ASX:SSG

Stock Analysis Report

Shaver Shop Group

Executive Summary

Shaver Shop Group Limited engages in the retail of specialist personal grooming products in Australia and New Zealand.

Snowflake

Fundamentals

Very undervalued with flawless balance sheet and pays a dividend.

Share Price & News

How has Shaver Shop Group's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

0%

SSG

-3.3%

AU Specialty Retail

0.7%

AU Market


1 Year Return

39.5%

SSG

20.0%

AU Specialty Retail

11.0%

AU Market

Return vs Industry: SSG exceeded the Australian Specialty Retail industry which returned 20% over the past year.

Return vs Market: SSG exceeded the Australian Market which returned 11% over the past year.


Shareholder returns

SSGIndustryMarket
7 Day0%-3.3%0.7%
30 Day15.4%2.2%-0.2%
90 Day31.9%16.1%-0.1%
1 Year53.0%39.5%25.5%20.0%17.4%11.0%
3 Year-30.6%-46.9%19.4%4.1%36.3%18.0%
5 Yearn/a84.3%50.1%51.4%17.3%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Shaver Shop Group 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: SSG (A$0.6) is trading below our estimate of fair value (A$2.85)

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


Price To Earnings Ratio

PE vs Industry: SSG is good value based on its PE Ratio (11x) compared to the Specialty Retail industry average (15.5x).

PE vs Market: SSG is good value based on its PE Ratio (11x) compared to the Australian market (17.7x).


Price to Earnings Growth Ratio

Low PEG Ratio: SSG is good value based on its PEG Ratio (0.7x)


Price to Book Ratio

PB vs Industry: SSG is good value based on its PB Ratio (1.3x) compared to the AU Specialty Retail industry average (2.1x).


Next Steps

Future Growth

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

14.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SSG's forecast earnings growth (14.9% per year) is above the savings rate (2.3%).

Earnings vs Market: SSG's earnings (14.9% per year) are forecast to grow faster than the Australian market (10.2% per year).

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

Revenue vs Market: SSG's revenue (6.3% per year) is forecast to grow faster than the Australian market (3.6% per year).

High Growth Revenue: SSG's revenue (6.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: SSG's Return on Equity is forecast to be low in 3 years time (14.3%).


Next Steps

Past Performance

How has Shaver Shop Group performed over the past 5 years?

0.3%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: SSG's earnings have grown by 0.3% per year over the past 5 years.

Accelerating Growth: SSG's earnings growth over the past year (1.7%) exceeds its 5-year average (0.3% per year).

Earnings vs Industry: SSG earnings growth over the past year (1.7%) exceeded the Specialty Retail industry -2.1%.


Return on Equity

High ROE: SSG's Return on Equity (11.1%) is considered low.


Return on Assets

ROA vs Industry: SSG has a higher Return on Assets than the Specialty Retail industry average last year.


Return on Capital Employed

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


Next Steps

Financial Health

How is Shaver Shop Group's financial position?


Financial Position Analysis

Short Term Liabilities: SSG's short term assets (A$33.0M) exceeds its short term liabilities (A$19.2M)

Long Term Liabilities: SSG's short term assets (33.0M) exceeds its long term liabilities (13.3M)


Debt to Equity History and Analysis

Debt Level: SSG's debt to equity ratio (17.1%) is considered satisfactory

Reducing Debt: SSG's debt to equity ratio has reduced from 35.9% to 17.1% over the past 5 years.

Debt Coverage: SSG's debt is well covered by operating cash flow (113.2%).

Interest Coverage: SSG's interest payments on its debt are well covered by EBIT (17.3x coverage).


Balance Sheet

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

Debt Coverage by Assets: SSG's debt is covered by short term assets (assets are 3.199640x debt).


Next Steps

Dividend

What is Shaver Shop Group's current dividend yield, its reliability and sustainability?

7.50%

Current Dividend Yield


Dividend Yield vs Market

company7.5%marketbottom25%2.5%markettop25%5.6%industryaverage4.0%forecastin3Years7.4%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: SSG's dividend (7.5%) is higher than the bottom 25% of dividend payers in the Australian market (2.49%).

