Bechtle Aktiengesellschaft (BC8) AI Stock Analysis

• Market Cap: €4.86B
• Dividend Yield: 1.77%
• Average Volume (3M): 203.43K
• Price to Earnings (P/E): 22.7
• Beta (1Y): 1.15
• Revenue Growth: -1.21%
• EPS Growth: -18.02%
• Country: DE
• Employees: 15,729
• Sector: Technology
• Sector Strength: 94
• Industry: Information Technology Services
• EPS (TTM): 0.38
• Shares Outstanding: 126,000,000
• 10 Day Avg. Volume: 292,748
• 30 Day Avg. Volume: 203,434
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: €45.75
• Price Target Upside: 15.88% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 9

• Rating: 73 Outperform
• Price Target: €46.00 ▲(16.51% Upside)

Bechtle Aktiengesellschaft's overall stock score is driven by its strong financial performance, which is the most significant factor. The technical analysis suggests a positive trend, though with some caution due to bearish momentum indicators. The valuation is reasonable but not particularly compelling. The absence of earnings call data and corporate events means these factors do not influence the score.

Positive Factors

Infrastructure Initiative

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

Market Recovery

Bechtle is viewed at an inflection point in anticipation of a more broad-based German recovery.

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.

Profit Pressure

Persistent cost pressure continues to put profits under pressure.

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 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 exhibits strong financial performance with solid profitability and effective cash flow management. Despite a decline in revenue growth, the company maintains a robust balance sheet and prudent financial management.

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: 39.48
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• 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 39.48 is above the 20-day moving average (MA) of 38.24, above the 50-day MA of 38.35, and above the 200-day MA of 34.83, indicating a bullish trend. The MACD of 0.07 indicates Negative momentum. The RSI at 54.92 is Neutral, neither overbought nor oversold. The STOCH value of 66.05 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	79 Outperform	€444.38M	11.47	15.59%	2.86%	5.12%	-20.33%
BC8	73 Outperform	€4.86B	22.73	11.61%	1.77%	-1.21%	-18.02%
Sector *	68 Neutral	¥241.21B	15.46	6.62%	2.44%	9.23%	1.77%
D6H	68 Neutral	€489.03M	19.96	15.66%	1.70%	11.88%	-3.36%
A1OS	67 Neutral	€227.68M	14.02	15.12%	3.57%	1.97%	11.25%
ADN1	66 Neutral	€478.30M	61.19	4.09%	0.89%	13.30%	―
COK	58 Neutral	€705.94M	27.80	4.13%	4.45%	3.76%	-22.05%