WBAG:SPM

Stock Analysis Report

Executive Summary

Saipem S.p.A. engages in the engineering, drilling, and construction of projects in the energy and infrastructure sectors worldwide.

Rewards

Trading at 41.4% below its fair value

Earnings are forecast to grow 34.39% per year

Earnings have grown 6.5% per year over the past 5 years

Risk Analysis

No risks detected for SPM from our risk checks.


Snowflake Analysis

Adequate balance sheet with reasonable growth potential.


Similar Companies

Share Price & News

How has Saipem's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: SPM has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

4.0%

SPM

4.4%

AT Energy Services

2.4%

AT Market


1 Year Return

-11.1%

SPM

-15.2%

AT Energy Services

4.8%

AT Market

Return vs Industry: SPM exceeded the Austrian Energy Services industry which returned -15% over the past year.

Return vs Market: SPM underperformed the Austrian Market which returned 5.1% over the past year.


Shareholder returns

SPMIndustryMarket
7 Day4.0%4.4%2.4%
30 Day-13.6%-7.2%0.07%
90 Day-9.7%-1.8%0.8%
1 Year-11.1%-11.1%-13.2%-15.2%8.5%4.8%
3 Yearn/a-30.6%-38.2%27.1%15.6%
5 Yearn/a-54.9%-74.3%56.2%34.5%

Price Volatility Vs. Market

How volatile is Saipem's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Saipem undervalued compared to its fair value and its price relative to the market?

41.4%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: SPM (€3.81) is trading below our estimate of fair value (€6.5)

Significantly Below Fair Value: SPM is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: SPM is unprofitable, so we can't compare its PE Ratio to the Energy Services industry average.

PE vs Market: SPM is unprofitable, so we can't compare its PE Ratio to the Austrian market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate SPM's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: SPM is overvalued based on its PB Ratio (1x) compared to the XE Energy Services industry average (0.7x).


Next Steps

Future Growth

How is Saipem forecast to perform in the next 1 to 3 years based on estimates from 18 analysts?

34.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SPM is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (-0.1%).

Earnings vs Market: SPM is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: SPM's is expected to become profitable in the next 3 years.

Revenue vs Market: SPM's revenue (6.9% per year) is forecast to grow faster than the Austrian market (2.7% per year).

High Growth Revenue: SPM's revenue (6.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: SPM's Return on Equity is forecast to be low in 3 years time (10%).


Next Steps

Past Performance

How has Saipem performed over the past 5 years?

6.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SPM is currently unprofitable.

Growing Profit Margin: SPM is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: SPM is unprofitable, but has reduced losses over the past 5 years at a rate of 6.5% per year.

Accelerating Growth: Unable to compare SPM's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: SPM is unprofitable, making it difficult to compare its past year earnings growth to the Energy Services industry (50.3%).


Return on Equity

High ROE: SPM has a negative Return on Equity (0.17%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Saipem's financial position?


Financial Position Analysis

Short Term Liabilities: SPM's short term assets (€212.0M) do not cover its short term liabilities (€4.7B).

Long Term Liabilities: SPM's short term assets (€212.0M) do not cover its long term liabilities (€-3.1B).


Debt to Equity History and Analysis

Debt Level: SPM's debt to equity ratio (19.4%) is considered satisfactory.

Reducing Debt: SPM's debt to equity ratio has reduced from 110.2% to 19.4% over the past 5 years.


Balance Sheet

Inventory Level: SPM has a high level of physical assets or inventory.

Debt Coverage by Assets: SPM's debt is not covered by short term assets (assets are 0.3x debt).


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: Whilst unprofitable SPM has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: SPM is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 36% per year.


Next Steps

Dividend

What is Saipem's current dividend yield, its reliability and sustainability?

1.99%

Forecast Dividend Yield


Dividend Yield vs Market

company0%marketbottom25%1.6%markettop25%4.5%industryaverage4.7%forecastin3Years2.0%

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate SPM's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate SPM's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if SPM's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if SPM's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: SPM is not paying a notable dividend for the Austrian market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of SPM's dividend in 3 years as they are not forecast to pay a notable one for the Austrian market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

3.5yrs

Average management tenure


CEO

Stefano Cao (68yo)

4.8yrs

Tenure

€618,000

Compensation

Mr. Stefano Cao has been the Chief Executive Officer and Director at Saipem SpA since April 30, 2015. Mr. Cao served as the Chief Executive Officer at Sintonia S.A. from February 2009 to July 2012. He serv ...


