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Shine

ASX:SHJ
Snowflake Description

Very undervalued with reasonable growth potential.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
SHJ
ASX
A$118M
Market Cap
  1. Home
  2. AU
  3. Consumer Services
Company description

Shine Corporate Ltd, through its subsidiaries, provides damages based plaintiff litigation legal services in Australia; and insurance recovery consulting services in New Zealand. The last earnings update was 143 days ago. More info.


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SHJ Share Price and Events
7 Day Returns
4.6%
ASX:SHJ
-2.1%
AU Consumer Services
-0.9%
AU Market
1 Year Returns
-22.3%
ASX:SHJ
33.5%
AU Consumer Services
4.2%
AU Market
SHJ Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Shine (SHJ) 4.6% 4.6% -8.7% -22.3% -38.2% -70.8%
AU Consumer Services -2.1% -1.4% 10.1% 33.5% 3.6% -22.1%
AU Market -0.9% 1.4% 6% 4.2% 19% 11%
1 Year Return vs Industry and Market
  • SHJ underperformed the Consumer Services industry which returned 33.5% over the past year.
  • SHJ underperformed the Market in Australia which returned 4.2% over the past year.
Price Volatility
SHJ
Industry
5yr Volatility vs Market

Value

 Is Shine undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Shine to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Shine.

ASX:SHJ Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 2 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 9.1%
Perpetual Growth Rate 10-Year AU Government Bond Rate 2.3%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for ASX:SHJ
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year AU Govt Bond Rate 2.3%
Equity Risk Premium S&P Global 6%
Consumer Services Unlevered Beta Simply Wall St/ S&P Global 0.74
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.74 (1 + (1- 30%) (87.82%))
1.131
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.13
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.31% + (1.131 * 5.96%)
9.05%

Discounted Cash Flow Calculation for ASX:SHJ using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Shine is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

ASX:SHJ DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (AUD, Millions) Source Present Value
Discounted (@ 9.05%)
2020 16.50 Analyst x1 15.13
2021 21.60 Analyst x1 18.16
2022 25.80 Est @ 19.45% 19.89
2023 29.49 Est @ 14.31% 20.85
2024 32.65 Est @ 10.71% 21.17
2025 35.32 Est @ 8.19% 21.00
2026 37.59 Est @ 6.43% 20.50
2027 39.54 Est @ 5.19% 19.77
2028 41.26 Est @ 4.33% 18.92
2029 42.79 Est @ 3.72% 17.99
Present value of next 10 years cash flows A$193.39
ASX:SHJ DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= A$42.79 × (1 + 2.31%) ÷ (9.05% – 2.31%)
A$649.64
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= A$649.64 ÷ (1 + 9.05%)10
A$273.13
ASX:SHJ Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= A$193.39 + A$273.13
A$466.52
Equity Value per Share
(AUD)
= Total value / Shares Outstanding
= A$466.52 / 173.16
A$2.69
ASX:SHJ Discount to Share Price
Calculation Result
Value per share (AUD) From above. A$2.69
Current discount Discount to share price of A$0.68
= -1 x (A$0.68 - A$2.69) / A$2.69
74.8%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Shine is available for.
Intrinsic value
>50%
Share price is A$0.68 vs Future cash flow value of A$2.69
Current Discount Checks
For Shine to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Shine's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Shine's share price is below the future cash flow value, and at a substantial discount (> 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Shine's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Shine's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
ASX:SHJ PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-12-31) in AUD A$0.08
ASX:SHJ Share Price ** ASX (2019-07-19) in AUD A$0.68
Australia Consumer Services Industry PE Ratio Median Figure of 11 Publicly-Listed Consumer Services Companies 16.64x
Australia Market PE Ratio Median Figure of 546 Publicly-Listed Companies 16.07x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Shine.

ASX:SHJ PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= ASX:SHJ Share Price ÷ EPS (both in AUD)

= 0.68 ÷ 0.08

8.71x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Shine is good value based on earnings compared to the AU Consumer Services industry average.
  • Shine is good value based on earnings compared to the Australia market.
Price based on expected Growth
Does Shine's expected growth come at a high price?
Raw Data
ASX:SHJ PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 8.71x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 2 Analysts
23.2%per year
Australia Consumer Services Industry PEG Ratio Median Figure of 8 Publicly-Listed Consumer Services Companies 1.82x
Australia Market PEG Ratio Median Figure of 361 Publicly-Listed Companies 1.35x

*Line of best fit is calculated by linear regression .

