LSE:BIFF

Stock Analysis Report

Executive Summary

Biffa plc provides waste management services in the United Kingdom.


Snowflake Analysis

Fair value with questionable track record.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: BIFF's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-34.4%

BIFF

1.6%

GB Commercial Services

5.9%

GB Market


1 Year Return

-21.0%

BIFF

-19.4%

GB Commercial Services

-22.7%

GB Market

Return vs Industry: BIFF underperformed the UK Commercial Services industry which returned -13.7% over the past year.

Return vs Market: BIFF underperformed the UK Market which returned -18.8% over the past year.


Shareholder returns

BIFFIndustryMarket
7 Day-34.4%1.6%5.9%
30 Day-32.8%-31.9%-23.1%
90 Day-34.6%-35.1%-28.1%
1 Year-18.3%-21.0%-17.1%-19.4%-18.6%-22.7%
3 Year-0.09%-8.0%-17.3%-24.4%-13.4%-24.7%
5 Yearn/a-9.4%-22.6%1.3%-22.0%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: BIFF (£1.75) is trading below our estimate of fair value (£6.07)

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


Price To Earnings Ratio

PE vs Industry: BIFF is poor value based on its PE Ratio (22.4x) compared to the Commercial Services industry average (11.5x).

PE vs Market: BIFF is poor value based on its PE Ratio (22.4x) compared to the UK market (12.7x).


Price to Earnings Growth Ratio

PEG Ratio: BIFF is poor value based on its PEG Ratio (1.6x)


Price to Book Ratio

PB vs Industry: BIFF is good value based on its PB Ratio (1.2x) compared to the GB Commercial Services industry average (1.4x).


Next Steps

Future Growth

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

13.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: BIFF's forecast earnings growth (13.6% per year) is above the savings rate (0.5%).

Earnings vs Market: BIFF's earnings (13.6% per year) are forecast to grow slower than the UK market (15.4% per year).

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

Revenue vs Market: BIFF's revenue (0.01% per year) is forecast to grow slower than the UK market (2.7% per year).

High Growth Revenue: BIFF's revenue (0.01% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: BIFF's Return on Equity is forecast to be low in 3 years time (13.7%).


Next Steps

Past Performance

How has Biffa performed over the past 5 years?

45.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: BIFF has high quality earnings.

Growing Profit Margin: BIFF's current net profit margins (1.7%) are lower than last year (2.4%).


Past Earnings Growth Analysis

Earnings Trend: BIFF has become profitable over the past 5 years, growing earnings by 45% per year.

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

Earnings vs Industry: BIFF had negative earnings growth (-25.8%) over the past year, making it difficult to compare to the Commercial Services industry average (11.7%).


Return on Equity

High ROE: BIFF's Return on Equity (5.3%) is considered low.


Next Steps

Financial Health

How is Biffa's financial position?


Financial Position Analysis

Short Term Liabilities: BIFF's short term assets (£315.1M) do not cover its short term liabilities (£331.5M).

Long Term Liabilities: BIFF's short term assets (£315.1M) do not cover its long term liabilities (£614.9M).


Debt to Equity History and Analysis

Debt Level: BIFF's debt to equity ratio (79%) is considered high.

Reducing Debt: BIFF had negative shareholder equity 5 years ago, but is now positive and has therefore improved.

Debt Coverage: BIFF's debt is well covered by operating cash flow (49.8%).

Interest Coverage: BIFF's interest payments on its debt are not well covered by EBIT (2.1x coverage).


Balance Sheet

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

Debt Coverage by Assets: BIFF's debt is covered by short term assets (assets are 1.1x debt).


Next Steps

Dividend

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

4.33%

Forecast Dividend Yield


Dividend Yield vs Market

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

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

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


Current Payout to Shareholders

Dividend Coverage: BIFF is not paying a notable dividend for the UK market.


Future Payout to Shareholders

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


Next Steps

Management

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

5.9yrs

Average management tenure


CEO

Michael Robert Topham (47yo)

1.5s

Tenure

UK£1,398,983

Compensation

Mr. Michael Robert Mason Topham serves as Chief Executive Officer and Director at Biffa Group Limited since September 29, 2018. Mr. Topham serves as Chief Executive Officer at Biffa Municipal Limited. He h ...


