| Bechtle AG (DE0005158703) | |||
39,18 EURStand (close): 01.07.25 |
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| Datum / Uhrzeit | Titel | Bewertung |
| 23.06.25 11:35:21 | Bechtle AG's (ETR:BC8) Intrinsic Value Is Potentially 24% Below Its Share Price |  |
| Key Insights The projected fair value for Bechtle is €27.55 based on 2 Stage Free Cash Flow to Equity Current share price of €36.08 suggests Bechtle is potentially 31% overvalued Our fair value estimate is 35% lower than Bechtle's analyst price target of €42.22 Today we'll do a simple run through of a valuation method used to estimate the attractiveness of Bechtle AG (ETR:BC8) as an investment opportunity by taking the forecast future cash flows of the company and discounting them back to today's value. This will be done using the Discounted Cash Flow (DCF) model. Models like these may appear beyond the comprehension of a lay person, but they're fairly easy to follow. We would caution that there are many ways of valuing a company and, like the DCF, each technique has advantages and disadvantages in certain scenarios. Anyone interested in learning a bit more about intrinsic value should have a read of the Simply Wall St analysis model. We've found 21 US stocks that are forecast to pay a dividend yield of over 6% next year. See the full list for free. What's The Estimated Valuation? We're using the 2-stage growth model, which simply means we take in account two stages of company's growth. In the initial period the company may have a higher growth rate and the second stage is usually assumed to have a stable growth rate. To start off with, we need to estimate the next ten years of cash flows. Where possible we use analyst estimates, but when these aren't available we extrapolate the previous free cash flow (FCF) from the last estimate or reported value. We assume companies with shrinking free cash flow will slow their rate of shrinkage, and that companies with growing free cash flow will see their growth rate slow, over this period. We do this to reflect that growth tends to slow more in the early years than it does in later years. A DCF is all about the idea that a dollar in the future is less valuable than a dollar today, so we discount the value of these future cash flows to their estimated value in today's dollars: 10-year free cash flow (FCF) estimate 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 Levered FCF (€, Millions) €131.9m €274.4m €294.3m €314.7m €210.6m €202.2m €197.3m €194.7m €193.7m €193.7m Growth Rate Estimate Source Analyst x5 Analyst x7 Analyst x7 Analyst x1 Analyst x1 Est @ -3.99% Est @ -2.42% Est @ -1.31% Est @ -0.54% Est @ 0.01% Present Value (€, Millions) Discounted @ 6.7% €124 €241 €242 €243 €152 €137 €125 €116 €108 €101 ("Est" = FCF growth rate estimated by Simply Wall St) Present Value of 10-year Cash Flow (PVCF) = €1.6b Story Continues We now need to calculate the Terminal Value, which accounts for all the future cash flows after this ten year period. For a number of reasons a very conservative growth rate is used that cannot exceed that of a country's GDP growth. In this case we have used the 5-year average of the 10-year government bond yield (1.3%) to estimate future growth. In the same way as with the 10-year 'growth' period, we discount future cash flows to today's value, using a cost of equity of 6.7%. Terminal Value (TV)= FCF2034 × (1 + g) ÷ (r – g) = €194m× (1 + 1.3%) ÷ (6.7%– 1.3%) = €3.6b Present Value of Terminal Value (PVTV)= TV / (1 + r)10= €3.6b÷ ( 1 + 6.7%)10= €1.9b The total value is the sum of cash flows for the next ten years plus the discounted terminal value, which results in the Total Equity Value, which in this case is €3.5b. To get the intrinsic value per share, we divide this by the total number of shares outstanding. Relative to the current share price of €36.1, the company appears reasonably expensive at the time of writing. The assumptions in any calculation have a big impact on the valuation, so it is better to view this as a rough estimate, not precise down to the last cent.XTRA:BC8 Discounted Cash Flow June 23rd 2025 Important Assumptions We would point out that the most important inputs to a discounted cash flow are the discount rate and of course the actual cash flows. You don't have to agree with these inputs, I recommend redoing the calculations yourself and playing with them. The DCF also does not consider the possible cyclicality of an industry, or a company's future capital requirements, so it does not give a full picture of a company's potential performance. Given that we are looking at Bechtle as potential shareholders, the cost of equity is used as the discount rate, rather than the cost of capital (or weighted average cost of capital, WACC) which accounts for debt. In this calculation we've used 6.7%, which is based on a levered beta of 1.257. Beta is a measure of a stock's volatility, compared to the market as a whole. We get our beta from the industry average beta of globally comparable companies, with an imposed limit between 0.8 and 2.0, which is a reasonable range for a stable business. See our latest analysis for Bechtle