Diversified Business Model
- BTS has a diverse client portfolio consisting of established players in their industry. BTS’ global presence, highly competitive and innovative offerings, and premium brand recognition continue to produce a high paced growth in sales.
- BTS is adapting to digital transformations and introducing more interactive online platforms as a source of future growth.
- CEO & CFO have been with the company for 25+ years. CEO founded BTS and is largest shareholder at 17% of the firm.
- BTS has produced continuous growth in sales and net profit, speaking highly of management capabilities.
- BTS has undergone several acquisitions over the past years while continuing to raise their dividends. Management has leveraged acquisitions to find cross-selling synergies to present a more complete offering and expand their global reach.
- BTS has almost no debt and are building cash, positioning themselves well for future acquisitions and/or increased dividends.
- Proven ability to foster long-term client relationships averaging 6-8 years by delivering visible results.
- EBIT of 10.6% in 2017 compared to an industry average of 8-10% due to their industry leading customized cloud based business simulations. Management’s long-term goal is to reach an EBITA Margin of 15% by increasing operational efficiencies through new technologies and delivery methods which they’ve heavily invested in in recent years.
- Sales per employee is higher than the industry average despite increasing their workforce significantly in the past few years.
- Management has increased dividend each year as they continue to meet their goal of a dividend payout of 40-65% while rewarding investors by growing the business organically and through acquisitions.
- Currently trading at a premium, BTS still produces an upside over 30% based on DCF, EV/EBIT, and P/E given their high quality business, improving KPI’s, and strong balance sheet. Cultivating a strong investment for long-term investors.
Analysts: Michael Vuono and Jacob Svensson