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Biffa

LSE:BIFF
Snowflake Description

Proven track record and fair value.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
BIFF
LSE
£471M
Market Cap
  1. Home
  2. GB
  3. Commercial Services
Company description

Biffa plc provides waste management services in the United Kingdom. The last earnings update was 60 days ago. More info.


Add to Portfolio Compare Print
  • Biffa has significant price volatility in the past 3 months.
BIFF Share Price and Events
7 Day Returns
-0.9%
LSE:BIFF
0.2%
GB Commercial Services
0.5%
GB Market
1 Year Returns
-24.6%
LSE:BIFF
-12.1%
GB Commercial Services
-9.9%
GB Market
BIFF Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Biffa (BIFF) -0.9% -2.7% -20.8% -24.6% - -
GB Commercial Services 0.2% 7.2% -1.2% -12.1% 15.4% -22.3%
GB Market 0.5% 4.1% -0.9% -9.9% 13.7% -5.3%
1 Year Return vs Industry and Market
  • BIFF underperformed the Commercial Services industry which returned -12.1% over the past year.
  • BIFF underperformed the Market in United Kingdom of Great Britain and Northern Ireland which returned -9.9% over the past year.
Price Volatility
BIFF
Industry
5yr Volatility vs Market

BIFF Value

 Is Biffa undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Biffa to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Biffa.

LSE:BIFF Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 5 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 8.5%
Perpetual Growth Rate 10-Year GB Government Bond Rate 1.2%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for LSE:BIFF
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year GB Govt Bond Rate 1.2%
Equity Risk Premium S&P Global 8.8%
Commercial Services Unlevered Beta Simply Wall St/ S&P Global 0.5
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.502 (1 + (1- 19%) (79.74%))
0.826
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.83
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 1.23% + (0.826 * 8.77%)
8.47%

Discounted Cash Flow Calculation for LSE:BIFF using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Biffa is arrived at by discounting future cash flows to their present value using the 2 stage method. We use analyst's estimates of cash flows going forward 5 years for the 1st stage, the 2nd stage assumes the company grows at a stable rate into perpetuity.

LSE:BIFF DCF 1st Stage: Next 5 year cash flow forecast
2019 2020 2021 2022 2023
Levered FCF (GBP, Millions) 49.07 47.20 47.85 50.62 53.56
Source Analyst x3 Analyst x2 Analyst x2 Est @ 5.8% Est @ 5.8%
Present Value
Discounted (@ 8.47%)
45.23 40.12 37.49 36.57 35.66
Present value of next 5 years cash flows £195.07
LSE:BIFF DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2023 × (1 + g) ÷ (Discount Rate – g)
= £53.56 × (1 + 1.23%) ÷ (8.47% – 1.23%)
£748.33
Present Value of Terminal Value = Terminal Value ÷ (1 + r)5
= £748.33 ÷ (1 + 8.47%)5
£498.33
LSE:BIFF Total Equity Value
Calculation Result
Total Equity Value = Present value of next 5 years cash flows + Terminal Value
= £195.07 + £498.33
£693.40
Equity Value per Share
(GBP)
= Total value / Shares Outstanding
= £693.40 / 250.00
£2.77
LSE:BIFF Discount to Share Price
Calculation Result
Value per share (GBP) From above. £2.77
Current discount Discount to share price of £1.88
= -1 x (£1.88 - £2.77) / £2.77
32.1%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Biffa is available for.
Intrinsic value
32%
Share price is £1.88 vs Future cash flow value of £2.77
Current Discount Checks
For Biffa to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Biffa's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Biffa's share price is below the future cash flow value, but not at a substantial discount (< 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Biffa's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Biffa's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
LSE:BIFF PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-09-28) in GBP £0.11
LSE:BIFF Share Price ** LSE (2019-01-18) in GBP £1.88
United Kingdom of Great Britain and Northern Ireland Commercial Services Industry PE Ratio Median Figure of 26 Publicly-Listed Commercial Services Companies 22.37x
United Kingdom of Great Britain and Northern Ireland Market PE Ratio Median Figure of 815 Publicly-Listed Companies 15.77x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Biffa.

