Bechtle Aktiengesellschaft (BC8) AI Stock Analysis

• Market Cap: €4.93B
• Dividend Yield: 1.54%
• Average Volume (3M): 203.79K
• Price to Earnings (P/E): 21.8
• Beta (1Y): 0.94
• Revenue Growth: -1.95%
• EPS Growth: -15.44%
• Country: DE
• Employees: 15,729
• Sector: Industrials
• Sector Strength: 87
• Industry: Information Technology Services
• EPS (TTM): 0.31
• Shares Outstanding: 126,000,000
• 10 Day Avg. Volume: 229,808
• 30 Day Avg. Volume: 203,789
• PEG Ratio: 2.03
• Price to Book (P/B): 2.71
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 119.18
• 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: €45.71
• Price Target Upside: 16.73% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 8

• Rating: 74 Outperform
• Price Target: €42.00 ▲(7.25%Upside)

Bechtle Aktiengesellschaft's overall stock score is driven by its strong financial performance, characterized by robust profitability and effective cash flow management. However, technical analysis indicates potential short-term challenges, and the valuation suggests the stock is fairly priced. The absence of earnings call and corporate events data does not affect the score significantly.

Positive Factors

Infrastructure Initiative

The anticipated benefits of Germany’s €500bn infrastructure initiative are expected to influence the company positively.

Market Environment

Recent market sentiment in the public sector business and SMBs indicates a favorable environment for Bechtle.

Strategic Positioning

Bechtle's strategic positioning in the European IT services and solutions market is a focal point for potential growth.

Negative Factors

Economic Conditions

Q1 preliminary results came in significantly below market's expectations as BC8 continues to face the impact of challenging economic conditions, especially from the current budget freeze of German public clients.

Financial Performance

The biggest miss is once again the bottom line, with EBT only reaching €55m, a 33% decline YoY, and a 3.8% margin, compared to the company-compiled consensus of €73m.

Revenue Decline

Revenues declined in SH&MS by -7% YoY due to a public spending freeze during the German election process and a still lacklustre macro environment.

Bechtle Aktiengesellschaft Business Overview & Revenue Model

Company Description

Bechtle AG provides information technology (IT) services primarily in Europe. The company operates in two segments, IT System House & Managed Services, and IT E-Commerce. The IT System House & Managed Services segment offers IT strategy consulting, hardware and software selling, project planning and implementation, system integration, IT services, and training for IT operation. This segment also provides applications for business intelligence, customer relationship management, enterprise resource planning, product lifecycle management, computer-aided design/computer-aided manufacturing, product data management, enterprise content management, document management systems, artificial intelligence. The IT E-Commerce segment provides hardware and software products, and peripherals and accessories that comprises approximately 40,000 products through an online shop and telesales. The company also provides data center, modern workplace, networking, IT security, consulting, professional, managed, training, financial, remarketing, and cloud services, as well as design, development, and implementation of software services. It serves customers in the fields of industry, trade, finance, and the public sector. Bechtle AG was founded in 1983 and is headquartered in Neckarsulm, Germany.

How the Company Makes Money

Bechtle makes money primarily through its comprehensive IT services and solutions, which are segmented into two main business units: IT System House & Managed Services and IT E-Commerce. The IT System House & Managed Services unit generates revenue by offering a range of services, including consulting, software and hardware sales, project management, and managed services. Meanwhile, the IT E-Commerce unit contributes to revenue by enabling online sales of IT products through various platforms. The company's earnings are bolstered by strategic partnerships with major technology vendors, which allow it to offer competitive pricing and access to cutting-edge technology. Additionally, Bechtle's strong presence across Europe and its focus on digital transformation and cloud services further enhance its revenue potential.

Bechtle Aktiengesellschaft Financial Statement Overview

Summary

Bechtle Aktiengesellschaft shows strong financials with solid profitability metrics, a stable capital structure, and effective cash flow management. However, a slight decline in revenue growth and increasing leverage need monitoring.

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

Bechtle Aktiengesellschaft Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 39.16
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DE:BC8, the sentiment is Positive. The current price of 39.16 is above the 20-day moving average (MA) of 38.33, above the 50-day MA of 37.79, and above the 200-day MA of 34.52, indicating a bullish trend. The MACD of -0.02 indicates Negative momentum. The RSI at 59.09 is Neutral, neither overbought nor oversold. The STOCH value of 92.83 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for DE:BC8.

Bechtle Aktiengesellschaft Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BC8	74 Outperform	€4.93B	21.85	12.04%	1.54%	-1.95%	-15.44%
Sector *	56 Neutral	HK$4.00B	-0.52	10.69%	20.06%	-6.34%	-55.88%
0N5I		€572.66M	73.46	4.09%	0.74%	―	―
0JCO		€274.01M	17.00	15.04%	2.95%	―	―
0O0F		€882.43M	34.81	4.13%	3.59%	―	―
0O2W		€594.97M	13.85	16.30%	1.91%	―	―
0W19		€502.36M	20.14	16.57%	1.65%	―	―