Bechtle Aktiengesellschaft (BC8) AI Stock Analysis

• Market Cap: €4.32B
• Dividend Yield: 2.04%
• Average Volume (3M): 189.60K
• Price to Earnings (P/E): 20.2
• Beta (1Y): 1.23
• Revenue Growth: -1.21%
• EPS Growth: -18.02%
• Country: DE
• Employees: 15,729
• Sector: Technology
• Sector Strength: 88
• Industry: Information Technology Services
• EPS (TTM): 0.38
• Shares Outstanding: 126,000,000
• 10 Day Avg. Volume: 206,836
• 30 Day Avg. Volume: 189,603
• PEG Ratio: -2.10
• Price to Book (P/B): 2.05
• Price to Sales (P/S): 0.62
• P/FCF Ratio: 8.35
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: €45.00
• Price Target Upside: 25.21% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 74 Outperform
• Price Target: €41.00 ▲(14.08% Upside)

Bechtle Aktiengesellschaft's strong financial performance is the primary driver of its overall stock score, supported by solid profitability and cash flow management. Technical analysis presents a mixed outlook, while valuation metrics suggest the stock is fairly priced. The absence of recent earnings call insights or notable corporate events leaves the financial and technical aspects as the main influences on the score.

Positive Factors

Strong Financial Position

A strong financial position with solid profitability and effective cash flow management suggests resilience and capacity for sustained operations and growth.

Robust Cash Flow Generation

Effective cash management and robust cash flow generation enhance financial flexibility, supporting strategic investments and debt servicing.

Strong Capital Structure

A stable equity ratio indicates financial stability, reducing risk and enhancing the company's ability to weather economic fluctuations.

Negative Factors

Declining Revenue Growth

Negative revenue growth may indicate challenges in market expansion or competitive pressures, potentially impacting future profitability.

Increasing Leverage

Rising leverage, while currently manageable, could strain financial resources if not monitored, affecting long-term financial health.

Declining EPS Growth

A significant decline in EPS growth may reflect operational challenges or increased costs, potentially affecting investor confidence and stock performance.

Bechtle Aktiengesellschaft Business Overview & Revenue Model

Company Description

Bechtle Aktiengesellschaft (BC8) is a leading IT service provider in Germany and Europe, specializing in the sale of IT products and services. The company operates primarily in two segments: IT e-commerce and IT services. Bechtle offers a wide range of products including hardware, software, and cloud solutions, as well as consulting, implementation, and managed services. With a strong focus on digital transformation, Bechtle caters to both corporate clients and public sector customers, providing tailored IT solutions to enhance efficiency and innovation.

How the Company Makes Money

Bechtle generates revenue through multiple streams, primarily from its IT e-commerce segment, which involves selling a diverse portfolio of IT products from leading manufacturers. The company benefits from a robust network of partnerships with major technology vendors, allowing it to offer competitive pricing and comprehensive product ranges. Additionally, Bechtle's IT services segment contributes significantly to its revenues, as it provides consulting, system integration, and managed services to clients seeking to optimize their IT infrastructures. The company's ability to deliver customized solutions and maintain long-term relationships with clients further enhances its revenue stability. Key partnerships with global technology providers enable Bechtle to stay at the forefront of industry trends and expand its service offerings, ultimately driving growth and profitability.

Bechtle Aktiengesellschaft Financial Statement Overview

Summary

Bechtle Aktiengesellschaft demonstrates a strong financial position with solid profitability metrics and effective cash flow management. Despite a slight decline in revenue growth and a minor increase in leverage, the company's financial health remains commendable.

Income Statement

Bechtle Aktiengesellschaft shows a strong income statement with consistent revenue growth and solid profitability metrics. The company achieved a gross profit margin of approximately 17.5% in 2023, although its net profit margin slightly declined to around 4.1%. The EBIT and EBITDA margins are healthy, indicating efficient operational management. However, the revenue growth rate from 2022 to 2023 was negative at -1.8%, which could signal potential challenges in maintaining growth momentum.

Balance Sheet

The balance sheet of Bechtle Aktiengesellschaft is robust, with a stable equity ratio of over 45% in 2023, underscoring financial stability. The debt-to-equity ratio increased slightly to 0.42, reflecting prudent use of leverage. The return on equity (ROE) was approximately 15.2%, showcasing effective use of shareholders' funds to generate profits. Overall, the balance sheet indicates strong capital structure management but suggests monitoring of increasing debt levels.

Cash Flow

Bechtle Aktiengesellschaft's cash flow generation is solid, with a notable operating cash flow to net income ratio of 1.7 in 2023, indicating strong cash generation relative to profits. The free cash flow increased by approximately 34.5% from 2022 to 2023, demonstrating effective cash management. However, the free cash flow to net income ratio was around 1.3, highlighting room for improvement in converting earnings into free cash flow.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	6.28B	6.31B	6.42B	6.03B	5.31B	5.82B
Gross Profit	1.13B	1.14B	1.05B	1.05B	920.01M	856.58M
EBITDA	479.10M	510.46M	515.82M	469.00M	430.14M	375.97M
Net Income	213.83M	245.50M	265.51M	251.12M	231.45M	192.55M
Balance Sheet
Total Assets	4.04B	4.22B	3.80B	3.45B	3.02B	2.69B
Cash, Cash Equivalents and Short-Term Investments	522.27M	716.20M	465.76M	291.70M	433.18M	403.42M
Total Debt	0.00	812.25M	734.04M	523.15M	489.23M	145.74M
Total Liabilities	2.13B	2.30B	2.06B	1.91B	1.67B	1.53B
Stockholders Equity	1.91B	1.91B	1.74B	1.54B	1.35B	1.16B
Cash Flow
Free Cash Flow	336.00M	469.49M	349.01M	34.95M	226.22M	250.28M
Operating Cash Flow	440.70M	558.15M	450.19M	116.65M	284.49M	316.25M
Investing Cash Flow	-123.99M	-206.27M	-282.55M	-224.32M	-42.94M	-146.48M
Financing Cash Flow	-186.02M	-145.97M	43.17M	-100.21M	-179.36M	-77.53M

Bechtle Aktiengesellschaft Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 35.94
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DE:BC8, the sentiment is Negative. The current price of 35.94 is above the 20-day moving average (MA) of 35.71, below the 50-day MA of 37.04, and below the 200-day MA of 36.91, indicating a bearish trend. The MACD of -0.64 indicates Positive momentum. The RSI at 34.44 is Neutral, neither overbought nor oversold. The STOCH value of 9.38 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for DE:BC8.

Bechtle Aktiengesellschaft Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GFT	77 Outperform	€447.01M	11.54	15.59%	2.93%	5.12%	-20.33%
BC8	74 Outperform	€4.32B	20.19	11.61%	2.04%	-1.21%	-18.02%
D6H	68 Neutral	€529.85M	21.63	15.66%	1.56%	11.88%	-3.36%
A1OS	66 Neutral	€200.28M	12.34	15.12%	4.00%	1.97%	11.25%
COK	64 Neutral	€746.91M	40.14	3.11%	4.29%	-0.29%	-48.23%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
ADN1	56 Neutral	€596.68M	48.66	6.72%	0.82%	12.68%	―