LSE:BVC

Stock Analysis Report

BATM Advanced Communications

Executive Summary

BATM Advanced Communications Ltd., together with its subsidiaries, engages in the research and development, production, and marketing of data communication products in the field of metropolitan area networks; and bio-medical product business.

Snowflake

Fundamentals

Excellent balance sheet with reasonable growth potential.


Similar Companies

Share Price & News

How has BATM Advanced Communications's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

-0.8%

BVC

0.7%

GB Communications

1.1%

GB Market


1 Year Return

0.5%

BVC

37.0%

GB Communications

2.7%

GB Market

Return vs Industry: BVC underperformed the UK Communications industry which returned 37% over the past year.

Return vs Market: BVC underperformed the UK Market which returned 2.7% over the past year.


Shareholder returns

BVCIndustryMarket
7 Day-0.8%0.7%1.1%
30 Day-13.6%-0.4%-1.7%
90 Day-14.4%11.9%-2.7%
1 Year0.5%0.5%39.5%37.0%7.8%2.7%
3 Year135.7%135.7%53.5%44.4%19.3%4.7%
5 Year149.2%149.2%97.8%78.8%38.0%8.1%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is BATM Advanced Communications undervalued compared to its fair value and its price relative to the market?

81.6x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Undervalued: BVC (£0.38) is trading above our estimate of fair value (£0.36)

Significantly Undervalued: BVC is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: BVC is poor value based on its PE Ratio (81.6x) compared to the Communications industry average (15.9x).

PE vs Market: BVC is poor value based on its PE Ratio (81.6x) compared to the UK market (16.4x).


Price to Earnings Growth Ratio

Low PEG Ratio: BVC is poor value based on its PEG Ratio (3.5x)


Price to Book Ratio

PB vs Industry: BVC is overvalued based on its PB Ratio (2.4x) compared to the GB Communications industry average (1.6x).


Next Steps

Future Growth

How is BATM Advanced Communications forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

23.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: BVC's forecast earnings growth (23.4% per year) is above the savings rate (1.2%).

Earnings vs Market: BVC's earnings (23.4% per year) are forecast to grow faster than the UK market (12.3% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: BVC's revenue (8.7% per year) is forecast to grow faster than the UK market (3.8% per year).

High Growth Revenue: BVC's revenue (8.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: Insufficient data to determine if BVC's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has BATM Advanced Communications performed over the past 5 years?

44.5%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: BVC has become profitable over the past 5 years, growing earnings by 44.5% per year.

Accelerating Growth: BVC's earnings growth over the past year (63.4%) exceeds its 5-year average (44.5% per year).

Earnings vs Industry: BVC earnings growth over the past year (63.4%) exceeded the Communications industry 31.9%.


Return on Equity

High ROE: BVC's Return on Equity (2.1%) is considered low.


Return on Assets

ROA vs Industry: BVC's Return on Assets is below or equal to the Communications industry average last year.


Return on Capital Employed

ROCE Improving: BVC's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is BATM Advanced Communications's financial position?


Financial Position Analysis

Short Term Liabilities: BVC's short term assets ($77.2M) exceeds its short term liabilities ($40.2M)

Long Term Liabilities: BVC's short term assets (77.2M) exceeds its long term liabilities (17.5M)


Debt to Equity History and Analysis

Debt Level: BVC's debt to equity ratio (7.7%) is considered satisfactory

Reducing Debt: BVC's debt to equity ratio has increased from 3.7% to 7.7% over the past 5 years.

Debt Coverage: BVC's debt is well covered by operating cash flow (21%).

Interest Coverage: BVC's interest payments on its debt are well covered by EBIT (7.8x coverage).


Balance Sheet

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

Debt Coverage by Assets: BVC's debt is covered by short term assets (assets are 12.057130x debt).


Next Steps

Dividend

What is BATM Advanced Communications's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

company0%marketbottom25%2.0%markettop25%5.4%industryaverage2.9%forecastin3Yearsn/a

Current dividend yield vs market & industry


Stability and Growth of Payments

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

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

Stable Dividend: Insufficient data to determine if BVC's dividends per share have been stable in the past.

