AIM:SCE

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Executive Summary

Surface Transforms Plc, together with its subsidiaries, designs, develops, manufactures, and sells carbon ceramic products for the brakes market in the United Kingdom and rest of Europe; the United States; and internationally.


Snowflake Analysis

Flawless balance sheet with high growth potential.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: SCE's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

10.2%

SCE

0.6%

GB Auto Components

0.2%

GB Market


1 Year Return

12.9%

SCE

-16.8%

GB Auto Components

-16.2%

GB Market

Return vs Industry: SCE exceeded the UK Auto Components industry which returned -18.1% over the past year.

Return vs Market: SCE exceeded the UK Market which returned -15.7% over the past year.


Shareholder returns

SCEIndustryMarket
7 Day10.2%0.6%0.2%
30 Day41.5%-4.1%-0.7%
90 Day52.9%41.2%15.8%
1 Year12.9%12.9%-15.8%-16.8%-12.2%-16.2%
3 Year44.6%44.6%95.7%94.0%-3.8%-15.6%
5 Year75.6%75.6%-31.0%-38.1%18.3%-8.0%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

5.74x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate SCE's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate SCE's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: SCE is unprofitable, so we can't compare its PE Ratio to the Auto Components industry average.

PE vs Market: SCE is unprofitable, so we can't compare its PE Ratio to the UK market.


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: SCE is overvalued based on its PB Ratio (5.7x) compared to the GB Auto Components industry average (3.1x).


Next Steps

Future Growth

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

98.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SCE is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.2%).

Earnings vs Market: SCE is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: SCE's is expected to become profitable in the next 3 years.

Revenue vs Market: SCE's revenue (36.4% per year) is forecast to grow faster than the UK market (3.4% per year).

High Growth Revenue: SCE's revenue (36.4% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

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


Next Steps

Past Performance

How has Surface Transforms performed over the past 5 years?

-23.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SCE is currently unprofitable.

Growing Profit Margin: SCE is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: SCE is unprofitable, and losses have increased over the past 5 years at a rate of -23.8% per year.

Accelerating Growth: Unable to compare SCE's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: SCE is unprofitable, making it difficult to compare its past year earnings growth to the Auto Components industry (-18.5%).


Return on Equity

High ROE: SCE has a negative Return on Equity (-40.17%), as it is currently unprofitable.


Next Steps

Financial Health

How is Surface Transforms's financial position?


Financial Position Analysis

Short Term Liabilities: SCE's short term assets (£3.1M) exceed its short term liabilities (£1.3M).

Long Term Liabilities: SCE's short term assets (£3.1M) exceed its long term liabilities (£1.9M).


Debt to Equity History and Analysis

Debt Level: SCE's debt to equity ratio (10.6%) is considered satisfactory.

Reducing Debt: SCE's debt to equity ratio has reduced from 59.3% to 10.6% over the past 5 years.


Balance Sheet


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: SCE has sufficient cash runway for 4 months based on last reported free cash flow, but has since raised additional capital.

Forecast Cash Runway: SCE is forecast to have sufficient cash runway for 2 months based on free cash flow estimates, but has since raised additional capital.


Next Steps

Dividend

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


Dividend Yield vs Market

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

High Dividend: Unable to evaluate SCE'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 SCE's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if SCE'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 SCE's dividend in 3 years as they are not forecast to pay a notable one for the UK market.


Next Steps

Management

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

1.5yrs

Average management tenure


CEO

Kevin Johnson

no data

Tenure

UK£155,989

Compensation

Dr. Kevin Johnson, BSc, PhD, MBA, serves as the Chief Executive Officer at Surface Transforms PLC and served as its Co- Head of Technical Development Team since December 2007. Dr. Johnson served as Operati ...


CEO Compensation Analysis

Compensation vs Market: Kevin's total compensation ($USD194.43K) is below average for companies of similar size in the UK market ($USD348.99K).

Compensation vs Earnings: Kevin's compensation has increased whilst the company is unprofitable.


Leadership Team

NamePositionTenureCompensationOwnership
Kevin Johnson
CEO & Executive Directorno dataUK£155.99k0.59% £189.4k
Michael Cunningham
Finance Director1.83yrsUK£114.66k0.073% £23.7k
Steve Harvey
Senior Operations Manager1.5yrsno data0.037% £11.9k
Leigh Welch
Sales Director0.50yrno datano data

1.5yrs

Average Tenure

Experienced Management: SCE's management team is not considered experienced ( 1.5 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Kevin Johnson
CEO & Executive Directorno dataUK£155.99k0.59% £189.4k
Michael Cunningham
Finance Director1.83yrsUK£114.66k0.073% £23.7k
Kevin D'Silva
Independent Non-Executive Director17.33yrsUK£10.50k0.94% £304.1k
David Bundred
Independent Non-Executive Chairman8.92yrsUK£27.00k0.66% £212.0k
Richard Gledhill
Independent Non-Executive Director10.83yrsUK£10.50k10.88% £3.5m

10.8yrs

Average Tenure

68.5yo

Average Age

Experienced Board: SCE's board of directors are seasoned and experienced ( 10.8 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.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Surface Transforms Plc's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Surface Transforms Plc
  • Ticker: SCE
  • Exchange: AIM
  • Founded: 1992
  • Industry: Auto Parts and Equipment
  • Sector: Automobiles
  • Market Cap: UK£32.255m
  • Shares outstanding: 136.10m
  • Website: https://www.surfacetransforms.com

Number of Employees


Location

  • Surface Transforms Plc
  • Image Business Park
  • Acornfield Road
  • Liverpool
  • Greater London
  • L33 7UF
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SCEAIM (London Stock Exchange AIM Market)YesOrdinary SharesGBGBPDec 2000

Biography

Surface Transforms Plc, together with its subsidiaries, designs, develops, manufactures, and sells carbon ceramic products for the brakes market in the United Kingdom and rest of Europe; the United States; and internationally. It offers carbon-ceramic brake kits and brake disc assemblies for automotive original equipment manufacturers. The company also provides carbon-ceramic materials for various types of aircraft brake applications, as well as for motorsports, military, and other special vehicles. In addition, it manufactures and supplies carbon-fibre pre-forms that are used as base materials for producing carbon-carbon brake discs and other carbon-carbon components. The company was founded in 1992 and is based in Liverpool, the United Kingdom. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/07/02 21:25
End of Day Share Price2020/07/02 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.