Company Reports

Bureau Veritas is one of only a handful of global firms in the testing, inspection, and certification sector, operating across multiple subindustries. The TIC market is highly fragmented, with many local/regional players that lack the capabilities to operate across multiple industries and, as such, struggle to successfully service the needs of multinational companies. BV’s scale allows the company to leverage its network of industry experts and testing sites to offer a broad service and bid for large multiyear contracts.

Narrow-moat Bureau Veritas' successful run continued in the second quarter of 2024 as it posted organic revenue growth of 10%, citing their 28 strategy. Management upgraded their guidance to high-single-digit organic revenue growth from a mid- to high single digit previously and guided for improved adjusted operating margins, although they did not give a figure. We reiterate our EUR 30 fair value estimate and see the stock as fairly valued following the July 26 price increase.

Narrow-moat Bureau Veritas’ strong run continued into the first quarter of 2024, with the company posting organic revenue growth of 8%. Management kept the guided range for the full year quite wide, reflecting the lack of visibility here, but overall the direction of travel is positive. We reiterate our EUR 30 fair value estimate and see reasonable upside potential from the prevailing share price.

Narrow-moat Bureau Veritas closed out 2023 strongly, reporting organic revenue growth of 8.5% for the full year, with revenue growth accelerating in the fourth quarter. Operating margin improvement was less impressive, but at least it moved in the right direction after it increased by 20 basis points organically year over year. We reiterate our EUR 30 fair value estimate and see attractive upside potential from the prevailing share price.

Bureau Veritas is one of only a handful of global firms in the testing, inspection, and certification sector, operating across multiple subindustries. The TIC market is highly fragmented, with many local/regional players that lack the capabilities to operate across multiple industries and, as such, struggle to successfully service the needs of multinational companies. BV’s scale allows the company to leverage its network of industry experts and testing sites to offer a broad service and bid for large multiyear contracts.

Narrow-moat tester Bureau Veritas produced a decent third-quarter update, with organic revenue growth just shy of 6%. The bad news, however, was in currency movements, which more than erased this organic revenue growth. The upshot is that management confirmed full-year guidance, and almost 10 months in, we think this is eminently achievable. We reiterate our EUR 30 fair value estimate and see attractive upside potential from the prevailing share price.

Narrow-moat tester Bureau Veritas’ strong performance continued into second-quarter 2023, with organic revenue growth actually accelerating above 10%. Management upgraded the full-year outlook for the firm in a show of confidence amid its current performance. While we might tweak our near-term forecasts on the back of this update, we reiterate our EUR 30 fair value estimate. We see decent upside potential from the prevailing share price.

Bureau Veritas is one of only a handful of global firms in the testing, inspection, and certification sector, operating across multiple subindustries. The TIC market is highly fragmented, with many local/regional players that lack the capabilities to operate across multiple industries and, as such, struggle to successfully service the needs of multinational companies. BV’s scale allows the company to leverage its network of industry experts and testing sites to offer a broad service and bid for large multiyear contracts.

Narrow-moat Bureau Veritas started 2023 in fine fashion, posting organic revenue growth of 8.5%, illustrating the resilience and stability of the testing, inspection and certification sector as a whole. With management confirming the outlook for the full year, we do not expect to make any material changes to our forecasts on the back of this update. We reiterate our EUR 28 fair value estimate and despite recent rallies, we see modest upside from the prevailing share price.

Narrow-moat Bureau Veritas closed out 2022 strongly with organic revenue growth of almost 8%, and net profit growth in double digits. However, what is more impressive is that this growth comes despite the disruption to many parts of the business during the period due to coronavirus lockdowns in China and the war in Ukraine. We don’t expect to make any material changes to our forecasts on the back of this update. We reiterate our EUR 28 fair value estimate and despite recent rallies, we see modest upside from the prevailing share price.

Narrow-moat Bureau Veritas’ third-quarter update ticked all the right boxes, with organic revenue growth reaching almost 9% and sizable exposure to the rising U.S. dollar helped the firm. The company is well on track to surpass precoronavirus revenue, with management confirming their earlier full-year guidance. As this update was broadly in line with our expectations, we do not expect to make any material changes to our forecasts. We reiterate our EUR 28 fair value estimate and see attractive upside from the prevailing share price.