SWOT Analysis for Bechtle Strength Debt is not viewed as a risk. Dividends are covered by earnings and cash flows. Weakness Earnings declined over the past year. Dividend is low compared to the top 25% of dividend payers in the IT market. Opportunity Annual earnings are forecast to grow for the next 3 years. Good value based on P/E ratio compared to estimated Fair P/E ratio. Threat Annual earnings are forecast to grow slower than the German market. Looking Ahead: Valuation is only one side of the coin in terms of building your investment thesis, and it shouldn't be the only metric you look at when researching a company. The DCF model is not a perfect stock valuation tool. Rather it should be seen as a guide to "what assumptions need to be true for this stock to be under/overvalued?" For instance, if the terminal value growth rate is adjusted slightly, it can dramatically alter the overall result. Can we work out why the company is trading at a premium to intrinsic value? For Bechtle, we've put together three relevant aspects you should explore: Financial Health: Does BC8 have a healthy balance sheet? Take a look at our free balance sheet analysis with six simple checks on key factors like leverage and risk. Future Earnings: How does BC8's growth rate compare to its peers and the wider market? Dig deeper into the analyst consensus number for the upcoming years by interacting with our free analyst growth expectation chart. Other High Quality Alternatives: Do you like a good all-rounder? Explore our interactive list of high quality stocks to get an idea of what else is out there you may be missing! PS. The Simply Wall St app conducts a discounted cash flow valuation for every stock on the XTRA every day. If you want to find the calculation for other stocks just search here. — Weekly Picks from Community Investing narratives with Fair Values Vita Life Sciences Set for a 12.72% Revenue Growth While Tackling Operational Challenges By Robbo – Community Contributor Fair Value Estimated: A$2.42 · 0.1% Overvalued Vossloh rides a €500 billion wave to boost growth and earnings in the next decade By Chris1 – Community Contributor Fair Value Estimated: €78.41 · 0.1% Overvalued Intuitive Surgical Will Transform Healthcare with 12% Revenue Growth By Unike – Community Contributor Fair Value Estimated: $325.55 · 0.6% Undervalued View more featured narratives — Have feedback on this article? Concerned about the content?Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. View Comments |
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| 22.03.25 06:53:53 | Some May Be Optimistic About Bechtle's (ETR:BC8) Earnings | |
| The market was pleased with the recent earnings report from Bechtle AG (ETR:BC8), despite the profit numbers being soft. Our analysis suggests that investors may have noticed some promising signs beyond the statutory profit figures.XTRA:BC8 Earnings and Revenue History March 22nd 2025 A Closer Look At Bechtle's Earnings One key financial ratio used to measure how well a company converts its profit to free cash flow (FCF) is the accrual ratio. The accrual ratio subtracts the FCF from the profit for a given period, and divides the result by the average operating assets of the company over that time. You could think of the accrual ratio from cashflow as the 'non-FCF profit ratio'. As a result, a negative accrual ratio is a positive for the company, and a positive accrual ratio is a negative. That is not intended to imply we should worry about a positive accrual ratio, but it's worth noting where the accrual ratio is rather high. That's because some academic studies have suggested that high accruals ratios tend to lead to lower profit or less profit growth. Over the twelve months to December 2024, Bechtle recorded an accrual ratio of -0.12. That indicates that its free cash flow was a fair bit more than its statutory profit. To wit, it produced free cash flow of €469m during the period, dwarfing its reported profit of €245.5m. Bechtle's free cash flow improved over the last year, which is generally good to see. That might leave you wondering what analysts are forecasting in terms of future profitability. Luckily, you can click here to see an interactive graph depicting future profitability, based on their estimates. Our Take On Bechtle's Profit Performance As we discussed above, Bechtle has perfectly satisfactory free cash flow relative to profit. Based on this observation, we consider it likely that Bechtle's statutory profit actually understates its earnings potential! And on top of that, its earnings per share have grown at 6.1% per year over the last three years. At the end of the day, it's essential to consider more than just the factors above, if you want to understand the company properly. Ultimately, this article has formed an opinion based on historical data. However, it can also be great to think about what analysts are forecasting for the future. At Simply Wall St, we have analyst estimates which you can view by clicking here. Today we've zoomed in on a single data point to better understand the nature of Bechtle's profit. But there are plenty of other ways to inform your opinion of a company. Some people consider a high return on equity to be a good sign of a quality business. While it might take a little research on your behalf, you may find this free collection of companies boasting high return on equity, or this list of stocks with significant insider holdings to be useful. Have feedback on this article? Concerned about the content?Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. View Comments |
