ASX:SDI

Stock Analysis Report

Executive Summary

SDI Limited engages in the research, development, manufacture, and distribution of dental restorative materials, whitening systems, other dental materials in Australia, Europe, the United States, and Brazil.

Snowflake

Fundamentals

Flawless balance sheet and fair value.

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

2.3%

SDI

1.4%

AU Medical Equipment

0.4%

AU Market


1 Year Return

56.1%

SDI

26.5%

AU Medical Equipment

9.8%

AU Market

Return vs Industry: SDI exceeded the Australian Medical Equipment industry which returned 26.5% over the past year.

Return vs Market: SDI exceeded the Australian Market which returned 9.8% over the past year.


Shareholder returns

SDIIndustryMarket
7 Day2.3%1.4%0.4%
30 Day17.1%1.3%-1.1%
90 Day-0.6%1.7%-0.6%
1 Year63.7%56.1%28.6%26.5%16.1%9.8%
3 Year-5.4%-16.8%47.6%41.1%36.1%17.9%
5 Year64.0%36.9%142.9%123.2%49.4%15.7%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

14.43x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Undervalued: SDI (A$0.89) is trading above our estimate of fair value (A$0.52)

Significantly Undervalued: SDI is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: SDI is good value based on its PE Ratio (14.4x) compared to the Medical Equipment industry average (30.9x).

PE vs Market: SDI is good value based on its PE Ratio (14.4x) compared to the Australian market (18.2x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: SDI is good value based on its PB Ratio (1.4x) compared to the AU Medical Equipment industry average (4.7x).


Next Steps

Future Growth

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

11.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SDI's forecast earnings growth (11.5% per year) is above the savings rate (2.3%).

Earnings vs Market: SDI's earnings (11.5% per year) are forecast to grow faster than the Australian market (10.3% per year).

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

Revenue vs Market: Insufficient data to determine if SDI's revenue is forecast to grow faster than the Australian market.

High Growth Revenue: Insufficient data to determine if SDI's revenue is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: Insufficient data to determine if SDI's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has SDI performed over the past 5 years?

0.2%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: SDI's earnings have grown by 0.2% per year over the past 5 years.

Accelerating Growth: SDI's earnings growth over the past year (29.5%) exceeds its 5-year average (0.2% per year).

Earnings vs Industry: SDI earnings growth over the past year (29.5%) underperformed the Medical Equipment industry 29.5%.


Return on Equity

High ROE: SDI's Return on Equity (10%) is considered low.


Return on Assets

ROA vs Industry: SDI's Return on Assets is below or equal to the Medical Equipment industry average last year.


Return on Capital Employed

ROCE Improving: SDI's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is SDI's financial position?


Financial Position Analysis

Short Term Liabilities: SDI's short term assets (A$42.6M) exceeds its short term liabilities (A$11.0M)

Long Term Liabilities: SDI's short term assets (42.6M) exceeds its long term liabilities (2.5M)


Debt to Equity History and Analysis

Debt Level: SDI is debt free.

Reducing Debt: SDI has no debt compared to 5 years ago when its debt to equity ratio was 13.7%.

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

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


Balance Sheet

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

Debt Coverage by Assets: Insufficient data to determine if SDI's debt is covered by short term assets.


Next Steps

Dividend

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

3.03%

Current Dividend Yield


Dividend Yield vs Market

company3.0%marketbottom25%2.4%markettop25%5.6%industryaverage1.6%forecastin3Yearsn/a

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: SDI's dividend (3.03%) is higher than the bottom 25% of dividend payers in the Australian market (2.44%).

High Dividend: SDI's dividend (3.03%) is low compared to the top 25% of dividend payers in the Australian market (5.59%).

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

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


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (43.8%), SDI's dividend payments are 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 SDI's salary, the management and board of directors tenure and is there insider trading?

3.6yrs

Average management tenure


CEO

Samantha Cheetham (50yo)

3.3yrs

Tenure

AU$620,443

Compensation

Ms Samantha Jane Cheetham, B.Bus. (Banking and Finance), M.B.A. has been Chief Executive Officer and Managing Director of SDI Limited since July 1, 2016. Ms. Cheetham served as Joint Chief Executive Office ...


CEO Compensation Analysis

Compensation vs. Market: Samantha's total compensation ($USD424.76K) is about average for companies of similar size in the Australian market ($USD256.55K).

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


Management Age and Tenure

3.6yrs

Average Tenure

64yo

Average Age

Experienced Management: SDI's management team is considered experienced (3.6 years average tenure).


