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SOM

Somero Enterprises AIM:SOM Stock Report

Last Price

UK£3.90

Market Cap

UK£212.7m

7D

5.4%

1Y

-15.2%

Updated

24 Jun, 2022

Data

Company Financials +
SOM fundamental analysis
Snowflake Score
Valuation4/6
Future Growth0/6
Past Performance6/6
Financial Health6/6
Dividends3/6

SOM Stock Overview

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

Somero Enterprises Competitors

 

 

 

 

 

 

 

 

 

 

 

 

Price History & Performance

Summary of all time highs, changes and price drops for Somero Enterprises
Historical stock prices
Current Share PriceUK£3.90
52 Week HighUK£6.10
52 Week LowUK£3.50
Beta1.01
1 Month Change0%
3 Month Change-22.00%
1 Year Change-15.22%
3 Year Change38.05%
5 Year Change32.86%
Change since IPO196.58%

Recent News & Updates

Shareholder Returns

SOMGB MachineryGB Market
7D5.4%-3.5%-0.3%
1Y-15.2%-29.4%-10.4%

Return vs Industry: SOM exceeded the UK Machinery industry which returned -29.4% over the past year.

Return vs Market: SOM underperformed the UK Market which returned -10.4% over the past year.

Price Volatility

Is SOM's price volatile compared to industry and market?
SOM volatility
SOM Average Weekly Movement4.9%
Machinery Industry Average Movement4.8%
Market Average Movement5.5%
10% most volatile stocks in GB Market10.8%
10% least volatile stocks in GB Market2.8%

Stable Share Price: SOM is not significantly more volatile than the rest of UK stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: SOM's weekly volatility (5%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
1985n/aJack Cooneyhttps://www.somero.com

Somero Enterprises, Inc., together with its subsidiaries, designs, assembles, remanufactures, sells, and distributes concrete leveling, contouring, and placing equipment worldwide. It also offers related parts and accessories, as well as provides training services. The company’s proprietary products include the CopperHead, Mini Screed C, S-485 Laser Screed, S-940 Laser Screed, S-22EZ Advanced Laser Screed, S-15R Laser Screed, S-10A Laser Screed, S-158C Laser Screed, and S-22E Laser Screed machines, as well as the 3-D Profiler System software and the Somero Floor Levelness System.

Somero Enterprises Fundamentals Summary

How do Somero Enterprises's earnings and revenue compare to its market cap?
SOM fundamental statistics
Market CapUS$261.39m
Earnings (TTM)US$34.83m
Revenue (TTM)US$133.33m

7.7x

P/E Ratio

2.0x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
SOM income statement (TTM)
RevenueUS$133.33m
Cost of RevenueUS$56.45m
Gross ProfitUS$76.88m
Other ExpensesUS$42.05m
EarningsUS$34.83m

Last Reported Earnings

Dec 31, 2021

Next Earnings Date

n/a

Earnings per share (EPS)0.62
Gross Margin57.66%
Net Profit Margin26.12%
Debt/Equity Ratio0%

How did SOM perform over the long term?

See historical performance and comparison

Dividends

10.6%

Current Dividend Yield

50%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

Is SOM undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

4/6

Valuation Score 4/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for SOM?

Other financial metrics that can be useful for relative valuation.

SOM key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue1.7x
Enterprise Value/EBITDA4.8x
PEG Ration/a

Price to Earnings Ratio vs Peers

How does SOM's PE Ratio compare to its peers?

SOM PE Ratio vs Peers
The above table shows the PE ratio for SOM vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average16.9x

Price-To-Earnings vs Peers: SOM is good value based on its Price-To-Earnings Ratio (7.7x) compared to the peer average (16.9x).


Price to Earnings Ratio vs Industry

How does SOM's PE Ratio compare vs other companies in the Machinery Industry?

Price-To-Earnings vs Industry: SOM is good value based on its Price-To-Earnings Ratio (7.7x) compared to the UK Machinery industry average (17.1x)


Price to Earnings Ratio vs Fair Ratio

What is SOM's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

SOM PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio7.7x
Fair PE Ration/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate SOM's Price-To-Earnings Fair Ratio for valuation analysis.


Share Price vs Fair Value

What is the Fair Price of SOM when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: SOM (£3.9) is trading below our estimate of fair value (£7.47)

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


Price to Earnings Growth Ratio

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


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Future Growth

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

Future Growth Score

0/6

Future Growth Score 0/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


10.9%

Forecasted Capital Goods industry annual growth in earnings

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if SOM's forecast earnings growth is above the savings rate (0.9%).

Earnings vs Market: Insufficient data to determine if SOM's earnings are forecast to grow faster than the UK market

High Growth Earnings: Insufficient data to determine if SOM's earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: Insufficient data to determine if SOM's revenue is forecast to grow faster than the UK market.

High Growth Revenue: Insufficient data to determine if SOM's revenue 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 SOM's Return on Equity is forecast to be high in 3 years time


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Past Performance

How has Somero Enterprises performed over the past 5 years?

Past Performance Score

6/6

Past Performance Score 6/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


12.8%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: SOM has high quality earnings.

Growing Profit Margin: SOM's current net profit margins (26.1%) are higher than last year (21.2%).


Past Earnings Growth Analysis

Earnings Trend: SOM's earnings have grown by 12.8% per year over the past 5 years.

Accelerating Growth: SOM's earnings growth over the past year (85.5%) exceeds its 5-year average (12.8% per year).

Earnings vs Industry: SOM earnings growth over the past year (85.5%) exceeded the Machinery industry 54.3%.


Return on Equity

High ROE: SOM's Return on Equity (46%) is considered outstanding.


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Financial Health

How is Somero Enterprises's financial position?

Financial Health Score

6/6

Financial Health Score 6/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: SOM's short term assets ($68.1M) exceed its short term liabilities ($17.9M).

Long Term Liabilities: SOM's short term assets ($68.1M) exceed its long term liabilities ($3.7M).


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 2%.

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


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Dividend

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

Dividend Score

3/6

Dividend Score 3/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Future Dividend Coverage


10.58%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: SOM's dividend (10.58%) is higher than the bottom 25% of dividend payers in the UK market (1.92%).

High Dividend: SOM's dividend (10.58%) is in the top 25% of dividend payers in the UK market (5.23%)


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 9 years.


Earnings Payout to Shareholders

Earnings Coverage: With its reasonably low payout ratio (50%), SOM's dividend payments are well covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: With its high cash payout ratio (92.6%), SOM's dividend payments are not well covered by cash flows.


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Management

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

0.9yrs

Average management tenure


CEO

Jack Cooney (74 yo)

24.5yrs

Tenure

US$777,885

Compensation

Mr. John Thomas Cooney, also known as Jack, has been the Chief Executive Officer of Somero Enterprises Inc. since December 1997 and served as its President until January 04, 2022. He is the Chief Executive...


CEO Compensation Analysis

Compensation vs Market: Jack's total compensation ($USD777.89K) is about average for companies of similar size in the UK market ($USD697.62K).

Compensation vs Earnings: Jack's compensation has increased by more than 20% in the past year.


Leadership Team

Experienced Management: SOM's management team is not considered experienced ( 0.9 years average tenure), which suggests a new team.


Board Members

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: SOM insiders have only sold shares 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

Somero Enterprises, Inc.'s 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
  • Implied Market Cap: UK£212.675m
  • Shares outstanding: 55.97m
  • Website: https://www.somero.com

Number of Employees


Location

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

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/06/24 00:00
End of Day Share Price2022/06/24 00:00
Earnings2021/12/31
Annual Earnings2021/12/31


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.