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SIG

LSE:SHI
Snowflake Description

Adequate balance sheet with moderate growth potential.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
SHI
LSE
£742M
Market Cap
  1. Home
  2. GB
  3. Capital Goods
Company description

SIG plc engages in the distribution and merchant of specialist building products for the construction and related markets in the United Kingdom, Ireland, and Mainland Europe. The last earnings update was 167 days ago. More info.


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SHI Share Price and Events
Price Volatility
SHI
Industry
5yr Volatility vs Market

Value

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

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of SIG to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for SIG.

LSE:SHI Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 13 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 8.3%
Perpetual Growth Rate 10-Year GB Government Bond Rate 1.4%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for LSE:SHI
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year GB Govt Bond Rate 1.4%
Equity Risk Premium S&P Global 8.6%
Trade Distributors Unlevered Beta Simply Wall St/ S&P Global 0.4
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.403 (1 + (1- 19%) (46.97%))
0.556
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.8
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 1.4% + (0.8 * 8.6%)
8.28%

Discounted Cash Flow Calculation for LSE:SHI using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for SIG is arrived at by discounting future cash flows to their present value using the 2 stage method. We use analyst's estimates of cash flows going forward 5 years for the 1st stage, the 2nd stage assumes the company grows at a stable rate into perpetuity.

LSE:SHI DCF 1st Stage: Next 5 year cash flow forecast
2019 2020 2021 2022 2023
Levered FCF (GBP, Millions) 62.42 59.62 51.80 52.69 53.59
Source Analyst x7 Analyst x7 Analyst x1 Est @ 1.72% Est @ 1.72%
Present Value
Discounted (@ 8.28%)
57.65 50.85 40.80 38.33 36.01
Present value of next 5 years cash flows £223.64
LSE:SHI DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2023 × (1 + g) ÷ (Discount Rate – g)
= £53.59 × (1 + 1.4%) ÷ (8.28% – 1.4%)
£789.60
Present Value of Terminal Value = Terminal Value ÷ (1 + r)5
= £789.60 ÷ (1 + 8.28%)5
£530.49
LSE:SHI Total Equity Value
Calculation Result
Total Equity Value = Present value of next 5 years cash flows + Terminal Value
= £223.64 + £530.49
£754.13
Equity Value per Share
(GBP)
= Total value / Shares Outstanding
= £754.13 / 591.55
£1.27
LSE:SHI Discount to Share Price
Calculation Result
Value per share (GBP) From above. £1.27
Current discount Discount to share price of £1.22
= -1 x (£1.22 - £1.27) / £1.27
4.1%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price SIG is available for.
Intrinsic value
4%
Share price is £1.22 vs Future cash flow value of £1.27
Current Discount Checks
For SIG to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • SIG's share price is below the future cash flow value, but not at a moderate discount (< 20%).
  • SIG's share price is below the future cash flow value, but not at a substantial discount (< 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for SIG's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are SIG's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
LSE:SHI PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2017-12-31) in GBP £-0.10
LSE:SHI Share Price ** LSE (2018-09-19) in GBP £1.22
United Kingdom of Great Britain and Northern Ireland Trade Distributors Industry PE Ratio Median Figure of 18 Publicly-Listed Trade Distributors Companies 12.68x
United Kingdom of Great Britain and Northern Ireland Market PE Ratio Median Figure of 796 Publicly-Listed Companies 18.16x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of SIG.

LSE:SHI PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= LSE:SHI Share Price ÷ EPS (both in GBP)

= 1.22 ÷ -0.10

-12.13x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • SIG is loss making, we can't compare its value to the GB Trade Distributors industry average.
  • SIG is loss making, we can't compare the value of its earnings to the United Kingdom of Great Britain and Northern Ireland market.
Price based on expected Growth
Does SIG's expected growth come at a high price?
Raw Data
LSE:SHI PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section -12.13x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 13 Analysts
57.8%per year
United Kingdom of Great Britain and Northern Ireland Trade Distributors Industry PEG Ratio Median Figure of 7 Publicly-Listed Trade Distributors Companies 2.68x
United Kingdom of Great Britain and Northern Ireland Market PEG Ratio Median Figure of 564 Publicly-Listed Companies 1.5x

*Line of best fit is calculated by linear regression .