LSE:BIFF PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= LSE:BIFF Share Price ÷ EPS (both in GBP)

= 1.88 ÷ 0.11

17.82x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Biffa is good value based on earnings compared to the GB Commercial Services industry average.
  • Biffa is overvalued based on earnings compared to the United Kingdom of Great Britain and Northern Ireland market.
Price based on expected Growth
Does Biffa's expected growth come at a high price?
Raw Data
LSE:BIFF PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 17.82x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 5 Analysts
15.3%per year
United Kingdom of Great Britain and Northern Ireland Commercial Services Industry PEG Ratio Median Figure of 20 Publicly-Listed Commercial Services Companies 1.17x
United Kingdom of Great Britain and Northern Ireland Market PEG Ratio Median Figure of 573 Publicly-Listed Companies 1.3x

*Line of best fit is calculated by linear regression .

LSE:BIFF PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 17.82x ÷ 15.3%

1.16x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Biffa is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Biffa's assets?
Raw Data
LSE:BIFF PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-09-28) in GBP £1.38
LSE:BIFF Share Price * LSE (2019-01-18) in GBP £1.88
United Kingdom of Great Britain and Northern Ireland Commercial Services Industry PB Ratio Median Figure of 35 Publicly-Listed Commercial Services Companies 1.68x
United Kingdom of Great Britain and Northern Ireland Market PB Ratio Median Figure of 1,361 Publicly-Listed Companies 1.51x
LSE:BIFF PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= LSE:BIFF Share Price ÷ Book Value per Share (both in GBP)

= 1.88 ÷ 1.38

1.36x

* Primary Listing of Biffa.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Biffa is good value based on assets compared to the GB Commercial Services industry average.
X
Value checks
We assess Biffa's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Commercial Services industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Commercial Services industry average (and greater than 0)? (1 check)
  5. Biffa has a total score of 3/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

BIFF Future Performance

 How is Biffa expected to perform in the next 1 to 3 years based on estimates from 5 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
15.3%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Biffa expected to grow at an attractive rate?
  • Biffa's earnings growth is expected to exceed the low risk savings rate of 1.2%.
Growth vs Market Checks
  • Biffa's earnings growth is expected to exceed the United Kingdom of Great Britain and Northern Ireland market average.
  • Biffa's revenue growth is positive but not above the United Kingdom of Great Britain and Northern Ireland market average.
Annual Growth Rates Comparison
Raw Data
LSE:BIFF Future Growth Rates Data Sources
Data Point Source Value (per year)
LSE:BIFF Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 5 Analysts 15.3%
LSE:BIFF Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 5 Analysts 2.8%
United Kingdom of Great Britain and Northern Ireland Commercial Services Industry Earnings Growth Rate Market Cap Weighted Average 16.2%
United Kingdom of Great Britain and Northern Ireland Commercial Services Industry Revenue Growth Rate Market Cap Weighted Average 4.7%
United Kingdom of Great Britain and Northern Ireland Market Earnings Growth Rate Market Cap Weighted Average 11.3%
United Kingdom of Great Britain and Northern Ireland Market Revenue Growth Rate Market Cap Weighted Average 3.8%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
LSE:BIFF Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 5 Analyst Estimates (S&P Global) See Below
All numbers in GBP Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
LSE:BIFF Future Estimates Data
Date (Data in GBP Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2021-03-31 1,160 131 46 5
2020-03-31 1,128 139 43 5
2019-03-31 1,096 128 39 5
LSE:BIFF Past Financials Data
Date (Data in GBP Millions) Revenue Cash Flow Net Income *
2018-09-28 1,091 128 26
2018-06-28 1,084 131 29
2018-03-30 1,077 134 31
2017-12-30 1,052 89 24
2017-09-22 1,028 43 18
2017-06-22 1,013 42 -5
2017-03-24 990 38 -11
2016-12-24 976 70 -10
2016-09-23 961 102 -10
2016-06-24 944 125 9
2016-03-25 928 114 -5

