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SOM

Somero Enterprises AIM:SOM Stock Report

Last Price

UK£3.93

Market Cap

UK£219.1m

7D

-4.3%

1Y

-23.0%

Updated

30 Sep, 2022

Data

Company Financials +
SOM fundamental analysis
Snowflake Score
Valuation5/6
Future Growth0/6
Past Performance2/6
Financial Health6/6
Dividends5/6

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£3.93
52 Week HighUK£6.10
52 Week LowUK£3.50
Beta0.91
1 Month Change-12.78%
3 Month Change0.64%
1 Year Change-23.04%
3 Year Change102.84%
5 Year Change38.64%
Change since IPO198.48%

Recent News & Updates

Shareholder Returns

SOMGB MachineryGB Market
7D-4.3%1.0%-1.7%
1Y-23.0%-28.5%-15.1%

Return vs Industry: SOM exceeded the UK Machinery industry which returned -30.6% over the past year.

Return vs Market: SOM underperformed the UK Market which returned -16.2% over the past year.

Price Volatility

Is SOM's price volatile compared to industry and market?
SOM volatility
SOM Average Weekly Movement5.3%
Machinery Industry Average Movement5.3%
Market Average Movement5.4%
10% most volatile stocks in GB Market10.7%
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 CapUK£219.13m
Earnings (TTM)UK£30.53m
Revenue (TTM)UK£123.33m

7.2x

P/E Ratio

1.8x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
SOM income statement (TTM)
RevenueUS$137.42m
Cost of RevenueUS$58.35m
Gross ProfitUS$79.07m
Other ExpensesUS$45.05m
EarningsUS$34.02m

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

n/a

Earnings per share (EPS)0.61
Gross Margin57.54%
Net Profit Margin24.76%
Debt/Equity Ratio0%

How did SOM perform over the long term?

See historical performance and comparison

Dividends

11.8%

Current Dividend Yield

53%

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

5/6

Valuation Score 5/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

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/Revenue1.6x
Enterprise Value/EBITDA4.8x
PEG Ratio-4.1x

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 Average17.1x
MCON Mincon Group
16.7xn/aUK£216.7m
PRV Porvair
19.5xn/aUK£229.7m
GDWN Goodwin
16.4xn/aUK£212.6m
LSC London Security
15.8xn/aUK£300.4m
SOM Somero Enterprises
7.2x-1.7%UK£219.1m

Price-To-Earnings vs Peers: SOM is good value based on its Price-To-Earnings Ratio (7.2x) compared to the peer average (17.1x).


Price to Earnings Ratio vs Industry

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

Price-To-Earnings vs Industry: SOM is good value based on its Price-To-Earnings Ratio (7.2x) compared to the European Machinery industry average (13.6x)


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 Ratio7.2x
Fair PE Ratio13.6x

Price-To-Earnings vs Fair Ratio: SOM is good value based on its Price-To-Earnings Ratio (7.2x) compared to the estimated Fair Price-To-Earnings Ratio (13.6x).


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 (£3.93) is trading below our estimate of fair value (£10.6)

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


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Insufficient data to show price forecast.


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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


-1.7%

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 (-1.7% per year).

Earnings vs Market: SOM's earnings are forecast to decline over the next 3 years (-1.7% per year).

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

Revenue vs Market: SOM's revenue (0.6% per year) is forecast to grow slower than the UK market (4.4% per year).

High Growth Revenue: SOM's revenue (0.6% per year) is forecast to grow slower 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

2/6

Past Performance Score 2/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


14.2%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: SOM has a high level of non-cash earnings.

Growing Profit Margin: SOM's current net profit margins (24.8%) are lower than last year (26.6%).


Past Earnings Growth Analysis

Earnings Trend: SOM's earnings have grown by 14.2% per year over the past 5 years.

Accelerating Growth: SOM's earnings growth over the past year (8.6%) is below its 5-year average (14.2% per year).

Earnings vs Industry: SOM earnings growth over the past year (8.6%) underperformed the Machinery industry 17.5%.


Return on Equity

High ROE: SOM's Return on Equity (49.8%) 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 ($58.9M) exceed its short term liabilities ($18.3M).

Long Term Liabilities: SOM's short term assets ($58.9M) exceed its long term liabilities ($3.4M).


Debt to Equity History and Analysis

Debt Level: SOM is debt free.

Reducing Debt: SOM had no debt 5 years ago.

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

5/6

Dividend Score 5/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage


11.83%

Current Dividend Yield

Dividend Yield vs Market

Somero Enterprises Dividend Yield vs Market
How does Somero Enterprises dividend yield compare to the market?
SegmentDividend Yield
Company (Somero Enterprises)11.8%
Market Bottom 25% (GB)2.1%
Market Top 25% (GB)6.1%
Industry Average (Machinery)2.4%
Analyst forecast in 3 Years (Somero Enterprises)10.5%

Notable Dividend: SOM's dividend (11.83%) is higher than the bottom 25% of dividend payers in the UK market (2.15%).

High Dividend: SOM's dividend (11.83%) is in the top 25% of dividend payers in the UK market (6.29%)


Stability and Growth of Payments

Stable Dividend: SOM's dividends per share have been stable in the past 10 years.