LSE:SHI PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= -12.13x ÷ 57.8%

-0.21x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • SIG is loss making, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on SIG's assets?
Raw Data
LSE:SHI PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2017-12-31) in GBP £0.81
LSE:SHI Share Price * LSE (2018-09-19) in GBP £1.22
United Kingdom of Great Britain and Northern Ireland Trade Distributors Industry PB Ratio Median Figure of 24 Publicly-Listed Trade Distributors Companies 1.52x
United Kingdom of Great Britain and Northern Ireland Market PB Ratio Median Figure of 1,347 Publicly-Listed Companies 1.81x
LSE:SHI PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= LSE:SHI Share Price ÷ Book Value per Share (both in GBP)

= 1.22 ÷ 0.81

1.52x

* Primary Listing of SIG.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • SIG is good value based on assets compared to the GB Trade Distributors industry average.
X
Value checks
We assess SIG's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Trade Distributors industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Trade Distributors industry average (and greater than 0)? (1 check)
  5. SIG has a total score of 1/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is SIG expected to perform in the next 1 to 3 years based on estimates from 13 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
57.8%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is SIG expected to grow at an attractive rate?
  • SIG's earnings growth is expected to exceed the low risk savings rate of 1.4%.
Growth vs Market Checks
  • SIG's earnings growth is expected to exceed the United Kingdom of Great Britain and Northern Ireland market average.
  • SIG's revenue growth is positive but not above the United Kingdom of Great Britain and Northern Ireland market average.
Annual Growth Rates Comparison
Raw Data
LSE:SHI Future Growth Rates Data Sources
Data Point Source Value (per year)
LSE:SHI Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 13 Analysts 57.8%
LSE:SHI Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 13 Analysts 1.6%
United Kingdom of Great Britain and Northern Ireland Trade Distributors Industry Earnings Growth Rate Market Cap Weighted Average 10.4%
United Kingdom of Great Britain and Northern Ireland Trade Distributors Industry Revenue Growth Rate Market Cap Weighted Average 4.9%
United Kingdom of Great Britain and Northern Ireland Market Earnings Growth Rate Market Cap Weighted Average 11%
United Kingdom of Great Britain and Northern Ireland Market Revenue Growth Rate Market Cap Weighted Average 4.4%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
LSE:SHI Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (8 months ago) See Below
Future Estimates Average of up to 13 Analyst Estimates (S&P Global) See Below
All numbers in GBP Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
LSE:SHI Future Estimates Data
Date (Data in GBP Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2022-12-31
2021-12-31 3,147 138 1
2020-12-31 3,004 130 73 11
2019-12-31 2,918 122 61 13
2018-12-31 2,843 89 54 13
LSE:SHI Past Financials Data
Date (Data in GBP Millions) Revenue Cash Flow Net Income *
2017-12-31 2,878 81 -60
2017-09-30 2,894 92 -113
2017-06-30 2,909 98 -164
2017-03-31 2,877 82 -141
2016-12-31 2,845 70 -122
2016-09-30 2,772 86 -38
2016-06-30 2,698 101 46
2016-03-31 2,632 76 41
2015-12-31 2,566 51 36
2015-09-30 2,568 59 35
2015-06-30 2,569 68 33
2015-03-31 2,601 73 33

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • SIG's earnings are expected to grow significantly at over 20% yearly.
  • SIG's revenue is expected to grow by 1.6% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
LSE:SHI Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (8 months ago) See Below
Future Estimates Average of up to 13 Analyst Estimates (S&P Global) See Below

All data from SIG Company Filings, last reported 8 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

LSE:SHI Future Estimates Data
Date (Data in GBP Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2022-12-31
2021-12-31
2020-12-31 0.13 0.14 0.10 5.00
2019-12-31 0.10 0.12 0.09 6.00
2018-12-31 0.09 0.10 0.08 5.00
LSE:SHI Past Financials Data
Date (Data in GBP Millions) EPS *
2017-12-31 -0.10
2017-09-30 -0.19
2017-06-30 -0.28
2017-03-31 -0.24
2016-12-31 -0.21
2016-09-30 -0.06
2016-06-30 0.08
2016-03-31 0.07
2015-12-31 0.06
2015-09-30 0.06
2015-06-30 0.06
2015-03-31 0.06

