BUREAU VERITAS SA (BVI.PA) Stock Fundamental Analysis
EPA:BVI - Euronext Paris - Matif - FR0006174348 - Common Stock - Currency: EUR
We assign a fundamental rating of 6 out of 10 to BVI. BVI was compared to 30 industry peers in the Professional Services industry. BVI scores excellent on profitability, but there are some minor concerns on its financial health. While showing a medium growth rate, BVI is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
In the past year BVI was profitable.
In the past year BVI had a positive cash flow from operations.
Each year in the past 5 years BVI has been profitable.
In the past 5 years BVI always reported a positive cash flow from operatings.
1.2 Ratios
BVI has a Return On Assets of 7.91%. This is amongst the best in the industry. BVI outperforms 83.33% of its industry peers.
The Return On Equity of BVI (28.88%) is better than 83.33% of its industry peers.
BVI's Return On Invested Capital of 13.18% is fine compared to the rest of the industry. BVI outperforms 80.00% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for BVI is in line with the industry average of 10.20%.
The 3 year average ROIC (11.84%) for BVI is below the current ROIC(13.18%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.91% | ||
| ROE | 28.88% | ||
| ROIC | 13.18% |
ROA(3y)7.35%
ROA(5y)6.04%
ROE(3y)26.65%
ROE(5y)23.15%
ROIC(3y)11.84%
ROIC(5y)10.41%
1.3 Margins
BVI has a better Profit Margin (9.12%) than 83.33% of its industry peers.
BVI's Profit Margin has improved in the last couple of years.
With an excellent Operating Margin value of 14.53%, BVI belongs to the best of the industry, outperforming 83.33% of the companies in the same industry.
BVI's Operating Margin has been stable in the last couple of years.
Looking at the Gross Margin, with a value of 103.26%, BVI belongs to the top of the industry, outperforming 96.67% of the companies in the same industry.
BVI's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 14.53% | ||
| PM (TTM) | 9.12% | ||
| GM | 103.26% |
OM growth 3Y1.18%
OM growth 5Y0.5%
PM growth 3Y2.59%
PM growth 5Y4.81%
GM growth 3Y1.43%
GM growth 5Y0.65%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), BVI is creating value.
Compared to 1 year ago, BVI has less shares outstanding
The number of shares outstanding for BVI remains at a similar level compared to 5 years ago.
The debt/assets ratio for BVI is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 3.34 indicates that BVI is not in any danger for bankruptcy at the moment.
BVI has a better Altman-Z score (3.34) than 76.67% of its industry peers.
BVI has a debt to FCF ratio of 3.36. This is a good value and a sign of high solvency as BVI would need 3.36 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 3.36, BVI is doing good in the industry, outperforming 70.00% of the companies in the same industry.
BVI has a Debt/Equity ratio of 1.13. This is a high value indicating a heavy dependency on external financing.
BVI's Debt to Equity ratio of 1.13 is on the low side compared to the rest of the industry. BVI is outperformed by 63.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.13 | ||
| Debt/FCF | 3.36 | ||
| Altman-Z | 3.34 |
ROIC/WACC1.96
WACC6.71%
2.3 Liquidity
BVI has a Current Ratio of 1.29. This is a normal value and indicates that BVI is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of BVI (1.29) is better than 70.00% of its industry peers.
A Quick Ratio of 1.29 indicates that BVI should not have too much problems paying its short term obligations.
BVI has a Quick ratio of 1.29. This is in the better half of the industry: BVI outperforms 76.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.29 | ||
| Quick Ratio | 1.29 |
3. Growth
3.1 Past
BVI shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 8.66%, which is quite good.
The Earnings Per Share has been growing slightly by 6.23% on average over the past years.
The Revenue has been growing slightly by 6.36% in the past year.
Measured over the past years, BVI shows a small growth in Revenue. The Revenue has been growing by 4.12% on average per year.
EPS 1Y (TTM)8.66%
EPS 3Y8.85%
EPS 5Y6.23%
EPS Q2Q%12.12%
Revenue 1Y (TTM)6.36%
Revenue growth 3Y7.81%
Revenue growth 5Y4.12%
Sales Q2Q%8.62%
3.2 Future
Based on estimates for the next years, BVI will show a small growth in Earnings Per Share. The EPS will grow by 6.81% on average per year.
The Revenue is expected to grow by 5.69% on average over the next years.
EPS Next Y9.27%
EPS Next 2Y8.92%
EPS Next 3Y8.48%
EPS Next 5Y6.81%
Revenue Next Year5.79%
Revenue Next 2Y5.87%
Revenue Next 3Y5.98%
Revenue Next 5Y5.69%
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
BVI is valuated rather expensively with a Price/Earnings ratio of 21.78.
Based on the Price/Earnings ratio, BVI is valued a bit cheaper than the industry average as 66.67% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 26.46, BVI is valued at the same level.
BVI is valuated rather expensively with a Price/Forward Earnings ratio of 19.94.
The rest of the industry has a similar Price/Forward Earnings ratio as BVI.
BVI is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 22.30, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.78 | ||
| Fwd PE | 19.94 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as BVI.
The rest of the industry has a similar Price/Free Cash Flow ratio as BVI.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.95 | ||
| EV/EBITDA | 12.81 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
BVI has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)2.35
PEG (5Y)3.5
EPS Next 2Y8.92%
EPS Next 3Y8.48%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.98%, BVI has a reasonable but not impressive dividend return.