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| 19.03.25 08:03:28 | Bechtle Full Year 2024 Earnings: In Line With Expectations |  |
| Bechtle (ETR:BC8) Full Year 2024 Results Key Financial Results Revenue: €6.31b (down 1.8% from FY 2023). Net income: €245.5m (down 7.5% from FY 2023). Profit margin: 3.9% (down from 4.1% in FY 2023). The decrease in margin was driven by lower revenue. EPS: €1.95 (down from €2.11 in FY 2023).XTRA:BC8 Revenue and Expenses Breakdown March 19th 2025 All figures shown in the chart above are for the trailing 12 month (TTM) period Bechtle Meets Expectations Revenue was in line with analyst estimates. Earnings per share (EPS) was also in line with analyst expectations. The primary driver behind last 12 months revenue was the IT System House & Managed Services segment contributing a total revenue of €5.00b (79% of total revenue). Notably, cost of sales worth €5.17b amounted to 82% of total revenue thereby underscoring the impact on earnings. The largest operating expense was Sales & Marketing costs, amounting to €456.5m (51% of total expenses). Explore how BC8's revenue and expenses shape its earnings. Looking ahead, revenue is forecast to grow 5.0% p.a. on average during the next 3 years, compared to a 6.3% growth forecast for the IT industry in Germany. Performance of the German IT industry. The company's shares are up 6.4% from a week ago. Balance Sheet Analysis Just as investors must consider earnings, it is also important to take into account the strength of a company's balance sheet. See our latest analysis on Bechtle's balance sheet health. Have feedback on this article? Concerned about the content?Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. View Comments |
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| 18.03.25 08:00:59 | Bechtle AG's (ETR:BC8) Stock Is Going Strong: Is the Market Following Fundamentals? | |
| Bechtle (ETR:BC8) has had a great run on the share market with its stock up by a significant 29% over the last three months. Given that the market rewards strong financials in the long-term, we wonder if that is the case in this instance. Particularly, we will be paying attention to Bechtle's ROE today. ROE or return on equity is a useful tool to assess how effectively a company can generate returns on the investment it received from its shareholders. Simply put, it is used to assess the profitability of a company in relation to its equity capital. Check out our latest analysis for Bechtle How Do You Calculate Return On Equity? The formula for return on equity is: Return on Equity = Net Profit (from continuing operations) ÷ Shareholders' Equity So, based on the above formula, the ROE for Bechtle is: 13% = €245m ÷ €1.9b (Based on the trailing twelve months to December 2024). The 'return' is the profit over the last twelve months. That means that for every €1 worth of shareholders' equity, the company generated €0.13 in profit. What Is The Relationship Between ROE And Earnings Growth? Thus far, we have learned that ROE measures how efficiently a company is generating its profits. Based on how much of its profits the company chooses to reinvest or "retain", we are then able to evaluate a company's future ability to generate profits. Generally speaking, other things being equal, firms with a high return on equity and profit retention, have a higher growth rate than firms that don’t share these attributes. A Side By Side comparison of Bechtle's Earnings Growth And 13% ROE At first glance, Bechtle seems to have a decent ROE. Even when compared to the industry average of 11% the company's ROE looks quite decent. This certainly adds some context to Bechtle's moderate 8.3% net income growth seen over the past five years. As a next step, we compared Bechtle's net income growth with the industry and found that the company has a similar growth figure when compared with the industry average growth rate of 7.0% in the same period.XTRA:BC8 Past Earnings Growth March 18th 2025 The basis for attaching value to a company is, to a great extent, tied to its earnings growth. The investor should try to establish if the expected growth or decline in earnings, whichever the case may be, is priced in. By doing so, they will have an idea if the stock is headed into clear blue waters or if swampy waters await. Is Bechtle fairly valued compared to other companies? These 3 valuation measures might help you decide. Is Bechtle Using Its Retained Earnings Effectively? With a three-year median payout ratio of 32% (implying that the company retains 68% of its profits), it seems that Bechtle is reinvesting efficiently in a way that it sees respectable amount growth in its