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Bechtle (ETR:BC8) Could Be A Buy For Its Upcoming Dividend
Bechtle (ETR:BC8) Could Be A Buy For Its Upcoming Dividend

Yahoo

time24-05-2025

  • Business
  • Yahoo

Bechtle (ETR:BC8) Could Be A Buy For Its Upcoming Dividend

Regular readers will know that we love our dividends at Simply Wall St, which is why it's exciting to see Bechtle AG (ETR:BC8) is about to trade ex-dividend in the next three days. The ex-dividend date is commonly two business days before the record date, which is the cut-off date for shareholders to be present on the company's books to be eligible for a dividend payment. The ex-dividend date is of consequence because whenever a stock is bought or sold, the trade can take two business days or more to settle. Thus, you can purchase Bechtle's shares before the 28th of May in order to receive the dividend, which the company will pay on the 2nd of June. The company's next dividend payment will be €0.70 per share. Last year, in total, the company distributed €0.70 to shareholders. Last year's total dividend payments show that Bechtle has a trailing yield of 1.8% on the current share price of €38.56. Dividends are a major contributor to investment returns for long term holders, but only if the dividend continues to be paid. So we need to investigate whether Bechtle can afford its dividend, and if the dividend could grow. We check all companies for important risks. See what we found for Bechtle in our free report. Dividends are typically paid out of company income, so if a company pays out more than it earned, its dividend is usually at a higher risk of being cut. Fortunately Bechtle's payout ratio is modest, at just 39% of profit. That said, even highly profitable companies sometimes might not generate enough cash to pay the dividend, which is why we should always check if the dividend is covered by cash flow. Luckily it paid out just 22% of its free cash flow last year. It's positive to see that Bechtle's dividend is covered by both profits and cash flow, since this is generally a sign that the dividend is sustainable, and a lower payout ratio usually suggests a greater margin of safety before the dividend gets cut. View our latest analysis for Bechtle Click here to see the company's payout ratio, plus analyst estimates of its future dividends. Companies with consistently growing earnings per share generally make the best dividend stocks, as they usually find it easier to grow dividends per share. If earnings decline and the company is forced to cut its dividend, investors could watch the value of their investment go up in smoke. This is why it's a relief to see Bechtle earnings per share are up 5.8% per annum over the last five years. Management have been reinvested more than half of the company's earnings within the business, and the company has been able to grow earnings with this retained capital. Organisations that reinvest heavily in themselves typically get stronger over time, which can bring attractive benefits such as stronger earnings and dividends. The main way most investors will assess a company's dividend prospects is by checking the historical rate of dividend growth. Since the start of our data, 10 years ago, Bechtle has lifted its dividend by approximately 13% a year on average. We're glad to see dividends rising alongside earnings over a number of years, which may be a sign the company intends to share the growth with shareholders. From a dividend perspective, should investors buy or avoid Bechtle? Earnings per share have been growing moderately, and Bechtle is paying out less than half its earnings and cash flow as dividends, which is an attractive combination as it suggests the company is investing in growth. We would prefer to see earnings growing faster, but the best dividend stocks over the long term typically combine significant earnings per share growth with a low payout ratio, and Bechtle is halfway there. It's a promising combination that should mark this company worthy of closer attention. Curious what other investors think of Bechtle? See what analysts are forecasting, with this visualisation of its historical and future estimated earnings and cash flow. Generally, we wouldn't recommend just buying the first dividend stock you see. Here's a curated list of interesting stocks that are strong dividend payers. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Bechtle (ETR:BC8) Could Be A Buy For Its Upcoming Dividend
Bechtle (ETR:BC8) Could Be A Buy For Its Upcoming Dividend

