AIM:SOM

Stock Analysis Report

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Executive Summary

Somero Enterprises, Inc., together with its subsidiaries, designs, assembles, remanufactures, sells, and distributes concrete leveling, contouring, and placing equipment worldwide.


Snowflake Analysis

Flawless balance sheet, good value and pays a dividend.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: SOM has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0%

SOM

5.3%

GB Machinery

2.8%

GB Market


1 Year Return

-14.8%

SOM

15.0%

GB Machinery

-7.7%

GB Market

Return vs Industry: SOM underperformed the UK Machinery industry which returned 15% over the past year.

Return vs Market: SOM underperformed the UK Market which returned -7.7% over the past year.


Shareholder returns

SOMIndustryMarket
7 Day0%5.3%2.8%
30 Day2.2%11.0%2.2%
90 Day28.5%25.6%9.2%
1 Year-12.7%-14.8%16.7%15.0%-4.0%-7.7%
3 Year-3.4%-15.0%20.9%12.7%-3.4%-15.0%
5 Year96.9%57.0%70.5%49.5%20.4%-6.4%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

33.6%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: SOM (£2.3) is trading below our estimate of fair value (£3.46)

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


Price To Earnings Ratio

PE vs Industry: SOM is good value based on its PE Ratio (8x) compared to the GB Machinery industry average (20.9x).

PE vs Market: SOM is good value based on its PE Ratio (8x) compared to the UK market (16.4x).


Price to Earnings Growth Ratio

PEG Ratio: SOM's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: SOM is overvalued based on its PB Ratio (2.9x) compared to the GB Machinery industry average (1.6x).


Next Steps

Future Growth

How is Somero Enterprises forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

-4.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SOM's earnings are forecast to decline over the next 3 years (-4.3% per year).

Earnings vs Market: SOM's earnings are forecast to decline over the next 3 years (-4.3% per year).

High Growth Earnings: SOM's earnings are forecast to decline over the next 3 years.

Revenue vs Market: SOM's revenue (1.4% per year) is forecast to grow slower than the UK market (5.6% per year).

High Growth Revenue: SOM's revenue (1.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: SOM's Return on Equity is forecast to be high in 3 years time (29.8%)


Next Steps

Past Performance

How has Somero Enterprises performed over the past 5 years?

12.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SOM has high quality earnings.

Growing Profit Margin: SOM's current net profit margins (23.6%) are higher than last year (22.9%).


Past Earnings Growth Analysis

Earnings Trend: SOM's earnings have grown by 12.7% per year over the past 5 years.

Accelerating Growth: SOM's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: SOM had negative earnings growth (-2%) over the past year, making it difficult to compare to the Machinery industry average (-0.2%).


Return on Equity

High ROE: SOM's Return on Equity (35.8%) is considered high.


Next Steps

Financial Health

How is Somero Enterprises's financial position?


Financial Position Analysis

Short Term Liabilities: SOM's short term assets ($49.3M) exceed its short term liabilities ($9.7M).

Long Term Liabilities: SOM's short term assets ($49.3M) exceed its long term liabilities ($2.8M).


Debt to Equity History and Analysis

Debt Level: SOM is debt free.

Reducing Debt: SOM has no debt compared to 5 years ago when its debt to equity ratio was 4.3%.

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

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


Balance Sheet


Next Steps

Dividend

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

6.23%

Current Dividend Yield


Upcoming Dividend Payment


Dividend Yield vs Market

Notable Dividend: SOM's dividend (6.23%) is higher than the bottom 25% of dividend payers in the UK market (1.8%).

High Dividend: SOM's dividend (6.23%) is in the top 25% of dividend payers in the UK market (5.33%)


Stability and Growth of Payments

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

Growing Dividend: SOM's dividend payments have increased, but the company has only paid a dividend for 7 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (50%), SOM's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: SOM's dividends in 3 years are forecast to be covered by earnings (78.7% payout ratio).


Next Steps

Management

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

5.3yrs

Average management tenure


CEO

Jack Cooney (73 yo)

22.67yrs

Tenure

US$580,460

Compensation

Mr. John Thomas Cooney, also known as Jack, has been the Chief Executive Officer of Somero Enterprises Inc. since December 1997 and serves as its President. He is the Chief Executive Officer of Somero Ente ...


CEO Compensation Analysis

Compensation vs Market: Jack's total compensation ($USD580.46K) is about average for companies of similar size in the UK market ($USD692.13K).

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


Leadership Team

NamePositionTenureCompensationOwnership
John Cooney
President22.67yrsUS$580.46k1.09%
$ 1.4m
John Yuncza
CFO, Company Secretary & Director5.58yrsUS$415.61k0.18%
$ 229.6k
Howard Hohmann
Executive VP of Sales5.75yrsUS$412.41k0.13%
$ 169.4k
Jennifer Oliver
Director of Legal Services & Investor Relations Contact4.75yrsno datano data

5.3yrs

Average Tenure

59yo

Average Age

Experienced Management: SOM's management team is seasoned and experienced (5.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
John Cooney
President22.67yrsUS$580.46k1.09%
$ 1.4m
John Yuncza
CFO, Company Secretary & Director5.58yrsUS$415.61k0.18%
$ 229.6k
Howard Hohmann
Executive VP of Sales5.75yrsUS$412.41k0.13%
$ 169.4k
Lawrence Horsch
Independent Non-Executive Chairman10.83yrsUS$126.71k0.082%
$ 105.8k
Thomas Anderson
Independent Non-Executive Director9.17yrsUS$90.49kno data
Robert Scheuer
Independent Non-Executive Director4.83yrsUS$90.49k0.044%
$ 57.5k

7.5yrs

Average Tenure

66yo

Average Age

Experienced Board: SOM's board of directors are considered experienced (7.5 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: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Somero Enterprises, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Somero Enterprises, Inc.
  • Ticker: SOM
  • Exchange: AIM
  • Founded: 1985
  • Industry: Construction Machinery and Heavy Trucks
  • Sector: Capital Goods
  • Market Cap: UK£129.690m
  • Shares outstanding: 56.39m
  • Website: https://www.somero.com

Number of Employees


Location

  • Somero Enterprises, Inc.
  • 14530 Global Parkway
  • Fort Myers
  • Florida
  • 33913
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SOMAIM (London Stock Exchange AIM Market)YesCommon SharesGBGBPNov 2006
SETBST (Boerse-Stuttgart)YesCommon SharesDEEURNov 2006

Biography

Somero Enterprises, Inc., together with its subsidiaries, designs, assembles, remanufactures, sells, and distributes concrete leveling, contouring, and placing equipment worldwide. It also offers related p ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/08/14 10:53
End of Day Share Price2020/08/13 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.