ENXTPA:BVI

Stock Analysis Report

Executive Summary

Bureau Veritas SA provides testing, inspection, and certification services in the areas of quality, health and safety, environmental protection, efficiency, and social responsibility.

Rewards

Earnings are forecast to grow 10.53% per year

Earnings grew by 7.1% over the past year

Pays a high and reliable dividend of 2.29%

Risk Analysis

Has a high level of debt



Snowflake Analysis

Solid track record established dividend payer.


Similar Companies

Share Price & News

How has Bureau Veritas's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

2.2%

BVI

1.9%

FR Professional Services

0.4%

FR Market


1 Year Return

30.8%

BVI

40.0%

FR Professional Services

23.3%

FR Market

Return vs Industry: BVI underperformed the French Professional Services industry which returned 44.4% over the past year.

Return vs Market: BVI exceeded the French Market which returned 24.9% over the past year.


Shareholder returns

BVIIndustryMarket
7 Day2.2%1.9%0.4%
30 Day6.0%4.5%1.3%
90 Day14.6%12.6%7.8%
1 Year34.3%30.8%42.6%40.0%27.6%23.3%
3 Year48.5%37.3%73.2%63.0%44.3%30.6%
5 Year51.5%33.3%122.0%99.5%63.2%39.8%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Bureau Veritas undervalued compared to its fair value and its price relative to the market?

30.85x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: BVI (€24.46) is trading above our estimate of fair value (€20.99)

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


Price To Earnings Ratio

PE vs Industry: BVI is poor value based on its PE Ratio (30.2x) compared to the Professional Services industry average (17.6x).

PE vs Market: BVI is poor value based on its PE Ratio (30.2x) compared to the French market (18.1x).


Price to Earnings Growth Ratio

PEG Ratio: BVI is poor value based on its PEG Ratio (2.9x)


Price to Book Ratio

PB vs Industry: BVI is overvalued based on its PB Ratio (10.5x) compared to the FR Professional Services industry average (1.5x).


Next Steps

Future Growth

How is Bureau Veritas forecast to perform in the next 1 to 3 years based on estimates from 18 analysts?

10.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: BVI's forecast earnings growth (10.5% per year) is above the savings rate (-0.1%).

Earnings vs Market: BVI's earnings (10.5% per year) are forecast to grow slower than the French market (11.7% per year).

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

Revenue vs Market: BVI's revenue (4.2% per year) is forecast to grow slower than the French market (4.7% per year).

High Growth Revenue: BVI's revenue (4.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: BVI's Return on Equity is forecast to be high in 3 years time (35.8%)


Next Steps

Past Performance

How has Bureau Veritas performed over the past 5 years?

3.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: BVI has high quality earnings.

Growing Profit Margin: BVI's current net profit margins (7.2%) are higher than last year (7.1%).


Past Earnings Growth Analysis

Earnings Trend: BVI's earnings have grown by 3.2% per year over the past 5 years.

Accelerating Growth: BVI's earnings growth over the past year (7.1%) exceeds its 5-year average (3.2% per year).

Earnings vs Industry: BVI earnings growth over the past year (7.1%) exceeded the Professional Services industry 5.1%.


Return on Equity

High ROE: Whilst BVI's Return on Equity (34.38%) is high, this metric is skewed due to their high level of debt.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Bureau Veritas's financial position?


Financial Position Analysis

Short Term Liabilities: BVI's short term assets (€2.6B) exceed its short term liabilities (€1.7B).

Long Term Liabilities: BVI's short term assets (€2.6B) do not cover its long term liabilities (€3.5B).


Debt to Equity History and Analysis

Debt Level: BVI's debt to equity ratio (266.2%) is considered high.

Reducing Debt: BVI's debt to equity ratio has increased from 229.4% to 266.2% over the past 5 years.

Debt Coverage: BVI's debt is well covered by operating cash flow (25.7%).

Interest Coverage: BVI's interest payments on its debt are well covered by EBIT (7.3x coverage).


Balance Sheet

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

Debt Coverage by Assets: BVI's debt is not covered by short term assets (assets are 0.9x debt).


Next Steps

Dividend

What is Bureau Veritas's current dividend yield, its reliability and sustainability?

2.24%

Current Dividend Yield


Dividend Yield vs Market

company2.2%marketbottom25%1.5%markettop25%4.4%industryaverage1.5%forecastin3Years2.6%

Current dividend yield vs market & industry

Notable Dividend: BVI's dividend (2.29%) is higher than the bottom 25% of dividend payers in the French market (1.46%).

High Dividend: BVI's dividend (2.29%) is low compared to the top 25% of dividend payers in the French market (4.43%).


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (69.1%), BVI's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: BVI's dividends in 3 years are forecast to be covered by earnings (56.5% payout ratio).


Next Steps

Management

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

1.7yrs

Average management tenure


CEO

Didier Michaud-Daniel (61yo)

7.8yrs

Tenure

€4,312,849

Compensation

Mr. Didier Michaud-Daniel has been the Chief Executive Officer of Bureau Veritas SA of Wendel since March 1, 2012. Mr. Michaud-Daniel serves as Independent Member of Supervisory Board at Tarkett SAS since  ...


