Fact based stock research
Bureau Veritas (ENXTPA:BVI)

FR0006174348

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For every stock, we judge its performance against its peers and rank it on a scale of 1 to 100. The higher the rank, the better the stock performs than its peers. And, we do this for six investment strategies:
Value - shows how good of a value the stock is. Green is "inexpensive"; red is "expensive".

Growth - shows a company's growth potential. Green is "high growth" expected; red is "tough times ahead".

Safety - relates to the amount of debt a company has. Green is low debt level; red is high debt level.

Combined Financial - this isn't an average of the first three ranks but rather a consolidated view across several financial indicators. Green = good; red = tread carefully.

(NEW) Sentiment - quantifies professional analyst ratings and holdings as well as market pulse. Green = positive sentiment; red = skepticism (Only available to Premium Subscribers).

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Bureau Veritas stock research in summary

bureauveritas.fr

ANALYSIS: With an Obermatt Combined Rank of 60 (better than 60% compared with investment alternatives), Bureau Veritas (Research & Consulting, France) shares have above-average financial characteristics compared with similar stocks. Shares of Bureau Veritas are low in value (priced high) with a consolidated Value Rank of 10 (worse than 90% of alternatives). But they show above-average growth (Growth Rank of 96) and are safely financed (Safety Rank of 62, which means below-average debt burdens). ...read more

RECOMMENDATION: A Combined Rank of 60, is a buy recommendation based on Bureau Veritas's financial characteristics. Investors looking for growth and low financial risk may find this stock attractive. While the company Bureau Veritas exhibits low value (Obermatt Value Rank of 10), which means that the stock price is rather high, it also demonstrates above-average growth (Obermatt Growth Rank of 96). This is a typical case, as high-growth companies are often expensive. Good financing practices (Obermatt Safety Rank of 62) are a double-edged sword: if the company continues growing, low debt limits shareholder returns. But if the company increases its debt, it will also increase risk. In other words, this is an investment on the safer side, despite the above-average price (low value). Obermatt Premium subscribers can further check the stock’s Sentiment Ranks, which also flow into the Obermatt 360° View for investors. ...read more

Latest Obermatt Ranks


360° View^new
Sentiment Rank^new
Value Rank	10
Growth Rank	96
Safety Rank	62
Combined Rank	60

Country	France
Industry	Research & Consulting
Index	CAC All, SBF 120, Employee Focus EU
Size class	X-Large

This stock has achievements: Top 10 Stock.

19-Dec-2024. Stock data may be delayed. Log in or sign up to get the most recent research.

Further information

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Review the performance ranks of the individual metrics that form each investment strategy.

Research History: Bureau Veritas

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	27	16	22	10
GROWTH
GROWTH	81	54	48	96
SAFETY
SAFETY	23	16	22	62
SENTIMENT
SENTIMENT	n/a	58	39	^new
360° VIEW
360° VIEW	n/a	22	6	^new

Most recent update of the stock research: 19-Dec-2024. Financial reporting date used for calculating ranks: 30-Jun-2024. Stock research history is based on the Obermatt Method. The higher the rank, the better Bureau Veritas is in the corresponding investment strategy.
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Combined financial peformance in Detail

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	27	16	22	10
GROWTH
GROWTH	81	54	48	96
SAFETY
SAFETY	23	16	22	62
COMBINED
COMBINED	31	10	8	60

Last update of combined financial performance: 19-Dec-2024. Stock analysis on combined financial performance: The higher the rank of Bureau Veritas the better the performance.

Value Metrics in Detail

ANALYSIS: With an Obermatt Value Rank of 10 (worse than 90% compared with alternatives), Bureau Veritas shares are significantly more expensive than comparable stocks. The Value Rank is based on consolidating four value indicators, with all four indicators below average for Bureau Veritas. Price-to-Sales is 22 which means that the stock price compared with what market professionals expect for future profits is higher than 78% of comparable companies, indicating a low value concerning Bureau Veritas's sales levels. Price-to-Book Capital (also referred to as market-to-book ratio) also has a low Price-to-Book Rank of 7, which means that both reliable company size indicators, sales, and invested capital cannot explain the high stock price of Bureau Veritas. In addition, the two profit-related value indicators, Price-to-Profit (also referred to as price-earnings, P/E) with a low rank of 22 and Dividend Yield, which is lower than 52% of comparable companies, also make the stock more expensive compared with investment alternatives. ...read more

RECOMMENDATION: The overall picture with a consolidated Value Rank of 10, is a sell recommendation based on Bureau Veritas's stock price compared with the company's operational size and dividend yields. How can market participants pay such a high price for Bureau Veritas? One reason may be that the company is simply too popular. If enough people want a particular stock, its price can exceed reasonable levels. This is often the case for companies offering new and exciting products and everybody wants a piece of the action. Should you pay a lot for a hot stock such as Bureau Veritas? It's risky, and even if the stock price continues to grow because of popular demand, it may return to more typical lower levels later. And that return can be sudden and quick, making it impossible for retail investors to exit on time. Sometimes, high prices are deserved. This is the case when it is justified to believe that the company will dominate a market with high profit margins. It has happened in the past for many technology companies and indeed for commercially successful pharmaceutical discoveries. Sometimes they last, sometimes, they get eaten alive. Bureau Veritas may be such a type of stock. That would mean, retail investors should be careful, only considering investing a small part of their wealth in this exciting category and always being ready to lose more than half, if not all of the investment. We recommend further analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks, including the 360° View, before making an investment decision, which is essential in this case, as the financial indicators are inconclusive. ...read more

VALUE METRICS	2021	2022	2023	2024
PRICE VS. REVENUES (P/S)
PRICE VS. REVENUES (P/S)	32	30	28	22
PRICE VS. PROFITS (P/E)
PRICE VS. PROFITS (P/E)	50	26	28	22
PRICE VS. CAPITAL (Market-to-Book)
PRICE VS. CAPITAL (Market-to-Book)	1	18	19	7
DIVIDEND YIELD
DIVIDEND YIELD	34	37	65	48
CONSOLIDATED RANK: VALUE
CONSOLIDATED RANK: VALUE	27	16	22	10

Last update of Value Rank: 19-Dec-2024. Stock analysis on value ratios: The higher the rank, the lower the value ratio of Bureau Veritas; except for dividend yield where the rank is higher, the higher the yield.