earnings and pays a dividend that's well covered. Story Continues Besides, Bechtle has been paying dividends for at least ten years or more. This shows that the company is committed to sharing profits with its shareholders. Our latest analyst data shows that the future payout ratio of the company over the next three years is expected to be approximately 36%. Therefore, the company's future ROE is also not expected to change by much with analysts predicting an ROE of 12%. Conclusion Overall, we are quite pleased with Bechtle's performance. Particularly, we like that the company is reinvesting heavily into its business, and at a high rate of return. Unsurprisingly, this has led to an impressive earnings growth. Having said that, the company's earnings growth is expected to slow down, as forecasted in the current analyst estimates. To know more about the company's future earnings growth forecasts take a look at this freereport on analyst forecasts for the company to find out more. Have feedback on this article? Concerned about the content?Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. View Comments |
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| 15.03.25 07:00:29 | Bechtle AG (BHTLF) Q4 2024 Earnings Call Highlights: Record Cash Flow Amidst Earnings Pressure | |
| Revenue Growth: Business volume growth of 2.0%, with organic growth remaining at the previous year's level. Gross Margin: Record-high gross margin of 18.1% due to increased share of software and services. Earnings: Earnings declined by about 8% year on year. Personnel Costs: Increased by 7.6%, considered high in the context of declining revenue. Operating Cash Flow: Reached a new all-time high of EUR558 million. Free Cash Flow: Record level at EUR377 million. Workforce: Total employees at 15,801, an increase of 642 employees or 4.2% from the previous year. Dividend Proposal: EUR0.70 per share, maintaining the previous year's level. EBIT Margin: Expected to be around the previous year's level, with potential decline up to 5%. Warning! GuruFocus has detected 2 Warning Sign with BHTLF. Release Date: March 14, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Positive Points Bechtle AG (BHTLF) achieved a solid 2.0% growth in business volume, with organic growth remaining at the previous year's level. The company reported a record-high gross margin of 18.1%, driven by an increasing share of software and services. Operating cash flow reached a new all-time high of EUR558 million, nearly EUR100 million more than the previous year. Bechtle AG (BHTLF) maintained a stable dividend of EUR0.70 per share, demonstrating financial strength and confidence in future development. The company is successfully mitigating weaknesses in certain national markets through its internationalization and M&A strategy, with strong performances in Belgium, the United Kingdom, and Spain. Negative Points Bechtle AG (BHTLF) faced significant pressure on earnings, which declined by about 8% year on year due to insufficient topline growth. The company experienced investment reluctance from SME customers and public sector clients, particularly in Germany and France. Personnel costs increased by 7.6%, which was too high in the context of declining revenue. The company anticipates a high single-digit million euro negative impact from changes in Microsoft's incentive structure over the next three years. Bechtle AG (BHTLF) expects a challenging first half of 2025, with potential EBIT decline by up to 5% due to macroeconomic uncertainties and limited visibility. Q & A Highlights Q: Given the current challenges, do you anticipate any changes in your guidance or potential economic stimulus from policy changes in Germany? A: We had a slow start to the year, but there is potential for improvement in the second half. The first six months are expected to be weak, but we hope for a positive shift once public sector budgets are adopted. Our guidance remains unchanged, heavily dependent on public sector business and SME investments. Story Continues Q: How is the recent change in Microsoft's incentive structure affecting Bechtle, and do you expect other vendors to follow suit? A: The change by Microsoft will have a high single-digit million euro impact this year, with effects lasting three years. We need to transition EA contracts to CSP contracts, requiring investment in cloud platforms and staff training. Other vendors like Cisco are considering similar changes, reinforcing our decision to invest in cloud infrastructure. Q: Can you provide more details on your reporting structure and the potential for more transparency in hardware and services revenues? A: We are moving towards a regional reporting structure to align with our strategic focus on Europeanization. This change will reflect our market penetration efforts and is a shift from our traditional segment logic. Q: With flat revenue and EBIT projections, do you plan to cut costs more aggressively? A: We are cautious with payroll costs, using short-time work where necessary. Achieving last year's EBIT would be a success, but with only 1-2% growth, maintaining previous results is challenging. Our focus is on leveraging existing contracts to increase volume. Q: What is the impact of manufacturer bonuses on your financials, and are there any M&A activities planned? A: Despite not growing, we maintained stable funding from vendors due to our market performance. We expect an M&A transaction in the first half of the year, focusing on system houses in Germany and potential acquisitions in Southern and Eastern Europe. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. View Comments |