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • SIG is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess SIG's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United Kingdom of Great Britain and Northern Ireland market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United Kingdom of Great Britain and Northern Ireland market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
SIG has a total score of 3/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has SIG performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare SIG's growth in the last year to its industry (Trade Distributors).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • SIG does not make a profit and their year on year earnings growth rate was negative over the past 5 years.
  • Unable to compare SIG's 1-year earnings growth to the 5-year average as it is not currently profitable.
  • Unable to compare SIG's 1-year growth to the GB Trade Distributors industry average as it is not currently profitable.
Earnings and Revenue History
SIG's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from SIG Company Filings, last reported 8 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

LSE:SHI Past Revenue, Cash Flow and Net Income Data
Date (Data in GBP Millions) Revenue Net Income * G+A Expenses R&D Expenses
2017-12-31 2,878.40 -59.60 787.10
2017-09-30 2,893.80 -113.05 815.10
2017-06-30 2,909.20 -163.50 843.10
2017-03-31 2,877.20 -141.30 843.10
2016-12-31 2,845.20 -122.10 843.10
2016-09-30 2,771.60 -38.10 733.15
2016-06-30 2,698.00 45.90 623.20
2016-03-31 2,632.20 40.95 623.20
2015-12-31 2,566.40 36.00 623.20
2015-09-30 2,567.70 34.50 637.35
2015-06-30 2,569.00 33.00 651.50
2015-03-31 2,601.45 33.00 651.50
2014-12-31 2,633.90 33.00 651.50
2014-09-30 2,692.40 13.20 673.20
2014-06-30 2,750.90 -6.60 694.90
2014-03-31 2,735.35 -10.80 694.90
2013-12-31 2,719.80 -15.00 694.90
2013-09-30 2,670.05 1.95 661.90
2013-06-30 2,620.30 18.90 628.90
2013-03-31 2,627.90 22.60 628.90
2012-12-31 2,635.50 26.30 628.90
2012-09-30 2,668.70 20.90 614.00
2012-06-30 2,701.90 15.50 599.10
2012-03-31 2,755.15 7.60 599.10
2011-12-31 2,808.40 -0.30 599.10
2011-09-30 2,796.80 -36.75 673.40

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • It is difficult to establish if SIG has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) as it is loss-making.
  • It is difficult to establish if SIG has efficiently used its assets last year compared to the GB Trade Distributors industry average (Return on Assets) as it is loss-making.
  • It is difficult to establish if SIG improved its use of capital last year versus 3 years ago (Return on Capital Employed) as it is currently loss-making.
X
Past performance checks
We assess SIG's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Trade Distributors industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
SIG has a total score of 0/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is SIG's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up SIG's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • SIG is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • SIG's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of SIG's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is covered by short term assets, assets are 2.4x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from SIG Company Filings, last reported 8 months ago.

LSE:SHI Past Debt and Equity Data
Date (Data in GBP Millions) Total Equity Total Debt Cash & Short Term Investments
2017-12-31 477.70 348.40 121.80
2017-09-30 477.70 348.40 121.80
2017-06-30 523.40 346.80 178.90
2017-03-31 523.40 346.80 178.90
2016-12-31 536.30 413.00 128.10
2016-09-30 536.30 413.00 128.10
2016-06-30 684.50 438.40 153.00
2016-03-31 684.50 438.40 153.00
2015-12-31 649.60 421.70 147.50
2015-09-30 649.60 421.70 147.50
2015-06-30 628.20 328.70 101.40
2015-03-31 628.20 328.70 101.40
2014-12-31 664.30 273.50 111.20
2014-09-30 664.30 273.50 111.20
2014-06-30 670.10 259.50 103.40
2014-03-31 670.10 259.50 103.40
2013-12-31 693.10 269.60 118.70
2013-09-30 693.10 269.60 118.70
2013-06-30 734.20 292.50 99.10
2013-03-31 734.20 292.50 99.10
2012-12-31 708.80 279.70 128.10
2012-09-30 708.80 279.70 128.10
2012-06-30 701.20 274.70 104.00
2012-03-31 701.20 274.70 104.00
2011-12-31 707.50 290.10 126.90
2011-09-30 707.50 290.10 126.90
  • SIG's level of debt (72.9%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (39.5% vs 72.9% today).
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.

