BIT:BET

Stock Analysis Report

Be Think Solve Execute

Executive Summary

Be Think, Solve, Execute S.p.A. provides business consulting, information technology, and professional services in Italy, Germany, Austria, Switzerland, the United Kingdom, and internationally.

Rewards

Trading at 38.1% below its fair value

Earnings are forecast to grow 26.38% per year

Earnings grew by 11.1% over the past year

Risk Analysis

Has a high level of debt

Unstable dividend track record

Highly volatile share price over past 3 months

Large one-off items impacting financial results



Snowflake Analysis

Undervalued with high growth potential.

Share Price & News

How has Be Think Solve Execute's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

3.7%

BET

10.1%

IT IT

3.5%

IT Market


1 Year Return

-12.4%

BET

6.7%

IT IT

-22.4%

IT Market

Return vs Industry: BET underperformed the Italian IT industry which returned 1.7% over the past year.

Return vs Market: BET exceeded the Italian Market which returned -23.9% over the past year.


Shareholder returns

BETIndustryMarket
7 Day3.7%10.1%3.5%
30 Day-15.9%-5.9%-11.8%
90 Day-24.0%1.5%-26.2%
1 Year-10.5%-12.4%7.7%6.7%-19.0%-22.4%
3 Year-17.6%-22.4%50.0%46.6%-8.8%-18.0%
5 Year64.1%49.8%62.7%45.8%-22.6%-40.9%

Price Volatility Vs. Market

How volatile is Be Think Solve Execute's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Be Think Solve Execute undervalued compared to its fair value and its price relative to the market?

38.1%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: BET (€0.93) is trading below our estimate of fair value (€1.5)

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


Price To Earnings Ratio

PE vs Industry: BET is good value based on its PE Ratio (17.4x) compared to the IT industry average (31.3x).

PE vs Market: BET is poor value based on its PE Ratio (17.4x) compared to the Italian market (13x).


Price to Earnings Growth Ratio

PEG Ratio: BET is good value based on its PEG Ratio (0.7x)


Price to Book Ratio

PB vs Industry: BET is good value based on its PB Ratio (2.2x) compared to the IT IT industry average (2.6x).


Next Steps

Future Growth

How is Be Think Solve Execute forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

26.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: BET's forecast earnings growth (26.4% per year) is above the savings rate (1.2%).

Earnings vs Market: BET's earnings (26.4% per year) are forecast to grow faster than the Italian market (11.6% per year).

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

Revenue vs Market: BET's revenue (7.6% per year) is forecast to grow faster than the Italian market (-0.04% per year).

High Growth Revenue: BET's revenue (7.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: BET's Return on Equity is forecast to be high in 3 years time (20.2%)


Next Steps

Past Performance

How has Be Think Solve Execute performed over the past 5 years?

22.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: BET has a large one-off loss of €5.0M impacting its December 31 2019 financial results.

Growing Profit Margin: BET's current net profit margins (4%) are higher than last year (3.6%).


Past Earnings Growth Analysis

Earnings Trend: BET's earnings have grown significantly by 22.6% per year over the past 5 years.

Accelerating Growth: BET's earnings growth over the past year (11.1%) is below its 5-year average (22.6% per year).

Earnings vs Industry: BET earnings growth over the past year (11.1%) exceeded the IT industry 4%.


Return on Equity

High ROE: BET's Return on Equity (11.7%) is considered low.


Next Steps

Financial Health

How is Be Think Solve Execute's financial position?


Financial Position Analysis

Short Term Liabilities: BET's short term assets (€67.4M) exceed its short term liabilities (€63.4M).

Long Term Liabilities: BET's short term assets (€67.4M) exceed its long term liabilities (€49.8M).


Debt to Equity History and Analysis

Debt Level: BET's debt to equity ratio (65.1%) is considered high.

Reducing Debt: BET's debt to equity ratio has increased from 55.4% to 65.1% over the past 5 years.

Debt Coverage: BET's debt is well covered by operating cash flow (38%).

Interest Coverage: BET's interest payments on its debt are well covered by EBIT (15.3x coverage).


