Bechtle BC8.DE
What does Bechtle do?
Bechtle is an IT services company headquartered in Neckarsulm and one of the largest IT system houses in Europe. The company advises customers on planning and implementing their IT infrastructure, supplies hardware and software from leading manufacturers, and handles installation, integration, maintenance and ongoing operation. It also provides services in cloud, cybersecurity, workplace solutions, data centers and, increasingly, artificial intelligence.
The business is divided into two segments: the IT system house business with managed services mainly serves companies, public-sector clients and large organizations with individual projects and long-term support contracts. IT e-commerce addresses small and medium-sized customers through online shops and sales teams and supplies standardized products. Bechtle distinguishes itself from competitors through a dense network of regional locations, close manufacturer partnerships and the combination of trading and services. Competitors include other system houses, distributors and international consulting and cloud providers.
Score profile
Rank vs. Information Technology Services (30 companies). 10 = top of the group, 5 = middle. Calculated from the metrics below, without AI.
Metrics compared with the industry
On profitability and quality, Bechtle ranks below average in the group Information Technology Services (2.5/10). On growth, the company ranks above average in the group Information Technology Services (7.5/10). On valuation (higher = cheaper), the stock ranks below average in the group Information Technology Services (3.7/10). On financial strength, Bechtle ranks in the middle in the group Information Technology Services (4.6/10).
| Metric | Stock | Group median | Ranking |
|---|---|---|---|
| Forward P/E | 15.4x | 11.5x | better than 29 % |
| Trailing P/E | 17.4x | 19.9x | better than 67 % |
| PEG ratio | 3.0x | 1.2x | better than 3 % |
| EV/EBITDA | 10.9x | 10.2x | better than 45 % |
| Price/sales | 0.6x | 1.1x | better than 72 % |
| Price/book | 2.1x | 3.0x | better than 66 % |
| Revenue growth | 16.5% | 4.8% | better than 85 % |
| Earnings growth | 21.3% | 5.5% | better than 65 % |
| Gross margin | 18.7% | 32.7% | better than 12 % |
| Operating margin | 4.9% | 11.1% | better than 12 % |
| Net margin | 3.6% | 5.3% | better than 32 % |
| Return on equity | 12.3% | 17.4% | better than 43 % |
| Debt/equity | 53.5% | 112.0% | better than 68 % |
| Current ratio | 1.9x | 1.5x | better than 65 % |
| Free cash flow yield | 0.1% | 6.6% | better than 6 % |
| Dividend yield | 2.1% | 1.9% | – |
| Payout ratio | 35.9% | 27.0% | – |
| Beta | 0.89 | 0.87 | – |
Valuation: what is Bechtle worth?
Two valuation approaches – a discounted cash flow model and a valuation at the industry’s median multiples – give Bechtle a model range of 25.18 EUR to 31.39 EUR per share.
10 analysts, average rating “Strong buy”, average price target 43.70 EUR (+29.0%).
The full DCF matrix, the reverse DCF (what growth the price implies) and scenarios are part of the Pro analysis.
What the business depends on
- The willingness of companies and the public sector to invest in IT infrastructure, workplaces and digitalization largely determines demand.
- Recurring revenue from managed services, maintenance and cloud contracts stabilizes the business and improves earnings quality.
- Close partnerships with major manufacturers secure product access, terms and certifications for the solutions and project business.
Risks
- Economic weakness can delay investment decisions and particularly weighs on the low-margin, highly cyclical hardware business.
- Dependence on a few large manufacturers and their pricing or distribution strategies can affect margins and market position.
- Skilled labor shortages and rising personnel costs hinder growth in the labor-intensive services business; acquisitions also carry integration risks.
What to look for with Bechtle
The gross margin and the operating margin show whether the share of higher-margin services is rising relative to the low-margin trading business and whether earnings quality is building.