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| 03.03.25 09:27:20 | With 35% stake, Bechtle AG (ETR:BC8) seems to have captured institutional investors' interest | |
| Key Insights Institutions' substantial holdings in Bechtle implies that they have significant influence over the company's share price A total of 5 investors have a majority stake in the company with 50% ownership Insider ownership in Bechtle is 29% If you want to know who really controls Bechtle AG (ETR:BC8), then you'll have to look at the makeup of its share registry. And the group that holds the biggest piece of the pie are institutions with 35% ownership. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn). Given the vast amount of money and research capacities at their disposal, institutional ownership tends to carry a lot of weight, especially with individual investors. As a result, a sizeable amount of institutional money invested in a firm is generally viewed as a positive attribute. In the chart below, we zoom in on the different ownership groups of Bechtle. Check out our latest analysis for Bechtle XTRA:BC8 Ownership Breakdown March 3rd 2025 What Does The Institutional Ownership Tell Us About Bechtle? Many institutions measure their performance against an index that approximates the local market. So they usually pay more attention to companies that are included in major indices. As you can see, institutional investors have a fair amount of stake in Bechtle. This can indicate that the company has a certain degree of credibility in the investment community. However, it is best to be wary of relying on the supposed validation that comes with institutional investors. They too, get it wrong sometimes. If multiple institutions change their view on a stock at the same time, you could see the share price drop fast. It's therefore worth looking at Bechtle's earnings history below. Of course, the future is what really matters.XTRA:BC8 Earnings and Revenue Growth March 3rd 2025 Bechtle is not owned by hedge funds. Looking at our data, we can see that the largest shareholder is Karin Schick-Krief with 25% of shares outstanding. Meanwhile, the second and third largest shareholders, hold 10% and 6.2%, of the shares outstanding, respectively. To make our study more interesting, we found that the top 5 shareholders control more than half of the company which implies that this group has considerable sway over the company's decision-making. Researching institutional ownership is a good way to gauge and filter a stock's expected performance. The same can be achieved by studying analyst sentiments. Quite a few analysts cover the stock, so you could look into forecast growth quite easily. Insider Ownership Of Bechtle While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. The company management answer to the board and the latter should represent the interests of shareholders. Notably, sometimes top-level managers are on the board themselves. Story Continues I generally consider insider ownership to be a good thing. However, on some occasions it makes it more difficult for other shareholders to hold the board accountable for decisions. It seems insiders own a significant proportion of Bechtle AG. Insiders own €1.2b worth of shares in the €4.1b company. That's quite meaningful. Most would be pleased to see the board is investing alongside them. You may wish to access this free chart showing recent trading by insiders. General Public Ownership The general public-- including retail investors -- own 30% stake in the company, and hence can't easily be ignored. While this size of ownership may not be enough to sway a policy decision in their favour, they can still make a collective impact on company policies. Private Company Ownership It seems that Private Companies own 6.2%, of the Bechtle stock. It's hard to draw any conclusions from this fact alone, so its worth looking into who owns those private companies. Sometimes insiders or other related parties have an interest in shares in a public company through a separate private company. Next Steps: I find it very interesting to look at who exactly owns a company. But to truly gain insight, we need to consider other information, too. I like to dive deeper into how a company has performed in the past. You can find historic revenue and earnings in this detailed graph. But ultimately it is the future, not the past, that will determine how well the owners of this business will do. Therefore we think it advisable to take a look at this free report showing whether analysts are predicting a brighter future. NB: Figures in this article are calculated using data from the last twelve months, which refer to the 12-month period ending on the last date of the month the financial statement is dated. This may not be consistent with full year annual report figures. Have feedback on this article? Concerned about the content?Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. View Comments |