Balance Sheet


Next Steps

Dividend

What is Be Think Solve Execute's current dividend yield, its reliability and sustainability?

2.47%

Current Dividend Yield


Upcoming Dividend Payment


Dividend Yield vs Market

Notable Dividend: BET's dividend (2.47%) is higher than the bottom 25% of dividend payers in the Italian market (2.29%).

High Dividend: BET's dividend (2.47%) is low compared to the top 25% of dividend payers in the Italian market (5.61%).


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, BET has been paying a dividend for less than 10 years.

Growing Dividend: BET's dividend payments have increased, but the company has only paid a dividend for 5 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (43%), BET's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: BET's dividends in 3 years are forecast to be well covered by earnings (18.2% payout ratio).


Next Steps

Management

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

3.0yrs

Average board tenure


CEO

Stefano Achermann (50yo)

no data

Tenure

€1,332,800

Compensation

Mr. Stefano Achermann serves as the Chief Executive Officer and Managing Director of Be Think, Solve, Execute S.p.A. Mr. Achermann served as the Chief Executive Officer of B.E.E. Consulting S.p.A. Mr. Ache ...


CEO Compensation Analysis

Compensation vs Market: Stefano's total compensation ($USD1.44M) is above average for companies of similar size in the Italian market ($USD349.16K).

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


Board Members

NamePositionTenureCompensationOwnership
Stefano Achermann
CEO, MD & Directorno data€1.33m5.76% 7.1m
Claudio Berretti
Non-Executive Directorno data€20.00kno data
Giuseppe Leoni
Chairman of Board of Auditorsno datano datano data
Carlo Achermann
Chairman of the Board2.92yrs€821.42kno data
Paola Tagliavini
Independent Director3yrs€30.00kno data
Davide Dattoli
Independent Director3yrs€20.00kno data
Anna Lambiase
Non-Executive Directorno data€20.00kno data
Cristina Spagna
Independent Directorno data€30.00kno data
Gianluca Ferrari
Independent Director3yrs€20.00kno data
Claudio Calabi
Independent Director2yrs€13.42kno data

3.0yrs

Average Tenure

50yo

Average Age

Experienced Board: BET's board of directors are considered experienced (3 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

Be Think, Solve, Execute S.p.A.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Be Think, Solve, Execute S.p.A.
  • Ticker: BET
  • Exchange: BIT
  • Founded: 1987
  • Industry: Data Processing and Outsourced Services
  • Sector: Software
  • Market Cap: €122.422m
  • Shares outstanding: 131.64m
  • Website: https://www.be-tse.it

Number of Employees


Location

  • Be Think, Solve, Execute S.p.A.
  • Viale dell’Esperanto, 71
  • Rome
  • Rome
  • 144
  • Italy

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
DAFDB (Deutsche Boerse AG)YesOrdinary SharesDEEUROct 2000
BETBIT (Borsa Italiana)YesOrdinary SharesITEUROct 2000
0KK7LSE (London Stock Exchange)YesOrdinary SharesGBEUROct 2000
BETMBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBEUROct 2000

Biography

Be Think, Solve, Execute S.p.A. provides business consulting, information technology, and professional services in Italy, Germany, Austria, Switzerland, the United Kingdom, and internationally. It operates through Business Consulting and ICT Solutions segments. The Business Consulting segment offers business consulting services in the areas of payment systems, planning and control methods, regulatory compliance, information gathering, and corporate governance systems for financial processes and asset management. This segment provides management consulting services for financial institutions; financial services consulting services in the banking and financial sectors; consulting and development services in the areas of bank system, accounting, and bank reporting; data analysis and enhancement services; and services in the areas of loyalty programs, digital distribution of proprietary content, and the transformation of sports venues and large museums into cashless operations. The ICT Solutions segment offers system integration services for proprietary products/platforms; and business process outsourcing services. This segment also develops Web and mobile applications; designs wearables; and manages Internet of Things, as well as social media, integrated marketing, and digital PR services. The company was formerly known as B.E.E. Team S.p.A. Be Think, Solve, Execute S.p.A. was founded in 1987 and is headquartered in Rome, Italy. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/07 20:54
End of Day Share Price2020/04/07 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.