OM:BTS B

Stock Analysis Report

Executive Summary

BTS Group AB (publ) operates as a consulting and education firm in Sweden and internationally.


Snowflake Analysis

Excellent balance sheet established dividend payer.

Share Price & News

How has BTS Group's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

-9.3%

BTS B

-8.3%

SE Professional Services

-6.2%

SE Market


1 Year Return

60.4%

BTS B

35.9%

SE Professional Services

15.8%

SE Market

Return vs Industry: BTS B exceeded the Swedish Professional Services industry which returned 35.9% over the past year.

Return vs Market: BTS B exceeded the Swedish Market which returned 15.8% over the past year.


Shareholder returns

BTS BIndustryMarket
7 Day-9.3%-8.3%-6.2%
30 Day0.4%-2.9%-0.1%
90 Day13.7%13.0%4.2%
1 Year63.4%60.4%51.6%35.9%20.2%15.8%
3 Year242.5%218.9%62.2%35.4%29.4%10.8%
5 Year326.7%274.2%133.3%83.2%39.8%11.4%

Price Volatility Vs. Market

How volatile is BTS Group's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is BTS Group undervalued compared to its fair value and its price relative to the market?

37.1%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: BTS B (SEK253.5) is trading below our estimate of fair value (SEK403.19)

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


Price To Earnings Ratio

PE vs Industry: BTS B is poor value based on its PE Ratio (32.3x) compared to the Professional Services industry average (29x).

PE vs Market: BTS B is poor value based on its PE Ratio (32.3x) compared to the Swedish market (19.3x).


Price to Earnings Growth Ratio

PEG Ratio: BTS B is poor value based on its PEG Ratio (2.3x)


Price to Book Ratio

PB vs Industry: BTS B is overvalued based on its PB Ratio (5.8x) compared to the SE Professional Services industry average (2.5x).


Next Steps

Future Growth

How is BTS Group forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

14.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: BTS B's forecast earnings growth (14% per year) is above the savings rate (-0.4%).

Earnings vs Market: BTS B's earnings (14% per year) are forecast to grow faster than the Swedish market (7.9% per year).

High Growth Earnings: BTS B's earnings are forecast to grow, but not significantly.

Revenue vs Market: BTS B's revenue (10.1% per year) is forecast to grow faster than the Swedish market (4.6% per year).

High Growth Revenue: BTS B's revenue (10.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: BTS B's Return on Equity is forecast to be high in 3 years time (22.9%)


Next Steps

Past Performance

How has BTS Group performed over the past 5 years?

20.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: BTS B has high quality earnings.

Growing Profit Margin: BTS B's current net profit margins (8.1%) are higher than last year (7.9%).


Past Earnings Growth Analysis

Earnings Trend: BTS B's earnings have grown by 20% per year over the past 5 years.

Accelerating Growth: BTS B's earnings growth over the past year (19.5%) is below its 5-year average (20% per year).

Earnings vs Industry: BTS B earnings growth over the past year (19.5%) exceeded the Professional Services industry 4.5%.


Return on Equity

High ROE: BTS B's Return on Equity (18%) is considered low.


Next Steps

Financial Health

How is BTS Group's financial position?


Financial Position Analysis

Short Term Liabilities: BTS B's short term assets (SEK1.0B) exceed its short term liabilities (SEK664.8M).

Long Term Liabilities: BTS B's short term assets (SEK1.0B) exceed its long term liabilities (SEK364.3M).


Debt to Equity History and Analysis

Debt Level: BTS B's debt to equity ratio (11.9%) is considered satisfactory.

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

Debt Coverage: BTS B's debt is well covered by operating cash flow (217.7%).

Interest Coverage: BTS B's interest payments on its debt are well covered by EBIT (23.4x coverage).


Balance Sheet

Inventory Level: BTS B has a low level of unsold assets or inventory.

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


Next Steps

Dividend

What is BTS Group's current dividend yield, its reliability and sustainability?

