ENXTAM:BAMNB

Stock Analysis Report

Executive Summary

Koninklijke BAM Groep nv, together with its subsidiaries, provides products and services in the construction and property, civil engineering, and public private partnerships (PPP) sectors worldwide.

Rewards

Trading at 90.8% below its fair value

Earnings are forecast to grow 51.45% per year

Risk Analysis

Dividend of 5.11% is not well covered by earnings



Snowflake Analysis

Adequate balance sheet with moderate growth potential.


Similar Companies

Share Price & News

How has Koninklijke BAM Groep's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: BAMNB has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

6.7%

BAMNB

2.4%

NL Construction

0.2%

NL Market


1 Year Return

9.1%

BAMNB

28.2%

NL Construction

14.2%

NL Market

Return vs Industry: BAMNB underperformed the Dutch Construction industry which returned 28.2% over the past year.

Return vs Market: BAMNB underperformed the Dutch Market which returned 14.2% over the past year.


Shareholder returns

BAMNBIndustryMarket
7 Day6.7%2.4%0.2%
30 Day11.2%4.3%-0.04%
90 Day8.4%13.1%1.1%
1 Year12.8%9.1%31.9%28.2%19.3%14.2%
3 Year-29.5%-34.7%-6.4%-14.1%38.9%23.0%
5 Year25.5%15.6%-23.8%-34.8%66.6%33.1%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Koninklijke BAM Groep 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: BAMNB (€2.74) is trading below our estimate of fair value (€29.71)

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


Price To Earnings Ratio

PE vs Industry: BAMNB is unprofitable, so we can't compare its PE Ratio to the Construction industry average.

PE vs Market: BAMNB is unprofitable, so we can't compare its PE Ratio to the Dutch market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate BAMNB's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: BAMNB is overvalued based on its PB Ratio (1.4x) compared to the NL Construction industry average (1.3x).


Next Steps

Future Growth

How is Koninklijke BAM Groep forecast to perform in the next 1 to 3 years based on estimates from 3 analysts?

51.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: BAMNB is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (-0.2%).

Earnings vs Market: BAMNB is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: BAMNB's is expected to become profitable in the next 3 years.

Revenue vs Market: BAMNB's revenue (0.02% per year) is forecast to grow slower than the Dutch market (5.6% per year).

High Growth Revenue: BAMNB's revenue (0.02% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: BAMNB's Return on Equity is forecast to be low in 3 years time (19%).


Next Steps

Past Performance

How has Koninklijke BAM Groep performed over the past 5 years?

21.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: BAMNB is currently unprofitable.

Growing Profit Margin: BAMNB is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: BAMNB is unprofitable, but has reduced losses over the past 5 years at a rate of 21.9% per year.

Accelerating Growth: Unable to compare BAMNB's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: BAMNB is unprofitable, making it difficult to compare its past year earnings growth to the Construction industry (8%).


Return on Equity

High ROE: BAMNB has a negative Return on Equity (-13.09%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Koninklijke BAM Groep's financial position?


Financial Position Analysis

Short Term Liabilities: BAMNB's short term assets (€2.9B) do not cover its short term liabilities (€3.1B).

Long Term Liabilities: BAMNB's short term assets (€2.9B) exceed its long term liabilities (€784.8M).


Debt to Equity History and Analysis

Debt Level: BAMNB's debt to equity ratio (51.8%) is considered high.

Reducing Debt: BAMNB's debt to equity ratio has reduced from 91.4% to 51.8% over the past 5 years.


Balance Sheet

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

Debt Coverage by Assets: BAMNB's debt is covered by short term assets (assets are 10.2x debt).


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: Whilst unprofitable BAMNB has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: BAMNB is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 28.5% per year.


Next Steps

Dividend

What is Koninklijke BAM Groep's current dividend yield, its reliability and sustainability?

5.10%

Current Dividend Yield


Dividend Yield vs Market

company5.1%marketbottom25%2.1%markettop25%5.5%industryaverage3.5%forecastin3Years6.5%

Current dividend yield vs market & industry

Notable Dividend: BAMNB's dividend (5.11%) is higher than the bottom 25% of dividend payers in the Dutch market (2.15%).

High Dividend: BAMNB's dividend (5.11%) is low compared to the top 25% of dividend payers in the Dutch market (5.53%).


Stability and Growth of Payments

Stable Dividend: BAMNB's dividend payments have been volatile in the past 10 years.