Growing Dividend: SOM's dividend payments have increased over the past 10 years.


Earnings Payout to Shareholders

Earnings Coverage: With its reasonable payout ratio (52.8%), SOM's dividend payments are covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: With its high cash payout ratio (111.6%), 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?

1.2yrs

Average management tenure


CEO

Jack Cooney (75 yo)

17.08yrs

Tenure

US$928,711

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

Jack Cooney's Compensation vs Somero Enterprises Earnings
How has Jack Cooney's remuneration changed compared to Somero Enterprises's earnings?
DateTotal Comp.SalaryCompany Earnings
Jun 30 2022n/an/a

US$34m

Mar 31 2022n/an/a

US$34m

Dec 31 2021US$929kUS$502k

US$35m

Sep 30 2021n/an/a

US$33m

Jun 30 2021n/an/a

US$31m

Mar 31 2021n/an/a

US$25m

Dec 31 2020US$778kUS$488k

US$19m

Sep 30 2020n/an/a

US$19m

Jun 30 2020n/an/a

US$19m

Mar 31 2020n/an/a

US$20m

Dec 31 2019US$580kUS$464k

US$21m

Sep 30 2019n/an/a

US$20m

Jun 30 2019n/an/a

US$19m

Mar 31 2019n/an/a

US$20m

Dec 31 2018US$746kUS$464k

US$22m

Sep 30 2018n/an/a

US$20m

Jun 30 2018n/an/a

US$19m

Mar 31 2018n/an/a

US$19m

Dec 31 2017US$600kUS$442k

US$18m

Sep 30 2017n/an/a

US$18m

Jun 30 2017n/an/a

US$17m

Mar 31 2017n/an/a

US$16m

Dec 31 2016n/an/a

US$14m

Sep 30 2016n/an/a

US$14m

Jun 30 2016n/an/a

US$13m

Mar 31 2016n/an/a

US$12m

Dec 31 2015US$937kUS$401k

US$12m

Compensation vs Market: Jack's total compensation ($USD928.71K) is about average for companies of similar size in the UK market ($USD718.74K).

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


Leadership Team

Experienced Management: SOM's management team is not considered experienced ( 1.2 years average tenure), which suggests a new team.


Board Members

Experienced Board: SOM's board of directors are considered experienced (7.8 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

AIM:SOM Recent Insider Transactions by Companies or Individuals
DateValueNameEntityRoleSharesMax Price
29 Mar 22SellUK£146,718Howard HohmannIndividual30,000UK£4.91

Ownership Breakdown

What is the ownership structure of SOM?
Owner TypeNumber of SharesOwnership Percentage
Individual Insiders845,3471.5%
General Public19,728,92635.3%
Institutions35,265,30063.2%

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


Top Shareholders

Top 25 shareholders own 64.37% of the company
OwnershipNameSharesCurrent ValueChange %Portfolio %
10%
Unicorn Asset Management Limited
5,583,022$21.9m0%2.73%
7.94%
Close Asset Management Limited
4,433,329$17.4m0%0.24%
6.94%
Artemis Investment Management LLP
3,874,644$15.2m0%0.08%
4.82%
River and Mercantile Asset Management LLP
2,691,456$10.6m0%0.69%
4.29%
Hargreave Hale Limited, Asset Management Arm
2,393,279$9.4m-8.68%0.28%
3.86%
Lazard Asset Management LLC
2,152,657$8.4m0%0.01%
3.79%
Janus Henderson Group plc
2,118,980$8.3m0%0.01%
3.78%
Jupiter Fund Management Plc
2,108,780$8.3m0%0.03%
3.76%
Chelverton Asset Management Limited
2,097,698$8.2m0%0.54%
2.9%
abrdn plc
1,620,801$6.4m53.59%0.01%
2.45%
Allianz Asset Management AG
1,369,170$5.4m0%0.01%
1.5%
Lannebo Fonder AB
836,618$3.3m0%0.08%
1.43%
Didner & Gerge Fonder
800,000$3.1m0%0.08%
1.25%
Discover Capital GmbH
700,000$2.7m0%2.51%
1.14%
Punter Southall
636,083$2.5m0%19.07%
1.1%
John Cooney
614,634$2.4m0%no data
0.76%
Joh. Berenberg, Gossler & Co. KG, Asset Management Arm
423,042$1.7m0%0.06%
0.69%
PEH Wertpapier AG
385,000$1.5m0%0.17%
0.5%
HC Capital Advisors GmbH
277,714$1.1m0%1.22%
0.36%
Universal-Investment-Gesellschaft Mit BeschrÄNkter Haftung
200,000$785.0k0%0.01%
0.34%
Canaccord Genuity Wealth (International) Limited
187,066$734.2k10.79%0.01%
0.33%
Liontrust Portfolio Management Limited
186,285$731.2k0%0.02%
0.21%
John Yuncza
116,051$455.5k0%no data
0.14%
Saracen Fund Managers Ltd.
80,460$315.8k0%0.17%
0.11%
Santander Asset Management, S.A., S.G.I.I.C.
59,199$232.4k0%no data

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£219.133m
  • Shares outstanding: 55.83m
  • 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

Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/09/30 00:00
End of Day Share Price2022/09/30 00:00
Earnings2022/06/30
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.