AIM:SCPA

Stock Analysis Report

Executive Summary

Scapa Group plc, together with its subsidiaries, manufactures and sells bonding products and adhesive components for applications in the healthcare and industrial markets in Europe, North America, and Asia.

Snowflake

Fundamentals

Excellent balance sheet with moderate growth potential.


Similar Companies

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

8.6%

SCPA

2.6%

GB Chemicals

2.0%

GB Market


1 Year Return

-40.5%

SCPA

-16.8%

GB Chemicals

3.3%

GB Market

Return vs Industry: SCPA underperformed the UK Chemicals industry which returned -16.8% over the past year.

Return vs Market: SCPA underperformed the UK Market which returned 3.3% over the past year.


Share holder returns

SCPAIndustryMarket
7 Day8.6%2.6%2.0%
30 Day-11.3%-9.1%-1.0%
90 Day28.8%-9.2%-1.7%
1 Year-39.5%-40.5%-13.5%-16.8%8.3%3.3%
3 Year-24.2%-26.1%-5.4%-13.0%19.0%4.5%
5 Year84.5%77.3%35.2%14.0%38.4%8.4%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

50%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Undervalued: SCPA (£2.21) is trading below our estimate of fair value (£4.37)

Significantly Undervalued: SCPA is trading below fair value by more than 20%.


Price Based on Earnings

PE vs Industry: SCPA is poor value based on its PE Ratio (41.4x) compared to the Chemicals industry average (19x).

PE vs Market: SCPA is poor value based on its PE Ratio (41.4x) compared to the UK market (16.4x).


Price Based on Expected Growth

Low PEG Ratio: SCPA is poor value based on its PEG Ratio (1.3x)


Price Based on Value of Assets

PB vs Industry: SCPA is overvalued based on its PB Ratio (2.4x) compared to the GB Chemicals industry average (2x).


Next Steps

Future Growth

How is Scapa Group expected to perform in the next 1 to 3 years based on estimates from 5 analysts?

30.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Earnings vs Savings Rate: SCPA's forecast earnings growth (30.9% per year) is above the savings rate (1.2%).

Earnings vs Market: SCPA's earnings (30.9% per year) are forecast to grow faster than the UK market (12.3% per year).

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

Revenue vs Market: SCPA's revenue (2.6% per year) is forecast to grow slower than the UK market (4% per year).

High Growth Revenue: SCPA's revenue (2.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Estimates


Future Return on Equity

High Future ROE: Insufficient data to determine if SCPA's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Scapa Group performed over the past 5 years?

39.3%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: SCPA has become profitable over the past 5 years, growing earnings by 39.3% per year.

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

Earnings vs Industry: SCPA had negative earnings growth (-65.1%) over the past year, making it difficult to compare to the Chemicals industry average (-3.5%).


Return on Equity

High ROE: SCPA's Return on Equity (5.9%) is considered low.


Return on Assets

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


Return on Capital Employed

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


Next Steps

Financial Health

How is Scapa Group's financial position?


Financial Position Analysis

Short Term Liabilities: SCPA's short term assets (£127.0M) exceeds its short term liabilities (£90.5M)

Long Term Liabilities: SCPA's short term assets (£127.0M) exceeds its long term liabilities (£101.7M)


Debt to Equity History and Analysis

Debt Level: SCPA's debt to equity ratio (39.3%) is considered satisfactory

Reducing Debt: SCPA's debt to equity ratio has increased from 17% to 39.3% over the past 5 years.

Debt Coverage: SCPA's debt is well covered by operating cash flow (20.4%).

Interest Coverage: SCPA's interest payments on its debt are well covered by EBIT (20.9x coverage).


Balance Sheet

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

Debt Coverage by Assets: SCPA's debt is covered by short term assets (assets are 2.317510x debt).


Next Steps

Dividend

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

1.26%

Expected Dividend Yield


Dividend Yield vs Market

company1.3%marketbottom25%2.0%markettop25%5.4%industryaverage2.9%forecastin3Years1.3%

Current dividend yield vs market & industry


Dividend Yield and Payments Analysis

Notable Dividend: SCPA's dividend (1.32%) isn’t notable compared to the bottom 25% of dividend payers in the UK market (2%).

High Dividend: SCPA's dividend (1.32%) is low compared to the top 25% of dividend payers in the UK market (5.42%).

Stable Dividend: Whilst dividend payments have been stable, SCPA has been paying a dividend for less than 10 years.

Growing Dividend: SCPA's dividend payments have increased, but the company has only paid a dividend for 6 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (54.5%), SCPA's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: SCPA's dividends in 3 years are forecast to be thoroughly covered by earnings (14.5% payout ratio).


Next Steps

Management

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

1.5yrs

Average management tenure


CEO

Heejae Chae (50yo)

9.9yrs

Tenure

UK£1,234,721

Compensation

Mr. Heejae Richard Chae has been the Chief Executive Officer of Scapa Group plc since November 18, 2009. He is an Independent Non-executive Director at IP Group Plc since May 3, 2018. He also serves on the ...


CEO Compensation Analysis

Compensation vs. Market: Heejae's total compensation ($USD1.57M) is about average for companies of similar size in the UK market ($USD868.23K).

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


Management Age and Tenure

1.5yrs

Average Tenure

54yo

Average Age

Experienced Management: SCPA's management team is not considered experienced ( 1.5 years average tenure), which suggests a new team.