Yahoo

time24-05-2025

  • Business
  • Yahoo

Bechtle (ETR:BC8) Could Be A Buy For Its Upcoming Dividend

Regular readers will know that we love our dividends at Simply Wall St, which is why it's exciting to see Bechtle AG (ETR:BC8) is about to trade ex-dividend in the next three days. The ex-dividend date is commonly two business days before the record date, which is the cut-off date for shareholders to be present on the company's books to be eligible for a dividend payment. The ex-dividend date is of consequence because whenever a stock is bought or sold, the trade can take two business days or more to settle. Thus, you can purchase Bechtle's shares before the 28th of May in order to receive the dividend, which the company will pay on the 2nd of June. The company's next dividend payment will be €0.70 per share. Last year, in total, the company distributed €0.70 to shareholders. Last year's total dividend payments show that Bechtle has a trailing yield of 1.8% on the current share price of €38.56. Dividends are a major contributor to investment returns for long term holders, but only if the dividend continues to be paid. So we need to investigate whether Bechtle can afford its dividend, and if the dividend could grow. We check all companies for important risks. See what we found for Bechtle in our free report. Dividends are typically paid out of company income, so if a company pays out more than it earned, its dividend is usually at a higher risk of being cut. Fortunately Bechtle's payout ratio is modest, at just 39% of profit. That said, even highly profitable companies sometimes might not generate enough cash to pay the dividend, which is why we should always check if the dividend is covered by cash flow. Luckily it paid out just 22% of its free cash flow last year. It's positive to see that Bechtle's dividend is covered by both profits and cash flow, since this is generally a sign that the dividend is sustainable, and a lower payout ratio usually suggests a greater margin of safety before the dividend gets cut. View our latest analysis for Bechtle Click here to see the company's payout ratio, plus analyst estimates of its future dividends. Companies with consistently growing earnings per share generally make the best dividend stocks, as they usually find it easier to grow dividends per share. If earnings decline and the company is forced to cut its dividend, investors could watch the value of their investment go up in smoke. This is why it's a relief to see Bechtle earnings per share are up 5.8% per annum over the last five years. Management have been reinvested more than half of the company's earnings within the business, and the company has been able to grow earnings with this retained capital. Organisations that reinvest heavily in themselves typically get stronger over time, which can bring attractive benefits such as stronger earnings and dividends. The main way most investors will assess a company's dividend prospects is by checking the historical rate of dividend growth. Since the start of our data, 10 years ago, Bechtle has lifted its dividend by approximately 13% a year on average. We're glad to see dividends rising alongside earnings over a number of years, which may be a sign the company intends to share the growth with shareholders. From a dividend perspective, should investors buy or avoid Bechtle? Earnings per share have been growing moderately, and Bechtle is paying out less than half its earnings and cash flow as dividends, which is an attractive combination as it suggests the company is investing in growth. We would prefer to see earnings growing faster, but the best dividend stocks over the long term typically combine significant earnings per share growth with a low payout ratio, and Bechtle is halfway there. It's a promising combination that should mark this company worthy of closer attention. Curious what other investors think of Bechtle? See what analysts are forecasting, with this visualisation of its historical and future estimated earnings and cash flow. Generally, we wouldn't recommend just buying the first dividend stock you see. Here's a curated list of interesting stocks that are strong dividend payers. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Bechtle AG (BECTY) Q1 2025 Earnings Call Highlights: Navigating Challenges with Strategic Growth
Bechtle AG (BECTY) Q1 2025 Earnings Call Highlights: Navigating Challenges with Strategic Growth

Yahoo

time12-05-2025

  • Business
  • Yahoo

Bechtle AG (BECTY) Q1 2025 Earnings Call Highlights: Navigating Challenges with Strategic Growth