Board Age and Tenure

6.1yrs

Average Tenure

70yo

Average Age

Experienced Board: SDI's board of directors are considered experienced (6.1 years average tenure).


Insider Trading

Insider Buying: SDI insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyAU$22,80026 Sep 19
John Slaviero
EntityIndividual
Role
Member of the Board of Directors
CFO, COO
Shares30,000
Max PriceAU$0.76
BuyAU$29,56202 Sep 19
Jeffery Cheetham
EntityIndividual
Role
Chairman of the Board
Founder & Chairman
Shares37,900
Max PriceAU$0.78
BuyAU$13,26027 Aug 19
Gerard Kennedy
EntityIndividual
Role
Member of the Board of Directors
Non-Executive Director
Shares17,000
Max PriceAU$0.78
BuyAU$7,82326 Aug 19
Cameron Allen
EntityIndividual
Role
Member of the Board of Directors
Non-Executive Director
Shares10,000
Max PriceAU$0.79
BuyAU$7,90026 Aug 19
Gerald Bullon
EntityIndividual
Role
Member of the Board of Directors
Non-Executive Director
Shares10,000
Max PriceAU$0.79
BuyAU$8,30022 Feb 19
Gerard Kennedy
EntityIndividual
Role
Member of the Board of Directors
Non-Executive Director
Shares10,000
Max PriceAU$0.83
BuyAU$23,87322 Feb 19
Gerald Bullon
EntityIndividual
Role
Member of the Board of Directors
Non-Executive Director
Shares27,284
Max PriceAU$0.88
BuyAU$4,13016 Nov 18
Gerard Kennedy
EntityIndividual
Role
Member of the Board of Directors
Non-Executive Director
Shares7,000
Max PriceAU$0.59

Ownership Breakdown


Management Team

  • John Slaviero (64yo)

    CFO, COO

    • Tenure: 6yrs
    • Compensation: AU$570.55k
  • Samantha Cheetham (50yo)

    CEO, MD & Executive Director

    • Tenure: 3.3yrs
    • Compensation: AU$620.44k
  • Jeffery Cheetham (76yo)

    Founder & Chairman

    • Tenure: 6yrs
    • Compensation: AU$150.00k
  • Tom Cheetham

    Sales Manager of Australia

    • Tenure: 8.3yrs
    • Compensation: AU$105.79k
  • Pamela Cheetham (73yo)

    Co-Founder

    • Tenure: 25.2yrs
  • Nicholas Cheetham (46yo)

    Chief Information Officer and Operations & IT Director

    • Tenure: 0yrs
    • Compensation: AU$347.38k
  • Ray Cahill

    Chief Quality & Compliance Officer

    • Tenure: 0yrs
    • Compensation: AU$231.31k
  • Joshua Cheetham

    Chief Technology Officer

    • Tenure: 3.6yrs

Board Members

  • John Slaviero (64yo)

    CFO, COO

    • Tenure: 6yrs
    • Compensation: AU$570.55k
  • Samantha Cheetham (50yo)

    CEO, MD & Executive Director

    • Tenure: 3.3yrs
    • Compensation: AU$620.44k
  • Jeffery Cheetham (76yo)

    Founder & Chairman

    • Tenure: 6yrs
    • Compensation: AU$150.00k
  • Pamela Cheetham (73yo)

    Co-Founder

    • Tenure: 25.2yrs
  • Gerald Bullon (72yo)

    Non-Executive Director

    • Tenure: 6.2yrs
    • Compensation: AU$70.00k
  • Geoffrey Knight (73yo)

    Non-Executive Director

    • Tenure: 6.2yrs
    • Compensation: AU$60.00k
  • Cameron Allen (54yo)

    Non-Executive Director

    • Tenure: 6yrs
    • Compensation: AU$70.00k
  • Gerard Kennedy (68yo)

    Non-Executive Director

    • Tenure: 6yrs
    • Compensation: AU$60.00k

Company Information

SDI Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: SDI Limited
  • Ticker: SDI
  • Exchange: ASX
  • Founded: 1972
  • Industry: Health Care Supplies
  • Sector: Healthcare
  • Market Cap: AU$105.790m
  • Shares outstanding: 118.87m
  • Website: https://www.sdi.com.au

Location

  • SDI Limited
  • 3-15 Brunsdon Street
  • Bayswater
  • Victoria
  • 3153
  • Australia

Listings

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

Biography

SDI Limited engages in the research, development, manufacture, and distribution of dental restorative materials, whitening systems, other dental materials in Australia, Europe, the United States, and Brazi ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/19 10:32
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.