LSE:SNR

Stock Analysis Report

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.

Rewards

PE ratio (16.9x) is below the UK market (17.3x)

Earnings are forecast to grow 17.15% per year

Pays a high and reliable dividend of 4.06%

Risk Analysis

Profit margins (4%) are lower than last year (6.3%)



Snowflake Analysis

Flawless balance sheet established dividend payer.


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 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

4.0%

SNR

2.4%

GB Aerospace & Defense

1.7%

GB Market


1 Year Return

-6.9%

SNR

29.6%

GB Aerospace & Defense

8.1%

GB Market

Return vs Industry: SNR underperformed the UK Aerospace & Defense industry which returned 29.6% over the past year.

Return vs Market: SNR underperformed the UK Market which returned 8.1% over the past year.


Shareholder returns

SNRIndustryMarket
7 Day4.0%2.4%1.7%
30 Day1.9%1.1%0.1%
90 Day-10.1%1.1%0.6%
1 Year-3.6%-6.9%34.2%29.6%13.8%8.1%
3 Year2.4%-6.2%17.1%4.8%19.2%4.0%
5 Year-27.0%-36.3%33.0%5.6%40.2%8.0%

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?

16.95x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: SNR (£1.85) is trading above our estimate of fair value (£1.82)

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


Price To Earnings Ratio

PE vs Industry: SNR is good value based on its PE Ratio (16.9x) compared to the Aerospace & Defense industry average (23.9x).

PE vs Market: SNR is good value based on its PE Ratio (16.9x) compared to the UK market (17.3x).


Price to Earnings Growth Ratio

PEG Ratio: SNR is good value based on its PEG Ratio (1x)


Price to Book Ratio

PB vs Industry: SNR is good value based on its PB Ratio (1.4x) compared to the GB Aerospace & Defense industry average (2.2x).


Next Steps

Future Growth

How is Senior forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?

17.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SNR's forecast earnings growth (17.1% per year) is above the savings rate (0.5%).

Earnings vs Market: SNR's earnings (17.1% per year) are forecast to grow faster than the UK market (12.4% per year).

High Growth Earnings: SNR's earnings are forecast to grow, but not significantly.

Revenue vs Market: SNR's revenue is expected to decline over the next 3 years (-1% per year).

High Growth Revenue: SNR's revenue is forecast to decline over the next 3 years (-1% 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 (9.2%).


Next Steps

Past Performance

How has Senior performed over the past 5 years?

-4.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SNR has high quality earnings.

Growing Profit Margin: SNR's current net profit margins (4%) are lower than last year (6.3%).


Past Earnings Growth Analysis

Earnings Trend: SNR's earnings have declined by -4.9% 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 (-30.4%) over the past year, making it difficult to compare to the Aerospace & Defense industry average (-13.2%).


Return on Equity

High ROE: SNR's Return on Equity (8.1%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Senior's financial position?


Financial Position Analysis

Short Term Liabilities: SNR's short term assets (£387.0M) exceed its short term liabilities (£240.2M).

Long Term Liabilities: SNR's short term assets (£387.0M) exceed its long term liabilities (£348.7M).


Debt to Equity History and Analysis

Debt Level: SNR's debt to equity ratio (35.5%) is considered satisfactory.

Reducing Debt: SNR's debt to equity ratio has reduced from 38.4% to 35.5% over the past 5 years.

Debt Coverage: SNR's debt is well covered by operating cash flow (47%).

Interest Coverage: SNR's interest payments on its debt are well covered by EBIT (7.4x coverage).


Balance Sheet

Inventory Level: SNR has a high level of physical assets or inventory.

Debt Coverage by Assets: SNR's debt is covered by short term assets (assets are 2x debt).


Next Steps

Dividend

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

4.06%

Current Dividend Yield


Dividend Yield vs Market

company4.1%marketbottom25%2.0%markettop25%5.2%industryaverage3.1%forecastin3Years4.2%

Current dividend yield vs market & industry

Notable Dividend: SNR's dividend (4.06%) is higher than the bottom 25% of dividend payers in the UK market (1.96%).