  • Whilst loss making SIG has sufficient cash runway for more than 3 years if it maintains the current positive free cash flow level.
  • Whilst loss making SIG has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 4.4% per year.
X
Financial health checks
We assess SIG's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. SIG has a total score of 4/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
3.07%
Current annual income from SIG dividends. Estimated to be 3.66% next year.
If you bought £2,000 of SIG shares you are expected to receive £61 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • SIG's pays a higher dividend yield than the bottom 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (1.74%).
  • SIG's dividend is below the markets top 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (4.77%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
LSE:SHI Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 13 Analyst Estimates (S&P Global) See Below
United Kingdom of Great Britain and Northern Ireland Trade Distributors Industry Average Dividend Yield Market Cap Weighted Average of 18 Stocks 2%
United Kingdom of Great Britain and Northern Ireland Market Average Dividend Yield Market Cap Weighted Average of 667 Stocks 3.9%
United Kingdom of Great Britain and Northern Ireland Minimum Threshold Dividend Yield 10th Percentile 0.9%
United Kingdom of Great Britain and Northern Ireland Bottom 25% Dividend Yield 25th Percentile 1.7%
United Kingdom of Great Britain and Northern Ireland Top 25% Dividend Yield 75th Percentile 4.8%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

LSE:SHI Future Dividends Estimate Data
Date (Data in £) Dividend per Share (annual) Avg. No. Analysts
2022-12-31
2021-12-31 0.04 1.00
2020-12-31 0.05 12.00
2019-12-31 0.05 14.00
2018-12-31 0.04 14.00
LSE:SHI Past Annualized Dividends Data
Date (Data in £) Dividend per share (annual) Avg. Yield (%)
2018-04-05 0.038 2.825
2018-03-09 0.038 2.772
2017-03-14 0.037 2.404
2016-04-07 0.046 4.104
2016-03-09 0.046 3.219
2015-04-09 0.044 2.696
2015-03-12 0.044 2.200
2014-08-13 0.038 2.242
2014-04-09 0.036 1.926
2014-03-13 0.036 1.746
2013-03-07 0.030 1.634
2012-03-14 0.030 2.804
2011-08-25 0.015 1.581
2010-03-18 0.000 0.000
2010-03-17 0.000 0.000
2009-08-20 0.000 0.000
2009-03-18 0.000 0.000
2008-09-22 0.270 16.126

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been volatile in the past 10 years (annual drop of over 20%).
  • Dividends per share have fallen over the past 10 years.
Current Payout to shareholders
What portion of SIG's earnings are paid to the shareholders as a dividend.
  • The company is paying a dividend however it is incurring a loss.
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (2.7x coverage).
X
Income/ dividend checks
We assess SIG's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.9%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can SIG afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. SIG has a total score of 2/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

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

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Meinie Oldersma, image provided by Google.
Meinie Oldersma
COMPENSATION £996,020
AGE 58
TENURE AS CEO 1.4 years
CEO Bio

Mr. Meinie Oldersma has been Group Chief Executive/ Chief Executive Officer and Director at SIG plc since April 3, 2017. Mr. Oldersma serves as the Non-Executive Chairman of Kondor HOLDCO Ltd., and a Non-Executive Director of KidsFoundation Holdings B.V. He also serves as a Director of Oldersma Management & Consultancy Ltd. He served as Group Chief Executive Officer of Brammer plc since August 1, 2016. With over 20 years' experience in the technology distribution, he held a variety of senior positions with Ingram Micro and served as the Chief Executive and President of their China Group and Managing Director of their business in Northern Europe. Prior to that, he served as Chief Executive Officer at 20:20 Mobile Group and President of Ingram Micro China Group. He serves as the Chairman of Brightstar 20:20 (SWE) AB. Mr. Oldersma has been a Director of Brammer plc since August 1, 2016. He served as a Non-Executive Director of Bunzl plc since April 1, 2013 until August 22, 2016.

