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SFC

Schaffer ASX:SFC Stock Report

Last Price

AU$17.60

Market Cap

AU$231.2m

7D

3.8%

1Y

-15.0%

Updated

27 Jun, 2022

Data

Company Financials
SFC fundamental analysis
Snowflake Score
Valuation2/6
Future Growth0/6
Past Performance2/6
Financial Health6/6
Dividends4/6

SFC Stock Overview

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

Schaffer Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Schaffer
Historical stock prices
Current Share PriceAU$17.60
52 Week HighAU$22.80
52 Week LowAU$16.00
Beta0.76
1 Month Change-4.35%
3 Month Change-18.10%
1 Year Change-14.98%
3 Year Change28.99%
5 Year Change151.43%
Change since IPO1,947.70%

Recent News & Updates

Feb 25
Schaffer (ASX:SFC) Has Re-Affirmed Its Dividend Of AU$0.45

Schaffer (ASX:SFC) Has Re-Affirmed Its Dividend Of AU$0.45

The board of Schaffer Corporation Limited ( ASX:SFC ) has announced that it will pay a dividend of AU$0.45 per share on...

Shareholder Returns

SFCAU Auto ComponentsAU Market
7D3.8%7.5%1.4%
1Y-15.0%-31.4%-11.3%

Return vs Industry: SFC exceeded the Australian Auto Components industry which returned -31.4% over the past year.

Return vs Market: SFC underperformed the Australian Market which returned -11.3% over the past year.

Price Volatility

Is SFC's price volatile compared to industry and market?
SFC volatility
SFC Average Weekly Movement4.5%
Auto Components Industry Average Movement6.6%
Market Average Movement9.7%
10% most volatile stocks in AU Market16.3%
10% least volatile stocks in AU Market4.2%

Stable Share Price: SFC is less volatile than 75% of Australian stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: SFC's weekly volatility (5%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
1955900John Schafferhttps://www.schaffer.com.au

Schaffer Corporation Limited, a diversified industrial and investment 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 the automotive industry. Its Building Materials segment manufactures pre-cast and pre-stressed concrete floors, beams, and wall products for infrastructure, building, and resource projects.

Schaffer Fundamentals Summary

How do Schaffer's earnings and revenue compare to its market cap?
SFC fundamental statistics
Market CapAU$231.17m
Earnings (TTM)AU$22.21m
Revenue (TTM)AU$167.40m

10.8x

P/E Ratio

1.4x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
SFC income statement (TTM)
RevenueAU$167.40m
Cost of RevenueAU$115.01m
Gross ProfitAU$52.40m
Other ExpensesAU$30.18m
EarningsAU$22.21m

Last Reported Earnings

Dec 31, 2021

Next Earnings Date

n/a

Earnings per share (EPS)1.63
Gross Margin31.30%
Net Profit Margin13.27%
Debt/Equity Ratio25.3%

How did SFC perform over the long term?

See historical performance and comparison

Dividends

5.1%

Current Dividend Yield

55%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

Is SFC undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for SFC?

Other financial metrics that can be useful for relative valuation.

SFC key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue1.6x
Enterprise Value/EBITDA6.9x
PEG Ration/a

Price to Earnings Ratio vs Peers

How does SFC's PE Ratio compare to its peers?

SFC PE Ratio vs Peers
The above table shows the PE ratio for SFC vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average23.9x
PWH PWR Holdings
38.5x21.5%AU$650.9m
RPM RPM Automotive Group
15.6xn/aAU$44.9m
GUD GUD Holdings
22x32.1%AU$1.1b
ARB ARB
19.6x-1.8%AU$2.4b
SFC Schaffer
10.8xn/aAU$231.2m

Price-To-Earnings vs Peers: SFC is good value based on its Price-To-Earnings Ratio (10.8x) compared to the peer average (23.9x).


Price to Earnings Ratio vs Industry

How does SFC's PE Ratio compare vs other companies in the Global Auto Components Industry?

