BE Group (OM:BEGR) - Share price, News & Analysis

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

BEGR Stock Overview

BE Group AB (publ) operates as a trading and service company in steel, stainless steel, and aluminum products in Sweden, Poland, Finland, and the Baltic States.

Rewards

Trading at 44.6% below our estimate of its fair value

Earnings grew by 544.4% over the past year

Risk Analysis

Earnings are forecast to decline by an average of 15.5% per year for the next 3 years

High level of non-cash earnings

Dividend of 11.03% is not well covered by earnings

Volatile share price over the past 3 months

BE Group Competitors

Price History & Performance

Summary of all time highs, changes and price drops for BE Group
Historical stock prices
Current Share Price	kr108.80
52 Week High	kr249.00
52 Week Low	kr58.00
Beta	0.77
1 Month Change	-25.28%
3 Month Change	-33.25%
1 Year Change	86.94%
3 Year Change	147.84%
5 Year Change	57.68%
Change since IPO	-91.63%

Shareholder Returns

	BEGR	SE Trade Distributors	SE Market
7D	-8.4%	-4.1%	-1.3%
1Y	86.9%	-9.7%	-23.6%

Return vs Industry: BEGR exceeded the Swedish Trade Distributors industry which returned -9.7% over the past year.

Return vs Market: BEGR exceeded the Swedish Market which returned -23.6% over the past year.

Price Volatility

Is BEGR's price volatile compared to industry and market?
BEGR volatility
BEGR Average Weekly Movement	10.7%
Trade Distributors Industry Average Movement	7.4%
Market Average Movement	7.4%
10% most volatile stocks in SE Market	12.2%
10% least volatile stocks in SE Market	4.7%

Stable Share Price: BEGR is more volatile than 75% of Swedish stocks over the past 3 months, typically moving +/- 11% a week.

Volatility Over Time: BEGR's weekly volatility (11%) has been stable over the past year, but is still higher than 75% of Swedish stocks.

About the Company

Founded	Employees	CEO	Website
1868	663	Peter Andersson	https://www.begroup.com

BE Group AB (publ) operates as a trading and service company in steel, stainless steel, and aluminum products in Sweden, Poland, Finland, and the Baltic States. The company offers long steel products comprising beams, hollow sections, steel bars, and steel tubes; flat steel products, such as plates and sheets in various forms, including hot-rolled, cold-rolled, or metal-coated; and engineering steel comprising rods and hollow cast blanks. It also provides stainless steel assortments, including plates, sheets, bars, tubes, and tube parts; reinforcement steel and reinforcement mesh products; and aluminium products, such as plates, sheets, profiles, and bars and tubes.

BE Group Fundamentals Summary

How do BE Group's earnings and revenue compare to its market cap?
BEGR fundamental statistics
Market Cap	kr1.41b
Earnings (TTM)	kr580.00m
Revenue (TTM)	kr6.13b

2.4x

P/E Ratio

0.2x

P/S Ratio

Is BEGR overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
BEGR income statement (TTM)
Revenue	kr6.13b
Cost of Revenue	kr4.91b
Gross Profit	kr1.22b
Other Expenses	kr642.00m
Earnings	kr580.00m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

Jul 13, 2022

Earnings per share (EPS)	44.67
Gross Margin	19.92%
Net Profit Margin	9.46%
Debt/Equity Ratio	17.7%

How did BEGR perform over the long term?

See historical performance and comparison

Dividends

11.0%

Current Dividend Yield

27%

Payout Ratio

We’ve recently updated our valuation analysis.

Valuation

Is BEGR undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

5/6

Valuation Score 5/6

Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for BEGR?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for BEGR. This is calculated by dividing BEGR's market cap by their current preferred multiple.
What is BEGR's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	kr1.41b

BEGR key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	0.3x
Enterprise Value/EBITDA	2.9x
PEG Ratio	-0.2x

Price to Earnings Ratio vs Peers

How does BEGR's PE Ratio compare to its peers?

BEGR PE Ratio vs Peers

The above table shows the PE ratio for BEGR vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	15.2x

Forward PE

Price-To-Earnings vs Peers: BEGR is good value based on its Price-To-Earnings Ratio (2.4x) compared to the peer average (15.2x).

Price to Earnings Ratio vs Industry

How does BEGR's PE Ratio compare vs other companies in the Trade Distributors Industry?

