Bittnet Systems (BVB:BNET) - Share price, News & Analysis

BNET fundamental analysis
Snowflake Score
Valuation	4/6
Future Growth	1/6
Past Performance	5/6
Financial Health	4/6
Dividends	0/6

BNET Stock Overview

Bittnet Systems SA provides IT integration and training services in Romania.

Rewards

Trading at 12.7% below our estimate of its fair value

Revenue is forecast to grow 16.54% per year

Earnings grew by 1430.5% over the past year

Risk Analysis

High level of non-cash earnings

Does not have a meaningful market cap (RON152M)

Price History & Performance

Summary of all time highs, changes and price drops for Bittnet Systems
Historical stock prices
Current Share Price	RON0.33
52 Week High	RON0.43
52 Week Low	RON0.27
Beta	0
1 Month Change	3.45%
3 Month Change	-7.30%
1 Year Change	-23.67%
3 Year Change	n/a
5 Year Change	n/a
Change since IPO	-26.83%

Recent News & Updates

Jan 05

Here's Why Bittnet Systems (BVB:BNET) Can Manage Its Debt Responsibly

The external fund manager backed by Berkshire Hathaway's Charlie Munger, Li Lu, makes no bones about it when he says...

Nov 18

There Are Some Reasons To Suggest That Bittnet Systems' (BVB:BNET) Earnings A Poor Reflection Of Profitability

Shareholders didn't seem to be thrilled with Bittnet Systems SA's ( BVB:BNET ) recent earnings report, despite healthy...

Shareholder Returns

	BNET	RO IT	RO Market
7D	5.4%	-8.5%	-2.4%
1Y	-23.7%	-15.8%	5.0%

Return vs Industry: BNET underperformed the RO IT industry which returned -16.9% over the past year.

Return vs Market: BNET underperformed the RO Market which returned 5.5% over the past year.

Price Volatility

Is BNET's price volatile compared to industry and market?
BNET volatility
BNET Average Weekly Movement	5.5%
IT Industry Average Movement	6.5%
Market Average Movement	6.3%
10% most volatile stocks in RO Market	10.6%
10% least volatile stocks in RO Market	4.1%

Stable Share Price: BNET is not significantly more volatile than the rest of RO stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: BNET's weekly volatility (6%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
2007	150	Mihai Alexandru Logofatu	https://www.bittnet.ro

Bittnet Systems SA provides IT integration and training services in Romania. The company operates in two divisions, Education and Technology. It offers various IT training services, such as project management, IT services management, business intelligence, CRM, enterprise resource planning (ERP), Agile, etc., as well as a range of IT courses.

Bittnet Systems Fundamentals Summary

How do Bittnet Systems's earnings and revenue compare to its market cap?
BNET fundamental statistics
Market Cap	RON152.06m
Earnings (TTM)	RON13.70m
Revenue (TTM)	RON112.59m

11.6x

P/E Ratio

1.4x

P/S Ratio

Is BNET overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
BNET income statement (TTM)
Revenue	RON112.59m
Cost of Revenue	RON88.11m
Gross Profit	RON24.48m
Other Expenses	RON10.78m
Earnings	RON13.70m

Last Reported Earnings

Dec 31, 2021

Next Earnings Date

n/a

Earnings per share (EPS)	0.029
Gross Margin	21.74%
Net Profit Margin	12.17%
Debt/Equity Ratio	63.6%

How did BNET perform over the long term?

See historical performance and comparison

Valuation

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

Valuation Score

4/6

Valuation Score 4/6

Below Fair Value
Significantly Below Fair Value
PE vs Industry
PE vs Market
PEG Ratio
PB vs Industry

12.7%

Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: BNET (RON0.33) is trading below our estimate of fair value (RON0.38)

Significantly Below Fair Value: BNET is trading below fair value, but not by a significant amount.

Price To Earnings Ratio

PE vs Industry: BNET is good value based on its PE Ratio (11.6x) compared to the European IT industry average (20x).

PE vs Market: BNET is good value based on its PE Ratio (11.6x) compared to the RO market (12.4x).

Price to Earnings Growth Ratio

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

Price to Book Ratio

PB vs Industry: BNET is good value based on its PB Ratio (3x) compared to the XE IT industry average (3.3x).

Future Growth

How is Bittnet Systems forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

Future Growth Score

1/6

Future Growth Score 1/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

16.5%

Forecasted annual revenue growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if BNET's forecast earnings growth is above the savings rate (1.1%).

Earnings vs Market: Insufficient data to determine if BNET's earnings are forecast to grow faster than the RO market

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

Revenue vs Market: BNET's revenue (16.5% per year) is forecast to grow faster than the RO market (3.3% per year).

High Growth Revenue: BNET's revenue (16.5% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: BNET's Return on Equity is forecast to be low in 3 years time (15.5%).

Past Performance

How has Bittnet Systems performed over the past 5 years?

Past Performance Score

5/6

Past Performance Score 5/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

29.2%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: BNET has a high level of non-cash earnings.

Growing Profit Margin: BNET's current net profit margins (12.2%) are higher than last year (0.8%).

Past Earnings Growth Analysis

Earnings Trend: BNET's earnings have grown significantly by 29.2% per year over the past 5 years.

Accelerating Growth: BNET's earnings growth over the past year (1430.5%) exceeds its 5-year average (29.2% per year).

Earnings vs Industry: BNET earnings growth over the past year (1430.5%) exceeded the IT industry 23.7%.

Return on Equity

High ROE: BNET's Return on Equity (26.1%) is considered high.

Financial Health

How is Bittnet Systems's financial position?

Financial Health Score

4/6

Financial Health Score 4/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: BNET's short term assets (RON80.0M) exceed its short term liabilities (RON47.1M).

Long Term Liabilities: BNET's short term assets (RON80.0M) exceed its long term liabilities (RON31.6M).

Debt to Equity History and Analysis

Debt Level: BNET has more cash than its total debt.

Reducing Debt: Insufficient data to determine if BNET's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: BNET's debt is not well covered by operating cash flow (12.1%).

Interest Coverage: BNET earns more interest than it pays, so coverage of interest payments is not a concern.

Balance Sheet

Dividend

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

Dividend Score

0/6

Dividend Score 0/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

3.03%

Forecast Dividend Yield

Dividend Yield vs Market

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

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

Stability and Growth of Payments

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

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

Earnings Payout to Shareholders

Earnings Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as BNET has not reported any payouts.

Next Steps

Explore strong dividend paying companies in the Software industry.

Management

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

3.8yrs

Average management tenure

CEO

Mihai Alexandru Logofatu (37 yo)

15.33yrs

Tenure

Mr. Mihai Alexandru Constantin Logofatu is the Founder at Bittnet Systems SA and has been its Chief Executive Officer since 2007 and has been President of the board. Mr. Logofatu is Manager of Academia Cre...

Leadership Team

Experienced Management: BNET's management team is considered experienced (3.8 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.

Data	Last Updated (UTC time)
Company Analysis	2022/05/10 00:00
End of Day Share Price	2022/05/10 00:00
Earnings	2021/12/31
Annual Earnings	2021/12/31