Oto Suvari
3 min readNov 5, 2019


Koninklijke BAM Groep NV due diligence report

Hatchworks has conducted due diligence on Koninklijke BAM Groep NV, one of the biggest construction firms in the Netherlands. The firm has ten operating companies in five European countries, and in niche markets worldwide. It’s currently listed on the Euronext Amsterdam Stock Exchange under the symbol ‘’BAMN’’.

Financials — Koninklijke BAM Groep NV
(Source: Marketscreener.com, Investing.com, Marketwatch.com)

Koninklijke BAM Groep NV’s current market cap is €657M and stock price is around €2.39.

With a predicted net-income growth of 12% for 2020E and 2021E, and a net income estimate for 2021E of €151M, this implies a P/E ratio of 4.33x.

The sales forecast for Koninklijke BAM Groep NV (BAMN) is €7.2B for 2020E. This indicates an EV/Sales ratio of 0.04x.

In terms of profitability, an operating margin of 1.95% is predicted for 2020E. Whereas, competitor Arcadis (ARCAD) shows a stronger operating margin of 5.86%.

Koninklijke BAM Groep NV (BAMN) offers a great yield, namely 7.55% for year 2020E. Competitor Koninklijke Boskalis Westminster (BOKA) offers a lower yield of 2.70% for 2020E.

Currently, there is an excess of Nitrogen in the Netherlands, caused by a combination of agriculture, traffic and industry. This can have a negative impact on nature, and also on the health and general well-being of the Dutch population.

As a result, construction companies are under pressure and waiting for new regulations. However, it is worth noting that Koninklijke BAM Groep NV (BAMN) is also operating in several other European countries.

According to our analysis, the stock seems to be undervalued, offers a great yield, and holds a net cash position. Therefore, Hatchworks has taken a position.

The Hatchscore is 5 out of 10. Full details can be found on Hatchnet: www.hatch-net.com/companies

What is Koninklijke BAM Groep NV?

Koninklijke BAM Groep NV is a construction company based in the Netherlands. It focuses on the construction sector, and provides civil engineering, mechanical and electrical services.

Top Institutional Holders:

  • FIL Investments International.
  • Dimensional Fund Advisors.
  • Nationale Nederlanden.
  • I.M. Fares.
  • JPMorgan Asset Management (UK) Limited.

Advisors and Bookrunners:

  • ING.

What are the risks?

  • The construction industry is cyclical and influenced by various economic factors.
  • The current Nitrogen and PFAS situation in the Netherlands could have a negative impact for Koninklijke BAM Groep NV.
  • Commodity prices of lumber, fuel, bitumen, cement, stone and steel, may fluctuate and increase in price. Therefore, it may cause a rise in the Group’s operating costs and a decline in its operating profit.


  • Arcadis (ARCAD).
  • Koninklijke Boskalis Westminster (BOKA).
  • Heijmans (HEIJ).
  • VolkerWessels (KVW).

Management team:

  • Rob van Wingerden: CEO.
  • Frans den Houter: CFO.

The Hatchwork Team

The forecast figures are based on the data of Market Screener, Investing.com, Marketwatch.com, and not from Hatchworks: https://www.marketscreener.com/ROYAL-BAM-GROUP-6378/financials/

Legal Disclaimer — This report summary has been generated as a result of Hatchworks’ proprietary company vetting and filtering system. The level of due diligence conducted on investible assets conducted ranges from mediocre to significant, the latter being the case where Hatchworks has explicitly taken strategic positions in. By no means is the information in this file to be relied on as investment advice; this includes Hatchworks’ algorithmic composite score known as ‘Hatchscore’. Hatchworks has not received any compensation for this research. For more information you can reach us at info@hatchworksvc.com. This report is not for distribution in the United States of America. It is closed to U.S citizens. If you are a U.S. citizen, you should delete this report or return to sender.



Oto Suvari

Heading up the group’s R&D activities for Hatchworks.