LSE:SNR

Stock Analysis Report

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Executive Summary

Senior plc designs, manufactures, and markets high-technology components and systems for the principal original equipment producers in the aerospace, defense, land vehicle, and power and energy markets worldwide.


Snowflake Analysis

Very undervalued with excellent balance sheet.


Similar Companies

Share Price & News

How has Senior's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: SNR's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

13.6%

SNR

1.2%

GB Aerospace & Defense

2.0%

GB Market


1 Year Return

-73.0%

SNR

0.1%

GB Aerospace & Defense

-12.8%

GB Market

Return vs Industry: SNR underperformed the UK Aerospace & Defense industry which returned 0.1% over the past year.

Return vs Market: SNR underperformed the UK Market which returned -12.5% over the past year.


Shareholder returns

SNRIndustryMarket
7 Day13.6%1.2%2.0%
30 Day3.8%-0.8%5.7%
90 Day-57.9%-21.4%-8.2%
1 Year-72.7%-73.0%1.7%0.1%-8.6%-12.8%
3 Year-72.1%-73.8%-17.7%-24.6%-6.2%-17.6%
5 Year-77.9%-80.5%9.5%-6.7%12.7%-12.5%

Price Volatility Vs. Market

How volatile is Senior's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Senior 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: SNR (£0.62) is trading below our estimate of fair value (£2.14)

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


Price To Earnings Ratio

PE vs Industry: SNR is good value based on its PE Ratio (8.8x) compared to the Aerospace & Defense industry average (18.8x).

PE vs Market: SNR is good value based on its PE Ratio (8.8x) compared to the UK market (14.7x).


Price to Earnings Growth Ratio

PEG Ratio: SNR is good value based on its PEG Ratio (0.4x)


Price to Book Ratio

PB vs Industry: SNR is good value based on its PB Ratio (0.5x) compared to the GB Aerospace & Defense industry average (1.9x).


Next Steps

Future Growth

How is Senior forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?

24.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SNR's forecast earnings growth (24.5% per year) is above the savings rate (1.2%).

Earnings vs Market: SNR's earnings (24.5% per year) are forecast to grow faster than the UK market (20.3% per year).

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

Revenue vs Market: SNR's revenue is expected to decline over the next 3 years (-2.3% per year).

High Growth Revenue: SNR's revenue is forecast to decline over the next 3 years (-2.3% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: SNR's Return on Equity is forecast to be low in 3 years time (6.8%).


Next Steps

Past Performance

How has Senior performed over the past 5 years?

-4.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SNR has a large one-off loss of £22.0M impacting its December 31 2019 financial results.

Growing Profit Margin: SNR's current net profit margins (2.6%) are lower than last year (4.9%).


Past Earnings Growth Analysis

Earnings Trend: SNR's earnings have declined by -4.6% per year over the past 5 years.

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

Earnings vs Industry: SNR had negative earnings growth (-45.4%) over the past year, making it difficult to compare to the Aerospace & Defense industry average (8.3%).


Return on Equity

High ROE: SNR's Return on Equity (5.2%) is considered low.


Next Steps

Financial Health

How is Senior's financial position?


Financial Position Analysis

Short Term Liabilities: SNR's short term assets (£322.2M) exceed its short term liabilities (£219.7M).

Long Term Liabilities: SNR's short term assets (£322.2M) exceed its long term liabilities (£276.6M).


Debt to Equity History and Analysis

Debt Level: SNR's debt to equity ratio (28.9%) is considered satisfactory.

Reducing Debt: SNR's debt to equity ratio has increased from 28.7% to 28.9% over the past 5 years.

Debt Coverage: SNR's debt is well covered by operating cash flow (71.7%).

Interest Coverage: SNR's interest payments on its debt are well covered by EBIT (5.6x coverage).


Balance Sheet


Next Steps

Dividend

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

4.25%

Forecast Dividend Yield


Dividend Yield vs Market

Notable Dividend: Unable to evaluate SNR's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate SNR's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if SNR's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if SNR's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: SNR is not paying a notable dividend for the UK market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of SNR's dividend in 3 years as they are not forecast to pay a notable one for the UK market.