Price-To-Earnings vs Industry: BEGR is good value based on its Price-To-Earnings Ratio (2.4x) compared to the Swedish Trade Distributors industry average (17.9x)

Price to Earnings Ratio vs Fair Ratio

What is BEGR's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

BEGR PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	2.4x
Fair PE Ratio	10.8x

Price-To-Earnings vs Fair Ratio: BEGR is good value based on its Price-To-Earnings Ratio (2.4x) compared to the estimated Fair Price-To-Earnings Ratio (10.8x).

Share Price vs Fair Value

What is the Fair Price of BEGR when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: BEGR (SEK108.8) is trading below our estimate of fair value (SEK196.4)

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

Price to Earnings Growth Ratio

PEG Ratio: BEGR's earnings are forecast to decline next year, so we can't calculate its PEG ratio.

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Future Growth

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

Future Growth Score

0/6

Future Growth Score 0/6

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

-15.5%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: BEGR's earnings are forecast to decline over the next 3 years (-15.5% per year).

Earnings vs Market: BEGR's earnings are forecast to decline over the next 3 years (-15.5% per year).

High Growth Earnings: BEGR's earnings are forecast to decline over the next 3 years.

Revenue vs Market: BEGR's revenue (3.5% per year) is forecast to grow slower than the Swedish market (5.6% per year).

High Growth Revenue: BEGR's revenue (3.5% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: BEGR's Return on Equity is forecast to be low in 3 years time (18.8%).

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Past Performance

How has BE Group 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

58.9%

Historical annual earnings growth

Earnings and Revenue History

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

Growing Profit Margin: BEGR's current net profit margins (9.5%) are higher than last year (2.5%).

Past Earnings Growth Analysis

Earnings Trend: BEGR's earnings have grown significantly by 58.9% per year over the past 5 years.

Accelerating Growth: BEGR's earnings growth over the past year (544.4%) exceeds its 5-year average (58.9% per year).

Earnings vs Industry: BEGR earnings growth over the past year (544.4%) exceeded the Trade Distributors industry 41.7%.

Return on Equity

High ROE: BEGR's Return on Equity (37%) is considered high.

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Financial Health

How is BE Group's financial position?

Financial Health Score

6/6

Financial Health Score 6/6

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

Financial Position Analysis

Short Term Liabilities: BEGR's short term assets (SEK2.3B) exceed its short term liabilities (SEK1.3B).

Long Term Liabilities: BEGR's short term assets (SEK2.3B) exceed its long term liabilities (SEK693.0M).

Debt to Equity History and Analysis

Debt Level: BEGR's net debt to equity ratio (10.1%) is considered satisfactory.

Reducing Debt: BEGR's debt to equity ratio has reduced from 70% to 17.7% over the past 5 years.

Debt Coverage: BEGR's debt is well covered by operating cash flow (28.8%).

Interest Coverage: BEGR's interest payments on its debt are well covered by EBIT (51.4x coverage).

Balance Sheet

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Dividend

What is BE Group current dividend yield, its reliability and sustainability?

Dividend Score

5/6

Dividend Score 5/6

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

11.03%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: BEGR's dividend (11.03%) is higher than the bottom 25% of dividend payers in the Swedish market (1.67%).

High Dividend: BEGR's dividend (11.03%) is in the top 25% of dividend payers in the Swedish market (5.41%)

Stability and Growth of Payments

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

Growing Dividend: BEGR's dividend payments have increased over the past 10 years.

Earnings Payout to Shareholders

Earnings Coverage: With its reasonably low payout ratio (26.9%), BEGR's dividend payments are well covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: With its high cash payout ratio (305.5%), BEGR's dividend payments are not well covered by cash flows.

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Management

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

2.3yrs

Average management tenure

CEO

Peter Andersson (46 yo)

2.67yrs

Tenure

kr4,220,000

Compensation

Mr. Peter Andersson serves as President of BE Group AB (publ) since October 11, 2019 and has been its Chief Executive Officer since October 1 ,2019. Since 2016, he employed at BE Group as Business Unit Man...

CEO Compensation Analysis

Compensation vs Market: Peter's total compensation ($USD416.73K) is above average for companies of similar size in the Swedish market ($USD233.45K).

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

Leadership Team

Experienced Management: BEGR's management team is considered experienced (2.3 years average tenure).

Board Members

Experienced Board: BEGR's board of directors are considered experienced (5.7 years average tenure).

Ownership

Who are the major shareholders and have insiders been buying or selling?

Insider Trading Volume

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

Recent Insider Transactions

Ownership Breakdown

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

Data	Last Updated (UTC time)
Company Analysis	2022/06/26 00:00
End of Day Share Price	2022/06/23 00:00
Earnings	2022/03/31
Annual Earnings	2021/12/31