Silk Logistics Holdings (ASX:SLH) - Share price, News & Analysis

SLH fundamental analysis
Snowflake Score
Valuation	4/6
Future Growth	5/6
Past Performance	2/6
Financial Health	2/6
Dividends	0/6

SLH Overview

Silk Logistics Holdings Limited provides integrated landside logistics services in Australia.

Rewards

Trading at 82.3% below our estimate of its fair value

Earnings are forecast to grow 25.07% per year

Became profitable this year

Risk Analysis

No risks detected for SLH from our risk checks.

Price History & Performance

Summary of all time highs, changes and price drops for Silk Logistics Holdings
Historical stock prices
Current Share Price	AU$2.22
52 Week High	AU$2.12
52 Week Low	AU$2.60
Beta	0
1 Month Change	-2.63%
3 Month Change	-5.13%
1 Year Change	n/a
3 Year Change	n/a
5 Year Change	n/a
Change since IPO	-11.20%

Shareholder Returns

	SLH	AU Logistics	AU Market
7D	0.9%	0.6%	0.9%
1Y	n/a	60.1%	20.2%

Return vs Industry: Insufficient data to determine how SLH performed against the Australian Logistics industry.

Return vs Market: Insufficient data to determine how SLH performed against the Australian Market.

Price Volatility

Is SLH's price volatile compared to industry and market?
SLH volatility
SLH Beta	0
Industry Beta	0.62
Market Beta	1

Stable Share Price: SLH is less volatile than 75% of Australian stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: Insufficient data to determine SLH's volatility change over the past year.

About the Company

Founded	Employees	CEO	Website
2013	1,190	Brendan Boyd	https://www.silklogistics.com.au

Silk Logistics Holdings Limited provides integrated landside logistics services in Australia. The company offers port logistics services, including wharf cartage and warehousing and distribution services. It serves specialized retail, fast moving consumer goods, light industrial, food, containerized agriculture, and other industries.

Silk Logistics Holdings Fundamentals Summary

How do Silk Logistics Holdings's earnings and revenue compare to its market cap?
SLH fundamental statistics
Market Cap	AU$168.66m
Earnings (TTM)	AU$8.39m
Revenue (TTM)	AU$323.31m

20.1x

P/E Ratio

0.5x

P/S Ratio

Is SLH overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
SLH income statement (TTM)
Revenue	AU$323.31m
Cost of Revenue	AU$186.43m
Gross Profit	AU$136.88m
Expenses	AU$128.49m
Earnings	AU$8.39m

Last Reported Earnings

Jun 27, 2021

Next Earnings Date

n/a

Earnings per share (EPS)	0.11
Gross Margin	42.34%
Net Profit Margin	2.59%
Debt/Equity Ratio	37.3%

How did SLH perform over the long term?

See historical performance and comparison

Valuation

Is Silk Logistics Holdings 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: SLH (A$2.22) is trading below our estimate of fair value (A$12.58)

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

Price To Earnings Ratio

PE vs Industry: SLH is good value based on its PE Ratio (20.1x) compared to the Oceanic Logistics industry average (29.3x).

PE vs Market: SLH is poor value based on its PE Ratio (20.1x) compared to the Australian market (19.8x).

Price to Earnings Growth Ratio

PEG Ratio: SLH is good value based on its PEG Ratio (0.8x)

Price to Book Ratio

PB vs Industry: SLH has negative assets, so we can't compare its PB Ratio to the XO Logistics industry average.

Future Growth

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

25.1%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: SLH's forecast earnings growth (25.1% per year) is above the savings rate (1.9%).

Earnings vs Market: SLH's earnings (25.1% per year) are forecast to grow faster than the Australian market (11.7% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: SLH's revenue (5.9% per year) is forecast to grow faster than the Australian market (5.5% per year).

High Growth Revenue: SLH's revenue (5.9% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: SLH's Return on Equity is forecast to be high in 3 years time (30.3%)

Past Performance

How has Silk Logistics Holdings performed over the past 5 years?

28.6%

Last years revenue growth

Earnings and Revenue History

Quality Earnings: SLH has high quality earnings.

Growing Profit Margin: SLH became profitable in the past.

Past Earnings Growth Analysis

Earnings Trend: Insufficient data to determine if SLH's year-on-year earnings growth rate was positive over the past 5 years.

Accelerating Growth: SLH has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: SLH has become profitable in the last year, making it difficult to compare its past year earnings growth to the Logistics industry (39.3%).

Return on Equity

High ROE: SLH's Return on Equity (19.6%) is considered low.

Financial Health

How is Silk Logistics Holdings's financial position?

Financial Position Analysis

Short Term Liabilities: SLH's short term assets (A$76.7M) do not cover its short term liabilities (A$94.2M).

Long Term Liabilities: SLH's short term assets (A$76.7M) do not cover its long term liabilities (A$155.3M).

Debt to Equity History and Analysis

Debt Level: SLH's debt to equity ratio (37.3%) is considered satisfactory.

Reducing Debt: Insufficient data to determine if SLH's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: SLH's debt is well covered by operating cash flow (300.2%).

Interest Coverage: SLH's interest payments on its debt are not well covered by EBIT (2.8x coverage).

Balance Sheet

Dividend

What is Silk Logistics Holdings's current dividend yield, its reliability and sustainability?

4.56%

Forecast Dividend Yield

Dividend Yield vs Market

Notable Dividend: Unable to evaluate SLH's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate SLH's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.

Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if SLH's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if SLH's dividend payments have been increasing.

Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.

Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of SLH's dividend in 3 years as they are not forecast to pay a notable one for the Australian market.

Next Steps

Explore strong dividend paying companies in the Transportation industry.

Management

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

4.3yrs

Average management tenure

CEO

Brendan Boyd

7.92yrs

Tenure

AU$847,100

Compensation

Mr. Brendan Boyd serves as Managing Director and Chief Executive Officer at Silk Logistics Holdings Limited since November 2013. He has previously served as the Group’s General Manager Warehousing. He serv...

CEO Compensation Analysis

Compensation vs Market: Brendan's total compensation ($USD628.74K) is above average for companies of similar size in the Australian market ($USD302.72K).

Compensation vs Earnings: Insufficient data to compare Brendan's compensation with company performance.

Leadership Team

Experienced Management: SLH's management team is considered experienced (4.3 years average tenure).

Board Members

Experienced Board: SLH's board of directors are considered experienced (4.6 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.

Ownership Breakdown

Dilution of Shares: SLH only recently listed within the past 12 months.

Data	Last Updated (UTC time)
Company Analysis	2021/10/18 07:04
End of Day Share Price	2021/10/18 00:00
Earnings	2021/06/27
Annual Earnings	2021/06/27

Market Cap

7D

1Y

Updated

Data