Bic shares: Price analysis before buying or selling

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Yes

ISIN code: FR0000120966

Ticker: EPA: BB

Index or market: Euronext Paris

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Elements to consider before selling or buying Bic shares

Analysis N°1

We will follow the decisions taken by the management of the BIC group, which tends to be extremely cautious and whose announcements are thus very closely analysed by investors.

Analysis N°2

The monitoring of the long-term strategies implemented by BIC will have many advantages and it will be possible to compare the objectives set and the objectives actually achieved.

Analysis N°3

The Group's operations to develop its presence in higher value-added segments in emerging countries will also be good growth indicators for BIC.

Analysis N°4

In the same way, we will keep an eye on the sale or purchase of subsidiaries by the group in order to favour the most profitable segments.

Analysis N°5

The BIC group often makes large investments in promotion and production, so you need to be aware of the impact of these often expensive investments.

Analysis N°6

Finally, a complete and coherent study of the competition in this sector and of BIC's main opponents will of course be carried out.

Analysis before buying or selling Bic shares

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General presentation of Bic

The French Bic Group is best known for its world-famous pens of the same name. However, it is also one of the world's leading manufacturers of stationery, lighters and shavers. In order to better understand the fundamental analysis of this stock, a distinction is made between the activities related to these different products by the turnover they generate.

Stationery products account for the bulk of Bic's business, with 32.4% of sales. These items include ballpoint pens, pencils, mechanical pencils, felt-tip pens, correction pens, erasers, markers, glues and adhesive pads.
Non-refillable lighters represent almost 30.6% of Bic's sales.
Shavers represent approximately 20.6% of Bic's annual sales.
2.7% of turnover is also generated by the sale of sports goods such as sailboards, surfboards, batteries, magnets and tights.
Finally, the remaining 13.7% of Bic's turnover comes from the sale of advertising and promotional products including writing instruments, calendars and bags.

Contrary to what one might think, Bic's main sales are not in Europe but in North America. Of course, it also touches other geographical areas and currently employs more than 11,435 people worldwide.

Photo credits: juantiagues - Flickr

The major competitors of Bic

Depending on the sector of activity concerned, Bic is positioned differently in relation to the competition. For example, it is currently the leader in the non-refillable lighter market worldwide, as it is virtually the only player in this sector. It holds almost 35% of the market share.

Stationery market

In the stationery and writing accessories market, Bic faces competition in particular from Newell Rubbermaid, Pilot and Pentel.

Shaver market

Finally, in the shaver sector, its main current competitors are of course the Gilette and Wilkinson groups.

The major partners of Bic

Bic has based part of its expansion strategy on targeted partnerships.

Intel

In 2012, Bic teamed up with the computer company Intel to diversify its products and develop a touch tablet for schoolchildren equipped with an Atom processor.

Associations

Bic also uses certain partnerships to maintain a good brand image. In particular, in 2013, it joined forces with French tobacconists to donate a portion of its lighter sales to certain associations such as AIDES.

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The factors in favour of a rise in the Bic share price:

In order to understand how certain events and publications can affect the BIC share price, you also need to know what the company's main strengths and weaknesses are. To this end, we offer our help with a summary of the company's strengths and weaknesses in the market and in the competition.

Let's start by reviewing the main qualities and strengths of the BIC group, which are likely to reassure investors and encourage them to take a buy position on this stock:

First of all, we can mention here some of the strengths of BIC's branding strategy, including a short name that can be easily remembered by consumers. At the same time, the group is positioned in the consumer goods segment, which allows it to market products used all over the world, without restriction. Still on the subject of branding, BIC has also managed to build a good image in the eyes of the public thanks to its quality products and reputation for reliability.
In terms of the sales strategy for BIC products, certain flagship products of this group, such as lighters and pens, are particularly well promoted because they are the ones that are most frequently displayed on the shelves. They are often well placed near the checkouts, which gives them a high visibility compared to competing products. The fact that these products can be found both in kiosks and in supermarkets is also a real asset for the sale of BIC's stocks. Finally, this strategy gives the Group a significant competitive advantage in entering new markets.
Another of the BIC Group's great strengths is its strategic organisation. Thus, the group has a two-dimensional organisation chart with, on the one hand, an organisation by country and, on the other hand, an organisation by functions. The different subsidiaries and companies of the group also have a direct link to the top management of the parent company. In addition, the group is often able to take strategic decisions very quickly with an investment that can be decided in a matter of hours and the product segmentation has also been designed to be more efficient.
Communication and advertising are also assets of this group and this brand which has managed to make itself known and recognised by the general public through innovations in advertising and communication with humorous online clips as well as parodies, but also the distribution of goodies or various strategic partnerships in television programmes.
From the point of view of BIC's production, the efficiency of the process can be underlined, which is attributed in particular to major investments upstream, but also to a strategy of acquiring companies that generate additional revenue by obtaining patents and innovative manufacturing processes. In addition, the large production capacities allow the BIC group to maintain low and competitive prices while achieving economies of scale.
Finally, the BIC group can also count on its numerous international subsidiaries, which give it a good reputation and homogeneity, since it is present on all continents with 160 countries, in both developed and less developed markets. BIC has more than 3.2 million points of sale in the world and employs 8,300 people.

The factors in favour of a drop in the Bic share price:

Now that we have reviewed the main strengths of the BIC Group, let's take a moment to review its most significant weaknesses.

Firstly, it should be noted that the products proposed and marketed by the brand are relatively simple and cheap as well as single-brand. These products can therefore be considered low-end by the public, especially as they are mainly disposable and plastic products that do not correspond to current environmental issues.
Still among the weaknesses of this company, we also note the difficulties encountered by BIC to penetrate certain emerging and promising markets such as the Asian market with a lack of exclusive points of sale.
The management of the very wide range of products marketed by BIC can also be complex, which tends to increase the risk of hazards to the company's long-term strategy.
Similarly, the choice of a single-brand product range can make it more difficult to promote different products under a single brand.
Finally, BIC's low price strategy can lead to low profitability as the unit margin is low for these low-priced consumer products.

The information supplied here is only for indicative purposes and should not be used without the completion of a comprehensive and complete fundamental analysis of this asset notably taking into account exterior data, future publications and announcements and all fundamental events and news that could influence the strengths and weaknesses or make them more or less significant. This information does not in any way constitute recommendations relating to the completion of transactions or a solicitation to buy or sell an asset.

Frequently Asked Questions

On which stock market indices is the BIC Group listed?

The BIC share is of course part of the SBF 120 index, which is currently its main stock market index. But it also includes other minor indices such as the CAC MID 60, CDP A List and Supplier Engagement Rating Leader Board, Euronext Video, Eurozone 120, Euronext Video, Europe 120, FTSE4Good Indexes, Ethibel Pioneer and Ethibel Excellence Investment Registers as well as Ethibel Sustainability Index Excellence Europe and Stoxx Global ESF Leader Index.

How has the BIC Group's dividend per share evolved?

Over the last few years, the dividend paid by the BIC Group to its shareholders has of course evolved and has not been the same from one year to the next. In 2016, the dividend was €5.32 per share. In 2017, the group paid a dividend of €6.18 per share. In 2018, this dividend increased to €3.80 per share. Finally, in 2019, there is a slight increase in this dividend to €3.91 per share.

Where can I find the financial and stock market data of the BIC group?

As the BIC Group is a listed company, it provides its shareholders with useful information on its official website. You will find the history of the share price as well as many other data such as the group's news or the details of its financial results and its objectives over several years.

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Analysis before buying or selling Bic shares