Release Date: May 09, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Bechtle AG (BECTY) reported a slight increase in business volume, indicating some growth despite challenging conditions. The company has reached a historic high in framework agreements with public sector clients, suggesting strong future potential in this segment. Bechtle AG (BECTY) continues to see positive trends in individual international markets, which could contribute to future growth. The liquidity situation remains very comfortable, with total liquidity, including time deposits and securities, amounting to 616 million. The company successfully reduced trade receivables, reflecting effective receivables management and contributing to cash inflows. The first quarter of 2025 saw subdued top-line development, falling short of expectations. Personnel costs rose by approximately 18 million, putting significant pressure on earnings. Lower bonus payments from partners compared to the previous year negatively impacted earnings. Depreciation and amortization increased by 6 million, partly due to acquisitions and ongoing investments. The company's earnings performance in Q1 was unsatisfactory, with no improvement expected in the first half of 2025. Warning! GuruFocus has detected 2 Warning Sign with BECTY. Q: Can you elaborate on the factors that contributed to the unsatisfactory earnings performance in Q1 2025? A: The CFO explained that the Q1 EBIT development was impacted by three main factors: an increase in personnel costs by approximately 18 million due to acquisitions, wage increases, and higher social security contributions in Germany; lower bonus payments from partners compared to the previous year; and an increase in depreciation and amortization by 6 million, influenced by acquisitions and ongoing investments in IT and buildings. Q: How did the revenue and business volume perform in Q1 2025, and what are the expectations for the rest of the year? A: The CEO noted that business volume was up slightly, but overall development fell short of expectations. Revenue mainly reflected positive developments in the software business. There is potential for a pickup in business in the second half of the year, with initial positive signs in March and April. The company expects sales to develop below business volume due to the continued positive software business. Q: What is the current liquidity situation of Bechtle AG, and how does it impact future activities? A: The CFO stated that the liquidity situation remains very comfortable, with total liquidity, including time deposits and securities, amounting to 616 million. This provides sufficient scope for M&A activities and investments in Bechtle's future viability. Q: What are the key strategic focuses for Bechtle AG in 2025, particularly in terms of market segments and client relationships? A: The CEO highlighted that Bechtle is focusing on expanding its business with public sector clients, as evidenced by a new framework agreement with the Federal Ministry of the Interior for IT security products and services. The company is also emphasizing its comprehensive IT solutions portfolio for industry digitization, showcased at the Hanover Messe. Q: How is Bechtle AG addressing the challenges posed by personnel costs and economic uncertainties? A: The CEO mentioned that Bechtle is aware of the economic challenges and the pressure from personnel costs. The company has utilized regular staff turnover more than in previous quarters to ease personnel cost pressures. Additionally, Bechtle remains cautious with its outlook for the second quarter, expecting a broader recovery in the second half of the year. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data

What Does Bechtle AG's (ETR:BC8) Share Price Indicate?
What Does Bechtle AG's (ETR:BC8) Share Price Indicate?

Yahoo

time27-01-2025

  • Business
  • Yahoo

What Does Bechtle AG's (ETR:BC8) Share Price Indicate?

Bechtle AG (ETR:BC8), is not the largest company out there, but it saw significant share price movement during recent months on the XTRA, rising to highs of €36.22 and falling to the lows of €29.60. Some share price movements can give investors a better opportunity to enter into the stock, and potentially buy at a lower price. A question to answer is whether Bechtle's current trading price of €31.32 reflective of the actual value of the mid-cap? Or is it currently undervalued, providing us with the opportunity to buy? Let's take a look at Bechtle's outlook and value based on the most recent financial data to see if there are any catalysts for a price change. See our latest analysis for Bechtle According to our valuation model, Bechtle seems to be fairly priced at around 7.7% below our intrinsic value, which means if you buy Bechtle today, you'd be paying a reasonable price for it. And if you believe the company's true value is €33.92, then there's not much of an upside to gain from mispricing. Furthermore, Bechtle's low beta implies that the stock is less volatile than the wider market. Investors looking for growth in their portfolio may want to consider the prospects of a company before buying its shares. Although value investors would argue that it's the intrinsic value relative to the price that matter the most, a more compelling investment thesis would be high growth potential at a cheap price. Bechtle's earnings growth are expected to be in the teens in the upcoming years, indicating a solid future ahead. This should lead to robust cash flows, feeding into a higher share value. Are you a shareholder? It seems like the market has already priced in BC8's positive outlook, with shares trading around its fair value. However, there are also other important factors which we haven't considered today, such as the track record of its management team. Have these factors changed since the last time you looked at the stock? Will you have enough conviction to buy should the price fluctuates below the true value? Are you a potential investor? If you've been keeping an eye on BC8, now may not be the most advantageous time to buy, given it is trading around its fair value. However, the optimistic prospect is encouraging for the company, which means it's worth diving deeper into other factors such as the strength of its balance sheet, in order to take advantage of the next price drop. Diving deeper into the forecasts for Bechtle mentioned earlier will help you understand how analysts view the stock going forward. Luckily, you can check out what analysts are forecasting by clicking here. If you are no longer interested in Bechtle, you can use our free platform to see our list of over 50 other stocks with a high growth potential. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Sign in to access your portfolio

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