High Dividend: SNR's dividend (4.06%) is low compared to the top 25% of dividend payers in the UK market (5.21%).


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (68.9%), SNR's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: SNR's dividends in 3 years are forecast to be covered by earnings (53% payout ratio).


Next Steps

Management

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

3.6yrs

Average management tenure


CEO

David Squires (55yo)

4.5yrs

Tenure

UK£1,107,000

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 ($USD1.46M) is about average for companies of similar size in the UK market ($USD1.17M).

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


Management Age and Tenure

3.6yrs

Average Tenure

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


Board Age and Tenure

3.3yrs

Average Tenure

60yo

Average Age

Experienced Board: SNR's board of directors are considered experienced (3.3 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.


Recent Insider Transactions

BuyUK£15,14809 Aug 19
Celia Baxter
EntityIndividual
Role
Lead Director
Senior Independent Non-executive Director
Shares7,500
Max PriceUK£2.02
BuyUK£28,93009 Aug 19
Andrew Bodenham
EntityIndividual
Role
Member of the Board of Directors
Group Company Secretary & Director
Shares14,331
Max PriceUK£2.02
BuyUK£49,12508 Aug 19
David Squires
EntityIndividual
Role
Chief Executive Officer
Group Chief Executive & Executive Director
Shares25,000
Max PriceUK£1.97
BuyUK£49,31827 Mar 19
Ian King
EntityIndividual
Role
Chairman of the Board
Independent Chairman
Shares23,597
Max PriceUK£2.09

Ownership Breakdown

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


Management Team

  • Mike Sheppard (60yo)

    Chief Executive of the Flexonics

    • Tenure: 0yrs
  • Andrew Bodenham

    Group Company Secretary & Director

    • Tenure: 0yrs
  • Launie Fleming

    Chief Executive of Aerospace Fluid Systems

    • Tenure: 11.3yrs
  • Bindi Foyle

    Group Finance Director & Executive Director

    • Tenure: 2.6yrs
    • Compensation: UK£744.00k
  • David Squires (55yo)

    Group Chief Executive & Executive Director

    • Tenure: 4.5yrs
    • Compensation: UK£1.11m
  • Jane Johnston

    Group Human Resource Director

    • Tenure: 3.6yrs
  • Joe Mockus

    Chief Executive of Aerospace Structures

    • Tenure: 2.8yrs
  • Michelle Yorke

    Director of Risk & Compliance

    • Tenure: 1.3yrs

Board Members

  • Celia Baxter (61yo)

    Senior Independent Non-executive Director

    • Tenure: 0.7yrs
    • Compensation: UK£59.00k
  • Giles F. Kerr (60yo)

    Independent Non-Executive Director

    • Tenure: 6.3yrs
    • Compensation: UK£59.00k
  • Andrew Bodenham

    Group Company Secretary & Director

    • Tenure: 0yrs
  • Ian King (63yo)

    Independent Chairman

    • Tenure: 1.7yrs
    • Compensation: UK£137.00k
  • Mark Vernon (66yo)

    Independent Non-Executive Director

    • Tenure: 8.7yrs
    • Compensation: UK£59.00k
  • Susan Brennan (56yo)

    Independent Non-Executive Director

    • Tenure: 3.9yrs
    • Compensation: UK£51.00k
  • Bindi Foyle

    Group Finance Director & Executive Director

    • Tenure: 2.6yrs
    • Compensation: UK£744.00k
  • David Squires (55yo)

    Group Chief Executive & Executive Director

    • Tenure: 4.5yrs
    • Compensation: UK£1.11m
  • Rajiv Sharma (52yo)

    Independent Non-Executive Director

    • Tenure: 0.9yrs

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£768.213m
  • Shares outstanding: 415.70m
  • 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 wor ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/12 20:37
End of Day Share Price2019/12/12 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.