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SXE

Southern Cross Electrical EngineeringASX:SXE Stock Report

Market Cap

AU$172.0m

7D

1.5%

1Y

48.9%

Updated

16 Oct, 2021

Data

Company Financials +
SXE fundamental analysis
Snowflake Score
Valuation5/6
Future Growth2/6
Past Performance3/6
Financial Health6/6
Dividends4/6

SXE Overview

Southern Cross Electrical Engineering Limited provides electrical, instrumentation, communication, and maintenance services in Australia.

Southern Cross Electrical Engineering Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Southern Cross Electrical Engineering
Historical stock prices
Current Share PriceAU$0.67
52 Week HighAU$0.42
52 Week LowAU$0.69
Beta0.89
1 Month Change0%
3 Month Change25.23%
1 Year Change48.89%
3 Year Change-3.60%
5 Year Change10.74%
Change since IPO-58.13%

Recent News & Updates

Sep 14
Do Southern Cross Electrical Engineering's (ASX:SXE) Earnings Warrant Your Attention?

Do Southern Cross Electrical Engineering's (ASX:SXE) Earnings Warrant Your Attention?

Like a puppy chasing its tail, some new investors often chase 'the next big thing', even if that means buying 'story...

Mar 30
At AU$0.51, Is It Time To Put Southern Cross Electrical Engineering Limited (ASX:SXE) On Your Watch List?

At AU$0.51, Is It Time To Put Southern Cross Electrical Engineering Limited (ASX:SXE) On Your Watch List?

While Southern Cross Electrical Engineering Limited ( ASX:SXE ) might not be the most widely known stock at the moment...

Mar 09
Is Southern Cross Electrical Engineering Limited (ASX:SXE) An Attractive Dividend Stock?

Is Southern Cross Electrical Engineering Limited (ASX:SXE) An Attractive Dividend Stock?

Dividend paying stocks like Southern Cross Electrical Engineering Limited ( ASX:SXE ) tend to be popular with...

Shareholder Returns

SXEAU ConstructionAU Market
7D1.5%0.9%0.9%
1Y48.9%1.7%20.2%

Return vs Industry: SXE exceeded the Australian Construction industry which returned 1.7% over the past year.

Return vs Market: SXE exceeded the Australian Market which returned 20.2% over the past year.

Price Volatility

Is SXE's price volatile compared to industry and market?
SXE volatility
SXE Beta0.89
Industry Beta0.99
Market Beta1

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

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

About the Company

FoundedEmployeesCEOWebsite
19781,800Graeme Dunnhttps://www.scee.com.au

Southern Cross Electrical Engineering Limited provides electrical, instrumentation, communication, and maintenance services in Australia. It offers electrical and instrumentation (E&I) construction services, which include installation and commissioning of greenfield and brownfield upgrade projects in metropolitan, remote, and challenging environments. The company also provides fixed plant E&I construction; distribution and transmission line installation; substations, transformer, and switchyard installations; HV, LV control, instrument, and communication cabling and terminations; auditing, rectifications, and completions; constructability reviews; primary and secondary injection protection testing; instrumentation, loop checking, and calibrations; hazardous area installations; instrument air and tubing installation; procurement and logistics management; pre-commissioning, completions, and start-ups; and comprehensive handover documentation services.

Southern Cross Electrical Engineering Fundamentals Summary

How do Southern Cross Electrical Engineering's earnings and revenue compare to its market cap?
SXE fundamental statistics
Market CapAU$171.98m
Earnings (TTM)AU$13.76m
Revenue (TTM)AU$370.21m

12.5x

P/E Ratio

0.5x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
SXE income statement (TTM)
RevenueAU$370.21m
Cost of RevenueAU$320.09m
Gross ProfitAU$50.11m
ExpensesAU$36.35m
EarningsAU$13.76m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)0.054
Gross Margin13.54%
Net Profit Margin3.72%
Debt/Equity Ratio0%

How did SXE perform over the long term?

See historical performance and comparison

Dividends

6.0%

Current Dividend Yield

72%

Payout Ratio

Does SXE pay a reliable dividends?

See SXE dividend history and benchmarks
When do you need to buy SXE by to receive an upcoming dividend?
Southern Cross Electrical Engineering dividend dates
Ex Dividend DateOct 26 2021
Dividend Pay DateNov 09 2021
Days until Ex dividend9 days
Days until Dividend pay date23 days

Does SXE pay a reliable dividends?

See SXE dividend history and benchmarks

Valuation

Is Southern Cross Electrical Engineering undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: SXE (A$0.67) is trading below our estimate of fair value (A$1.43)

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


Price To Earnings Ratio

PE vs Industry: SXE is good value based on its PE Ratio (12.5x) compared to the Australian Construction industry average (15.8x).

