Buy signal on Bureau Veritas (BVI-FR)
Bureau Veritas is a € 10.4 Bn market cap and the No. 1 worldwide in providing compliance evaluation and certification services applied to the quality, safety, health, environment and social responsibility fields.
The group's activity consists of inspecting, analyzing, auditing, and certifying products, assets (buildings, industrial infrastructures, equipment, ships, etc.) and management systems (primarily ISO standards) compared to regulatory or volunteering reference standards. Net sales break down by activity as follows: industry and infrastructures (79%): analysis and control of hygiene, safety and environment, inspection and certification of industrial equipment, verification of construction compliance, certification of management systems, consumer goods (13.8%); marine (7.2%): inspection and classification of ships.
After a 10% decline in revenue and 66% decline in net profits (respectively at € 4.6 Bn and €181m) the company is expected to recover swiftly in 2021 and to catch up its 2019 net profit level in 2022.
The stock currently offer a dividend yield of 2.2% for 2021.
Short term catalyst : World recovery, acquisitions.
This signal looks mainly company specific.