LSE:SMJ

Stock Analysis Report

Executive Summary

J. Smart & Co. (Contractors) PLC, together with its subsidiaries, engages in contracting, developing, and constructing public works, shopping centers, offices, factories, warehouses, local authority, and landlords and private housing projects in the United Kingdom.

Snowflake

Fundamentals

Adequate balance sheet average dividend payer.

Share Price & News

How has J. Smart (Contractors)'s share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

0.9%

SMJ

1.0%

GB Construction

0.08%

GB Market


1 Year Return

7.4%

SMJ

-27.9%

GB Construction

3.5%

GB Market

Return vs Industry: SMJ exceeded the UK Construction industry which returned -27.9% over the past year.

Return vs Market: SMJ exceeded the UK Market which returned 3.5% over the past year.


Shareholder returns

SMJIndustryMarket
7 Day0.9%1.0%0.08%
30 Day0.4%0.2%-1.3%
90 Day1.3%4.9%-2.2%
1 Year10.6%7.4%-25.1%-27.9%9.0%3.5%
3 Year19.4%9.5%-29.8%-39.2%18.1%3.1%
5 Year54.6%33.5%-9.4%-32.1%36.2%5.3%

Price Volatility Vs. Market

How volatile is J. Smart (Contractors)'s share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is J. Smart (Contractors) undervalued compared to its fair value and its price relative to the market?

11.14x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: SMJ (£1.16) is trading above our estimate of fair value (£0.36)

Significantly Below Fair Value: SMJ is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: SMJ is poor value based on its PE Ratio (11.1x) compared to the Construction industry average (9.6x).

PE vs Market: SMJ is good value based on its PE Ratio (11.1x) compared to the UK market (16.7x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: SMJ is good value based on its PB Ratio (0.5x) compared to the GB Construction industry average (1.3x).


Next Steps

Future Growth

How is J. Smart (Contractors) forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

24.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SMJ's forecast earnings growth (24.2% per year) is above the savings rate (1.2%).

Earnings vs Market: SMJ's earnings (24.2% per year) are forecast to grow faster than the UK market (12.4% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

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

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


Next Steps

Past Performance

How has J. Smart (Contractors) performed over the past 5 years?

30.7%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: SMJ has become profitable over the past 5 years, growing earnings by 30.7% per year.

Accelerating Growth: SMJ's earnings growth over the past year (14.6%) is below its 5-year average (30.7% per year).

Earnings vs Industry: SMJ earnings growth over the past year (14.6%) exceeded the Construction industry -9.7%.


Return on Equity

High ROE: SMJ's Return on Equity (4.8%) is considered low.


Return on Assets

ROA vs Industry: SMJ's Return on Assets is below or equal to the Construction industry average last year.


Return on Capital Employed

ROCE Improving: SMJ's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is J. Smart (Contractors)'s financial position?


Financial Position Analysis

Short Term Liabilities: SMJ's short term assets (£38.5M) exceeds its short term liabilities (£17.5M)

Long Term Liabilities: SMJ's short term assets (38.5M) exceeds its long term liabilities (2.0M)


Debt to Equity History and Analysis

Debt Level: SMJ's debt to equity ratio (13.2%) is considered satisfactory

Reducing Debt: SMJ's debt to equity ratio has increased from 10.8% to 13.2% over the past 5 years.

Debt Coverage: SMJ's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: SMJ earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: SMJ has a low level of unsold assets or inventory.

Debt Coverage by Assets: SMJ's debt is covered by short term assets (assets are 3.024080x debt).


Next Steps

Dividend

What is J. Smart (Contractors)'s current dividend yield, its reliability and sustainability?

2.74%

Current Dividend Yield


Dividend Yield vs Market

company2.7%marketbottom25%2.0%markettop25%5.4%industryaverage4.3%forecastin3Yearsn/a

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: SMJ's dividend (2.74%) is higher than the bottom 25% of dividend payers in the UK market (1.98%).

High Dividend: SMJ's dividend (2.74%) is low compared to the top 25% of dividend payers in the UK market (5.37%).

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

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


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (30.5%), SMJ's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

What is the CEO of J. Smart (Contractors)'s salary, the management and board of directors tenure and is there insider trading?

2.5yrs

Average management tenure


CEO

David Smart (46yo)

2.5yrs

Tenure

UK£154,000

Compensation

Mr. David William Smart has been joint Managing Director at J. Smart & Co. (Contractors) PLC., since April 27, 2017. Mr. Smart has been a Director of J. Smart & Co. (Contractors) PLC (Also known as Smart J ...


CEO Compensation Analysis

Compensation vs. Market: David's total compensation ($USD199.47K) is about average for companies of similar size in the UK market ($USD320.72K).

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


Management Age and Tenure

2.5yrs

Average Tenure

49yo

Average Age

Experienced Management: SMJ's management team is considered experienced (2.5 years average tenure).


Board Age and Tenure

6.8yrs

Average Tenure

49.5yo

Average Age

Experienced Board: SMJ's board of directors are considered experienced (6.8 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown


Management Team

  • David Smart (46yo)

    Joint Managing Director & Chairman

    • Tenure: 2.5yrs
    • Compensation: UK£154.00k
  • Patricia Sweeney (50yo)

    Company Secretary and Director

    • Tenure: 2.5yrs
    • Compensation: UK£133.00k
  • John Smart (49yo)

    Joint MD & Director

    • Tenure: 6.8yrs
    • Compensation: UK£133.00k

Board Members

  • David Smart (46yo)

    Joint Managing Director & Chairman

    • Tenure: 2.5yrs
    • Compensation: UK£154.00k
  • Patricia Sweeney (50yo)

    Company Secretary and Director

    • Tenure: 2.5yrs
    • Compensation: UK£133.00k
  • Alasdair Ross (57yo)

    Director

    • Tenure: 7.8yrs
    • Compensation: UK£153.00k
  • John Smart (49yo)

    Joint MD & Director

    • Tenure: 6.8yrs
    • Compensation: UK£133.00k

Company Information

J. Smart & Co. (Contractors) PLC's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: J. Smart & Co. (Contractors) PLC
  • Ticker: SMJ
  • Exchange: LSE
  • Founded: 1947
  • Industry: Construction and Engineering
  • Sector: Capital Goods
  • Market Cap: UK£49.810m
  • Shares outstanding: 43.13m
  • Website: https://www.jsmart.co.uk

Number of Employees


Location

  • J. Smart & Co. (Contractors) PLC
  • 28 Cramond Road South
  • Edinburgh
  • EH4 6AB
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SMJLSE (London Stock Exchange)YesOrdinary SharesGBGBPJan 1980

Biography

J. Smart & Co. (Contractors) PLC, together with its subsidiaries, engages in contracting, developing, and constructing public works, shopping centers, offices, factories, warehouses, local authority, and l ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/22 20:33
End of Day Share Price2019/10/22 00:00
Earnings2019/01/31
Annual Earnings2018/07/31


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.