B2 IMPACT ASA (B2I.OL) Stock Fundamental Analysis
Europe - Euronext Oslo - OSL:B2I - NO0010633951 - Common Stock
20.4 NOK
-0.4 (-1.92%)
We assign a fundamental rating of 7 out of 10 to B2I. B2I was compared to 8 industry peers in the Consumer Finance industry. B2I scores excellent points on both the profitability and health parts. This is a solid base for a good stock. B2I may be a bit undervalued, certainly considering the very reasonable score on growth B2I also has an excellent dividend rating. With these ratings, B2I could be worth investigating further for value and dividend and quality investing!.
1. Profitability
1.1 Basic Checks
- B2I had positive earnings in the past year.
- B2I had a positive operating cash flow in the past year.
- B2I had positive earnings in each of the past 5 years.
- Each year in the past 5 years B2I had a positive operating cash flow.
1.2 Ratios
- The Return On Assets of B2I (2.96%) is better than 62.50% of its industry peers.
- B2I has a Return On Equity (8.79%) which is comparable to the rest of the industry.
- With an excellent Return On Invested Capital value of 6.55%, B2I belongs to the best of the industry, outperforming 87.50% of the companies in the same industry.
- Measured over the past 3 years, the Average Return On Invested Capital for B2I is above the industry average of 4.67%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.96% | ||
| ROE | 8.79% | ||
| ROIC | 6.55% |
ROA(3y)1.9%
ROA(5y)2.25%
ROE(3y)5.89%
ROE(5y)7.14%
ROIC(3y)8.16%
ROIC(5y)7.6%
1.3 Margins
- Looking at the Profit Margin, with a value of 14.02%, B2I is in the better half of the industry, outperforming 75.00% of the companies in the same industry.
- In the last couple of years the Profit Margin of B2I has grown nicely.
- With an excellent Operating Margin value of 38.22%, B2I belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
- B2I's Operating Margin has improved in the last couple of years.
- With a Gross Margin value of 55.13%, B2I perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
- In the last couple of years the Gross Margin of B2I has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 38.22% | ||
| PM (TTM) | 14.02% | ||
| GM | 55.13% |
OM growth 3Y6.98%
OM growth 5Y8.17%
PM growth 3Y-24.52%
PM growth 5Y16.24%
GM growth 3Y4.13%
GM growth 5Y4.45%
2. Health
2.1 Basic Checks
- B2I has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
- B2I has about the same amout of shares outstanding than it did 1 year ago.
- Compared to 5 years ago, B2I has less shares outstanding
- The debt/assets ratio for B2I has been reduced compared to a year ago.
2.2 Solvency
- The Debt to FCF ratio of B2I is 2.19, which is a good value as it means it would take B2I, 2.19 years of fcf income to pay off all of its debts.
- B2I has a better Debt to FCF ratio (2.19) than 87.50% of its industry peers.
- A Debt/Equity ratio of 1.74 is on the high side and indicates that B2I has dependencies on debt financing.
- With a Debt to Equity ratio value of 1.74, B2I perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
- Although B2I does not score too well on debt/equity it has very limited outstanding debt, which is well covered by the FCF. We will not put too much weight on the debt/equity number as it may be because of low equity, which could be a consequence of a share buyback program for instance. This needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.74 | ||
| Debt/FCF | 2.19 | ||
| Altman-Z | N/A |
ROIC/WACC0.71
WACC9.17%
2.3 Liquidity
- B2I has a Current Ratio of 2.10. This indicates that B2I is financially healthy and has no problem in meeting its short term obligations.
- The Current ratio of B2I (2.10) is better than 100.00% of its industry peers.
- B2I has a Quick Ratio of 2.10. This indicates that B2I is financially healthy and has no problem in meeting its short term obligations.
- B2I's Quick ratio of 2.10 is amongst the best of the industry. B2I outperforms 100.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.1 | ||
| Quick Ratio | 2.1 |
3. Growth
3.1 Past
- B2I shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 51.72%, which is quite impressive.
- The Earnings Per Share has been growing by 22.67% on average over the past years. This is a very strong growth
- B2I shows a decrease in Revenue. In the last year, the revenue decreased by -5.42%.
- B2I shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.10% yearly.
EPS 1Y (TTM)51.72%
EPS 3Y-18.59%
EPS 5Y22.67%
EPS Q2Q%285%
Revenue 1Y (TTM)-5.42%
Revenue growth 3Y3.97%
Revenue growth 5Y4.1%
Sales Q2Q%13.21%
3.2 Future
- Based on estimates for the next years, B2I will show a very strong growth in Earnings Per Share. The EPS will grow by 39.94% on average per year.
- B2I is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.19% yearly.
EPS Next Y156.32%
EPS Next 2Y58.48%
EPS Next 3Y39.94%
EPS Next 5YN/A
Revenue Next Year4.45%
Revenue Next 2Y1.83%
Revenue Next 3Y3.19%
Revenue Next 5YN/A
3.3 Evolution
- When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
- B2I is valuated correctly with a Price/Earnings ratio of 15.45.
- Compared to the rest of the industry, the Price/Earnings ratio of B2I indicates a somewhat cheap valuation: B2I is cheaper than 75.00% of the companies listed in the same industry.
- B2I is valuated rather cheaply when we compare the Price/Earnings ratio to 28.60, which is the current average of the S&P500 Index.
- B2I is valuated reasonably with a Price/Forward Earnings ratio of 10.83.
- Based on the Price/Forward Earnings ratio, B2I is valued a bit cheaper than the industry average as 62.50% of the companies are valued more expensively.
- The average S&P500 Price/Forward Earnings ratio is at 25.83. B2I is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.45 | ||
| Fwd PE | 10.83 |
4.2 Price Multiples
- B2I's Price/Free Cash Flow ratio is rather cheap when compared to the industry. B2I is cheaper than 87.50% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 1.7 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
- The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
- The decent profitability rating of B2I may justify a higher PE ratio.
- B2I's earnings are expected to grow with 39.94% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.1
PEG (5Y)0.68
EPS Next 2Y58.48%
EPS Next 3Y39.94%
5. Dividend
5.1 Amount
- B2I has a Yearly Dividend Yield of 7.35%, which is a nice return.
- B2I's Dividend Yield is rather good when compared to the industry average which is at 1.75. B2I pays more dividend than 100.00% of the companies in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.82, B2I pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.35% |
5.2 History
- The dividend of B2I is nicely growing with an annual growth rate of 32.90%!
Dividend Growth(5Y)32.9%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
- B2I pays out 158.28% of its income as dividend. This is not a sustainable payout ratio.
- The dividend of B2I is growing, but earnings are growing more, so the dividend growth is sustainable.
DP158.28%
EPS Next 2Y58.48%
EPS Next 3Y39.94%
B2 IMPACT ASA / B2I.OL FAQ
What is the fundamental rating for B2I stock?
ChartMill assigns a fundamental rating of 7 / 10 to B2I.OL.
What is the valuation status of B2 IMPACT ASA (B2I.OL) stock?
ChartMill assigns a valuation rating of 7 / 10 to B2 IMPACT ASA (B2I.OL). This can be considered as Undervalued.
Can you provide the profitability details for B2 IMPACT ASA?
B2 IMPACT ASA (B2I.OL) has a profitability rating of 7 / 10.
Can you provide the financial health for B2I stock?
The financial health rating of B2 IMPACT ASA (B2I.OL) is 7 / 10.
Can you provide the dividend sustainability for B2I stock?
The dividend rating of B2 IMPACT ASA (B2I.OL) is 7 / 10 and the dividend payout ratio is 158.28%.