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Biffa's earnings are expected to grow by 15.3% yearly, however this is not considered high growth (20% yearly).
  • Biffa's revenue is expected to grow by 2.8% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
LSE:BIFF Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 5 Analyst Estimates (S&P Global) See Below

All data from Biffa Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

LSE:BIFF Future Estimates Data
Date (Data in GBP Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2021-03-31 0.17 0.20 0.13 3.00
2020-03-31 0.15 0.19 0.12 3.00
2019-03-31 0.14 0.19 0.11 3.00
LSE:BIFF Past Financials Data
Date (Data in GBP Millions) EPS *
2018-09-28 0.11
2018-06-28 0.12
2018-03-30 0.12
2017-12-30 0.10
2017-09-22 0.07
2017-06-22 -0.03
2017-03-24 -0.09
2016-12-24 -0.14
2016-09-23 -0.35
2016-06-24 0.85
2016-03-25 -0.19

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Biffa is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Biffa's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United Kingdom of Great Britain and Northern Ireland market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United Kingdom of Great Britain and Northern Ireland market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Biffa has a total score of 2/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

BIFF Past Performance

  How has Biffa performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Biffa's growth in the last year to its industry (Commercial Services).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Biffa has delivered over 20% year on year earnings growth in the past 5 years.
  • Biffa's 1-year earnings growth is less than its 5-year average (45% vs 62.2%)
  • Biffa's earnings growth has exceeded the GB Commercial Services industry average in the past year (45% vs 0.3%).
Earnings and Revenue History
Biffa's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Biffa Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

LSE:BIFF Past Revenue, Cash Flow and Net Income Data
Date (Data in GBP Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-09-28 1,091.30 26.40 44.40
2018-06-28 1,084.00 28.75 47.90
2018-03-30 1,076.70 31.10 51.40
2017-12-30 1,052.10 24.45 70.95
2017-09-22 1,027.50 17.80 88.70
2017-06-22 1,012.60 -5.35 87.75
2017-03-24 990.40 -10.90 80.80
2016-12-24 975.55 -10.20 74.45
2016-09-23 960.70 -9.50 68.10
2016-06-24 944.30 8.50 57.30
2016-03-25 927.50 -5.10 60.30
2015-03-27 878.00 8.10 38.90
2014-03-28 859.60 -21.00 51.10

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Biffa has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Biffa used its assets more efficiently than the GB Commercial Services industry average last year based on Return on Assets.
  • Biffa has improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Biffa's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Commercial Services industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Biffa has a total score of 4/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

BIFF Health

 How is Biffa's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Biffa's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Biffa's short term (1 year) commitments are greater than its holdings of cash and other short term assets.
  • Biffa's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of Biffa's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is not covered by short term assets, assets are 0.7x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Biffa Company Filings, last reported 3 months ago.

LSE:BIFF Past Debt and Equity Data
Date (Data in GBP Millions) Total Equity Total Debt Cash & Short Term Investments
2018-09-28 345.60 375.20 39.90
2018-06-28 345.60 375.20 39.90
2018-03-30 341.20 359.70 50.20
2017-12-30 341.20 359.70 50.20
2017-09-22 311.80 340.50 34.60
2017-06-22 311.80 340.50 34.60
2017-03-24 291.60 346.30 67.10
2016-12-24 291.60 346.30 67.10
2016-09-23 -43.30 630.30 110.90
2016-06-24 23.00 620.40 111.40
2016-03-25 3.40 614.00 123.50
2015-03-27 -39.70 597.40 102.00
2014-03-28 -45.50 594.60 100.10
  • Biffa's level of debt (108.6%) compared to net worth is high (greater than 40%).
  • Unable to establish if Biffa's debt level has increased without past 5-year debt data.
  • Debt is well covered by operating cash flow (34%, greater than 20% of total debt).
  • Interest payments on debt are not well covered by earnings (EBIT is 2.4x annual interest expense, ideally 3x coverage).
X
Financial health checks
We assess Biffa's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Biffa has a total score of 1/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

