B3 Consulting Group (OM:B3) - Share price, News & Analysis

B3 fundamental analysis
Snowflake Score
Valuation	4/6
Future Growth	1/6
Past Performance	6/6
Financial Health	5/6
Dividends	3/6

B3 Stock Overview

B3 Consulting Group AB (publ) provides IT and management consultancy services in Sweden.

Rewards

Trading at 74.1% below our estimate of its fair value

Revenue is forecast to grow 7.3% per year

Earnings grew by 265.4% over the past year

Risk Analysis

Earnings are forecast to decline by an average of 23.9% per year for the next 3 years

Unstable dividend track record

Significant insider selling over the past 3 months

Shareholders have been diluted in the past year

B3 Consulting Group Competitors

Knowit

OM:KNOW

kr8.5b

Accenture

NYSE:ACN

US$175.2b

Capgemini

ENXTPA:CAP

€31.1b

Sopra Steria Group

ENXTPA:SOP

€3.3b

Price History & Performance

Summary of all time highs, changes and price drops for B3 Consulting Group
Historical stock prices
Current Share Price	kr120.50
52 Week High	kr140.50
52 Week Low	kr49.00
Beta	0.72
1 Month Change	3.88%
3 Month Change	24.23%
1 Year Change	141.97%
3 Year Change	88.28%
5 Year Change	34.26%
Change since IPO	132.85%

Recent News & Updates

Apr 28

B3 Consulting Group (STO:B3) Could Easily Take On More Debt

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

Mar 23

Returns On Capital Signal Tricky Times Ahead For B3 Consulting Group (STO:B3)

What are the early trends we should look for to identify a stock that could multiply in value over the long term...

Shareholder Returns

	B3	SE IT	SE Market
7D	-2.4%	1.8%	0.3%
1Y	142.0%	3.6%	-12.7%

Return vs Industry: B3 exceeded the Swedish IT industry which returned 3.1% over the past year.

Return vs Market: B3 exceeded the Swedish Market which returned -12.7% over the past year.

Price Volatility

Is B3's price volatile compared to industry and market?
B3 volatility
B3 Average Weekly Movement	9.6%
IT Industry Average Movement	8.5%
Market Average Movement	7.9%
10% most volatile stocks in SE Market	12.9%
10% least volatile stocks in SE Market	5.1%

Stable Share Price: B3 is not significantly more volatile than the rest of Swedish stocks over the past 3 months, typically moving +/- 10% a week.

Volatility Over Time: B3's weekly volatility (10%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
2003	742	Anette Billing	https://www.b3.se

B3 Consulting Group AB (publ) provides IT and management consultancy services in Sweden. The company was formerly known as B3IT Management AB (publ) and changed its name to B3 Consulting Group AB (publ) in May 2018. B3 Consulting Group AB (publ) was founded in 2003 and is headquartered in Stockholm, Sweden.

B3 Consulting Group Fundamentals Summary

How do B3 Consulting Group's earnings and revenue compare to its market cap?
B3 fundamental statistics
Market Cap	kr1.03b
Earnings (TTM)	kr68.39m
Revenue (TTM)	kr984.59m

15.1x

P/E Ratio

1.0x

P/S Ratio

Is B3 overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
B3 income statement (TTM)
Revenue	kr984.59m
Cost of Revenue	kr808.41m
Gross Profit	kr176.18m
Other Expenses	kr107.79m
Earnings	kr68.39m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	7.97
Gross Margin	17.89%
Net Profit Margin	6.95%
Debt/Equity Ratio	34.3%

How did B3 perform over the long term?

See historical performance and comparison

Dividends

2.9%

Current Dividend Yield

44%

Payout Ratio

Valuation

Is B3 Consulting Group 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

>50%

Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: B3 (SEK120.5) is trading below our estimate of fair value (SEK464.92)

Significantly Below Fair Value: B3 is trading below fair value by more than 20%.

Price To Earnings Ratio

PE vs Industry: B3 is good value based on its PE Ratio (15.1x) compared to the Swedish IT industry average (16.9x).