Growth Metrics in Detail

ANALYSIS: With an Obermatt Growth Rank of 96 (better than 96% compared with alternatives) for 2024, Bureau Veritas shows one of the highest growth dynamics in its industry. Investors also speak of high momentum. The Growth Rank is based on consolidating four value indicators, with all but one indicator above average for Bureau Veritas. Sales Growth has a rank of 89 which means that currently, professionals expect the company to grow more than 89% of its competitors. Capital Growth is also above 48% of competitors with a rank of 73, and Stock Returns with the rank of 94 is also an outperformance. Only Profit Growth is low with a rank of 48 which means that currently, professionals expect the company to grow its profits less than 52% of its competitors. ...read more

RECOMMENDATION: The overall picture with a consolidated Growth Rank of 96, is a buy recommendation for growth and momentum investors. All three operating growth indicators, namely revenue, profit, and capital growth, are showing improvements. This is a good indication of a company with a positive future. That might, at the same time, be the simple reason why profit growth is low. A growing company needs money and thus can't yet show high profit growth. Look out for signs in corporate communication about extra growth efforts costing time and money. If that is the case, Bureau Veritas is a good growth stock. While momentum is a popular investment factor, the value aspect might be the more important one, in the longer term. We recommend analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks to arrive at a 360° View of the stock purchase case. ...read more

GROWTH METRICS	2021	2022	2023	2024
REVENUE GROWTH
REVENUE GROWTH	41	41	53	89
PROFIT GROWTH
PROFIT GROWTH	41	43	55	48
CAPITAL GROWTH
CAPITAL GROWTH	n/a	68	48	73
STOCK RETURNS
STOCK RETURNS	72	54	24	94
CONSOLIDATED RANK: GROWTH
CONSOLIDATED RANK: GROWTH	81	54	48	96

Last update of Growth Rank: 19-Dec-2024. Stock analysis on growth metrics: The higher the rank, the higher the growth and returns of Bureau Veritas.

Safety Metrics in Detail

ANALYSIS: With an Obermatt Safety Rank of 62 (better than 62% compared with alternatives), the company Bureau Veritas has financing practices on the safer side, which mean that their overall debt burden is lower than average. This doesn't mean that the business of Bureau Veritas is safe, it only means that the company is on the safer side regarding possible bankruptcy, assuming that public reporting is correct. The Safety Rank is based on consolidating three financing indicators, with two out of three indicators above-average for Bureau Veritas. Refinancing is at 52, meaning the portion of the debt that is about to be refinanced is below average. It has less debt in the refinancing stage than 52% of its competitors. Liquidity is also good at 71, meaning the company generates more profit to service its debt than 71% of its competitors. This indicates that the company is safer when it comes to debt service. However, Leverage is rather large at 35, which means the company has an above-average debt-to-equity ratio. It has more debt than 65% of its competitors. ...read more

RECOMMENDATION: With a consolidated Safety Rank of 62 (better than 62% compared with alternatives), Bureau Veritas has a financing structure that is safer than that of its competitors. This is not bad if things go well. The higher debt level means better returns to shareholders if things go well. Many top-performing companies operate with higher debt levels, and Bureau Veritas could be in that group. But if you expect the environment to turn rougher, the higher leverage could become a problem. The same is valid if you expect interest rates to rise. That could squeeze shareholder returns, which so far have benefitted from better conditions. In the long-term, investors may have a debt challenge with Bureau Veritas and should also compare Obermatt’s Value, Growth, and Sentiment Ranks before making a decision. ...read more

SAFETY METRICS	2021	2022	2023	2024
LEVERAGE
LEVERAGE	40	11	15	35
REFINANCING
REFINANCING	38	58	56	52
LIQUIDITY
LIQUIDITY	56	28	37	71
CONSOLIDATED RANK: SAFETY
CONSOLIDATED RANK: SAFETY	23	16	22	62

Last update of Safety Rank: 19-Dec-2024. Stock analysis on safety metrics: The higher the rank, the lower the leverage of Bureau Veritas and the more cash is available to service its debt.

Sentiment Metrics in Detail

SENTIMENT	2021	2022	2023	2024
ANALYST OPINIONS
ANALYST OPINIONS	n/a	27	15	^new
OPINIONS CHANGE
OPINIONS CHANGE	n/a	38	46	^new
PRO HOLDINGS
PRO HOLDINGS	n/a	94	77	^new
MARKET PULSE
MARKET PULSE	n/a	47	56	^new
CONSOLIDATED RANK: SENTIMENT
CONSOLIDATED RANK: SENTIMENT	n/a	58	39	^new

Last update of Sentiment Rank: 19-Dec-2024. Stock analysis on sentiment metrics: The higher the rank, the more positive the sentiment for Bureau Veritas.
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