Schaffer
Market Cap
AU$151.2m
Last Updated
2020/04/08 10:38 UTC
Data Sources
Company Financials +
Executive Summary
Schaffer Corporation Limited, a diversified industrial company, manufactures and sells automotive leather and building materials primarily in Australia, Asia, and Europe.
Rewards
Risk Analysis
Earnings are forecast to decline by an average of -6.7% per year for the next 3 years
Snowflake Analysis
Flawless balance sheet, undervalued and pays a dividend.
Share Price & News
How has Schaffer's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: SFC's share price has been volatile over the past 3 months.
Market Performance
7 Day Return
-0.4%
SFC
-4.4%
AU Auto Components
4.0%
AU Market
1 Year Return
-15.5%
SFC
-19.5%
AU Auto Components
-16.5%
AU Market
Return vs Industry: SFC exceeded the Australian Auto Components industry which returned -18.5% over the past year.
Return vs Market: SFC exceeded the Australian Market which returned -19% over the past year.
Shareholder returns
| SFC | Industry | Market | |
|---|---|---|---|
| 7 Day | -0.4% | -4.4% | 4.0% |
| 30 Day | -23.3% | -25.4% | -15.4% |
| 90 Day | -26.8% | -32.6% | -23.5% |
| 1 Year | -10.7%-15.5% | -17.0%-19.5% | -12.8%-16.5% |
| 3 Year | 82.8%61.3% | 1.0%-7.6% | -0.9%-14.5% |
| 5 Year | 160.5%109.7% | -34.1%-41.3% | 11.2%-13.9% |
Price Volatility Vs. Market
How volatile is Schaffer's share price compared to the market and industry in the last 5 years?
Simply Wall St News
1 week ago | Simply Wall St
What Is Schaffer's (ASX:SFC) P/E Ratio After Its Share Price Tanked?2 weeks ago | Simply Wall St
Should You Take Comfort From Insider Transactions At Schaffer Corporation Limited (ASX:SFC)?3 weeks ago | Simply Wall St
Is Schaffer (ASX:SFC) A Risky Investment?Valuation
Is Schaffer undervalued compared to its fair value and its price relative to the market?
46.4%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: SFC (A$11.1) is trading below our estimate of fair value (A$22.02)
Significantly Below Fair Value: SFC is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: SFC is good value based on its PE Ratio (6.3x) compared to the Auto Components industry average (10.8x).
PE vs Market: SFC is good value based on its PE Ratio (6.3x) compared to the Australian market (13x).
Price to Earnings Growth Ratio
PEG Ratio: SFC's earnings are forecast to decline next year, so we can't calculate its PEG ratio.
Price to Book Ratio
PB vs Industry: SFC is good value based on its PB Ratio (1.4x) compared to the AU Auto Components industry average (2.6x).
Next Steps
Future Growth
How is Schaffer forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?
-6.7%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: SFC's earnings are forecast to decline over the next 3 years (-6.7% per year).
Earnings vs Market: SFC's earnings are forecast to decline over the next 3 years (-6.7% per year).
High Growth Earnings: SFC's earnings are forecast to decline over the next 3 years.
Revenue vs Market: SFC's revenue (0.3% per year) is forecast to grow slower than the Australian market (4.1% per year).
High Growth Revenue: SFC's revenue (0.3% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: SFC's Return on Equity is forecast to be low in 3 years time (13.6%).
Next Steps
Past Performance
How has Schaffer performed over the past 5 years?
44.0%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: SFC has high quality earnings.
Growing Profit Margin: SFC's current net profit margins (12.7%) are higher than last year (11.4%).
Past Earnings Growth Analysis
Earnings Trend: SFC's earnings have grown significantly by 44% per year over the past 5 years.
Accelerating Growth: SFC's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: SFC had negative earnings growth (-2.3%) over the past year, making it difficult to compare to the Auto Components industry average (-13.2%).
Return on Equity
High ROE: SFC's Return on Equity (23.6%) is considered high.
Next Steps
Financial Health
How is Schaffer's financial position?
Financial Position Analysis
Short Term Liabilities: SFC's short term assets (A$105.7M) exceed its short term liabilities (A$53.9M).
Long Term Liabilities: SFC's short term assets (A$105.7M) exceed its long term liabilities (A$72.1M).
Debt to Equity History and Analysis
Debt Level: SFC's debt to equity ratio (33.6%) is considered satisfactory.
Reducing Debt: SFC's debt to equity ratio has reduced from 73.8% to 33.6% over the past 5 years.