PE vs Market: B3 is good value based on its PE Ratio (15.1x) compared to the Swedish market (17.8x).

Price to Earnings Growth Ratio

PEG Ratio: B3's earnings are forecast to decline next year, so we can't calculate its PEG ratio.

Price to Book Ratio

PB vs Industry: B3 is overvalued based on its PB Ratio (5.1x) compared to the SE IT industry average (3.8x).

Future Growth

How is B3 Consulting Group 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

-23.9%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: B3's earnings are forecast to decline over the next 3 years (-23.9% per year).

Earnings vs Market: B3's earnings are forecast to decline over the next 3 years (-23.9% per year).

High Growth Earnings: B3's earnings are forecast to decline over the next 3 years.

Revenue vs Market: B3's revenue (7.3% per year) is forecast to grow faster than the Swedish market (5.8% per year).

High Growth Revenue: B3's revenue (7.3% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: Insufficient data to determine if B3's Return on Equity is forecast to be high in 3 years time

Past Performance

How has B3 Consulting Group performed over the past 5 years?

Past Performance Score

6/6

Past Performance Score 6/6

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

12.9%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: B3 has high quality earnings.

Growing Profit Margin: B3's current net profit margins (6.9%) are higher than last year (2.3%).

Past Earnings Growth Analysis

Earnings Trend: B3's earnings have grown by 12.9% per year over the past 5 years.

Accelerating Growth: B3's earnings growth over the past year (265.4%) exceeds its 5-year average (12.9% per year).

Earnings vs Industry: B3 earnings growth over the past year (265.4%) exceeded the IT industry 36.6%.

Return on Equity

High ROE: B3's Return on Equity (32.5%) is considered high.

Financial Health

How is B3 Consulting Group's financial position?

Financial Health Score

5/6

Financial Health Score 5/6

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

Financial Position Analysis

Short Term Liabilities: B3's short term assets (SEK316.2M) exceed its short term liabilities (SEK307.9M).

Long Term Liabilities: B3's short term assets (SEK316.2M) exceed its long term liabilities (SEK66.5M).

Debt to Equity History and Analysis

Debt Level: B3 has more cash than its total debt.

Reducing Debt: B3's debt to equity ratio has increased from 8.3% to 34.3% over the past 5 years.

Debt Coverage: B3's debt is well covered by operating cash flow (133%).

Interest Coverage: B3's interest payments on its debt are well covered by EBIT (68.3x coverage).

Balance Sheet

Dividend

What is B3 Consulting Group current dividend yield, its reliability and sustainability?

Dividend Score

2/6

Dividend Score 2/6

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

2.90%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: B3's dividend (2.9%) is higher than the bottom 25% of dividend payers in the Swedish market (1.44%).

High Dividend: B3's dividend (2.9%) is low compared to the top 25% of dividend payers in the Swedish market (4.86%).

Stability and Growth of Payments

Stable Dividend: B3 has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: B3's dividend payments have increased, but the company has only paid a dividend for 5 years.

Earnings Payout to Shareholders

Earnings Coverage: With its reasonably low payout ratio (43.9%), B3's dividend payments are well covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: With its reasonably low cash payout ratio (29.5%), B3's dividend payments are well covered by cash flows.

Discover strong dividend paying companies

Management

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

0.3yrs

Average management tenure

CEO

Anette Billing

0.33

Tenure

Anette Billing serves as President & CEO at B3 Consulting Group AB (publ) since 2022.

Leadership Team

Experienced Management: B3's management team is not considered experienced ( 0.3 years average tenure), which suggests a new team.

Board Members

Experienced Board: B3's board of directors are not considered experienced ( 2.3 years average tenure), which suggests a new board.

Ownership

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

Insider Trading Volume

Insider Buying: B3 insiders have only sold shares in the past 3 months.

Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 2%.

Data	Last Updated (UTC time)
Company Analysis	2022/05/20 00:00
End of Day Share Price	2022/05/20 00:00
Earnings	2022/03/31
Annual Earnings	2021/12/31