ASX:SHJ PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 8.71x ÷ 23.2%

0.38x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Shine is good value based on expected growth next year.
Price based on value of assets
What value do investors place on Shine's assets?
Raw Data
ASX:SHJ PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-12-31) in AUD A$1.23
ASX:SHJ Share Price * ASX (2019-07-19) in AUD A$0.68
Australia Consumer Services Industry PB Ratio Median Figure of 19 Publicly-Listed Consumer Services Companies 1.97x
Australia Market PB Ratio Median Figure of 1,693 Publicly-Listed Companies 1.7x
ASX:SHJ PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= ASX:SHJ Share Price ÷ Book Value per Share (both in AUD)

= 0.68 ÷ 1.23

0.55x

* Primary Listing of Shine.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Shine is good value based on assets compared to the AU Consumer Services industry average.
X
Value checks
We assess Shine's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Consumer Services industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Consumer Services industry average (and greater than 0)? (1 check)
  5. Shine has a total score of 6/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is Shine expected to perform in the next 1 to 3 years based on estimates from 2 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
23.2%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Shine expected to grow at an attractive rate?
  • Shine's earnings growth is expected to exceed the low risk savings rate of 2.3%.
Growth vs Market Checks
  • Shine's earnings growth is expected to exceed the Australia market average.
  • Shine's revenue growth is expected to exceed the Australia market average.
Annual Growth Rates Comparison
Raw Data
ASX:SHJ Future Growth Rates Data Sources
Data Point Source Value (per year)
ASX:SHJ Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 2 Analysts 23.2%
ASX:SHJ Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 2 Analysts 4.4%
Australia Consumer Services Industry Earnings Growth Rate Market Cap Weighted Average 21.3%
Australia Consumer Services Industry Revenue Growth Rate Market Cap Weighted Average 12.2%
Australia Market Earnings Growth Rate Market Cap Weighted Average 7.4%
Australia Market Revenue Growth Rate Market Cap Weighted Average 3.4%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
ASX:SHJ Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (6 months ago) See Below
Future Estimates Average of up to 2 Analyst Estimates (S&P Global) See Below
All numbers in AUD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
ASX:SHJ Future Estimates Data
Date (Data in AUD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2022-06-30 211 1
2021-06-30 198 26 24 2
2020-06-30 192 22 23 2
2019-06-30 184 19 16 2
ASX:SHJ Past Financials Data
Date (Data in AUD Millions) Revenue Cash Flow Net Income *
2018-12-31 177 17 13
2018-09-30 178 18 16
2018-06-30 179 19 19
2018-03-31 179 18 22
2017-12-31 179 17 24
2017-09-30 172 17 22
2017-06-30 165 17 20
2017-03-31 163 17 19
2016-12-31 161 18 17
2016-09-30 156 17 16
2016-06-30 152 17 15
2016-03-31 147 14 16

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Shine's earnings are expected to grow significantly at over 20% yearly.
  • Shine's revenue is expected to grow by 4.4% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
ASX:SHJ Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (6 months ago) See Below
Future Estimates Average of up to 2 Analyst Estimates (S&P Global) See Below

All data from Shine Company Filings, last reported 6 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

ASX:SHJ Future Estimates Data
Date (Data in AUD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2022-06-30
2021-06-30 0.14 0.15 0.13 2.00
2020-06-30 0.13 0.14 0.12 2.00
2019-06-30 0.10 0.10 0.10 1.00
ASX:SHJ Past Financials Data
Date (Data in AUD Millions) EPS *
2018-12-31 0.08
2018-09-30 0.09
2018-06-30 0.11
2018-03-31 0.12
2017-12-31 0.14
2017-09-30 0.13
2017-06-30 0.12
2017-03-31 0.11
2016-12-31 0.10
2016-09-30 0.09
2016-06-30 0.09
2016-03-31 0.09

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Shine is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Shine's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Australia market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Australia market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Shine has a total score of 4/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Shine performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Shine's growth in the last year to its industry (Consumer Services).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Shine's year on year earnings growth rate was negative over the past 5 years and the most recent earnings are below average.
  • Shine's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • Shine's 1-year earnings growth is negative, it can't be compared to the AU Consumer Services industry average.
Earnings and Revenue History
Shine's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Shine Company Filings, last reported 6 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