Bureau Veritas is one of only a handful of global firms in the testing, inspection, and certification sector, operating across multiple subindustries. The TIC market is highly fragmented, with many local/regional players that lack the capabilities to operate across multiple industries and, as such, struggle to successfully service the needs of multinational companies. BV’s scale allows the company to leverage its network of industry experts and testing sites to offer a broad service and bid for large multiyear contracts.

Narrow-moat Bureau Veritas proffered up a decent first-half update, in spite of lockdowns in China. Revenue rose by 6.5% on an organic basis, while operating margins fell by 30 basis points year over year. With no change to guidance, and these numbers roughly in line with our expectations for this point in the year, we do not expect to make any material changes to our forecasts. We reiterate our EUR 28 fair value estimate, and see moderate upside from the prevailing share price.

Narrow-moat Bureau Veritas started 2022 strongly, with organic revenue up 8% in the first quarter of the year. Despite macroeconomic clouds on the horizon for businesses generally, the outlook does not appear to have significantly changed for the resilient testing, inspection and certification, or TIC, industry. With limited direct exposure to Russia and Ukraine, and the ability to pass through cost inflation, we believe Bureau Veritas is well positioned for 2022. We do not expect to make any material changes to our forecasts, nor to our recently upgraded EUR 28 fair value estimate. We see moderate upside from the prevailing share price.

Bureau Veritas is one of only a handful of global firms in the testing, inspection, and certification sector, operating across multiple subindustries. The TIC market is highly fragmented, with many local/regional players that lack the capabilities to operate across multiple industries and, as such, struggle to successfully service the needs of multinational companies. BV’s scale allows the company to leverage its network of industry experts and testing sites to offer a broad service and bid for large multiyear contracts.

Narrow-moat tester Bureau Veritas closed out 2021 strongly, essentially recovering any ground lost during the pandemic. With 2022 full year guidance pointing toward mid-single-digit organic revenue growth and further operating margin improvement, we feel the company is in a good place. We do not expect to make any immediate changes to our forecasts on the back of this update, and reiterate our EUR 25 fair value estimate. Despite the recent sell-off, we currently view the shares as fairly valued.

Bureau Veritas is one of only a handful of global firms in the testing, inspection, and certification sector, operating across multiple subindustries. The TIC market is highly fragmented, with many local/regional players that lack the capabilities to operate across multiple industries and, as such, struggle to successfully service the needs of multinational companies. BV’s scale allows the company to leverage its network of industry experts and testing sites to offer a broad service and bid for large multiyear contracts.

Narrow-moat Bureau Veritas’ investor day offered more of a recap on the company’s pivot in direction over the last few years than a revolutionary glimpse into the future. Perhaps this, coupled with the announcement that the company’s systems are only now 80% operational following a cyber security attack almost two weeks ago, has led to the slightly negative share price reaction Dec. 3. While there was little in the way of new information for us in the presentation, we did welcome the company firming up some financial metrics and targets, such as the commitment to pay out 50% of adjusted net profit to shareholders. We reiterate our EUR 23 fair value estimate, however, and believe the shares are overvalued at this time.

Narrow-moat Bureau Veritas proffered up a strong third-quarter trading update, with organic revenue up 7.5%. Having upgraded guidance at the half year point, management simply reiterated its full year expectations. Given that we only recently tweaked our near-term forecasts, we do not anticipate making any material changes to our estimates on the back of this update. We reiterate our EUR 23 fair value estimate, and believe the shares are fully valued.

Narrow-moat Bureau Veritas proffered a solid first-half announcement, with revenue up 14% on an organic basis year over year, and operating margins rising to 15.6%--an improvement of more than 580 basis points on this point last year. Management also took the opportunity to upgrade their qualitative full-year guidance, with expectations now of strong organic revenue growth and improved operating margins year over year. Although we expect to tweak our near-term forecasts, we do not anticipate making any material changes to our estimates on the back of this update. We reiterate our EUR 23 fair value estimate, and believe the shares are fully valued.