BIFF Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
3.63%
Current annual income from Biffa dividends. Estimated to be 3.79% next year.
If you bought £2,000 of Biffa shares you are expected to receive £73 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Biffa's pays a higher dividend yield than the bottom 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (1.98%).
  • Biffa's dividend is below the markets top 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (5.28%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
LSE:BIFF Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 5 Analyst Estimates (S&P Global) See Below
United Kingdom of Great Britain and Northern Ireland Commercial Services Industry Average Dividend Yield Market Cap Weighted Average of 24 Stocks 3.1%
United Kingdom of Great Britain and Northern Ireland Market Average Dividend Yield Market Cap Weighted Average of 710 Stocks 4.3%
United Kingdom of Great Britain and Northern Ireland Minimum Threshold Dividend Yield 10th Percentile 1.1%
United Kingdom of Great Britain and Northern Ireland Bottom 25% Dividend Yield 25th Percentile 2%
United Kingdom of Great Britain and Northern Ireland Top 25% Dividend Yield 75th Percentile 5.3%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

LSE:BIFF Future Dividends Estimate Data
Date (Data in £) Dividend per Share (annual) Avg. No. Analysts
2021-03-31 0.07 6.00
2020-03-31 0.07 6.00
2019-03-31 0.07 6.00
LSE:BIFF Past Annualized Dividends Data
Date (Data in £) Dividend per share (annual) Avg. Yield (%)
2018-11-26 0.068 3.511
2018-06-19 0.091 3.770
2018-06-13 0.091 3.719
2017-11-22 0.043 1.916
2017-06-14 0.058 2.481

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Biffa has been paying a dividend for less than 10 years and during this time payments have been volatile (annual drop of over 20%).
  • Dividend payments have increased, but Biffa only paid a dividend in the past 2 years.
Current Payout to shareholders
What portion of Biffa's earnings are paid to the shareholders as a dividend.
  • Dividends paid are covered by earnings (1.5x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (2.8x coverage).
X
Income/ dividend checks
We assess Biffa's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.1%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Biffa afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Biffa has a total score of 3/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

BIFF Management

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

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Michael Robert Topham
COMPENSATION £705,539
AGE 46
TENURE AS CEO 0.3 years
CEO Bio

Mr. Michael Robert Mason Topham serves as Chief Executive Officer and Director at Biffa Group Limited since September 29, 2018. Mr. Topham had been the Chief Financial Officer of Biffa Group Limited since 2013 until 2018. He has been Chief Executive Officer of Biffa plc since September 29, 2018 and as its Executive Director since August 18, 2016. He served as the Chief Financial Officer of Biffa plc from 2013 to September 29, 2018. Mr. Topham served as Divisional Finance Director and Divisional Managing Director of Biffa Group Limited. He serves as Recycling Director of Biffa Municipal Limited. Mr. Topham joined Biffa Group Limited in September 2010. Prior to Biffa, he served as Finance Director of Greenstar UK from 2005 to 2010. Mr. Topham trained as a Chartered Accountant with PwC in London and held positions in both the audit and transaction services practices. He serves as a Director of Biffa Group Holdings Limited since February 25, 2013 and Biffa Group Limited since February 6, 2017. Mr. Topham serves as a Director of Biffa Municipal Limited.

CEO Compensation
  • Michael Robert's compensation has been consistent with company performance over the past year.
  • Michael Robert's remuneration is about average for companies of similar size in United Kingdom of Great Britain and Northern Ireland.
Management Team Tenure

Average tenure and age of the Biffa management team in years:

8.1
Average Tenure
51
Average Age
  • The average tenure for the Biffa management team is over 5 years, this suggests they are a seasoned and experienced team.
Management Team

Michael Robert Topham

TITLE
CEO & Executive Director
COMPENSATION
£706K
AGE
46
TENURE
0.3 yrs

Richard Pike

TITLE
CFO & Director
AGE
48
TENURE
0.3 yrs

Rachael Hambrook

TITLE
General Counsel & Company Secretary

Jane Pateman

TITLE
Group Human Resource Director
AGE
60
TENURE
8.1 yrs

Jeff Anderson

TITLE
Managing Director of Industrial & Commercial Division
AGE
57
TENURE
7.3 yrs