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| 16.02.25 07:56:45 | Bechtle (ETR:BC8) Has More To Do To Multiply In Value Going Forward | |
| Did you know there are some financial metrics that can provide clues of a potential multi-bagger? Amongst other things, we'll want to see two things; firstly, a growing return on capital employed (ROCE) and secondly, an expansion in the company's amount of capital employed. This shows us that it's a compounding machine, able to continually reinvest its earnings back into the business and generate higher returns. So, when we ran our eye over Bechtle's (ETR:BC8) trend of ROCE, we liked what we saw. Understanding Return On Capital Employed (ROCE) If you haven't worked with ROCE before, it measures the 'return' (pre-tax profit) a company generates from capital employed in its business. To calculate this metric for Bechtle, this is the formula: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) 0.13 = €358m ÷ (€3.8b - €1.2b) (Based on the trailing twelve months to September 2024). So, Bechtle has an ROCE of 13%. That's a relatively normal return on capital, and it's around the 12% generated by the IT industry. Check out our latest analysis for Bechtle XTRA:BC8 Return on Capital Employed February 16th 2025 In the above chart we have measured Bechtle's prior ROCE against its prior performance, but the future is arguably more important. If you'd like, you can check out the forecasts from the analysts covering Bechtle for free. What Can We Tell From Bechtle's ROCE Trend? The trend of ROCE doesn't stand out much, but returns on a whole are decent. The company has consistently earned 13% for the last five years, and the capital employed within the business has risen 77% in that time. 13% is a pretty standard return, and it provides some comfort knowing that Bechtle has consistently earned this amount. Stable returns in this ballpark can be unexciting, but if they can be maintained over the long run, they often provide nice rewards to shareholders. Our Take On Bechtle's ROCE The main thing to remember is that Bechtle has proven its ability to continually reinvest at respectable rates of return. Yet over the last five years the stock has declined 26%, so the decline might provide an opening. For that reason, savvy investors might want to look further into this company in case it's a prime investment. Bechtle could be trading at an attractive price in other respects, so you might find our free intrinsic value estimation for BC8 on our platform quite valuable. If you want to search for solid companies with great earnings, check out this freelist of companies with good balance sheets and impressive returns on equity. Have feedback on this article? Concerned about the content?Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. View Comments |
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| 27.01.25 07:32:53 | What Does Bechtle AG's (ETR:BC8) Share Price Indicate? | |
| Bechtle AG (ETR:BC8), is not the largest company out there, but it saw significant share price movement during recent months on the XTRA, rising to highs of €36.22 and falling to the lows of €29.60. Some share price movements can give investors a better opportunity to enter into the stock, and potentially buy at a lower price. A question to answer is whether Bechtle's current trading price of €31.32 reflective of the actual value of the mid-cap? Or is it currently undervalued, providing us with the opportunity to buy? Let’s take a look at Bechtle’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change. See our latest analysis for Bechtle What's The Opportunity In Bechtle? According to our valuation model, Bechtle seems to be fairly priced at around 7.7% below our intrinsic value, which means if you buy Bechtle today, you’d be paying a reasonable price for it. And if you believe the company’s true value is €33.92, then there’s not much of an upside to gain from mispricing. Furthermore, Bechtle’s low beta implies that the stock is less volatile than the wider market. What kind of growth will Bechtle generate?XTRA:BC8 Earnings and Revenue Growth January 27th 2025 Investors looking for growth in their portfolio may want to consider the prospects of a company before buying its shares. Although value investors would argue that it’s the intrinsic value relative to the price that matter the most, a more compelling investment thesis would be high growth potential at a cheap price. Bechtle's earnings growth are expected to be in the teens in the upcoming years, indicating a solid future ahead. This should lead to robust cash flows, feeding into a higher share value. What This Means For You Are you a shareholder? It seems like the market has already priced in BC8’s positive outlook, with shares trading around its fair value. However, there