ASX:SHJ Past Revenue, Cash Flow and Net Income Data
Date (Data in AUD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-12-31 177.37 13.50 19.61
2018-09-30 178.37 16.30 21.39
2018-06-30 179.37 19.11 23.17
2018-03-31 179.34 21.59 22.36
2017-12-31 179.30 24.06 21.55
2017-09-30 172.17 22.11 20.69
2017-06-30 165.03 20.16 19.84
2017-03-31 163.22 18.78 20.53
2016-12-31 161.42 17.41 21.22
2016-09-30 156.46 16.12 20.47
2016-06-30 151.50 14.82 19.73
2016-03-31 146.65 16.26 18.18
2015-12-31 141.79 17.70 16.63
2015-09-30 146.36 23.66 16.44
2015-06-30 150.93 29.63 16.25
2015-03-31 141.62 26.84 15.42
2014-12-31 132.30 24.04 14.58
2014-09-30 124.03 23.11 13.33
2014-06-30 115.75 22.18 12.07
2014-03-31 114.51 21.54 11.89
2013-12-31 113.26 20.90 11.70
2013-09-30 109.34 19.20 11.64
2013-06-30 105.43 17.50 11.58

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Shine has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Shine used its assets less efficiently than the AU Consumer Services industry average last year based on Return on Assets.
  • Shine's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Shine's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Consumer Services industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Shine has a total score of 0/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Shine's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Shine's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Shine is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Shine's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Shine's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is covered by short term assets, assets are 2.6x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Shine Company Filings, last reported 6 months ago.

ASX:SHJ Past Debt and Equity Data
Date (Data in AUD Millions) Total Equity Total Debt Cash & Short Term Investments
2018-12-31 212.77 42.26 13.61
2018-09-30 212.77 42.26 13.61
2018-06-30 218.14 43.33 22.55
2018-03-31 218.14 43.33 22.55
2017-12-31 208.58 58.15 28.88
2017-09-30 208.58 58.15 28.88
2017-06-30 204.48 40.87 14.19
2017-03-31 204.48 40.87 14.19
2016-12-31 189.37 47.36 11.92
2016-09-30 189.37 47.36 11.92
2016-06-30 189.78 28.97 12.12
2016-03-31 189.78 28.97 12.12
2015-12-31 176.28 38.54 9.26
2015-09-30 176.28 38.54 9.26
2015-06-30 176.19 19.15 9.39
2015-03-31 176.19 19.15 9.39
2014-12-31 163.27 19.88 9.50
2014-09-30 163.27 19.88 9.50
2014-06-30 119.90 15.00 11.00
2014-03-31 119.90 15.00 11.00
2013-12-31 111.83 18.33 5.26
2013-09-30 111.83 18.33 5.26
2013-06-30 103.15 16.02 15.98
  • Shine's level of debt (48.6%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (16.4% vs 48.6% today).
  • Debt is not well covered by operating cash flow (16.8%, less than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 6.4x coverage).
X
Financial health checks
We assess Shine's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Shine has a total score of 3/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
5.15%
Current annual income from Shine dividends. Estimated to be 6.12% next year.
If you bought A$2,000 of Shine shares you are expected to receive A$103 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Shine's pays a higher dividend yield than the bottom 25% of dividend payers in Australia (2.55%).
  • Shine's dividend is below the markets top 25% of dividend payers in Australia (5.77%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
ASX:SHJ Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 2 Analyst Estimates (S&P Global) See Below
Australia Consumer Services Industry Average Dividend Yield Market Cap Weighted Average of 10 Stocks 2.2%
Australia Market Average Dividend Yield Market Cap Weighted Average of 415 Stocks 4.1%
Australia Minimum Threshold Dividend Yield 10th Percentile 1.5%
Australia Bottom 25% Dividend Yield 25th Percentile 2.6%
Australia Top 25% Dividend Yield 75th Percentile 5.8%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

ASX:SHJ Future Dividends Estimate Data
Date (Data in A$) Dividend per Share (annual) Avg. No. Analysts
2022-06-30 0.05 1.00
2021-06-30 0.04 2.00
2020-06-30 0.04 2.00
2019-06-30 0.04 2.00
ASX:SHJ Past Annualized Dividends Data
Date (Data in A$) Dividend per share (annual) Avg. Yield (%)
2019-02-26 0.035 5.161
2018-08-28 0.033 4.258
2018-02-27 0.030 3.355
2017-08-24 0.026 3.935
2017-02-27 0.012 2.150
2016-08-23 0.025 2.570
2016-02-22 0.000 0.000
2015-08-27 0.038 2.438
2015-02-26 0.040 1.439
2014-08-26 0.035 1.264
2013-08-27 0.024 1.219

