LSE:SMJ

Stock Analysis Report

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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. More Details


Snowflake Analysis

Flawless balance sheet, good value and pays a dividend.

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

Stable Share Price: SMJ is less volatile than 75% of UK stocks over the past 3 months, typically moving +/- 0% a week.

Volatility Over Time: SMJ's weekly volatility (0%) has been stable over the past year.


Market Performance


7 Day Return

0%

SMJ

-0.3%

GB Construction

-0.4%

GB Market


1 Year Return

-4.2%

SMJ

-16.4%

GB Construction

-10.0%

GB Market

Return vs Industry: SMJ exceeded the UK Construction industry which returned -16.7% over the past year.

Return vs Market: SMJ exceeded the UK Market which returned -10.1% over the past year.


Shareholder returns

SMJIndustryMarket
7 Day0%-0.3%-0.4%
30 Day0%20.6%13.6%
90 Day0.9%11.4%6.4%
1 Year-1.5%-4.2%-4.9%-16.4%-6.4%-10.0%
3 Year12.7%5.6%-24.7%-40.2%1.6%-10.9%
5 Year22.8%8.6%-16.3%-39.9%27.5%-1.5%

Long-Term 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?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: SMJ (£1.14) is trading below our estimate of fair value (£2.77)

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


Price To Earnings Ratio

PE vs Industry: SMJ is poor value based on its PE Ratio (13.4x) compared to the GB Construction industry average (11.5x).

PE vs Market: SMJ is good value based on its PE Ratio (13.4x) compared to the UK market (21.2x).


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 (1.1x).


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?

53.1%

Forecasted Capital Goods industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as J. Smart (Contractors) has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

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

15.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SMJ has a large one-off gain of £2.8M impacting its July 31 2020 financial results.

Growing Profit Margin: SMJ's current net profit margins (21.6%) are lower than last year (41.9%).


Past Earnings Growth Analysis

Earnings Trend: SMJ's earnings have grown by 15% per year over the past 5 years.

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

Earnings vs Industry: SMJ had negative earnings growth (-46.1%) over the past year, making it difficult to compare to the Construction industry average (-22.3%).


Return on Equity

High ROE: SMJ's Return on Equity (3.7%) is considered low.


Next Steps

Financial Health

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


Financial Position Analysis

Short Term Liabilities: SMJ's short term assets (£32.7M) exceed its short term liabilities (£13.2M).

Long Term Liabilities: SMJ's short term assets (£32.7M) exceed its long term liabilities (£2.5M).


Debt to Equity History and Analysis

Debt Level: SMJ's debt to equity ratio (10.2%) is considered satisfactory.

Reducing Debt: SMJ's debt to equity ratio has reduced from 14.3% to 10.2% over the past 5 years.

Debt Coverage: SMJ's debt is well covered by operating cash flow (48.1%).

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


Balance Sheet


Next Steps

Dividend

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

2.84%

Current Dividend Yield


Upcoming Dividend Payment


Dividend Yield vs Market

Notable Dividend: SMJ's dividend (2.84%) is higher than the bottom 25% of dividend payers in the UK market (1.72%).

High Dividend: SMJ's dividend (2.84%) is low compared to the top 25% of dividend payers in the UK market (4.94%).


Stability and Growth of Payments

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 (38.1%), 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

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

3.6yrs

Average management tenure


CEO

David Smart (47 yo)

3.58yrs

Tenure

UK£177,000

Compensation

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


CEO Compensation Analysis

Compensation vs Market: David's total compensation ($USD235.92K) is below average for companies of similar size in the UK market ($USD344.85K).

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


Leadership Team

NamePositionTenureCompensationOwnership
David Smart
Joint MD & Chairman3.58yrsUK£177.00k30.15%
£ 14.5m
John Smart
Joint MD & Director7.83yrsUK£136.00k30.15%
£ 14.5m
Patricia Sweeney
Company Secretary & Director3.58yrsUK£139.00k0.35%
£ 170.2k

3.6yrs

Average Tenure

50yo

Average Age

Experienced Management: SMJ's management team is considered experienced (3.6 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
David Smart
Joint MD & Chairman3.58yrsUK£177.00k30.15%
£ 14.5m
John Smart
Joint MD & Director7.83yrsUK£136.00k30.15%
£ 14.5m
Patricia Sweeney
Company Secretary & Director3.58yrsUK£139.00k0.35%
£ 170.2k
Alasdair Ross
Director8.83yrsUK£179.00k0.35%
£ 170.2k

5.7yrs

Average Tenure

50yo

Average Age

Experienced Board: SMJ's board of directors are considered experienced (5.7 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

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£48.126m
  • Shares outstanding: 42.40m
  • 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 Analysis2020/11/28 19:48
End of Day Share Price2020/11/27 00:00
Earnings2020/07/31
Annual Earnings2020/07/31


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.