BVI's Dividend Yield is a higher than the industry average which is at 3.03.
BVI's Dividend Yield is a higher than the S&P500 average which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.98% |
5.2 History
On average, the dividend of BVI grows each year by 32.58%, which is quite nice.
Dividend Growth(5Y)32.58%
Div Incr Years4
Div Non Decr Years4
5.3 Sustainability
BVI pays out 71.46% of its income as dividend. This is not a sustainable payout ratio.
BVI's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP71.46%
EPS Next 2Y8.92%
EPS Next 3Y8.48%
EPA:BVI (6/4/2025, 9:04:54 AM)
30.06
+0.08 (+0.27%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners42.01%
Inst Owner ChangeN/A
Ins Owners0%
Ins Owner ChangeN/A
Market Cap13.64B
Analysts79
Price Target34.63 (15.2%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.98% |
Yearly Dividend0.9
Dividend Growth(5Y)32.58%
DP71.46%
Div Incr Years4
Div Non Decr Years4
Ex-DateN/A
Surprises & Revisions
EPS beat(2)N/A
Avg EPS beat(2)N/A
Min EPS beat(2)N/A
Max EPS beat(2)N/A
EPS beat(4)N/A
Avg EPS beat(4)N/A
Min EPS beat(4)N/A
Max EPS beat(4)N/A
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)N/A
Avg Revenue beat(2)N/A
Min Revenue beat(2)N/A
Max Revenue beat(2)N/A
Revenue beat(4)N/A
Avg Revenue beat(4)N/A
Min Revenue beat(4)N/A
Max Revenue beat(4)N/A
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)-1.24%
PT rev (3m)0.27%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)-0.01%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-1.25%
Revenue NY rev (3m)-0.96%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.78 | ||
| Fwd PE | 19.94 | ||
| P/S | 2.19 | ||
| P/FCF | 15.95 | ||
| P/OCF | 13.63 | ||
| P/B | 6.92 | ||
| P/tB | N/A | ||
| EV/EBITDA | 12.81 |
EPS(TTM)1.38
EY4.59%
EPS(NY)1.51
Fwd EY5.02%
FCF(TTM)1.88
FCFY6.27%
OCF(TTM)2.21
OCFY7.34%
SpS13.75
BVpS4.34
TBVpS-1.78
PEG (NY)2.35
PEG (5Y)3.5
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.91% | ||
| ROE | 28.88% | ||
| ROCE | 19.33% | ||
| ROIC | 13.18% | ||
| ROICexc | 17.79% | ||
| ROICexgc | 88.37% | ||
| OM | 14.53% | ||
| PM (TTM) | 9.12% | ||
| GM | 103.26% | ||
| FCFM | 13.7% |
ROA(3y)7.35%
ROA(5y)6.04%
ROE(3y)26.65%
ROE(5y)23.15%
ROIC(3y)11.84%
ROIC(5y)10.41%
ROICexc(3y)16.62%
ROICexc(5y)14.87%
ROICexgc(3y)78.54%
ROICexgc(5y)69.9%
ROCE(3y)17.37%
ROCE(5y)15.28%
ROICexcg growth 3Y20.39%
ROICexcg growth 5Y9.91%
ROICexc growth 3Y8.51%
ROICexc growth 5Y5.26%
OM growth 3Y1.18%
OM growth 5Y0.5%
PM growth 3Y2.59%
PM growth 5Y4.81%
GM growth 3Y1.43%
GM growth 5Y0.65%
F-Score7
Asset Turnover0.87
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.13 | ||
| Debt/FCF | 3.36 | ||
| Debt/EBITDA | 1.87 | ||
| Cap/Depr | 51.43% | ||
| Cap/Sales | 2.34% | ||
| Interest Coverage | 41.78 | ||
| Cash Conversion | 84.11% | ||
| Profit Quality | 150.21% | ||
| Current Ratio | 1.29 | ||
| Quick Ratio | 1.29 | ||
| Altman-Z | 3.34 |
F-Score7
WACC6.71%
ROIC/WACC1.96
Cap/Depr(3y)49.76%
Cap/Depr(5y)44.07%
Cap/Sales(3y)2.44%
Cap/Sales(5y)2.38%
Profit Quality(3y)144.23%
Profit Quality(5y)231.8%
High Growth Momentum
Growth
EPS 1Y (TTM)8.66%
EPS 3Y8.85%
EPS 5Y6.23%
EPS Q2Q%12.12%
EPS Next Y9.27%
EPS Next 2Y8.92%
EPS Next 3Y8.48%
EPS Next 5Y6.81%
Revenue 1Y (TTM)6.36%
Revenue growth 3Y7.81%
Revenue growth 5Y4.12%
Sales Q2Q%8.62%
Revenue Next Year5.79%
Revenue Next 2Y5.87%
Revenue Next 3Y5.98%
Revenue Next 5Y5.69%
EBIT growth 1Y12.09%
EBIT growth 3Y9.08%
EBIT growth 5Y4.64%
EBIT Next Year40.38%
EBIT Next 3Y17.17%
EBIT Next 5Y13.49%
FCF growth 1Y29.18%
FCF growth 3Y8.5%
FCF growth 5Y4.31%
OCF growth 1Y22.14%
OCF growth 3Y8.19%
OCF growth 5Y4.06%