Roger Edwards

TITLE
Managing Director of Municipal Division
AGE
49
TENURE
8.3 yrs

Mick Davis

TITLE
Managing Director of Resource Recovery & Treatment Division
AGE
53
TENURE
8.3 yrs

John Casey

TITLE
Managing Director of Energy Division
AGE
51
TENURE
10.3 yrs
Board of Directors Tenure

Average tenure and age of the Biffa board of directors in years:

1.6
Average Tenure
60
Average Age
  • The average tenure for the Biffa board of directors is less than 3 years, this suggests a new board.
Board of Directors

Ken Lever

TITLE
Independent Non-Executive Chairman of the Board
COMPENSATION
£64K
AGE
65
TENURE
0.8 yrs

Michael Robert Topham

TITLE
CEO & Executive Director
COMPENSATION
£706K
AGE
46
TENURE
2.4 yrs

Richard Pike

TITLE
CFO & Director
AGE
48

Michael Charles Averill

TITLE
Independent Non-Executive Director
COMPENSATION
£57K
AGE
67
TENURE
5.9 yrs

Carol Chesney

TITLE
Independent Non-Executive Director
AGE
55
TENURE
0.5 yrs

David Martin

TITLE
Senior Independent Non-Executive Director
COMPENSATION
£119K
AGE
67

Gab Barbaro

TITLE
Independent Non-Executive Director
Who owns this company?
Recent Insider Trading
  • More shares have been bought than sold by Biffa insiders in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (£) Value (£)
14. Jan 19 Buy Richard Pike Individual 11. Jan 19 11. Jan 19 2,458 £1.91 £4,695
17. Dec 18 Buy David Gooding Individual 17. Dec 18 17. Dec 18 43,002 £1.99 £84,580
27. Sep 18 Sell David Gooding Individual 27. Sep 18 27. Sep 18 -40,000 £2.50 £-100,000
27. Sep 18 Sell Jane Pateman Individual 27. Sep 18 27. Sep 18 -40,000 £2.50 £-100,000
14. May 18 Buy David Martin Individual 11. May 18 11. May 18 20,000 £2.02 £40,400
03. Apr 18 Buy Kenneth Lever Individual 03. Apr 18 03. Apr 18 50,000 £2.06 £103,000
06. Mar 18 Sell John Casey Individual 02. Mar 18 02. Mar 18 -6,000 £2.38 £-14,280
22. Jan 18 Sell Roger Edwards Individual 19. Jan 18 19. Jan 18 -350,000 £2.47 £-864,500
X
Management checks
We assess Biffa's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Biffa has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

BIFF News

External News
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Simply Wall St News

Should You Buy Biffa plc (LON:BIFF) For Its Dividend?

Dividends play an important role in compounding returns in the long run and end up forming a sizeable part of investment returns. … Biffa plc (LON:BIFF) has paid a dividend to shareholders in the last few years. … Let's dig deeper into whether Biffa should have a place in your portfolio.

Simply Wall St -

Are Insiders Selling Biffa plc (LON:BIFF) Stock?

So we'll take a look at whether insiders have been buying or selling shares in Biffa plc (LON:BIFF). … As Peter Lynch said, 'insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise.'. … All up, insiders sold more shares in Biffa than they bought, over the last year

Simply Wall St -

4 Days Left To Cash In On Biffa plc (LON:BIFF) Dividend

Have you been keeping an eye on Biffa plc's (LON:BIFF) upcoming dividend of UK£0.023 per share payable on the 04 January 2019? … Whenever I am looking at a potential dividend stock investment, I always check these five metrics:? … Has it consistently paid a stable dividend without missing a payment or drastically cutting payout?

Simply Wall St -

Is Biffa plc's (LON:BIFF) Future Growth Already Accounted For In Today's Price?