CEO Compensation
  • Insufficient data for Meinie to compare compensation growth.
  • Meinie's compensation is higher than average for a company of this size and profit level.
Management Team Tenure

Average tenure of the SIG management team in years:

1.4
Average Tenure
  • The average tenure for the SIG management team is less than 2 years, this suggests a new team.
Management Team

Meinie Oldersma

TITLE
CEO & Director
COMPENSATION
£996K
AGE
58
TENURE
1.4 yrs

Nick Maddock

TITLE
CFO & Director
COMPENSATION
£656K
AGE
47
TENURE
1.6 yrs

Norman Adsetts

TITLE
President

Ed Hutt

TITLE
Chief Information Officer
TENURE
1 yrs

Hilary Kendrick

TITLE
Group Communications Director

Christian Horn

TITLE
Managing Director of SIG Germany
TENURE
0.7 yrs

Philippe Dénecé

TITLE
Managing Director of France
TENURE
2.5 yrs

Joel Neves

TITLE
Managing Director of Benelux

Lex Hemels

TITLE
Managing Director of Air Handling

Marcin Szczygiel

TITLE
Managing Director of Poland
Board of Directors Tenure

Average tenure and age of the SIG board of directors in years:

1.5
Average Tenure
58.5
Average Age
  • The average tenure for the SIG board of directors is less than 3 years, this suggests a new board.
Board of Directors

Andrew Allner

TITLE
Non-Executive Chairman
COMPENSATION
£29K
AGE
64
TENURE
0.8 yrs

Meinie Oldersma

TITLE
CEO & Director
COMPENSATION
£996K
AGE
58
TENURE
1.4 yrs

Nick Maddock

TITLE
CFO & Director
COMPENSATION
£656K
AGE
47
TENURE
1.6 yrs

Janet Ashdown

TITLE
Non-Executive Director
COMPENSATION
£49K
AGE
59
TENURE
7.2 yrs

Ian Duncan

TITLE
Non-Executive Director
COMPENSATION
£56K
AGE
57
TENURE
1.7 yrs

Alan Lovell

TITLE
Senior Independent Director
AGE
64
TENURE
0.1 yrs

Andrea Abt

TITLE
Non-Executive Director
COMPENSATION
£49K
AGE
58
TENURE
3.5 yrs

Cyrille Ragoucy

TITLE
Non-Executive Director
AGE
61
TENURE
0.1 yrs
Recent Insider Trading
  • No 3 month insider trading information.
Who owns this company?
X
Management checks
We assess SIG's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap and profit (greater than 0.5% of the company's profit + 0.03% of market cap)? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. SIG has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

External News
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Simply Wall St News

When Should You Buy SIG plc (LON:SHI)?

received a lot of attention from a substantial price movement on the LSE over the last few months, increasing to £1.42 at one point, and dropping to the lows of £1.2. … A question to answer is whether SIG's current trading price of £1.27 reflective of the actual value of the? … Let’s take a look at SIG’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change

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What Kind Of Risk Should You Expect For SIG plc (LON:SHI)?

The first type is company-specific risk, which can be diversified away by investing in other companies to reduce exposure to one particular stock. … The second type is market risk, one that you cannot diversify away, since it arises from macroeconomic factors which directly affects all the stocks in the market. … The most widely used metric to quantify a stock's market risk is beta, and the market as a whole represents a beta of one.

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Estimating The Intrinsic Value Of SIG plc (LON:SHI)

by estimating the company's future cash flows and discounting them to their present value. … Discounted Cash Flows (DCF). … If you want to learn more about discounted cash flow, the basis for my calcs can be read in detail in the Simply Wall St analysis model

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SIG plc (LON:SHI): Ex-Dividend Is In 3 Days, Should You Buy?

Check out our latest analysis for SIG 5 questions I ask before picking a dividend stock When assessing a stock as a potential addition to my dividend Portfolio, I look at these five areas: Is their annual yield among the top 25% of dividend payers? … Will the company be able to keep paying dividend based on the future earnings growth? … SIG has a negative payout ratio, meaning that the company is not yet profitable and is paying dividend by dipping into its retained earnings.

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Loss-Making SIG plc (LON:SHI) Expected To Breakeven

In this article, I will touch on the expectations for SHI’s growth and when analysts expect the company to become profitable. … LSE:SHI Past Future Earnings Mar 7th 18 I’m not going to go through company-specific developments for SHI given that this is a high-level summary, but, take into account that generally a high forecast growth rate is not unusual for a company that is currently undergoing an investment period. … Next Steps: There are too many aspects of SHI to cover in one brief article, but the key fundamentals for the company can all be found in one place – SHI’s company page on Simply Wall St.