CEO Compensation Analysis

Compensation vs Market: Stefano's total compensation ($USD0.00) is below average for companies of similar size in the Austrian market ($USD2.13M).

Compensation vs Earnings: Insufficient data to compare Stefano's compensation with company performance.


Leadership Team

NamePositionTenureCompensationOwnership
Stefano Cao
CEO & Director4.8yrs€618.00kno data
Stefano Cavacini
Chief Financial Officer1.3yrsno datano data
Davide Ruvolo
Corporate Head of M&A0yrsno datano data
Gaetano Colucci
Senior Vice President of Public Affairs & Communication3.5yrsno datano data

3.5yrs

Average Tenure

Experienced Management: SPM's management team is considered experienced (3.5 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Stefano Cao
CEO & Director4.8yrs€618.00kno data
Paolo Fumagalli
Non-Executive & Independent Director1.8yrsno datano data
Paul Schapira
Non-Executive & Independent Director1.8yrsno datano data
Claudia Carloni
Non-Executive & Non-Independent Director0yrsno datano data
Mario Busso
Chairman of the Board of Auditors2.8yrs€60.00kno data
Maria Elena Bruna Cappello
Non-Executive & Independent Director4.8yrs€53.00kno data
Federico Ferro-Luzzi
Independent Non-Executive Director4.8yrs€49.00kno data
Ines Mazzilli
Non-Executive & Independent Director1.8yrsno datano data
Francesco Caio
Non-Independent Chairman1.8yrsno datano data
Alessandra Ferone
Non Independent Director0.08yrsno datano data

1.8yrs

Average Tenure

58yo

Average Age

Experienced Board: SPM's board of directors are not considered experienced ( 1.8 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Saipem S.p.A.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Saipem S.p.A.
  • Ticker: SPM
  • Exchange: WBAG
  • Founded:
  • Industry: Oil and Gas Equipment and Services
  • Sector: Energy
  • Market Cap: €3.793b
  • Shares outstanding: 996.25m
  • Website: https://www.saipem.com

Number of Employees


Location

  • Saipem S.p.A.
  • Via Martiri di Cefalonia 67
  • San Donato Milanese
  • Milan
  • Milan
  • 20097
  • Italy

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SPMBIT (Borsa Italiana)NPVITEURNo data
SPMRBIT (Borsa Italiana)Saving SharesITEURJan 1987
0RPJLSE (London Stock Exchange)Saving SharesGBEURJan 1987
SAPM.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJan 1992
SPE1DB (Deutsche Boerse AG)YesOrdinary SharesDEEURJan 1992
SPMBIT (Borsa Italiana)YesOrdinary SharesITEURJan 1992
0RPILSE (London Stock Exchange)YesOrdinary SharesGBEURJan 1992
SPMWBAG (Wiener Boerse AG)YesOrdinary SharesATEURJan 1992
SPMMBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBEURJan 1992
SAPM.YOTCPK (Pink Sheets LLC)UNSPONSORED ADRUSUSDOct 2008

Biography

Saipem S.p.A. engages in the engineering, drilling, and construction of projects in the energy and infrastructure sectors worldwide. The company operates through five divisions: Offshore Engineering & Construction (E&C), Onshore E&C, Offshore Drilling, Onshore Drilling, and Floaters segments. It provides engineering, procurement, project management, and construction services primarily for the oil and gas, complex civil and marine infrastructure, and environmental markets. The company offers offshore E&C products and services, including platforms, pipelines, subsea field developments, and MMO activities; and designs and constructs hydrocarbon production and treatment facilities, and large onshore treatment and transportation systems and facilities. It also provides offshore and onshore drilling services in deep water, in frontier, and remote areas and environment for oil and gas industries, national companies, and independent operators; and refinery, syngas and fertilizer, petrochemical, upstream, LNG, high tech floater, offshore full field development, trunkline, and renewable and green technologies, as well as life-cycle services under the XSIGHT name. In addition, the company offers vessels and fabrication yards; and research and technology development services, as well as engineering, technology, and commissioning services. As of December 31, 2018, its offshore drilling fleet consisted of 12 vessels, including 6 ultra-deep-water units, 2 high specification jack-ups, 3 standard jack-ups, and 1 barge tender rig; and onshore drilling rig fleet comprised 87 units. Saipem S.p.A. is headquartered in Milan, Italy. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/17 22:17
End of Day Share Price2020/02/17 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.