Biffa plc (LON:BIFF) is considered a high-growth stock, but its last closing price of £2.035 left some investors wondering if this high future earnings potential can be rationalized by its current price tag. … Check out our latest analysis for Biffa? … Biffa is poised for significantly high earnings growth in the near future

Simply Wall St -

How Do Analysts See Biffa plc (LON:BIFF) Performing In The Next 12 Months?

Looking at Biffa plc's (LON:BIFF) earnings update in March 2018, … the consensus outlook from analysts appear fairly confident, … as a 25% increase in profits is expected in the upcoming year,

Simply Wall St -

Are Biffa plc's (LON:BIFF) Interest Costs Too High?

While investors primarily focus on the growth potential and competitive landscape of the small-cap companies, they end up ignoring a key aspect, which could be the biggest threat to its existence: its financial health. … Evaluating financial health as part of your investment thesis is. … Here are few basic financial health checks you should consider before taking the plunge.

Simply Wall St -

Does Biffa plc (LON:BIFF) Have A Place In Your Portfolio?

In the past, Biffa plc (LON:BIFF) has returned an average of 3.00% per year to investors in the form of dividend payouts. … 5 checks you should use to assess a dividend stock … When assessing a stock as a potential addition to my dividend Portfolio, I look at these five areas:

Simply Wall St -

Does Biffa plc's (LON:BIFF) Stock Price Account For Its Growth?

Biffa plc (LON:BIFF) is considered a high growth stock. … However its last closing price of £2.4 left investors wondering whether this growth has already been factored into the share price. … Analysts are predicting good growth prospects for Biffa over the next couple of years

Simply Wall St -

How Do Analysts See Biffa plc (LON:BIFF) Performing In The Next 12 Months?

After Biffa plc's (LON:BIFF) earnings announcement in March 2018, … analyst consensus outlook appear cautiously optimistic, … as a 24.43% increase in profits is expected in the upcoming year,

Simply Wall St -

What does Biffa plc's (LON:BIFF) Balance Sheet Tell Us About Its Future?

Biffa plc (LON:BIFF) is a small-cap stock with a market capitalization of UK£595.00m. … While investors primarily focus on the growth potential and competitive landscape of the small-cap companies, they end up ignoring a key aspect, which could be the biggest threat to its existence: its financial health. … So, understanding the company's financial health becomes

Simply Wall St -

BIFF Company Info

Map
Description

Biffa plc provides waste management services in the United Kingdom. It operates through four divisions: Industrial & Commercial, Municipal, Resource Recovery & Treatment, and Energy. The company is involved in the collection, treatment, processing, and disposal of industrial and commercial waste and recyclable materials; production and sale of energy from waste; and sale of recovered commodities, such as paper, glass, metals, and plastic. It also provides street cleansing and ancillary services, household waste and recycling centers management, emergency waste removal, bin cleaning, and green waste collection services; and integrated resource management and environmental consulting services. The company operates approximately 2,557 front-line waste collection vehicles. Biffa plc was founded in 1912 and is headquartered in High Wycombe, the United Kingdom.

Details
Name: Biffa plc
BIFF
Exchange: LSE
Founded: 1912
£470,500,000
250,000,000
Website: http://www.biffa.co.uk
Address: Biffa plc
Coronation Road,
Cressex,
High Wycombe,
Buckinghamshire, HP12 3TZ,
United Kingdom
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
LSE BIFF Ordinary Shares London Stock Exchange GB GBP 17. Oct 2016
OTCPK BFFB.F Ordinary Shares Pink Sheets LLC US USD 17. Oct 2016
BST 86B Ordinary Shares Boerse-Stuttgart DE EUR 17. Oct 2016
BATS-CHIXE BIFFL Ordinary Shares BATS 'Chi-X Europe' GB GBP 17. Oct 2016
Number of employees
Current staff
Staff numbers
7,912
Biffa employees.
Industry
Environmental and Facilities Services
Commercial Services
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/01/20 21:51
End of day share price update: 2019/01/18 00:00
Last estimates confirmation: 2019/01/07
Last earnings filing: 2018/11/21
Last earnings reported: 2018/09/28
Last annual earnings reported: 2018/03/30


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.