Bechtle Aktiengesellschaft (BC8) AI Stock Analysis

• Market Cap: €5.02B
• Dividend Yield: 1.76%
• Average Volume (3M): 222.52K
• Price to Earnings (P/E): 22.2
• Beta (1Y): 0.88
• Revenue Growth: -1.95%
• EPS Growth: -15.44%
• Country: DE
• Employees: 15,729
• Sector: Industrials
• Sector Strength: 92
• Industry: Information Technology Services
• EPS (TTM): 0.31
• Shares Outstanding: 126,000,000
• 10 Day Avg. Volume: 224,513
• 30 Day Avg. Volume: 222,524
• PEG Ratio: -13.13
• Price to Book (P/B): 2.56
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 10.41
• 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: 14.89% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 9

• Rating: 76 Outperform
• Price Target: €45.00 ▲(13.01%Upside)

Bechtle's strongest attributes are its robust financial performance and solid technical indicators, reflecting a stable and growing company. Valuation is fair, though not a standout. The absence of recent earnings call data and corporate events limits additional insight.

Positive Factors

Future Demand

The volume of framework contracts is at an all-time high, indicating potential future demand once contracts are called.

Market Position

Analyst confirms a positive stance given the strong mid-term potential for Germany's market leader.

Stimulus Impact

BC8 has been one of the top performers (+21% vs MDAX 11%) across German mid-cap coverage as the market views the firm as a main beneficiary from the planned German infrastructure stimulus.

Negative Factors

Cost Challenges

This decline is mainly due to increased personnel costs, driven partly by acquisitions made in 2024, and partly by a marked rise in non-wage labour costs.

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.

Investment Delays

Investments are being pushed out by clients across the board including large public sector projects that usually provide a significant growth contribution.

Bechtle Aktiengesellschaft Business Overview & Revenue Model

Company Description

Bechtle Aktiengesellschaft (BC8) is a leading IT service provider and systems integrator in Europe. The company operates across multiple sectors, including information technology and communication technology. Its core services encompass IT strategy consulting, hardware and software procurement, project planning and implementation, system integration, IT services, and IT operation. Bechtle serves a diverse client base, ranging from large international corporations to small and medium-sized enterprises, as well as public sector entities.

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 demonstrates a solid financial position with strong profitability, stable capital structure, and effective cash flow management. While revenue growth has faced challenges, the company's profitability and cash flow metrics remain robust. The balance sheet indicates prudent financial management, but a slight increase in leverage should be monitored.

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
	EBIT
350.98M	328.36M	356.94M	327.14M	278.03M
	EBITDA
510.46M	515.82M	469.00M	430.14M	375.97M
	Net Income Common Stockholders
245.50M	265.51M	251.12M	231.45M	192.55M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
716.20M	465.76M	291.70M	433.18M	403.42M
	Total Assets
4.22B	3.80B	3.45B	3.02B	2.69B
	Total Debt
812.25M	734.04M	523.15M	489.23M	145.74M
	Net Debt
169.14M	298.28M	293.56M	57.48M	-217.43M
	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: 39.82
• 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 39.82 is above the 20-day moving average (MA) of 38.48, above the 50-day MA of 36.50, and above the 200-day MA of 34.45, indicating a bullish trend. The MACD of 0.72 indicates Negative momentum. The RSI at 64.10 is Neutral, neither overbought nor oversold. The STOCH value of 67.60 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	€608.13M	14.16	16.30%	2.16%	8.63%	-3.90%
BC8	76 Outperform	€5.02B	22.21	12.04%	1.76%	-1.95%	-15.44%
COK	74 Outperform	€962.79M	37.91	4.13%	3.32%	3.76%	-22.05%
A1OS	70 Outperform	€273.01M	17.00	15.04%	2.91%	2.26%	41.87%
D6H	68 Neutral	€477.37M	19.07	16.57%	1.72%	11.11%	-8.72%
Sector *	66 Neutral	$4.50B	12.28	5.32%	248.52%	4.13%	-12.36%
ADN1	65 Neutral	€595.48M	76.22	4.09%	0.77%	13.30%	―