Board Age and Tenure

1.3yrs

Average Tenure

56yo

Average Age

Experienced Board: SCPA's board of directors are not considered experienced ( 1.3 years average tenure), which suggests a new board.


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£10,50018 Jun 19
Sevan Demirdogen
EntityIndividual
Role
Member of the Board of Directors
President
Shares5,000
Max PriceUK£2.10
BuyUK£29,88014 Jun 19
Pierre Roger Guyot
EntityIndividual
Role
Member of the Board of Directors
Independent Non-Executive Director
Shares15,000
Max PriceUK£1.99
BuyUK£31,00812 Jun 19
Lawrence Pentz
EntityIndividual
Role
Chairman of the Board
Non-Executive Chairman
Shares17,000
Max PriceUK£1.82
BuyUK£14,94012 Jun 19
Oskar Zahn
EntityIndividual
Role
Member of the Board of Directors
CFO & Director
Shares8,300
Max PriceUK£1.80
BuyUK£49,99906 Mar 19
Heejae Chae
EntityIndividual
Role
Chief Executive Officer
Group Chief Executive Officer
Shares16,552
Max PriceUK£3.02
SellUK£666,00012 Feb 19
Heejae Chae
EntityIndividual
Role
Chief Executive Officer
Group Chief Executive Officer
Shares200,000
Max PriceUK£3.33
SellUK£246,28608 Feb 19
Heejae Chae
EntityIndividual
Role
Chief Executive Officer
Group Chief Executive Officer
Shares75,179
Max PriceUK£3.28
BuyUK£4,83923 Nov 18
Pierre Roger Guyot
EntityIndividual
Role
Member of the Board of Directors
Independent Non-Executive Director
Shares15,000
Max PriceUK£0.32
BuyUK£3,19023 Nov 18
Oskar Zahn
EntityIndividual
Role
Member of the Board of Directors
CFO & Director
Shares1,000
Max PriceUK£3.19
BuyUK£44,85623 Nov 18
Brendan McAtamney
EntityIndividual
Role
Member of the Board of Directors
Independent Non-Executive Director
Shares14,150
Max PriceUK£3.17
BuyUK£20,40123 Nov 18
Martin Sawkins
EntityIndividual
Shares6,500
Max PriceUK£3.14
BuyUK£15,42021 Nov 18
Sevan Demirdogen
EntityIndividual
Role
Member of the Board of Directors
President
Shares5,000
Max PriceUK£3.08

Ownership Breakdown


Management Team

  • Heejae Chae (50yo)

    Group Chief Executive Officer

    • Tenure: 9.9yrs
    • Compensation: UK£1.23m
  • Sevan Demirdogen (58yo)

    President

    • Tenure: 0.8yrs
    • Compensation: UK£390.46k
  • Oskar Zahn (55yo)

    CFO & Director

    • Tenure: 1yrs
    • Compensation: UK£279.30k
  • Sayoung Jung

    Managing Director of Global Corporate Development & Strategy

    • Tenure: 5.3yrs
  • Wendy Baker

    Group General Counsel & Company Secretary

    • Tenure: 0yrs
  • Joe Doherty (53yo)

    President of Healthcare & Executive Director

    • Tenure: 0.8yrs
    • Compensation: UK£99.41k

Board Members

  • Larry Pentz (64yo)

    Non-Executive Chairman

    • Tenure: 2.6yrs
    • Compensation: UK£125.00k
  • David Blackwood (60yo)

    Senior Independent Director

    • Tenure: 1.3yrs
    • Compensation: UK£48.00k
  • Sevan Demirdogen (58yo)

    President

    • Tenure: 0.8yrs
    • Compensation: UK£390.46k
  • Pierre Roger Guyot (55yo)

    Independent Non-Executive Director

    • Tenure: 1.8yrs
    • Compensation: UK£42.00k
  • Oskar Zahn (55yo)

    CFO & Director

    • Tenure: 1yrs
    • Compensation: UK£279.30k
  • Brendan McAtamney (56yo)

    Independent Non-Executive Director

    • Tenure: 1.7yrs
    • Compensation: UK£42.00k
  • Joe Doherty (53yo)

    President of Healthcare & Executive Director

    • Tenure: 0.8yrs
    • Compensation: UK£99.41k

Company Information

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


Key Information

  • Name: Scapa Group plc
  • Ticker: SCPA
  • Exchange: AIM
  • Founded: 1927
  • Industry: Specialty Chemicals
  • Sector: Materials
  • Market Cap: UK£342.311m
  • Shares outstanding: 155.24m
  • Website: https://www.scapa.com

Number of Employees


Location

  • Scapa Group plc
  • Manchester Road
  • Ashton-Under-Lyne
  • Greater Manchester
  • OL7 0ED
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SCPAAIM (London Stock Exchange AIM Market)YesOrdinary SharesGBGBPJul 1989
SXGA.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJul 1989
48PDB (Deutsche Boerse AG)YesOrdinary SharesDEEURJul 1989

Biography

Scapa Group plc, together with its subsidiaries, manufactures and sells bonding products and adhesive components for applications in the healthcare and industrial markets in Europe, North America, and Asia ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/13 20:35
End of Day Share Price2019/10/11 00:00
Earnings2019/03/31
Annual Earnings2019/03/31


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.

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