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Shine has been paying a dividend for less than 10 years and during this time payments have been volatile (annual drop of over 20%).
  • Dividend payments have increased, but Shine only paid a dividend in the past 6 years.
Current Payout to shareholders
What portion of Shine's earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by earnings (2.2x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (3.3x coverage).
X
Income/ dividend checks
We assess Shine's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.5%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Shine afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Shine has a total score of 3/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

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

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Simon Morrison
COMPENSATION A$535,604
AGE 50
TENURE AS CEO 2.6 years
CEO Bio

Mr. Simon Michael Morrison, LLB serves as Managing Director at Shine Lawyers Limited. Mr. Morrison is the Co-Founder of Shine Corporate Limited. He has been the Chief Executive Officer and Managing Director of Shine Corporate Limited since December 30, 2016 and serves as its Executive Director since March 13, 2013. He served as a Consultant of Shine Corporate Limited. Previously, he served as the Managing Director of Shine Corporate Limited from 2012 to August 24, 2016. He holds a Bachelor of Laws and is a Queensland Law Society Accredited Specialist in Personal Injury law.

CEO Compensation
  • Simon's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.
  • Simon's remuneration is higher than average for companies of similar size in Australia.
Management Team

Simon Morrison

TITLE
Co-Founder
COMPENSATION
A$536K
AGE
50
TENURE
2.6 yrs

Ravin Raj

TITLE
CFO & Company Secretary
COMPENSATION
A$410K
TENURE
1.9 yrs

Roche Rochester

TITLE
Co-Founder & Consultant
COMPENSATION
A$46K
AGE
55

Annette O'Hara

TITLE
General Counsel & Company Secretary
AGE
55

Grant Dearlove

TITLE
Head of Growth & Markets

Lisa Flynn

TITLE
Executive Officer
Board of Directors Tenure

Average tenure and age of the Shine board of directors in years:

6.3
Average Tenure
61
Average Age
  • The tenure for the Shine board of directors is about average.
Board of Directors

Tony Bellas

TITLE
Independent Non-Executive Chairman
COMPENSATION
A$131K
AGE
65
TENURE
6.3 yrs

Simon Morrison

TITLE
Co-Founder
COMPENSATION
A$536K
AGE
50
TENURE
6.3 yrs

Greg Moynihan

TITLE
Independent Non-Executive Director
COMPENSATION
A$88K
AGE
62
TENURE
6.3 yrs

Carolyn Barker

TITLE
Independent Non-Executive Director
COMPENSATION
A$88K
AGE
60
TENURE
6.3 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month individual insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (A$) Value (A$)
X
Management checks
We assess Shine's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Shine has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Can We See Significant Insider Ownership On The Shine Corporate Ltd (ASX:SHJ) Share Register?

Our analysis of the ownership of the company, below, shows that institutional investors have bought into the company. … See our latest analysis for Shine ASX:SHJ Ownership Summary, July 17th 2019 What Does The Institutional Ownership Tell Us About Shine? … Private Company Ownership Our data indicates that Private Companies hold 3.6%, of the company's shares.

Simply Wall St -

Is Shine Corporate Ltd's (ASX:SHJ) CEO Salary Justified?

We examined a group of similar sized companies, with market capitalizations of below AU$287m. … Thus we can conclude that Simon Morrison receives more in total compensation than the median of a group of companies in the same market, and of similar size to Shine Corporate Ltd. … We examined the amount Shine Corporate Ltd pays its CEO, and compared it to the amount paid by similar sized companies.

Simply Wall St -

Have Investors Priced In Shine Corporate Ltd's (ASX:SHJ) Growth?

Shine Corporate Ltd (ASX:SHJ) is considered a high growth stock. … However, since Shine is a high-growth stock, we must also account for its earnings growth by using calculation called the PEG ratio. … So, when we include the growth factor in our analysis, Shine appears relatively cheap , based on the fundamentals.

Simply Wall St -

Want To Invest In Shine Corporate Ltd (ASX:SHJ) Today? Read This First

Shine is available at a price-to-earnings ratio of 8.97x, showing us it is undervalued relative to the current AU market average of 15.89x , and undervalued based on its latest annual earnings update compared to the Consumer Services average of 18.91x. … A PE ratio of 8.97x and expected year-on-year earnings growth of 23% give Shine an extremely low PEG ratio of 0.39x. … Based on this growth, Shine's stock can be considered relatively cheap , based on the fundamentals.