Debt Coverage: SFC's debt is well covered by operating cash flow (86.3%).
Interest Coverage: SFC's interest payments on its debt are well covered by EBIT (15x coverage).
Balance Sheet
Next Steps
Dividend
What is Schaffer's current dividend yield, its reliability and sustainability?
8.14%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: SFC's dividend (8.11%) is higher than the bottom 25% of dividend payers in the Australian market (3.17%).
High Dividend: SFC's dividend (8.11%) is in the top 25% of dividend payers in the Australian market (8.1%)
Stability and Growth of Payments
Stable Dividend: SFC's dividend payments have been volatile in the past 10 years.
Growing Dividend: SFC's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonably low payout ratio (48.4%), SFC's dividend payments are well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: SFC's dividends in 3 years are forecast to be covered by earnings (65.2% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
9.9yrs
Average management tenure
CEO
John Schaffer (69yo)
33.25s
Tenure
AU$1,393,895
Compensation
Mr. John Michael Schaffer, BCom (Hons) FCPA FAICD, has been Managing Director at Schaffer Corporation Limited since 1987 and has been its Chairman since 1988. Mr. Schaffer has been Chairman of Howe Automot ...
CEO Compensation Analysis
Compensation vs Market: John's total compensation ($USD837.63K) is above average for companies of similar size in the Australian market ($USD238.47K).
Compensation vs Earnings: John's compensation has been consistent with company performance over the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Chairman & MD | 33.25yrs | AU$1.39m | 13.01% A$19.7m | |
| Chief Financial Officer | 2.75yrs | AU$1.24m | 0.091% A$138.1k | |
| Executive Director | 18.42yrs | AU$951.54k | 2.54% A$3.8m | |
| Group Financial Controller & Company Secretary | 9.08yrs | AU$301.72k | 0.076% A$115.5k | |
| General Manager of Delta Corporation Limited | 10.75yrs | AU$351.15k | 0.018% A$27.6k | |
| General Manager of Howe Automotive Ltd | 4.25yrs | AU$1.63m | no data | |
| Group General Manager of Schaffer Building Products Group | no data | AU$508.22k | no data |
9.9yrs
Average Tenure
53yo
Average Age
Experienced Management: SFC's management team is seasoned and experienced (9.9 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Chairman & MD | 33.25yrs | AU$1.39m | 13.01% A$19.7m | |
| Executive Director | 18.42yrs | AU$951.54k | 2.54% A$3.8m | |
| Non-Executive Independent Director | 15.17yrs | AU$81.37k | 0.062% A$93.9k | |
| Non Executive Director | 32.83yrs | AU$83.00k | 6.65% A$10.1m | |
| Non-Executive Independent Director | 20.83yrs | AU$83.94k | 4.35% A$6.6m |
20.8yrs
Average Tenure
69yo
Average Age
Experienced Board: SFC's board of directors are seasoned and experienced ( 20.8 years average tenure).
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.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Top Shareholders
Company Information
Schaffer Corporation Limited's company bio, employee growth, exchange listings and data sources
Key Information
- Name: Schaffer Corporation Limited
- Ticker: SFC
- Exchange: ASX
- Founded: 1955
- Industry: Auto Parts and Equipment
- Sector: Automobiles
- Market Cap: AU$151.150m
- Shares outstanding: 13.68m
- Website: https://www.schaffer.com.au
Number of Employees
Location
- Schaffer Corporation Limited
- 1305 Hay Street
- West Perth
- Western Australia
- 6005
- Australia
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| SFC | ASX (Australian Securities Exchange) | Yes | Ordinary Shares | AU | AUD | Jan 1992 |
| SFC | CHIA (Chi-X Australia) | Yes | Ordinary Shares | AU | AUD | Jan 1992 |
Biography
Schaffer Corporation Limited, a diversified industrial company, manufactures and sells automotive leather and building materials primarily in Australia, Asia, and Europe. The company’s Automotive Leather segment manufactures and supplies leather to automotive manufacturers in the automotive industry. Its Building Materials segment manufactures pre-cast and pre-stressed concrete floors, beams, and wall products primarily for the construction market. The company’s SFC Investments segment leases office and retail properties; and develops and sells property assets. Its Gosh Capital segment owns the North Coogee land, a residential property. The company was incorporated in 1955 and is headquartered in West Perth, Australia.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/04/08 10:38 |
| End of Day Share Price | 2020/04/08 00:00 |
| Earnings | 2019/12/31 |
| Annual Earnings | 2019/06/30 |
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.