PE vs Market: SXE is good value based on its PE Ratio (12.5x) compared to the Australian market (19.8x).


Price to Earnings Growth Ratio

PEG Ratio: SXE is poor value based on its PEG Ratio (2x)


Price to Book Ratio

PB vs Industry: SXE is good value based on its PB Ratio (1x) compared to the AU Construction industry average (2x).


Future Growth

How is Southern Cross Electrical Engineering forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

6.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SXE's forecast earnings growth (6.2% per year) is above the savings rate (1.9%).

Earnings vs Market: SXE's earnings (6.2% per year) are forecast to grow slower than the Australian market (11.8% per year).

High Growth Earnings: SXE's earnings are forecast to grow, but not significantly.

Revenue vs Market: SXE's revenue (10.7% per year) is forecast to grow faster than the Australian market (5.4% per year).

High Growth Revenue: SXE's revenue (10.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: SXE's Return on Equity is forecast to be low in 3 years time (10.4%).


Past Performance

How has Southern Cross Electrical Engineering performed over the past 5 years?

33.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SXE has a large one-off gain of A$7.6M impacting its June 30 2021 financial results.

Growing Profit Margin: SXE's current net profit margins (3.7%) are higher than last year (2.6%).


Past Earnings Growth Analysis

Earnings Trend: SXE's earnings have grown significantly by 33.6% per year over the past 5 years.

Accelerating Growth: SXE's earnings growth over the past year (26.6%) is below its 5-year average (33.6% per year).

Earnings vs Industry: SXE earnings growth over the past year (26.6%) exceeded the Construction industry 25%.


Return on Equity

High ROE: SXE's Return on Equity (8%) is considered low.


Financial Health

How is Southern Cross Electrical Engineering's financial position?


Financial Position Analysis

Short Term Liabilities: SXE's short term assets (A$201.6M) exceed its short term liabilities (A$138.2M).

Long Term Liabilities: SXE's short term assets (A$201.6M) exceed its long term liabilities (A$27.8M).


Debt to Equity History and Analysis

Debt Level: SXE is debt free.

Reducing Debt: SXE had no debt 5 years ago.

Debt Coverage: SXE has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: SXE has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet


Dividend

What is Southern Cross Electrical Engineering current dividend yield, its reliability and sustainability?

5.97%

Current Dividend Yield


Upcoming Dividend Payment

TodayOct 16 2021Ex Dividend DateOct 26 2021Dividend Pay DateNov 09 202114 days from Ex DividendBuy in the next 9 days to receive the upcoming dividend

Dividend Yield vs Market

Notable Dividend: SXE's dividend (5.97%) is higher than the bottom 25% of dividend payers in the Australian market (2.27%).

High Dividend: SXE's dividend (5.97%) is in the top 25% of dividend payers in the Australian market (5.32%)


Stability and Growth of Payments

Stable Dividend: SXE has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: SXE's dividend payments have increased, but the company has only paid a dividend for 9 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (72.1%), SXE's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: SXE's dividends in 3 years are forecast to be covered by earnings (68.1% payout ratio).


Next Steps

Management

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

8.1yrs

Average management tenure


CEO

Graeme Dunn

5.75yrs

Tenure

AU$1,457,513

Compensation

Mr. Graeme Dunn has been the Chief Executive Officer and Managing Director of Southern Cross Electrical Engineering Limited since January 18, 2016. Mr. Dunn served as Chief Operating Officer of NRW Holding...


CEO Compensation Analysis

Compensation vs Market: Graeme's total compensation ($USD1.08M) is above average for companies of similar size in the Australian market ($USD302.45K).

Compensation vs Earnings: Graeme's compensation has increased by more than 20% in the past year.


Leadership Team

Experienced Management: SXE's management team is seasoned and experienced (8.1 years average tenure).


Board Members

Experienced Board: SXE's board of directors are considered experienced (6 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 been diluted in the past year, with total shares outstanding growing by 3.7%.


Top Shareholders

Company Information

Southern Cross Electrical Engineering Limited's employee growth, exchange listings and data sources


Key Information

  • Name: Southern Cross Electrical Engineering Limited
  • Ticker: SXE
  • Exchange: ASX
  • Founded: 1978
  • Industry: Construction and Engineering
  • Sector: Capital Goods
  • Market Cap: AU$171.979m
  • Shares outstanding: 256.69m
  • Website: https://www.scee.com.au

Number of Employees


Location

  • Southern Cross Electrical Engineering Limited
  • 41 Macedonia Street
  • Naval Base
  • Perth
  • Western Australia
  • 6165
  • Australia

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/10/16 07:04
End of Day Share Price2021/10/15 00:00
Earnings2021/06/30
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.