The average target price of BIMAS.IS is 750 and suggests 41% upside potential. Usually, this means a BUY recommendation among investment firms, or a recommendation to increase one's position in this instrument in the next 12 months. The most optimistic analyst has a target price of 985.0. This translates into 86% upside potential in the best case. On the other hand, the most pessimistic analyst has a target price of 645.0. This suggests 22% upside potential. Even the most pessimistic analyst believes there will be stock growth. 

BIM Birlesik Magazalar A.S., together with its subsidiaries, operates retail stores in Turkey, Morocco, and Egypt. Its stores sell approximately 850 items, including meat, breakfast and dairy, legumes and bakery, and personal care products, as well as beverages, snacks and sweets, fruits and vegetables, frozen foods, and cleaning supplies. As of December 31, 2021, the company operated 10,489 stores. BIM Birlesik Magazalar A.S. was incorporated in 1995 and is headquartered in Istanbul, Turkey.

Turkey

BIM Birlesik Magazalar A.S.

Consumer Defensive

The company has a track record of regular dividend payments. It has paid dividends in each of the past ten years. Dividend per share (DPS) has grown yearly, and there is a clear trend. In the past 12 months, the dividend yield has been good and slightly above its peers. At the same time, the average five-year yield has been significantly lower, at very close to zero. On average, the company pays dividends twice a year. 

BIMAS.IS reported revenue of TRY 535 021mn in the last 12 months, up 9% from FY24. At the same time, the dynamics of cash flow, as measured by free cash flow (FCF), were drastically different. EPS fell 7% from FY24 to TRY 27.34. Market expects EPS to reach TRY 35.82 in FY25.

Over the last six months, the stock performance has varied, with an increase following a drop. The stock's price trend wasn't definitive when matched against its global counterparts from the same sector and industry (as depicted above). Within the past six months, its performance has trailed this peer group's by 10ppts and its growth accelerated by 11ppts in the past month. There is a distinction between the stock's performance and that of its peers from the same country and industry. Over six months it exceeded the performance of this peer group by 1ppts and accelerated its growth by 3ppts in the recent month. Given the stock's valuation versus its peers, its total price movement is neither favourable nor unfavourable.

The company has reported modest EBITDA margins compared to its global peers in recent years. EBITDA margin amounted to 9.2% in the last 12 months, up from 4.6% in FY23. 

Historically, BIMAS.IS has reported modest net margins compared to its global peers. Specifically, in the last 12 months, this metric equalled 3.0%, down from 4.6% in FY23. 

In the last 12 months, the return on capital employed (RoCE) declined to 11.8%, above the peers. The consensus estimate for FY24 for RoCE is 8.2%, however, this time below its peers. 

Another important profitability metric, return on assets (RoA), amounted to 7.5% in the last 12 months, a decrease from 14.3% in FY23. The market analysts predict that RoA will be 17.2% in FY24, again stronger than its peers. 

BIM Birlesik Magazalar A.S. reported a return on equity (RoE) of 16.2% in the last 12 months, down from 32.3% in FY23. The market consensus projects an RoE of 35.2% in FY24, again ahead of its peers. 

The ratio of return on invested capital (RoIC) to the weighted average cost of capital (WACC) has been 4.9 in the past several years. This ratio implies a excellent shareholder value creation. 

The institutional, legal, and compliance risks associated with the company's country are acceptable. In combination with good business standards, shareholder rights are protected.

BIMAS.IS boasts high trading liquidity. The average private investor can sell his common position in the stock immediately. Liquidity is usually very stable and remains favourable on the days with the lowest activity. However, please consider that under highly turbulent market conditions, the trading volume tends to decrease significantly. 

No other major risks have been identified.

The risk of default is high. Among the negative credit factors and we point to bleak profitability, poor working capital management. We note resilient historical revenue growth, solid return on capital, low margin volatility, strong debt servicing capacity, solid cash flow generation, and an favourable capital structure, among the positive credit factors. 

In highly turbulent market conditions, BIMAS.IS is not volatile. In other words, the stock will fall far less than the index in times of extreme market volatility or shocking company news. Standalone, the worst-day losses (less than 1% of the time) will likely be very low. 

In normal market circumstances, BIMAS.IS is not overly volatile. Put differently, without outstanding market volatility or shocking company news, the stock's price will remain relatively stable. The stock's losses on its worst days (less than 1-5% of the time) will range from low to mild. We would also like to highlight the mild intraday volatility of the instrument. 

Based on key historical and expected multiples, the stock is slightly undervalued relative to its peers. In particular, the stock is reasonably priced on P/E, of fair value on EV/EBITDA, undervalued on P/FCF. 

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BIM Birlesik Magazalar A.S.

TRY 520

6

BIM Birlesik Magazalar A.S.

TRY 520

6

Risk factor

Profitability factor

Risk / Profitability

Risk factor

Profitability factor

TRY 520

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