Next Steps

Management

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

4.0yrs

Average management tenure


CEO

David Squires (55yo)

4.83yrs

Tenure

UK£1,241,000

Compensation

Mr. David Squires has been the Group Chief Executive of Senior plc since June 1, 2015 and its Executive Director since May 1, 2015. Mr. Squires started his career in the oil industry working for Shell; how ...


CEO Compensation Analysis

Compensation vs Market: David's total compensation ($USD1.53M) is above average for companies of similar size in the UK market ($USD927.10K).

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


Leadership Team

NamePositionTenureCompensationOwnership
David Squires
Group Chief Executive & Executive Director4.83yrsUK£1.24m0.059% £151.5k
Bindi Foyle
Group Finance Director & Executive Director3yrsUK£813.00k0.021% £53.5k
Michelle Yorke
Director of Risk & Compliance1.58yrsno datano data
Jane Johnston
Group Human Resource Director4yrsno datano data
Michael Sheppard
Chief Executive of the Flexonicsno datano data0.034% £87.4k
Andrew Bodenham
Group Company Secretary18.33yrsno data0.080% £206.0k
Launie Fleming
Chief Executive of Aerospace Fluid Systems11.58yrsno data0.016% £39.9k
Joe Mockus
Chief Executive of Aerospace Structures3.17yrsno datano data

4.0yrs

Average Tenure

Experienced Management: SNR's management team is considered experienced (4 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
David Squires
Group Chief Executive & Executive Director4.83yrsUK£1.24m0.059% £151.5k
Bindi Foyle
Group Finance Director & Executive Director3yrsUK£813.00k0.021% £53.5k
Celia Baxter
Senior Independent Non-executive Director1yrUK£68.00k0.0042% £10.9k
Giles F. Kerr
Independent Non-Executive Director6.58yrsUK£61.00k0.0024% £6.2k
Ian King
Independent Chairman2yrsUK£186.00k0.014% £35.5k
Susan Brennan
Independent Non-Executive Director4.33yrsUK£52.00k0.0014% £3.7k
Rajiv Sharma
Independent Non-Executive Director1.33yrsUK£52.00kno data

3.0yrs

Average Tenure

58yo

Average Age

Experienced Board: SNR's board of directors are considered experienced (3 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: SNR insiders have sold more shares than they have bought 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

Senior plc's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Senior plc
  • Ticker: SNR
  • Exchange: LSE
  • Founded: 1933
  • Industry: Aerospace and Defense
  • Sector: Capital Goods
  • Market Cap: UK£256.123m
  • Shares outstanding: 413.10m
  • Website: https://www.seniorplc.com

Number of Employees


Location

  • Senior plc
  • 59/61 High Street
  • Rickmansworth
  • Hertfordshire
  • WD3 1RH
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SNRLSE (London Stock Exchange)YesOrdinary SharesGBGBPJan 1992
SNIR.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJan 1992
SNRLBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBGBPJan 1992

Biography

Senior plc designs, manufactures, and markets high-technology components and systems for the principal original equipment producers in the aerospace, defense, land vehicle, and power and energy markets worldwide. The company operates in two divisions, Aerospace and Flexonics. The Aerospace division offers high-pressure and low-pressure engineered ducting systems, engineered control bellows, assemblies, and sensors; precision-machined and fabricated engine components; fluid systems ducting and control products; and precision-machined airframe components and assemblies. The Flexonics division provides exhaust gas recycling coolers, fuel mixing and distribution systems, and flexible couplings; and engineered expansion joints, dampers and diverters, flexible hose assemblies and control bellows, fuel cells and heat exchangers, and precision-machined components. The company was formerly known as Senior Engineering Group plc and changed its name to Senior plc in 1999. Senior plc was incorporated in 1933 and is based in Rickmansworth, the United Kingdom. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/05/31 21:04
End of Day Share Price2020/05/29 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.