TSX:SCL

Stock Analysis Report

Executive Summary

Shawcor Ltd., an energy services company, provides products and services for the pipeline, pipe services, petrochemical, and industrial segments of the energy industry in North America, Latin America, Europe, the Middle East, Africa, Russia, and the Asia Pacific.

Snowflake

Fundamentals

Reasonable growth potential with mediocre balance sheet.


Similar Companies

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

-6.0%

TSX:SCL

-3.4%

CA Energy Services

-1.2%

CA Market


1 Year Return

-42.7%

TSX:SCL

-39.7%

CA Energy Services

-4.6%

CA Market

SCL underperformed the Energy Services industry which returned -38.9% over the past year.

SCL underperformed the Market in Canada which returned -4.4% over the past year.


Share holder returns

SCLIndustryMarket
7 Day-6.0%-3.4%-1.2%
30 Day-6.1%-13.0%-3.0%
90 Day-12.9%-20.8%-3.3%
1 Year-41.4%-42.7%-38.2%-39.7%-1.2%-4.6%
3 Year-46.0%-49.4%-32.9%-37.5%13.5%3.5%
5 Year-70.2%-73.1%-72.9%-75.3%12.2%-3.5%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

9%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Shawcor's share price is below the future cash flow value, but not at a moderate discount (< 20%).

Shawcor's share price is below the future cash flow value, but not at a substantial discount (< 40%).


Price Based on Earnings

Shawcor is overvalued based on earnings compared to the CA Energy Services industry average.

Shawcor is overvalued based on earnings compared to the Canada market.


Price Based on Expected Growth

Shawcor is good value based on expected growth next year.


Price Based on Value of Assets

Shawcor is overvalued based on assets compared to the CA Energy Services industry average.


Next Steps

Future Growth

How is Shawcor expected to perform in the next 1 to 3 years based on estimates from 8 analysts?

21.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Shawcor's revenue is expected to grow by 10.7% yearly, however this is not considered high growth (20% yearly).

Shawcor's earnings are expected to grow significantly at over 20% yearly.

Shawcor's revenue growth is expected to exceed the Canada market average.

Shawcor's earnings growth is expected to exceed the Canada market average.

Shawcor's earnings growth is expected to exceed the low risk savings rate of 1.9%.


Earnings per Share Growth Estimates


Future Return on Equity

Unable to establish if Shawcor will efficiently use shareholders’ funds in the future without estimates of Return on Equity.


Next Steps

Past Performance

How has Shawcor performed over the past 5 years?

-20.8%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Shawcor's year on year earnings growth rate was negative over the past 5 years and the most recent earnings are below average.

Shawcor's 1-year earnings growth exceeds its 5-year average (11.1% vs -20.8%)

Shawcor's earnings growth has not exceeded the CA Energy Services industry average in the past year (11.1% vs 22.3%).


Return on Equity

Shawcor has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Shawcor used its assets less efficiently than the CA Energy Services industry average last year based on Return on Assets.


Return on Capital Employed

Shawcor's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Shawcor's financial position?


Financial Position Analysis

Shawcor is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Shawcor's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

Shawcor's level of debt (44.8%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has been reduced over the past 5 years (51% vs 44.8% today).

Debt is not well covered by operating cash flow (6%, less than 20% of total debt).

Interest payments on debt are not well covered by earnings (EBIT is 2.4x annual interest expense, ideally 3x coverage).


Balance Sheet

High level of physical assets or inventory.

Debt is covered by short term assets, assets are 1.5x debt.


Next Steps

Dividend

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

3.72%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Shawcor's pays a higher dividend yield than the bottom 25% of dividend payers in Canada (2.04%).

Shawcor's dividend is below the markets top 25% of dividend payers in Canada (5.98%).

Whilst dividend payments have been stable, Shawcor has been paying a dividend for less than 10 years.

Shawcor has only been paying a dividend for 5 years, and since then there has been no growth.


Current Payout to Shareholders

Dividends paid are covered by earnings (1.3x coverage).


Future Payout to Shareholders

Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.


Next Steps

Management

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

2.4yrs

Average management tenure


CEO

Steve Orr (55yo)

5.3yrs

Tenure

CA$2,584,349

Compensation

Mr. Stephen M. Orr, also known as Steve, has been the Chief Executive Officer and President of ShawCor Ltd. since May 1, 2014 and September 3, 2013 respectively. Mr. Orr served a senior executive position  ...


