ASX:SST

Stock Analysis Report

Executive Summary

Steamships Trading Company Limited engages in the shipping, transport, property, manufacturing, and hotel businesses in Papua New Guinea.

Rewards

Earnings grew by 55.3% over the past year

Risk Analysis

Earnings have declined by -33.87% per year over past 5 years

Dividend of 5.35% is not well covered by earnings



Snowflake Analysis

Excellent balance sheet with proven track record.

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

1.9%

SST

-0.2%

AU Industrials

-1.8%

AU Market


1 Year Return

n/a

SST

6.5%

AU Industrials

20.0%

AU Market

Return vs Industry: Insufficient data to determine how SST performed against the Australian Industrials industry.

Return vs Market: Insufficient data to determine how SST performed against the Australian Market.


Shareholder returns

SSTIndustryMarket
7 Day1.9%-0.2%-1.8%
30 Day1.9%-2.3%-0.3%
90 Day-14.5%4.9%1.1%
1 Yearn/a9.7%6.5%25.9%20.0%
3 Year-34.9%-39.8%-5.5%-14.8%36.0%17.4%
5 Year-51.6%-57.9%14.8%-5.2%62.5%25.9%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

69.85x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: SST (A$13.25) is trading above our estimate of fair value (A$11.48)

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


Price To Earnings Ratio

PE vs Industry: SST is poor value based on its PE Ratio (69.9x) compared to the Industrials industry average (13.1x).

PE vs Market: SST is poor value based on its PE Ratio (69.9x) compared to the Australian market (18.4x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: SST is overvalued based on its PB Ratio (1.1x) compared to the XX Industrials industry average (0.8x).


Next Steps

Future Growth

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

17.4%

Forecasted Capital Goods 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 Steamships Trading 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.


Next Steps

Past Performance

How has Steamships Trading performed over the past 5 years?

-33.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SST has high quality earnings.

Growing Profit Margin: SST's current net profit margins (2.4%) are higher than last year (1.6%).


Past Earnings Growth Analysis

Earnings Trend: SST's earnings have declined by -33.9% per year over the past 5 years.

Accelerating Growth: SST's earnings growth over the past year (55.3%) exceeds its 5-year average (-33.9% per year).

Earnings vs Industry: SST earnings growth over the past year (55.3%) exceeded the Industrials industry -0.4%.


Return on Equity

High ROE: SST's Return on Equity (1.3%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Steamships Trading's financial position?


Financial Position Analysis

Short Term Liabilities: SST's short term assets (PGK287.2M) do not cover its short term liabilities (PGK315.4M).

Long Term Liabilities: SST's short term assets (PGK287.2M) exceed its long term liabilities (PGK246.8M).


Debt to Equity History and Analysis

Debt Level: SST's debt to equity ratio (39.8%) is considered satisfactory.

Reducing Debt: SST's debt to equity ratio has reduced from 91.1% to 39.8% over the past 5 years.

Debt Coverage: SST's debt is well covered by operating cash flow (24.3%).

Interest Coverage: SST's interest payments on its debt are well covered by EBIT (10x coverage).


Balance Sheet

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

Debt Coverage by Assets: SST's debt is not covered by short term assets (assets are 0.8x debt).


Next Steps

Dividend

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

5.35%

Current Dividend Yield


Dividend Yield vs Market

company5.3%marketbottom25%2.4%markettop25%5.6%industryaverage2.5%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: SST's dividend (5.35%) is higher than the bottom 25% of dividend payers in the Australian market (2.44%).

High Dividend: SST's dividend (5.35%) is low compared to the top 25% of dividend payers in the Australian market (5.57%).


Stability and Growth of Payments

Stable Dividend: SST's dividend payments have been volatile in the past 10 years.

Growing Dividend: SST's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (328.4%), SST's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

What is the CEO of Steamships Trading's salary, the management and board of directors tenure and is there insider trading?

4.9yrs

Average board tenure


CEO

Michael Scantlebury 0

1.3yrs

Tenure

0

Mr. Michael R. Scantlebury has been Finance Director, Executive Director and Company Secretary of Steamships Trading Company Limited since June 24, 2016. Mr. Scantlebury is a Chartered Accountant (ICAS). H ...


Board Age and Tenure

4.9yrs

Average Tenure

63.5yo

Average Age

Experienced Board: SST's board of directors are considered experienced (4.9 years average tenure).


Insider Trading

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.


Management Team

  • Rupert Bray

    COO & Director

    • Tenure: 1.3yrs
  • Michael Scantlebury

    MD, CEO

    • Tenure: 1.3yrs
  • Mary Ann Hill

    Group Legal Counsel

    • Tenure: 0yrs

Board Members

  • Michael Bromley

    Non Executive Director

    • Tenure: 19.9yrs
    • Compensation: K223.00k
  • Gerea Aopi (65yo)

    Non Executive Director

    • Tenure: 22.9yrs
    • Compensation: K124.00k
  • David Cox

    Non Executive Director

    • Tenure: 16.9yrs
    • Compensation: K223.00k
  • Winnie Kamit (66yo)

    Non Executive Director

    • Tenure: 14.3yrs
    • Compensation: K135.00k
  • Geoffrey Leslie Cundle (62yo)

    Chairman of the Board

    • Tenure: 4.8yrs
    • Compensation: K223.00k
  • Rupert Bray

    COO & Director

    • Tenure: 1.3yrs
  • Graham Dunlop

    Non-Executive Director

    • Tenure: 4.9yrs
    • Compensation: K247.00k
  • Louise Bromley

    Director

    • Tenure: 0.3yrs
  • James Woodrow (52yo)

    Non Executive Director

    • Tenure: 4.3yrs
    • Compensation: K124.00k
  • Michael Scantlebury

    MD, CEO

    • Tenure: 1.3yrs

Company Information

Steamships Trading Company Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Steamships Trading Company Limited
  • Ticker: SST
  • Exchange: ASX
  • Founded: 1918
  • Industry: Industrial Conglomerates
  • Sector: Capital Goods
  • Market Cap: AU$410.859m
  • Shares outstanding: 31.01m
  • Website: https://www.steamships.com.pg

Number of Employees


Location

  • Steamships Trading Company Limited
  • Harbourside West
  • Level 5
  • Port Moresby
  • 121
  • Papua New Guinea

Listings

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

Biography

Steamships Trading Company Limited engages in the shipping, transport, property, manufacturing, and hotel businesses in Papua New Guinea. It operates through three segments: Hotels and Property, Logistics, ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/10 10:34
End of Day Share Price2019/12/06 00:00
Earnings2019/06/30
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.