Simply Wall St -

What Does Shine Corporate Ltd's (ASX:SHJ) Share Price Indicate?

However, given that Shine’s share is fairly volatile (i.e. its price movements are magnified relative to the rest of the market) this could mean the price can sink lower, giving us another chance to buy in the future. … Buying a great company with a robust outlook at a cheap price is always a good investment, so let’s also take a look at the company's future expectations. … Its prosperous future outlook isn’t fully reflected in the current share price yet, which means it’s not too late to buy SHJ.

Simply Wall St -

Is Shine Corporate Ltd (ASX:SHJ) An Attractive Dividend Stock?

Looking at the data, we can see that Shine has been paying a dividend for the past six years. … Shine's dividend payments have fluctuated, so it hasn't grown 6.5% every year, but the CAGR is a useful rule of thumb for approximating the historical growth. … Conclusion When we look at a dividend stock, we need to form a judgement on whether the dividend will grow, if the company is able to maintain it in a wide range of economic circumstances, and if the dividend payout is sustainable.

Simply Wall St -

Investors Who Bought Shine (ASX:SHJ) Shares Five Years Ago Are Now Down 70%

One imperfect but simple way to consider how the market perception of a company has shifted is to compare the change in the earnings per share (EPS) with the share price movement. … It is important to consider the total shareholder return, as well as the share price return, for any given stock. … We note that for Shine the TSR over the last 5 years was -65%, which is better than the share price return mentioned above.

Simply Wall St -

Read This Before You Buy Shine Corporate Ltd (ASX:SHJ) Because Of Its P/E Ratio

Check out our latest analysis for Shine How Do I Calculate A Price To Earnings Ratio? … The formula for price to earnings is: Price to Earnings Ratio = Share Price ÷ Earnings per Share (EPS) Or for Shine: P/E of 8.84 = A$0.69 ÷ A$0.078 (Based on the trailing twelve months to December 2018.) Is A High Price-to-Earnings Ratio Good? … All else being equal, it's better to pay a low price -- but as Warren Buffett said, 'It's far better to buy a wonderful company at a fair price than a fair company at a wonderful price.' How Growth Rates Impact P/E Ratios Companies that shrink earnings per share quickly will rapidly decrease the 'E' in the equation.

Simply Wall St -

Should Shine Corporate Ltd (ASX:SHJ) Be Your Next Stock Pick?

I've been keeping an eye on Shine Corporate Ltd (ASX:SHJ) because I'm attracted to its fundamentals. … Looking at the company as a whole, as a potential stock investment, I believe SHJ has a lot to offer. … is a company with

Simply Wall St -

Examining Shine Corporate Ltd’s (ASX:SHJ) Weak Return On Capital Employed

To be precise, we'll consider its Return On Capital Employed (ROCE), as that will inform our view of the quality of the business. … Return On Capital Employed (ROCE): What is it? … ROCE is a measure of a company's yearly pre-tax profit (its return), relative to the capital employed in the business.

Simply Wall St -

Company Info

Description

Shine Corporate Ltd, through its subsidiaries, provides damages based plaintiff litigation legal services in Australia; and insurance recovery consulting services in New Zealand. It operates through two segments, Personal Injury and Emerging Practice Areas. The Personal Injury segment provides medical negligence, public liability, catastrophic injuries, workers' compensation, and motor vehicle accidents. The Emerging Practice Areas segment offers disability insurance and superannuation claims, professional negligence, social justice, class actions, first party insurance recovery claims, landowners' rights, aviation, product liability, family law, and asbestos compensation. It operates 51 branches. The company was founded in 1976 and is based in Brisbane, Australia.

Details
Name: Shine Corporate Ltd
SHJ
Exchange: ASX
Founded: 1976
A$117,750,032
173,161,812
Website: http://www.shinecorporate.com.au
Address: Shine Corporate Ltd
160 Ann Street,
Level 13,
Brisbane,
Queensland, 4000,
Australia
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
ASX SHJ Ordinary Shares Australian Securities Exchange AU AUD 15. May 2013
CHIA SHJ Ordinary Shares Chi-X Australia AU AUD 15. May 2013
Number of employees
Current staff
Staff numbers
847
Shine employees.
Industry
Specialized Consumer Services
Consumer Services
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/07/19 10:37
End of day share price update: 2019/07/19 00:00
Last estimates confirmation: 2019/06/27
Last earnings filing: 2019/02/26
Last earnings reported: 2018/12/31
Last annual earnings reported: 2018/06/30


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.