation: €2.39m
          • Thomas Brette

            Group Insights & Innovation Officer of Stationery and Shavers

            • Tenure: 0.9yrs
          • Sophie Palliez-Capian

            VP of Corporate Stakeholder Engagement and External & Investor Relations Director

            • Charles Morgan

              Chief Administrative Officer

              • Tenure: 0.3yrs

            Board Members

            • Candace Matthews (60yo)

              Independent Director

              • Tenure: 2.7yrs
              • Compensation: €80.38k
            • Pierre Vareille (62yo)

              Independent Chairman of the Board

              • Tenure: 1.7yrs
              • Compensation: €226.69k
            • John Glen (60yo)

              Independent Director

              • Tenure: 11.1yrs
              • Compensation: €57.50k
            • Marie-Aimée Bich-Dufour (60yo)

              Director

              • Tenure: 0.7yrs
              • Compensation: €540.03k
            • François Bich (69yo)

              Director

              • Tenure: 42.3yrs
              • Compensation: €22.77k
            • Édouard Bich (55yo)

              Director

              • Tenure: 13.7yrs
              • Compensation: €52.50k
            • Marie-Pauline Chandon-Moët (52yo)

              Director

              • Tenure: 16.7yrs
              • Compensation: €38.80k
            • Elizabeth Bastoni (54yo)

              Independent Director

              • Tenure: 6.7yrs
              • Compensation: €69.50k
            • Gonzalve Bich (40yo)

              CEO & Director

              • Tenure: 1.7yrs
              • Compensation: €2.39m
            • Vincent Bedhome (53yo)

              Employees Representative Director

              • Tenure: 2.1yrs

            Company Information

            Société BIC SA's company bio, employee growth, exchange listings and data sources


            Key Information

            • Name: Société BIC SA
            • Ticker: BB
            • Exchange: ENXTPA
            • Founded: 1944
            • Industry: Office Services and Supplies
            • Sector: Commercial Services
            • Market Cap: €2.678b
            • Shares outstanding: 45.00m
            • Website: https://www.bicworld.com

            Number of Employees


            Location

            • Société BIC SA
            • 14 rue Jeanne d’Asnières
            • Cedex
            • Clichy
            • Ile-de-France
            • 92611
            • France

            Listings

            TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
            BICE.FOTCPK (Pink Sheets LLC)YesCommon StockUSUSDJan 1992
            BBENXTPA (Euronext Paris)YesCommon StockFREURJan 1992
            BIFDB (Deutsche Boerse AG)YesCommon StockDEEURJan 1992
            0MGPLSE (London Stock Exchange)YesCommon StockGBEURJan 1992
            BBPBATS-CHIXE (BATS 'Chi-X Europe')YesCommon StockGBEURJan 1992
            BICE.YOTCPK (Pink Sheets LLC)ADRUSUSDOct 2008

            Biography

            Société BIC SA manufactures and sells stationery, lighter, shaver, and other products in Europe, North America, and internationally. The company offers stationery products, including ball pens, ink, dry gel pens, fineliner pens, graphite pencils, coloring pencils, coloring felt pens, poster paints, water colors, plasticines, double-sided dry eraser whiteboards, mini pocket mouse decor, glue stock décor, markers, stickers, graphic pencils, mechanical pencils, sticky notes, printing products, writing pens, dyes, leads, writing instruments, and correction and adhesive tapes, as well as crayons, arts and crafts kits, correction fluids, correction pens, and erasers. It also provides classic, electronic, decorated, and multipurpose lighters; and shavers for men and women. In addition, the company sells pantyhoses, batteries, and shaving preps; and advertising and promotional products. Further, it is involved in the provision of delivery services; production of industrial equipment; and manufacture and distribution of IT solutions and consumer products, as well as real estate and insurance activities. The company offers its products under primarily the BIC, Cello, Conté, BIC Kids, Tipp-Ex, Wite-Out, BIC Soleil, and BIC Shave Club brands through points-of-sale, individual kiosks, and micro-shops, as well as an e-commerce site. Société BIC SA was founded in 1944 and is headquartered in Clichy, France. 


            Company Analysis and Financial Data Status

            All financial data provided by Standard & Poor's Capital IQ.
            DataLast Updated (UTC time)
            Company Analysis2020/01/21 20:54
            End of Day Share Price2020/01/21 00:00
            Earnings2019/09/30
            Annual Earnings2018/12/31


            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.