BATS-CHIXE:BBP

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 45.1% below its fair value

Earnings are forecast to grow 11.86% per year

Pays a high and reliable dividend of 5.47%

Risk Analysis

No risks detected for BBP 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: BBP has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-0.6%

BBP

-1.5%

GB Commercial Services

-0.2%

GB Market


1 Year Return

-24.3%

BBP

22.5%

GB Commercial Services

6.1%

GB Market

Return vs Industry: BBP underperformed the UK Commercial Services industry which returned 22.5% over the past year.

Return vs Market: BBP underperformed the UK Market which returned 6.1% over the past year.


Shareholder returns

BBPIndustryMarket
7 Day-0.6%-1.5%-0.2%
30 Day5.1%-1.4%-1.8%
90 Day1.2%6.6%4.0%
1 Year-20.4%-24.3%26.1%22.5%11.8%6.1%
3 Year-39.3%-46.4%24.5%13.9%17.5%2.6%
5 Year-41.2%-51.5%33.7%12.1%34.8%3.7%

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

No news available

Valuation

Is Société BIC undervalued compared to its fair value and its price relative to the market?

45.1%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: BBP (€63.35) is trading below our estimate of fair value (€115.48)

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


Price To Earnings Ratio

PE vs Industry: BBP is good value based on its PE Ratio (16.1x) compared to the Commercial Services industry average (19.3x).

PE vs Market: BBP is good value based on its PE Ratio (16.1x) compared to the UK market (18.5x).


Price to Earnings Growth Ratio

PEG Ratio: BBP is poor value based on its PEG Ratio (1.4x)


Price to Book Ratio

PB vs Industry: BBP is good value based on its PB Ratio (1.8x) compared to the GB Commercial Services industry average (2.2x).


Next Steps

Future Growth

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

11.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: BBP's forecast earnings growth (11.9% per year) is above the savings rate (0.5%).

Earnings vs Market: BBP's earnings (11.9% per year) are forecast to grow slower than the UK market (12.2% per year).

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

Revenue vs Market: BBP's revenue (0.9% per year) is forecast to grow slower than the UK market (3.4% per year).

High Growth Revenue: BBP's revenue (0.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: BBP's Return on Equity is forecast to be low in 3 years time (14%).


Next Steps

Past Performance

How has Société BIC performed over the past 5 years?

-10.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: BBP has high quality earnings.

Growing Profit Margin: BBP's current net profit margins (9%) are higher than last year (8.9%).


Past Earnings Growth Analysis

Earnings Trend: BBP's earnings have declined by -10.1% per year over the past 5 years.

Accelerating Growth: BBP's earnings growth over the past year (1.6%) exceeds its 5-year average (-10.1% per year).

Earnings vs Industry: BBP earnings growth over the past year (1.6%) underperformed the Commercial Services industry 17.1%.


Return on Equity

High ROE: BBP's Return on Equity (11%) 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: BBP's short term assets (€1.2B) exceed its short term liabilities (€488.5M).

Long Term Liabilities: BBP's short term assets (€1.2B) exceed its long term liabilities (€295.6M).


Debt to Equity History and Analysis

Debt Level: BBP's debt to equity ratio (3.4%) is considered satisfactory.

Reducing Debt: BBP's debt to equity ratio has reduced from 5% to 3.4% over the past 5 years.

Debt Coverage: BBP's debt is well covered by operating cash flow (584.7%).

Interest Coverage: BBP's interest payments on its debt are well covered by EBIT (194.4x coverage).


Balance Sheet

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

Debt Coverage by Assets: BBP's debt is covered by short term assets (assets are 22.8x debt).


Next Steps

Dividend

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

5.47%

Current Dividend Yield


Dividend Yield vs Market

company5.5%marketbottom25%1.8%markettop25%5.1%industryaverage2.7%forecastin3Years5.2%

Current dividend yield vs market & industry

Notable Dividend: BBP's dividend (5.47%) is higher than the bottom 25% of dividend payers in the UK market (1.83%).

High Dividend: BBP's dividend (5.47%) is in the top 25% of dividend payers in the UK market (5.1%)


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: At its current payout ratio (88.3%), BBP's payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: BBP's dividends in 3 years are forecast to be covered by earnings (62.6% payout ratio).


Next Steps

Management

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

1.0yrs

Average management tenure


CEO

Gonzalve Bich (40yo)

1.8yrs

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 ($USD2.59M) is about average for companies of similar size in the UK market ($USD2.22M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Gonzalve Bich
CEO & Director1.8yrs€2.39mno data
James DiPietro
CFO & Executive VP18.1yrs€1.59m0.049% 1.4m
Charles Morgan
Chief Administrative Officer0.3yrsno datano data
Sophie Palliez-Capian
VP of Corporate Stakeholder Engagement and External & Investor Relations Director0yrsno datano data
Alison James
Chief Human Resources Officer0yrsno datano data
Benoit Marotte
Group Commercial Officer0yrsno datano data
Thomas Brette
Group Insights & Innovation Officer of Stationery and Shavers1yrsno datano data
Peter Dalsberg
Group Supply Chain Officer0yrsno datano data
Sara LaPorta
Chief Strategy & Business Development Officer0.3yrsno datano data
Ed Dougherty
Strategic Advisor0yrsno datano data

1.0yrs

Average Tenure

55.5yo

Average Age

Experienced Management: BBP's management team is not considered experienced ( 1 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Gonzalve Bich
CEO & Director1.8yrs€2.39mno data
Candace Matthews
Independent Director2.8yrs€80.38k0.00089% 25.2k
Pierre Vareille
Independent Chairman of the Board1.8yrs€226.69k0.013% 378.1k
John Glen
Independent Director11.2yrs€57.50k0.0011% 31.5k
Marie-Aimée Bich-Dufour
Director0.8yrs€540.03kno data
François Bich
Director42.4yrs€22.77kno data
Édouard Bich
Director13.8yrs€52.50kno data
Marie-Pauline Chandon-Moët
Director16.8yrs€38.80kno data
Elizabeth Bastoni
Independent Director6.8yrs€69.50k0.0011% 31.5k
Vincent Bedhome
Employees Representative Director2.2yrsno data0.000050% 1.4k

4.8yrs

Average Tenure

57.5yo

Average Age

Experienced Board: BBP's board of directors are considered experienced (4.8 years average tenure).


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

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


Key Information

  • Name: Société BIC SA
  • Ticker: BBP
  • Exchange: BATS-CHIXE
  • Founded: 1944
  • Industry: Office Services and Supplies
  • Sector: Commercial Services
  • Market Cap: €2.837b
  • Shares outstanding: 44.99m
  • 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 Analysis2020/02/16 19:41
End of Day Share Price2020/02/14 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.