CEO Compensation Analysis

Compensation vs Market: Didier's total compensation ($USD4.80M) is above average for companies of similar size in the French market ($USD3.59M).

Compensation vs Earnings: Didier's compensation has been consistent with company performance over the past year.


Management Age and Tenure

1.7yrs

Average Tenure

45yo

Average Age

Experienced Management: BVI's management team is not considered experienced ( 1.7 years average tenure), which suggests a new team.


Board Age and Tenure

3.5yrs

Average Tenure

58yo

Average Age

Experienced Board: BVI's board of directors are considered experienced (3.5 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

  • Didier Michaud-Daniel (61yo)

    Chief Executive Officer

    • Tenure: 7.8yrs
    • Compensation: €4.31m
  • Laurent Brunelle (45yo)

    Head of Investor Relations

    • Tenure: 3.6yrs
  • Pascal Quint (61yo)

    Executive VP of Risk & Compliance

    • Tenure: 1.4yrs
  • Eduardo Camargo

    Executive Vice President of Group Transformation

    • Oliver Butler

      President of Consumer Products Division

      • Juliano Cardoso

        Executive Vice President of CIF - Africa

        • Natalia Shuman (45yo)

          Executive Vice-President of CIF North America

          • Tenure: 2.8yrs
        • Helen Bradley

          Executive Vice President of Human Resources

          • Tenure: 1.6yrs
        • Jacques Pommeraud (43yo)

          Executive VP of Commodities

          • Tenure: 1.7yrs
        • François Chabas

          Executive VP of Finance & Group CFO

          • Tenure: 1.3yrs

        Board Members

        • André François-Poncet (60yo)

          Vice Chairman of the Board

          • Tenure: 2yrs
          • Compensation: €75.50k
        • Aldo Cardoso (63yo)

          Independent Chairman

          • Tenure: 2.8yrs
          • Compensation: €347.00k
        • Siân Herbert-Jones (59yo)

          Independent Director

          • Tenure: 3.7yrs
          • Compensation: €57.00k
        • Pascal Lebard (57yo)

          Independent Director

          • Tenure: 6.1yrs
          • Compensation: €86.38k
        • Frank Piedelièvre (63yo)

          Honorary Chairman

          • Tenure: 6.2yrs
          • Compensation: €464.73k
        • Claude Ehlinger (55yo)

          Director

          • Tenure: 3.3yrs
          • Compensation: €80.50k
        • Stéphanie Besnier (41yo)

          Director

          • Tenure: 3.3yrs
          • Compensation: €59.00k
        • Lucia Sinapi-Thomas (55yo)

          Independent Director

          • Tenure: 6.7yrs
          • Compensation: €56.75k
        • Ieda Gomes Yell (62yo)

          Independent Director

          • Tenure: 6.7yrs
          • Compensation: €82.50k
        • Ana Giros Calpe (44yo)

          Independent Director

          • Tenure: 2.7yrs
          • Compensation: €52.75k

        Company Information

        Bureau Veritas SA's company bio, employee growth, exchange listings and data sources


        Key Information

        • Name: Bureau Veritas SA
        • Ticker: BVI
        • Exchange: ENXTPA
        • Founded: 1828
        • Industry: Research and Consulting Services
        • Sector: Commercial Services
        • Market Cap: €11.174b
        • Shares outstanding: 446.76m
        • Website: https://www.bureauveritas.com

        Number of Employees


        Location

        • Bureau Veritas SA
        • Immeuble Newtime
        • 40/52 Boulevard du Parc
        • Neuilly-sur-Seine
        • Ile-de-France
        • 92200
        • France

        Listings

        TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
        BVIENXTPA (Euronext Paris)YesOrdinary SharesFREUROct 2007
        4BVDB (Deutsche Boerse AG)YesOrdinary SharesDEEUROct 2007
        0MH1LSE (London Stock Exchange)YesOrdinary SharesGBEUROct 2007
        BVRD.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDOct 2007
        BVIPBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBEUROct 2007

        Biography

        Bureau Veritas SA provides testing, inspection, and certification services in the areas of quality, health and safety, environmental protection, efficiency, and social responsibility. It operates through six segments: Marine & Offshore, Agri-Food & Commodities, Industry, Buildings & Infrastructure, Certification, and Consumer Products. The company engages in inspecting, testing, auditing, and certifying the products, assets, and management systems of its clients related to regulatory or self-imposed standards, as well as the issuance of compliance reports. It also provides laboratory and on-site testing and analyses services to determine the characteristics of a product or material; inspection services, including visual inspections and verification of documents, and manufacturing supervision, as well as electronic, electrical, mechanical, and software testing; and certification services for management systems, products, and people, as well as cross-market services. The company serves the automotive and transport, buildings and infrastructure, chemicals, commodities and agriculture, consumer products and retail, financial services and public, food, marine and offshore, oil and gas, and power and utilities markets. It operates in approximately 140 countries through a network of approximately 1,500 offices and laboratories. The company was founded in 1828 and is based in Neuilly-sur-Seine, 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 21:23
        End of Day Share Price2020/01/21 00:00
        Earnings2019/06/30
        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.