CEO Compensation Analysis

Compensation vs Market: Michael Robert's total compensation ($USD1.74M) is above average for companies of similar size in the UK market ($USD1.00M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Michael Robert Topham
CEO & Executive Director1.5yrsUK£1.40m0.32% £1.4m
Richard Pike
CFO & Director1.5yrsUK£535.28k0.15% £644.4k
Rachael Hambrook
General Counsel3.25yrsno datano data
Jane Pateman
Group Human Resource Director9.25yrsno data0.036% £158.4k
Jeff Anderson
Chief Operating Officer of Collections8.5yrsno data0.18% £780.6k
Roger Edwards
Managing Director of Municipal Division9.42yrsno data0.00023% £1.0k
Mick Davis
Chief Operating Officer of Resources & Energy9.5yrsno data0.085% £372.7k
Mike Thair
Director of Business Development & Treatmentno datano datano data
Jeff Rhodes
Head of Environment & External Affairsno datano datano data
Sarah Parsons
Company Secretary0.67yrno datano data

5.9yrs

Average Tenure

52yo

Average Age

Experienced Management: BIFF's management team is seasoned and experienced (5.9 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Michael Robert Topham
CEO & Executive Director1.5yrsUK£1.40m0.32% £1.4m
Richard Pike
CFO & Director1.5yrsUK£535.28k0.15% £644.4k
Kenneth Lever
Independent Director3.5yrsUK£187.10k0.021% £92.6k
Carol Chesney
Independent Non-Executive Director1.67yrsUK£41.07k0.0026% £11.4k
Michael Charles Averill
Independent Non-Executive Director3.5yrsUK£57.00k0.029% £125.1k
David Martin
Senior Independent Non-Executive Directorno dataUK£57.00k0.010% £43.9k
Gab Barbaro
Independent Non-Executive Director1.17yrsUK£12.50kno data

2.6yrs

Average Tenure

61yo

Average Age

Experienced Board: BIFF's board of directors are not considered experienced ( 2.6 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: BIFF insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Biffa plc's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Biffa plc
  • Ticker: BIFF
  • Exchange: LSE
  • Founded: 1912
  • Industry: Environmental and Facilities Services
  • Sector: Commercial Services
  • Market Cap: UK£438.500m
  • Shares outstanding: 250.00m
  • Website: https://www.biffa.co.uk

Number of Employees


Location

  • Biffa plc
  • Coronation Road
  • Cressex
  • High Wycombe
  • Buckinghamshire
  • HP12 3TZ
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
86BBST (Boerse-Stuttgart)YesOrdinary SharesDEEUROct 2016
BIFFLSE (London Stock Exchange)YesOrdinary SharesGBGBPOct 2016
BIFFLBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBGBPOct 2016
BFFB.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDOct 2016

Biography

Biffa plc provides waste management services in the United Kingdom. The company operates through four divisions: Industrial & Commercial, Municipal, Resource Recovery & Treatment, and Energy. It is involved in the collection, recycling, treatment, and disposal of industrial and commercial waste and recyclable materials; production and sale of energy from waste; and sale of recovered commodities. The company offers general waste collection, dry mixed recycling, food waste collection, single stream recycling, hazardous waste collection and treatment, unplanned waste removal, skip hire, asbestos waste disposal, and bin cleaning services for businesses in sectors, including the construction, facilities management, hospitality and events, logistics waste solutions, manufacturing and production, public, retail waste management, and utilities. It also provides household waste service, such as recycling collections, refuse collection, street cleansing, food collection, bulk haulage, waste transfer station, and household waste recycling center services; waste electrical and electronic equipment, and textile collections; domestic tanker cleaning services; and consultancy and compliance services, such as environmental consultancy, integrated resource management, and producer responsibility compliance schemes. As of April 23, 2019, the company operated 2,700 frontline vehicles. Biffa plc was founded in 1912 and is headquartered in High Wycombe, the United Kingdom. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/03/29 00:04
End of Day Share Price2020/03/27 00:00
Earnings2019/09/27
Annual Earnings2019/03/29


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.