Bechtle Aktiengesellschaft (BC8) AI Stock Analysis

• Market Cap: €5.47B
• Dividend Yield: 1.61%
• Average Volume (3M): 202.21K
• Price to Earnings (P/E): 25.4
• Beta (1Y): 1.35
• Revenue Growth: -0.50%
• EPS Growth: -13.97%
• Country: DE
• Employees: 15,729
• Sector: Technology
• Sector Strength: 88
• Industry: Information Technology Services
• EPS (TTM): 0.45
• Shares Outstanding: 126,000,000
• 10 Day Avg. Volume: 192,276
• 30 Day Avg. Volume: 202,210
• 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: €46.33
• Price Target Upside: 6.51% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 7
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 72 Outperform
• Price Target: €48.00 ▲(10.34% Upside)

The overall stock score for Bechtle Aktiengesellschaft is driven primarily by its solid financial performance and positive technical indicators. The company shows strong revenue growth and a stable financial structure, although recent declines in profitability margins and cash flow metrics present some challenges. Technical analysis indicates a bullish trend, supporting a positive outlook. Valuation metrics suggest the stock is moderately priced, with a reasonable P/E ratio and a modest dividend yield.

Positive Factors

Business Model Strength

Bechtle's diversified revenue streams from hardware, software, and services provide stability and resilience, supporting long-term growth.

Strategic Partnerships

Partnerships with major vendors enhance Bechtle's product offerings and market reach, strengthening its competitive position.

E-commerce Platform

A strong e-commerce platform allows Bechtle to efficiently scale operations and access a wide customer base, driving sustained revenue growth.

Negative Factors

Profitability Margins

Declining margins indicate rising costs or pricing pressures, which could impact long-term profitability and operational efficiency.

Cash Flow Challenges

Reduced cash flow can limit investment in growth initiatives and strain financial flexibility, posing a risk to long-term stability.

Net Profit Margin

A declining net profit margin suggests increased expenses or cost pressures, potentially affecting future profitability and competitiveness.

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 generates revenue primarily through the sale of IT products and services. Its key revenue streams include direct sales of hardware and software, which account for a significant portion of its income, as well as recurring revenue from managed services, cloud solutions, and consulting services. The company benefits from strategic partnerships with major technology vendors, allowing it to offer a wide range of products and solutions. Additionally, Bechtle's robust e-commerce platform enables it to reach a broad customer base efficiently, while its expertise in IT services helps to drive long-term customer relationships and loyalty, further enhancing its revenue potential.

Bechtle Aktiengesellschaft Financial Statement Overview

Summary

Bechtle Aktiengesellschaft exhibits a strong financial position with solid profitability, stable capital structure, and effective cash flow management. Despite challenges in maintaining revenue growth, the company's profitability and cash flow metrics are robust. The balance sheet indicates prudent financial management, though the slight increase in leverage warrants attention.

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	6.35B	6.31B	6.42B	6.03B	5.31B	5.82B
Gross Profit	1.15B	1.14B	1.05B	1.05B	920.01M	856.58M
EBITDA	486.75M	510.46M	515.82M	469.00M	430.14M	375.97M
Net Income	215.25M	245.50M	265.51M	251.12M	231.45M	192.55M
Balance Sheet
Total Assets	4.10B	4.22B	3.80B	3.45B	3.02B	2.69B
Cash, Cash Equivalents and Short-Term Investments	508.34M	716.20M	465.76M	291.70M	433.18M	403.42M
Total Debt	550.92M	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	1.96B	1.91B	1.74B	1.54B	1.35B	1.16B
Cash Flow
Free Cash Flow	298.99M	469.49M	349.01M	34.95M	226.22M	250.28M
Operating Cash Flow	416.67M	558.15M	450.19M	116.65M	284.49M	316.25M
Investing Cash Flow	-307.20M	-206.27M	-282.55M	-224.32M	-42.94M	-146.48M
Financing Cash Flow	-188.04M	-145.97M	43.17M	-100.21M	-179.36M	-77.53M

Bechtle Aktiengesellschaft Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 43.50
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

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 43.5 is above the 20-day moving average (MA) of 43.09, above the 50-day MA of 39.01, and above the 200-day MA of 38.08, indicating a bullish trend. The MACD of 1.25 indicates Positive momentum. The RSI at 63.81 is Neutral, neither overbought nor oversold. The STOCH value of 57.03 is Neutral, 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
GFT	77 Outperform	€498.09M	14.23	13.78%	2.61%	3.28%	-26.16%
BC8	72 Outperform	€5.47B	25.43	11.35%	1.61%	-0.50%	-13.97%
D6H	68 Neutral	€582.34M	26.42	13.54%	1.43%	7.30%	-15.88%
COK	65 Neutral	€866.67M	50.15	3.09%	3.70%	-0.61%	-52.28%
A1OS	63 Neutral	€199.28M	17.24	10.26%	3.99%	-1.50%	-37.05%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
ADN1	56 Neutral	€563.39M	41.50	6.82%	0.85%	12.37%	196.11%