Growing Dividend: BAMNB's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: BAMNB is paying a dividend but the company is unprofitable.


Future Payout to Shareholders

Future Dividend Coverage: BAMNB's dividends in 3 years are forecast to be well covered by earnings (36.8% payout ratio).


Next Steps

Management

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

2.9yrs

Average management tenure


CEO

Rob Van Wingerden (58yo)

5.2yrs

Tenure

€1,180,000

Compensation

Mr. R.P. Van Wingerden, also known as Rob, MBA, has been the Chief Executive Officer and Chairman of the Executive Board at Koninklijke BAM Groep NV since October 1, 2014 and has been its Member of Executi ...


CEO Compensation Analysis

Compensation vs Market: Rob's total compensation ($USD1.31M) is about average for companies of similar size in the Dutch market ($USD1.20M).

Compensation vs Earnings: Rob's compensation has increased whilst the company is unprofitable.


Management Age and Tenure

2.9yrs

Average Tenure

45yo

Average Age

Experienced Management: BAMNB's management team is considered experienced (2.9 years average tenure).


Board Age and Tenure

2.5yrs

Average Tenure

60yo

Average Age

Experienced Board: BAMNB's board of directors are not considered experienced ( 2.5 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Buy€105,00026 Feb 19
R. Van Wingerden
EntityIndividual
Role
Chief Executive Officer
Chairman of the Executive Board & CEO
Shares30,000
Max Price€3.50

Ownership Breakdown

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


Management Team

  • Arno Pronk

    Head of Public Relations

    • Tenure: 0yrs
  • G. Maas

    Head of Strategy

    • Tenure: 0yrs
  • S. H. A. Beckers

    General Counsel & Company Secretary

    • Tenure: 0yrs
  • Rob Van Wingerden (58yo)

    Chairman of the Executive Board & CEO

    • Tenure: 5.2yrs
    • Compensation: €1.18m
  • H. Bree

    Head of Property Investments

    • Tenure: 0yrs
  • Walter Swinkels (44yo)

    Director of Governance

    • Tenure: 2.9yrs
  • S. Capper

    Chief Information Officer

    • Tenure: 0yrs
  • Frans den Houter (45yo)

    CFO & Member of Executive Board

    • Tenure: 1.3yrs
    • Compensation: €598.20k
  • Joost van Galen

    Head of Investor Relations

    • Tenure: 0yrs
  • Sven J. van de Wynkele

    Chief HR Officer

    • Tenure: 0yrs

Board Members

  • Harrie L. Noy (68yo)

    Chairman of the Supervisory Board

    • Tenure: 2.9yrs
  • Rudy Provoost (60yo)

    Member of Supervisory Board

    • Tenure: 0.9yrs
  • Gosse Boon (60yo)

    Vice Chairman of the Supervisory Board

    • Tenure: 0.9yrs
  • Carla Mahieu (60yo)

    Member of Supervisory Board

    • Tenure: 8.7yrs
  • Paul Sheffield (58yo)

    Member of Supervisory Board

    • Tenure: 2.3yrs
  • Helle Valentin (52yo)

    Member of Supervisory Board

    • Tenure: 2.7yrs

Company Information

Koninklijke BAM Groep nv's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Koninklijke BAM Groep nv
  • Ticker: BAMNB
  • Exchange: ENXTAM
  • Founded: 1869
  • Industry: Construction and Engineering
  • Sector: Capital Goods
  • Market Cap: €759.718m
  • Shares outstanding: 277.07m
  • Website: https://www.bam.com

Number of Employees


Location

  • Koninklijke BAM Groep nv
  • Runnenburg 9
  • Bunnik
  • Utrecht
  • 3981 AZ
  • Netherlands

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
BAMNBENXTAM (Euronext Amsterdam)YesOrdinary SharesNLEURJan 1992
BGPADB (Deutsche Boerse AG)YesOrdinary SharesDEEURJan 1992
KBAG.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJan 1992
0LNQLSE (London Stock Exchange)YesOrdinary SharesGBEURJan 1992
BAMNBABATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBEURJan 1992

Biography

Koninklijke BAM Groep nv, together with its subsidiaries, provides products and services in the construction and property, civil engineering, and public private partnerships (PPP) sectors worldwide. The co ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/15 20:54
End of Day Share Price2019/12/13 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.