are also other important factors which we haven’t considered today, such as the track record of its management team. Have these factors changed since the last time you looked at the stock? Will you have enough conviction to buy should the price fluctuates below the true value? Are you a potential investor? If you’ve been keeping an eye on BC8, now may not be the most advantageous time to buy, given it is trading around its fair value. However, the optimistic prospect is encouraging for the company, which means it’s worth diving deeper into other factors such as the strength of its balance sheet, in order to take advantage of the next price drop. Diving deeper into the forecasts for Bechtle mentioned earlier will help you understand how analysts view the stock going forward. Luckily, you can check out what analysts are forecasting by clicking here. Story Continues If you are no longer interested in Bechtle, you can use our free platform to see our list of over 50 other stocks with a high growth potential. Have feedback on this article? Concerned about the content?Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. View Comments |
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| 08.10.24 05:20:56 | Is Weakness In Bechtle AG (ETR:BC8) Stock A Sign That The Market Could be Wrong Given Its Strong Financial Prospects? | |
| Bechtle (ETR:BC8) has had a rough three months with its share price down 6.5%. But if you pay close attention, you might gather that its strong financials could mean that the stock could potentially see an increase in value in the long-term, given how markets usually reward companies with good financial health. Particularly, we will be paying attention to Bechtle's ROE today. ROE or return on equity is a useful tool to assess how effectively a company can generate returns on the investment it received from its shareholders. In simpler terms, it measures the profitability of a company in relation to shareholder's equity. View our latest analysis for Bechtle How To Calculate Return On Equity? The formula for return on equity is: Return on Equity = Net Profit (from continuing operations) ÷ Shareholders' Equity So, based on the above formula, the ROE for Bechtle is: 15% = €261m ÷ €1.8b (Based on the trailing twelve months to June 2024). The 'return' is the yearly profit. So, this means that for every €1 of its shareholder's investments, the company generates a profit of €0.15. What Has ROE Got To Do With Earnings Growth? Thus far, we have learned that ROE measures how efficiently a company is generating its profits. We now need to evaluate how much profit the company reinvests or "retains" for future growth which then gives us an idea about the growth potential of the company. Assuming everything else remains unchanged, the higher the ROE and profit retention, the higher the growth rate of a company compared to companies that don't necessarily bear these characteristics. Bechtle's Earnings Growth And 15% ROE To start with, Bechtle's ROE looks acceptable. Further, the company's ROE compares quite favorably to the industry average of 12%. This certainly adds some context to Bechtle's decent 11% net income growth seen over the past five years. As a next step, we compared Bechtle's net income growth with the industry, and pleasingly, we found that the growth seen by the company is higher than the average industry growth of 7.6%. past-earnings-growth The basis for attaching value to a company is, to a great extent, tied to its earnings growth. The investor should try to establish if the expected growth or decline in earnings, whichever the case may be, is priced in. This then helps them determine if the stock is placed for a bright or bleak future. Has the market priced in the future outlook for BC8? You can find out in our latest intrinsic value infographic research report. Is Bechtle Efficiently Re-investing Its Profits? With a three-year median payout ratio of 31% (implying that the company retains 69% of its profits), it seems that Bechtle is reinvesting efficiently in a way that it sees respectable amount growth in its earnings and pays a dividend that's well covered. Story continues Besides, Bechtle has been paying dividends for at least ten years or more. This shows that the company is committed to sharing profits with its shareholders. Our latest analyst data shows that the future payout ratio of the company over the next three years is expected to be approximately 34%. As a result, Bechtle's ROE is not expected to change by much either, which we inferred from the analyst estimate of 13% for future ROE. Conclusion On the whole, we feel that Bechtle's performance has been quite good. In particular, it's great to see that the company is investing heavily into its business and along with a high rate of return, that has resulted in a sizeable growth in its earnings. Having said that, the company's earnings growth is expected to slow down, as forecasted in the current analyst estimates. To know more about the company's future earnings growth forecasts take a look at this freereport on analyst forecasts for the company to find out more. Have feedback on this article? Concerned about the content?Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. View comments |
