ASX:SFC

Stock Analysis Report

Executive Summary

Schaffer Corporation Limited, a diversified industrial company, manufactures and sells automotive leather and building materials primarily in Australia, Asia, and Europe.


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

SFCIndustryMarket
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 Year82.8%61.3%1.0%-7.6%-0.9%-14.5%
5 Year160.5%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

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

NamePositionTenureCompensationOwnership
John Schaffer
Chairman & MD33.25yrsAU$1.39m13.01% A$19.7m
Ralph Leib
Chief Financial Officer2.75yrsAU$1.24m0.091% A$138.1k
Anton Mayer
Executive Director18.42yrsAU$951.54k2.54% A$3.8m
Jason Cantwell
Group Financial Controller & Company Secretary9.08yrsAU$301.72k0.076% A$115.5k
Jason Walsh
General Manager of Delta Corporation Limited10.75yrsAU$351.15k0.018% A$27.6k
Dan Birks
General Manager of Howe Automotive Ltd4.25yrsAU$1.63mno data
Mike Falconer
Group General Manager of Schaffer Building Products Groupno dataAU$508.22kno 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

NamePositionTenureCompensationOwnership
John Schaffer
Chairman & MD33.25yrsAU$1.39m13.01% A$19.7m
Anton Mayer
Executive Director18.42yrsAU$951.54k2.54% A$3.8m
Michael Perrott
Non-Executive Independent Director15.17yrsAU$81.37k0.062% A$93.9k
Danielle Blain
Non Executive Director32.83yrsAU$83.00k6.65% A$10.1m
David Schwartz
Non-Executive Independent Director20.83yrsAU$83.94k4.35% 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

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SFCASX (Australian Securities Exchange)YesOrdinary SharesAUAUDJan 1992
SFCCHIA (Chi-X Australia)YesOrdinary SharesAUAUDJan 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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/08 10:38
End of Day Share Price2020/04/08 00:00
Earnings2019/12/31
Annual Earnings2019/06/30


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.