ASX:SHJ

Stock Analysis Report

Executive Summary

Shine Corporate Ltd, through its subsidiaries, provides damages based plaintiff litigation legal services in Australia; and insurance recovery consulting services in New Zealand.

Snowflake

Fundamentals

Very undervalued with excellent balance sheet.


Similar Companies

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

-5.2%

SHJ

2.9%

AU Consumer Services

0.4%

AU Market


1 Year Return

-7.4%

SHJ

27.5%

AU Consumer Services

9.8%

AU Market

Return vs Industry: SHJ underperformed the Australian Consumer Services industry which returned 27.5% over the past year.

Return vs Market: SHJ underperformed the Australian Market which returned 9.8% over the past year.


Shareholder returns

SHJIndustryMarket
7 Day-5.2%2.9%0.4%
30 Day-5.2%5.1%-0.7%
90 Day19.9%-10.3%-0.6%
1 Year-2.9%-7.4%31.1%27.5%16.1%9.8%
3 Year-28.8%-37.3%-16.8%-25.3%36.1%17.9%
5 Year-64.5%-69.8%-17.1%-32.5%49.4%15.8%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: SHJ (A$0.82) is trading below our estimate of fair value (A$1.73)

Significantly Undervalued: SHJ is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: SHJ is good value based on its PE Ratio (10.1x) compared to the Consumer Services industry average (17.8x).

PE vs Market: SHJ is good value based on its PE Ratio (10.1x) compared to the Australian market (18.3x).


Price to Earnings Growth Ratio

Low PEG Ratio: SHJ is good value based on its PEG Ratio (0.6x)


Price to Book Ratio

PB vs Industry: SHJ is good value based on its PB Ratio (0.6x) compared to the AU Consumer Services industry average (1.8x).


Next Steps

Future Growth

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

16.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SHJ's forecast earnings growth (16.6% per year) is above the savings rate (2.3%).

Earnings vs Market: SHJ's earnings (16.6% per year) are forecast to grow faster than the Australian market (10.3% per year).

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

Revenue vs Market: SHJ's revenue (4.6% per year) is forecast to grow faster than the Australian market (3.6% per year).

High Growth Revenue: SHJ's revenue (4.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: SHJ's Return on Equity is forecast to be low in 3 years time (9.3%).


Next Steps

Past Performance

How has Shine performed over the past 5 years?

-9.0%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: SHJ's earnings have declined by -9% per year over the past 5 years.

Accelerating Growth: SHJ's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: SHJ had negative earnings growth (-27%) over the past year, making it difficult to compare to the Consumer Services industry average (0.6%).


Return on Equity

High ROE: SHJ's Return on Equity (6.3%) is considered low.


Return on Assets

ROA vs Industry: SHJ's Return on Assets is below or equal to the Consumer Services industry average last year.


Return on Capital Employed

ROCE Improving: SHJ has improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is Shine's financial position?


Financial Position Analysis

Short Term Liabilities: SHJ's short term assets (A$272.9M) exceeds its short term liabilities (A$99.1M)

Long Term Liabilities: SHJ's short term assets (272.9M) exceeds its long term liabilities (184.1M)


Debt to Equity History and Analysis

Debt Level: SHJ's debt to equity ratio (20.8%) is considered satisfactory

Reducing Debt: SHJ's debt to equity ratio has increased from 12.5% to 20.8% over the past 5 years.

Debt Coverage: SHJ's debt is well covered by operating cash flow (51.1%).

Interest Coverage: SHJ's interest payments on its debt are well covered by EBIT (4.7x coverage).


Balance Sheet

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

Debt Coverage by Assets: SHJ's debt is covered by short term assets (assets are 5.895350x debt).


Next Steps

Dividend

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

4.60%

Current Dividend Yield


Dividend Yield vs Market

company4.6%marketbottom25%2.4%markettop25%5.6%industryaverage2.4%forecastin3Years5.5%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: SHJ's dividend (4.6%) is higher than the bottom 25% of dividend payers in the Australian market (2.44%).

High Dividend: SHJ's dividend (4.6%) is low compared to the top 25% of dividend payers in the Australian market (5.58%).

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

Growing Dividend: SHJ's dividend payments have increased, but the company has only paid a dividend for 6 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (46.5%), SHJ's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: SHJ's dividends in 3 years are forecast to be well covered by earnings (34.9% payout ratio).


Next Steps

Management

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

2.9yrs

Average management tenure


CEO

Simon Morrison (50yo)

2.8yrs

Tenure

AU$556,339

Compensation

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 Directo ...


CEO Compensation Analysis

Compensation vs. Market: Simon's total compensation ($USD379.68K) is above average for companies of similar size in the Australian market ($USD259.09K).

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


Management Age and Tenure

2.9yrs

Average Tenure

55yo

Average Age

Experienced Management: SHJ's management team is considered experienced (2.9 years average tenure).


Board Age and Tenure

6.6yrs

Average Tenure

61yo

Average Age

Experienced Board: SHJ's board of directors are considered experienced (6.6 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


Management Team

  • Ravin Raj

    CFO & Company Secretary

    • Tenure: 2.9yrs
    • Compensation: AU$529.03k
  • Roche Rochester (55yo)

    Co-Founder & Consultant

    • Tenure: 0yrs
    • Compensation: AU$46.05k
  • Simon Morrison (50yo)

    Co-Founder

    • Tenure: 2.8yrs
    • Compensation: AU$556.34k
  • Lisa Flynn

    Executive Officer

    • Tenure: 0yrs
  • Annette O'Hara (55yo)

    General Counsel & Company Secretary

    • Tenure: 3.2yrs
  • Cath Evans

    Group Chief Operating Officer

    • Tenure: 0.9yrs
    • Compensation: AU$935.62k

Board Members

  • Tony Bellas (65yo)

    Independent Non-Executive Chairman

    • Tenure: 6.6yrs
    • Compensation: AU$131.40k
  • Greg Moynihan (62yo)

    Independent Non-Executive Director

    • Tenure: 6.6yrs
    • Compensation: AU$87.60k
  • Carolyn Barker (60yo)

    Independent Non-Executive Director

    • Tenure: 6.6yrs
    • Compensation: AU$87.60k
  • Simon Morrison (50yo)

    Co-Founder

    • Tenure: 2.8yrs
    • Compensation: AU$556.34k

Company Information

Shine Corporate Ltd's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Shine Corporate Ltd
  • Ticker: SHJ
  • Exchange: ASX
  • Founded: 1976
  • Industry: Specialized Consumer Services
  • Sector: Consumer Services
  • Market Cap: AU$140.261m
  • Shares outstanding: 173.16m
  • Website: https://www.shinecorporate.com.au

Number of Employees


Location

  • Shine Corporate Ltd
  • 160 Ann Street
  • Level 13
  • Brisbane
  • Queensland
  • 4000
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SHJASX (Australian Securities Exchange)YesOrdinary SharesAUAUDMay 2013
SHJCHIA (Chi-X Australia)YesOrdinary SharesAUAUDMay 2013

Biography

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 se ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/18 10:35
End of Day Share Price2019/10/18 00:00
Earnings2019/06/30
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.