High Dividend: SSG's dividend (7.5%) is in the top 25% of dividend payers in the Australian market (5.56%)

Stable Dividend: Whilst dividend payments have been stable, SSG has been paying a dividend for less than 10 years.

Growing Dividend: SSG's dividend payments have increased, but the company has only paid a dividend for 3 years.


Current Payout to Shareholders

Dividend Coverage: At its current payout ratio (82.2%), SSG's payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: SSG's dividends in 3 years are forecast to be covered by earnings (54% payout ratio).


Next Steps

Management

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

5.4yrs

Average management tenure


CEO

Cameron Fox 0

11.3yrs

Tenure

AU$676,935

Compensation

Mr. Cameron Fox has been Chief Executive Officer of Shaver Shop Group Limited and Shaver Shop Pty Ltd since July 2008 and also serves as its Managing Director. Mr. Fox has been an Executive Director at Sha ...


CEO Compensation Analysis

Compensation vs. Market: Cameron's total compensation ($USD457.85K) is about average for companies of similar size in the Australian market ($USD261.02K).

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


Management Age and Tenure

5.4yrs

Average Tenure

Experienced Management: SSG's management team is seasoned and experienced (5.4 years average tenure).


Board Age and Tenure

3.3yrs

Average Tenure

Experienced Board: SSG's board of directors are considered experienced (3.3 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.


Recent Insider Transactions

SellAU$1,218,35130 Jul 19
Perpetual Limited
EntityCompany
Shares3,046,564
Max PriceAU$0.48
BuyAU$83,60909 Apr 19
Cameron Fox
EntityIndividual
Role
Chief Executive Officer
CEO, MD & Executive Director
Shares214,411
Max PriceAU$0.39
SellAU$4,604,84728 Dec 18
Perpetual Limited
EntityCompany
Shares9,994,782
Max PriceAU$0.46

Ownership Breakdown


Management Team

  • Larry Hamson

    CFO & Company Secretary

    • Tenure: 3.5yrs
    • Compensation: AU$485.71k
  • Cameron Fox

    CEO, MD & Executive Director

    • Tenure: 11.3yrs
    • Compensation: AU$676.94k
  • Rita Najmeddine

    Director of Human Resources

    • Tenure: 7.3yrs
  • Allana May

    Chief Marketing Officer

    • Tenure: 0.8yrs

Board Members

  • Trent Peterson

    Independent Non-Executive Director

    • Tenure: 3.3yrs
    • Compensation: AU$80.00k
  • Craig Mathieson

    Independent Non-Executive Director

    • Tenure: 8.4yrs
    • Compensation: AU$80.00k
  • Brian Singer

    Independent Non-Executive Director

    • Tenure: 8.4yrs
    • Compensation: AU$70.00k
  • Brodie Arnhold

    Independent Non-Executive Chairman of the Board

    • Tenure: 0yrs
    • Compensation: AU$140.00k
  • Melanie Wilson

    Independent Non-Executive Director

    • Tenure: 3.3yrs
    • Compensation: AU$70.00k
  • Cameron Fox

    CEO, MD & Executive Director

    • Tenure: 11.3yrs
    • Compensation: AU$676.94k

Company Information

Shaver Shop Group Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Shaver Shop Group Limited
  • Ticker: SSG
  • Exchange: ASX
  • Founded: 1986
  • Industry: Specialty Stores
  • Sector: Retail
  • Market Cap: AU$77.047m
  • Shares outstanding: 124.27m
  • Website: https://www.shavershop.com.au

Number of Employees


Location

  • Shaver Shop Group Limited
  • Chadstone Tower One
  • Level 1
  • Chadstone
  • Victoria
  • 3148
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SSGASX (Australian Securities Exchange)YesClass A SharesAUAUDJul 2016
SSGCHIA (Chi-X Australia)YesClass A SharesAUAUDJul 2016

Biography

Shaver Shop Group Limited engages in the retail of specialist personal grooming products in Australia and New Zealand. The company offers electric shavers, beard trimmers, hair clippers, body groomers, man ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/15 10:41
End of Day Share Price2019/10/15 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.