Brief share presentation
Hello, this is my first major post.
Please give me feedback if it has any added value.
Today I would like to briefly introduce the rather unknown share $BBGI BBGI Global Infrastructure S.A. for dividend hunters. I came across it through a video interview with Timo Baudzus from "Buy the Dip". I'm trying to remain neutral, but of course I'm reporting on the positive incentives because I want to get in myself soon, sorry about that.
The Luxembourg-based infrastructure investment company has a market capitalization of €1.08 billion and currently offers a 6.06% dividend.
Through BBGI, investors have access to a diversified portfolio of investments designed to generate long-term and sustainable returns.
Through its investments and acquisitions in the public sector (such as highways, bridges, hospitals, schools and correctional facilities), BBGI has solvent payers. This generates investment income, almost 100% of which is distributed to investors. One payer, for example, is the German federal government. Since mid-2022, it has been paying for the expansion, maintenance and management of the 65 km section of the A7 from Bordesholm to Hamburg.
The geographical breakdown:
35% Canada
33% UK
13% Europe
10% USA
9% Australia
The sectoral breakdown:
54% Infrastructure
20% Healthcare
12% Civic infrastructure
9% education
Turnover and profit of the last years in € million:
2019. 2020. 2021. 2022. 2023
70. 63. 75. 160. 48
51. 42. 58. 119. 40
So far in the first half of 2024, turnover stands at € 32 million and profit at € 26 million. So things are looking up again.
Nevertheless, the medium-term profit growth and share price growth leave a lot to be desired. And I can't explain the 100% increase in profits from 2022 either. The investments must have yielded very high returns. In 2023, there was also a negative cash flow of -4 to -6 million per quarter. This looks better again in the first two quarters with +5m per quarter.
In the video interview with Timo Baudzus, it is assumed that the poor share price since September 2022 is due to the fact that overnight money and bonds have been doing very well since then and therefore a lot of money has been withdrawn by investors.
I think the company's dividend history with very consistent small growth of 3% p.a. ensures a stable 6% dividend. For 2024 it is even 6% growth with the half-year dividend that will be paid in 3 days. In addition, in my opinion there is a lot of potential in the share price, because BBGI is becoming very attractive again due to interest rate cuts.
On the BBGI website, I also noticed positively that attention is paid to ESG and the added value of the infrastructure, as well as the investor-friendly presentation and layout. In addition, there is the statement that even without additional investment BBGI expects a progressive dividend for the next 15 years. In other words, continued low growth.
The share is traded on the London Stock Exchange and is therefore quoted in GBP.
I will probably get in soon.
See you then!