CEO Compensation Analysis

Steve's remuneration is about average for companies of similar size in Canada.

Steve's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

2.4yrs

Average Tenure

The tenure for the Shawcor management team is about average.


Board Age and Tenure

5.3yrs

Average Tenure

64yo

Average Age

The tenure for the Shawcor board of directors is about average.


Insider Trading

More shares have been bought than sold by Shawcor individual insiders in the past 3 months.


Recent Insider Transactions

BuyCA$52,67303 Jun 19
Pamela Pierce
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares3,000
Max PriceCA$17.56
BuyCA$123,41503 Jun 19
Paul Pierroz
EntityIndividual
Role
Head of Human Resources
Senior Vice President of Business Services & Human Resources
Shares7,100
Max PriceCA$17.40
BuyCA$100,50029 Mar 19
Stephen Orr
EntityIndividual
Role
Chief Executive Officer
President
Shares5,000
Max PriceCA$20.10

Ownership Breakdown


Management Team

  • R. Dunn

    Senior Vice President of Research & Development and Operations

    • Tenure: 2.4yrs
  • Kevin Reizer

    Group President of Pipeline Performance

    • Tenure: 0.0yrs
    • Compensation: CA$1.62m
  • Gaston Tano (50yo)

    Senior VP of Finance & CFO

    • Tenure: 2.3yrs
    • Compensation: CA$995.46k
  • Paul Pierroz

    Senior Vice President of Business Services & Human Resources

    • Tenure: 2.4yrs
  • Henri Tausch

    Senior Vice President of Corporate Development and Solutions

    • Tenure: 0.8yrs
    • Compensation: CA$1.10m
  • Steve Orr (55yo)

    President

    • Tenure: 5.3yrs
    • Compensation: CA$2.58m
  • T. Anderson

    Senior Vice President of Western Hemisphere Pipeline Performance

    • Tenure: 0.0yrs
  • J. Tabak

    Group President of Composite Production Systems

    • Tenure: 3.3yrs
    • Compensation: CA$1.07m
  • C.V. Havern

    Group President of Integrity Management

    • Tenure: 0.0yrs
  • S. Dewey

    Senior Vice President of Eastern Hemisphere for Pipeline Performance

    • Tenure: 1.1yrs

Board Members

  • Pam Pierce (64yo)

    Independent Director

    • Tenure: 5.2yrs
    • Compensation: CA$185.23k
  • Rob Mionis (56yo)

    Director

    • Tenure: 0.7yrs
    • Compensation: CA$10.43k
  • Jim Derrick (73yo)

    Independent Director

    • Tenure: 12.0yrs
    • Compensation: CA$213.31k
  • Kevin Forbes (60yo)

    Independent Director

    • Tenure: 5.3yrs
    • Compensation: CA$218.24k
  • Don Wishart (64yo)

    Chairman of the Board

    • Tenure: 1.3yrs
    • Compensation: CA$275.32k
  • E. Valiquette (67yo)

    Independent Director

    • Tenure: 14.4yrs
    • Compensation: CA$202.94k
  • Michael Hanley (53yo)

    Independent Director

    • Tenure: 4.3yrs
    • Compensation: CA$170.82k
  • John Baldwin (68yo)

    Independent Director

    • Tenure: 9.4yrs
    • Compensation: CA$227.75k
  • Derek Blackwood (64yo)

    Independent Director

    • Tenure: 8.3yrs
    • Compensation: CA$200.81k
  • Steve Orr (55yo)

    President

    • Tenure: 5.3yrs
    • Compensation: CA$2.58m

Company Information

Shawcor Ltd.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Shawcor Ltd.
  • Ticker: SCL
  • Exchange: TSX
  • Founded:
  • Industry: Oil and Gas Equipment and Services
  • Sector: Energy
  • Market Cap: CA$1.133b
  • Shares outstanding: 70.15m
  • Website: https://www.shawcor.com

Number of Employees


Location

  • Shawcor Ltd.
  • 25 Bethridge Road
  • Toronto
  • Ontario
  • M9W 1M7
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SAWL.FOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDMar 2013
S9WDB (Deutsche Boerse AG)YesCommon SharesDEEURMar 2013
SCLTSX (The Toronto Stock Exchange)YesCommon SharesCACADMar 2013

Biography

Shawcor Ltd., an energy services company, provides products and services for the pipeline, pipe services, petrochemical, and industrial segments of the energy industry in North America, Latin America, Euro ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/08/19 00:46
End of Day Share Price2019/08/16 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.