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


Current Payout to Shareholders

Dividend Coverage: BVC is not paying a notable dividend for .


Future Payout to Shareholders

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


Next Steps

  • Explore strong dividend paying companies in the Tech industry.

Management

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

3.4yrs

Average board tenure


CEO

Zvi Marom (64yo)

0yrs

Tenure

US$516,000

Compensation

Dr. Zvi Marom Founded BATM Advanced Communications Ltd., in 1992 and serves as its Chief Executive Officer. Dr. Marom Founded Telco Systems, Inc., a subsidiary of BATM Advanced Communications and served as ...


CEO Compensation Analysis

Compensation vs. Market: Zvi's total compensation ($USD516.00K) is about average for companies of similar size in the UK market ($USD654.04K).

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


Board Age and Tenure

3.4yrs

Average Tenure

60yo

Average Age

Experienced Board: BVC's board of directors are considered experienced (3.4 years average tenure).


Insider Trading

Insider Buying: BVC insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyUS$38,30008 Oct 19
Zvi Marom
EntityIndividual
Role
Chief Executive Officer
Founder
Shares100,000
Max PriceUS$0.38
BuyUS$60,89708 Oct 19
Gideon Chitayat
EntityIndividual
Role
Chairman of the Board
Non-Executive Chairman
Shares159,000
Max PriceUS$0.38

Ownership Breakdown


Management Team

  • Zvi Marom (64yo)

    Founder

    • Tenure: 0yrs
    • Compensation: US$516.00k
  • Ofer Bar-Ner (55yo)

    Chief Operating Officer of Medical Division

    • Tenure: 0yrs
  • Ariel Efrati

    COO of Telecom Division & CEO of Telco Systems

    • Tenure: 6.2yrs
  • Moti Nagar

    CFO & Executive Director

    • Tenure: 3.8yrs
    • Compensation: US$329.00k
  • Arthur Moher

    Company Secretary

    • Tenure: 0yrs

Board Members

  • Zvi Marom (64yo)

    Founder

    • Tenure: 0yrs
    • Compensation: US$516.00k
  • Gideon Chitayat (80yo)

    Non-Executive Chairman

    • Tenure: 4.8yrs
    • Compensation: US$56.00k
  • Ari Shamiss (60yo)

    Non-Executive Senior Director

    • Tenure: 0yrs
    • Compensation: US$6.00k
  • Moti Nagar

    CFO & Executive Director

    • Tenure: 3.8yrs
    • Compensation: US$329.00k
  • Harel Locker (53yo)

    Non-Executive External Director & Senior Independent Director

    • Tenure: 3.1yrs
    • Compensation: US$43.00k
  • Varda Shalev (59yo)

    Non-Executive External Director

    • Tenure: 0.9yrs
    • Compensation: US$4.00k

Company Information

BATM Advanced Communications Ltd.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: BATM Advanced Communications Ltd.
  • Ticker: BVC
  • Exchange: LSE
  • Founded: 1992
  • Industry: Communications Equipment
  • Sector: Tech
  • Market Cap: UK£167.306m
  • Shares outstanding: 440.28m
  • Website: https://www.batm.com

Number of Employees


Location

  • BATM Advanced Communications Ltd.
  • Neve Ne’eman Ind. Area
  • 4 Ha’harash Street
  • Hod Hasharon
  • 4524075
  • Israel

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
BVCLSE (London Stock Exchange)YesOrdinary SharesGBGBPJul 1996
BVCTASE (The Tel-Aviv Stock Exchange)YesOrdinary SharesILILSJul 1996
BVCLBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBGBPJul 1996

Biography

BATM Advanced Communications Ltd., together with its subsidiaries, engages in the research and development, production, and marketing of data communication products in the field of metropolitan area networ ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/14 20:40
End of Day Share Price2019/10/14 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.