BAM Group

BAM Group


160208 BAM Groep | in great shape for Back in Shape 2.0 160208 BAM Groep | in great shape for Back in Shape 2.0

No. pages 25

On February 18th 2016 we believe BAM will present the outcome of its turnaround program Back in Shape. We argue this outcome will be better than what the investment community is hoping for. We believe the construction company will be in a much better, healthier shape than assumed. Not only do we reckon BAM to over-deliver on the outcome of Back in Shape, we expect the company to set challenging objectives for the upcoming planning period from 2016 to 2020.


1. Introduction
2. BAM at a glance
3. Back in Shape
3.1 Cost reduction
3.2 Working capital
3.3 Project control
3.4 Divestments
3.5 In a financially very healthy shape
3.6 In summary
4. Back in Shape 2.0
5. Valuation
5.1 DCF model
5.2 Sum-of-the-Parts
6. Summary and conclusions
7. Appendix

171020 BAM Groep | becoming more sustainable and profitable 171020 BAM Groep | becoming more sustainable and profitable

No. pages 30

Roughly a year and a half ago BAM Groep presented its updated strategy for 2016-2020 'Building the present, creating the future'. In this report we will briefly summarize the targets it presented in its updated strategy, discuss where it stands today and judge if the company is capable of achieving its goals.

When possible we will compare BAM's performance with VolkerWessels', a construction company that has become stock-listed on Euronext Amsterdam as of May of this year.

On basis of our earnings and cash flow we have executed a fair value assessment for the company. This assessment will be performed by a DCF model and a Sum-of-the-Parts analysis.

Besides valuation tables based upon the current share price as well as the outcome of our DCF model we will compare BAM's multiples with its peers as well.

Lastly we will present our conclusions and investment opinion.


       executive summary
1     introduction
2     BAM at a glance
3     financial targets for 2020
4     property portfolio
5     trade working capital efficiency
6     adjusted pre-tax margin
7     Return on Capital Employed
8     capital ratio
9     earnings estimates until 2020
10    valuation
10.1 DCF model
10.2 Sum-of-the-Parts
11    summary and conclusions
12    appendix


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