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| 24.09.24 05:07:07 | Bechtle AG (ETR:BC8) is largely controlled by institutional shareholders who own 36% of the company | |
| Key Insights Significantly high institutional ownership implies Bechtle's stock price is sensitive to their trading actions The top 5 shareholders own 50% of the company 29% of Bechtle is held by insiders If you want to know who really controls Bechtle AG (ETR:BC8), then you'll have to look at the makeup of its share registry. With 36% stake, institutions possess the maximum shares in the company. In other words, the group stands to gain the most (or lose the most) from their investment into the company. Given the vast amount of money and research capacities at their disposal, institutional ownership tends to carry a lot of weight, especially with individual investors. Therefore, a good portion of institutional money invested in the company is usually a huge vote of confidence on its future. Let's delve deeper into each type of owner of Bechtle, beginning with the chart below. View our latest analysis for Bechtle ownership-breakdown What Does The Institutional Ownership Tell Us About Bechtle? Institutional investors commonly compare their own returns to the returns of a commonly followed index. So they generally do consider buying larger companies that are included in the relevant benchmark index. Bechtle already has institutions on the share registry. Indeed, they own a respectable stake in the company. This can indicate that the company has a certain degree of credibility in the investment community. However, it is best to be wary of relying on the supposed validation that comes with institutional investors. They too, get it wrong sometimes. It is not uncommon to see a big share price drop if two large institutional investors try to sell out of a stock at the same time. So it is worth checking the past earnings trajectory of Bechtle, (below). Of course, keep in mind that there are other factors to consider, too. earnings-and-revenue-growth Bechtle is not owned by hedge funds. Karin Schick-Krief is currently the largest shareholder, with 25% of shares outstanding. Meanwhile, the second and third largest shareholders, hold 10% and 6.2%, of the shares outstanding, respectively. Our research also brought to light the fact that roughly 50% of the company is controlled by the top 5 shareholders suggesting that these owners wield significant influence on the business. While studying institutional ownership for a company can add value to your research, it is also a good practice to research analyst recommendations to get a deeper understand of a stock's expected performance. There are plenty of analysts covering the stock, so it might be worth seeing what they are forecasting, too. Story continues Insider Ownership Of Bechtle While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. Management ultimately answers to the board. However, it is not uncommon for managers to be executive board members, especially if they are a founder or the CEO. Insider ownership is positive when it signals leadership are thinking like the true owners of the company. However, high insider ownership can also give immense power to a small group within the company. This can be negative in some circumstances. Our most recent data indicates that insiders own a reasonable proportion of Bechtle AG. Insiders own €1.4b worth of shares in the €4.7b company. That's quite meaningful. Most would be pleased to see the board is investing alongside them. You may wish to access this free chart showing recent trading by insiders. General Public Ownership With a 29% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Bechtle. While this size of ownership may not be enough to sway a policy decision in their favour, they can still make a collective impact on company policies. Private Company Ownership It seems that Private Companies own 6.2%, of the Bechtle stock. It might be worth looking deeper into this. If related parties, such as insiders, have an interest in one of these private companies, that should be disclosed in the annual report. Private companies may also have a strategic interest in the company. Next Steps: I find it very interesting to look at who exactly owns a company. But to truly gain insight, we need to consider other information, too. Many find it useful to take an in depth look at how a company has performed in the past. You can access this detailed graph of past earnings, revenue and cash flow. If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its future. NB: Figures in this article are calculated using data from the last twelve months, which refer to the 12-month period ending on the last date of the month the financial statement is dated. This may not be consistent with full year annual report figures. Have feedback on this article? Concerned about the content?Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. View comments |
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