1.66%

Current Dividend Yield


Upcoming Dividend Payment

TodayFeb 27 2020Ex Dividend DateMay 15 2020Dividend Pay DateMay 22 20207 days from Ex DividendBuy in the next 77 days to receive upcoming dividend

Dividend Yield vs Market

Notable Dividend: BTS B's dividend (1.66%) is higher than the bottom 25% of dividend payers in the Swedish market (1.65%).

High Dividend: BTS B's dividend (1.66%) is low compared to the top 25% of dividend payers in the Swedish market (4.4%).


Stability and Growth of Payments

Stable Dividend: BTS B's dividends per share have been stable in the past 10 years.

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


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (53.6%), BTS B's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: BTS B's dividends in 3 years are forecast to be well covered by earnings (47.9% payout ratio).


Next Steps

Management

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

16.6yrs

Average board tenure


CEO

Henrik Ekelund (64yo)

34.1yrs

Tenure

Mr. Henrik Ekelund has been the Chief Executive Officer of BTS Group AB (publ) (Holding company of BTS USA Inc.) since 1986 and serves as its President. Mr. Ekelund founded BTS Group AB (publ) in 1986. He  ...


CEO Compensation Analysis

Compensation vs Market: Henrik's total compensation ($USD4.67M) is above average for companies of similar size in the Swedish market ($USD548.44K).

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


Board Members

NamePositionTenureCompensationOwnership
Henrik Ekelund
Founder34.1yrsno data20.73% SEK1.0b
Anna-Carin Agius
Independent Director3.1yrskr194.00k0.0026% SEK130.8k
Mariana Linder
Independent Director16.1yrskr194.00k0.11% SEK5.8m
Reinhold Geijer
Chairman4.1yrskr425.00k0.052% SEK2.6m
Dag Sehlin
Independent Director17.1yrskr254.00k0.17% SEK8.4m
Stefan Gardefjord
Independent Director17.1yrskr254.00k0.10% SEK5.2m

16.6yrs

Average Tenure

63yo

Average Age

Experienced Board: BTS B's board of directors are seasoned and experienced ( 16.6 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: BTS B 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.


Top Shareholders

Company Information

BTS Group AB (publ)'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: BTS Group AB (publ)
  • Ticker: BTS B
  • Exchange: OM
  • Founded: 1986
  • Industry: Human Resource and Employment Services
  • Sector: Commercial Services
  • Market Cap: kr5.052b
  • Shares outstanding: 19.32m
  • Website: https://www.bts.com

Number of Employees


Location

  • BTS Group AB (publ)
  • Grevgatan 34
  • Stockholm
  • Stockholm County
  • 114 53
  • Sweden

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
BGPB.FOTCPK (Pink Sheets LLC)YesSeries B SharesUSUSDJun 2001
BTS BOM (OMX Nordic Exchange Stockholm)YesSeries B SharesSESEKJun 2001
0KGYLSE (London Stock Exchange)YesSeries B SharesGBSEKJun 2001
BTSBSBATS-CHIXE (BATS 'Chi-X Europe')YesSeries B SharesGBSEKJun 2001

Biography

BTS Group AB (publ) operates as a consulting and education firm in Sweden and internationally. The company operates through BTS North America, BTS Europe, BTS Other Markets, and APG segments. It offers a range of services that meet needs within strategy execution and talent development with services that monitor the employee from evaluation for selection and development, to strategic consensus and strategy implementation; leadership development programs; assessment solutions; and business acumen programs. The company also provides buyer-centric consulting, sales transformation, assessment, selection, and on-the-job execution tools; and digital solutions, events, and services, including customized cloud-based business simulations, and other immersive experiences and tools that could be delivered in a classroom. It serves customers in IT equipment and software, financial services, manufacturing, pharmaceuticals and biotech, fast-moving consumer goods, energy, telecommunications, professional services, and retail sectors. The company was founded in 1986 and is headquartered in Stockholm, Sweden. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/26 21:06
End of Day Share Price2020/02/26 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.