Price-To-Earnings vs Industry: SFC is good value based on its Price-To-Earnings Ratio (10.8x) compared to the Global Auto Components industry average (19x)


Price to Earnings Ratio vs Fair Ratio

What is SFC's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

SFC PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio10.8x
Fair PE Ration/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate SFC's Price-To-Earnings Fair Ratio for valuation analysis.


Share Price vs Fair Value

What is the Fair Price of SFC when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: SFC (A$17.6) is trading above our estimate of fair value (A$12.92)

Significantly Below Fair Value: SFC is trading above our estimate of fair value.


Price to Earnings Growth Ratio

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


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Future Growth

How is Schaffer forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

Future Growth Score

0/6

Future Growth Score 0/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


23.6%

Forecasted Automobiles industry annual growth in earnings

In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Schaffer has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


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  • Examine Schaffer's financial health to determine how well-positioned it is against times of financial stress by looking at its level of debt over time and how much cash it has left.
  • Schaffer competitive advantages and company strategy can generally be found in its financial reports archived here.

Past Performance

How has Schaffer performed over the past 5 years?

Past Performance Score

2/6

Past Performance Score 2/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


27.0%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: SFC has high quality earnings.

Growing Profit Margin: SFC's current net profit margins (13.3%) are lower than last year (19.8%).


Past Earnings Growth Analysis

Earnings Trend: SFC's earnings have grown significantly by 27% 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 (-32%) over the past year, making it difficult to compare to the Auto Components industry average (23.3%).


Return on Equity

High ROE: SFC's Return on Equity (17.2%) is considered low.


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Financial Health

How is Schaffer's financial position?

Financial Health Score

6/6

Financial Health Score 6/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: SFC's short term assets (A$119.6M) exceed its short term liabilities (A$62.2M).

Long Term Liabilities: SFC's short term assets (A$119.6M) exceed its long term liabilities (A$57.6M).


Debt to Equity History and Analysis

Debt Level: SFC's net debt to equity ratio (0.7%) is considered satisfactory.

Reducing Debt: SFC's debt to equity ratio has reduced from 74.2% to 25.3% over the past 5 years.

Debt Coverage: SFC's debt is well covered by operating cash flow (54.7%).

Interest Coverage: SFC's interest payments on its debt are well covered by EBIT (28x coverage).


Balance Sheet


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Dividend

What is Schaffer current dividend yield, its reliability and sustainability?

Dividend Score

3/6

Dividend Score 3/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Future Dividend Coverage


5.11%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: SFC's dividend (5.11%) is higher than the bottom 25% of dividend payers in the Australian market (2.75%).

High Dividend: SFC's dividend (5.11%) is low compared to the top 25% of dividend payers in the Australian market (6.85%).


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.


Earnings Payout to Shareholders

Earnings Coverage: With its reasonable payout ratio (55.4%), SFC's dividend payments are covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: With its reasonable cash payout ratio (73.6%), SFC's dividend payments are covered by cash flows.


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Management

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

12.1yrs

Average management tenure


CEO

John Schaffer (71 yo)

35.42yrs

Tenure

AU$1,473,597

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 ($USD1.02M) is above average for companies of similar size in the Australian market ($USD606.74K).

Compensation vs Earnings: John's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: SFC's management team is seasoned and experienced (12.1 years average tenure).


Board Members

Experienced Board: SFC's board of directors are seasoned and experienced ( 23 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: SFC 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 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
  • Implied Market Cap: AU$231.172m
  • Shares outstanding: 13.62m
  • Website: https://www.schaffer.com.au

Number of Employees


Location

  • Schaffer Corporation Limited
  • 1305 Hay Street
  • West Perth
  • Western Australia
  • 6005
  • Australia

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/06/27 00:00
End of Day Share Price2022/06/27 00:00
Earnings2021/12/31
Annual Earnings2021/06/30


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.