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An Intrinsic Value Calculation For SIG plc (LON:SHI) Shows Investors Are Overpaying

5-year cash flow forecast 2017 2018 2019 2020 2021 Levered FCF (GBP, Millions) £61.03 £58.34 £74.15 £58.60 £59.32 Source Analyst x6 Analyst x8 Analyst x6 Analyst x2 Extrapolated @ (1.22%) Present Value Discounted @ 8.3% £56.36 £49.74 £58.38 £42.60 £39.82 Present Value of 5-year Cash Flow (PVCF)= £247 We now need to calculate the Terminal Value, which accounts for all the future cash flows after the five years. … Terminal Value (TV) = FCF2021 × (1 + g) ÷ (r – g) = £59 × (1 + 1.5%) ÷ (8.3% – 1.5%) = £884 Present Value of Terminal Value (PVTV) = TV / (1 + r)5 = £884 / ( 1 + 8.3%)5 = £594 The total value, or equity value, is then the sum of the present value of the cash flows, which in this case is £840. … LSE:SHI Intrinsic Value Dec 20th 17 The assumptions I'd like to point out that the most important inputs to a discounted cash flow are the discount rate and of course the actual cash flows.

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Who Owns Most Of SIG plc (LSE:SHI)?

In this article, I'm going to take a look at SIG plc’s (LSE:SHI) latest ownership structure, a non-fundamental factor which is important, but remains a less discussed subject among investors. … Check out our latest analysis for SIG LSE:SHI Ownership Summary Nov 25th 17 Institutional Ownership SHI's 90.53% institutional ownership seems enough to cause large share price movements in the case of significant share sell-off or acquisitions by institutions, particularly when there is a low level of public shares available on the market to trade. … Thus, investors should dig deeper into SHI's business relations with these companies and how it can affect shareholder returns in the long-term.What this means for you: The company's high institutional ownership makes margin of safety a very important consideration to existing investors since long bull and bear trends often emerge when these big-ticket investors see a change in long-term potential of the company.

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Is Now The Time To Bet On The Capital Goods Sector And SIG plc (LSE:SHI)?

As the company trails the rest of the industry in terms of growth, SHI may also be a cheaper stock relative to its peers. … LSE:SHI PE PEG Gauge Nov 11th 17 The distribution industry is trading at a PE ratio of 16x, relatively similar to the rest of the UK stock market PE of 19x. … Although its growth has delivered lower growth relative to its distribution peers in the near term, the market may be pessimistic on the stock, leading to a potential undervaluation.

Simply Wall St -

Company Info

Map
Description

SIG plc engages in the distribution and merchant of specialist building products for the construction and related markets in the United Kingdom, Ireland, and Mainland Europe. It offers insulation and energy management products, such as structural and technical insulations, dry linings, construction accessories, fixings, air handling systems, and modular housing systems. The company also provides exterior products, including tiles, slates, membranes, and battens for pitched roofs; single-ply flat roofing systems; industrial roofing and cladding systems; and room-in-roof panel systems. In addition, it offers interior fit out products comprising dry lining, ceiling tiles and grids, doorsets, partition walls, and floor coverings. The company was formerly known as Sheffield Insulations Limited. SIG plc was founded in 1957 and is headquartered in Sheffield, the United Kingdom.

Details
Name: SIG plc
SHI
Exchange: LSE
Founded: 1957
£741,801,486
591,548,235
Website: http://www.sigplc.com
Address: SIG plc
Signet House,
17 Europa View,
Sheffield,
South Yorkshire, S9 1XH,
United Kingdom
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
LSE SHI Ordinary Shares London Stock Exchange GB GBP 02. Jan 1992
DB QIG Ordinary Shares Deutsche Boerse AG DE EUR 02. Jan 1992
BATS-CHIXE SHIL Ordinary Shares BATS 'Chi-X Europe' GB GBP 02. Jan 1992
Number of employees
Current staff
Staff numbers
9,215
SIG employees.
Industry
Trading Companies and Distributors
Capital Goods
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2018/09/19 18:06
End of day share price update: 2018/09/19 00:00
Last estimates confirmation: 2018/09/01
Last earnings update: 2017/12/31
Last annual earnings update: 2017/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.