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.

Risks

  • Scapa Group has significant price volatility in the past 3 months.

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

4.1%

AIM:SCPA

-2.1%

GB Chemicals

-2.0%

GB Market


1 Year Return

-49.2%

AIM:SCPA

-30.2%

GB Chemicals

-5.8%

GB Market

SCPA underperformed the Chemicals industry which returned -30.2% over the past year.

SCPA underperformed the Market in United Kingdom of Great Britain and Northern Ireland which returned -5.8% over the past year.


Share holder returns

SCPAIndustryMarket
7 Day4.1%-2.1%-2.0%
30 Day29.6%-9.2%-5.1%
90 Day-44.1%-13.8%-3.3%
1 Year-48.4%-49.2%-27.1%-30.2%-1.5%-5.8%
3 Year-10.8%-13.0%-4.4%-11.9%17.7%3.9%
5 Year61.3%55.0%18.7%-0.01%26.9%0.2%

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

Scapa Group's share price is below the future cash flow value, and at a moderate discount (> 20%).

Scapa Group's share price is below the future cash flow value, and at a substantial discount (> 40%).


Price Based on Earnings

Scapa Group is overvalued based on earnings compared to the GB Chemicals industry average.

Scapa Group is overvalued based on earnings compared to the United Kingdom of Great Britain and Northern Ireland market.


Price Based on Expected Growth

Scapa Group is poor value based on expected growth next year.


Price Based on Value of Assets

Scapa Group is overvalued based on assets compared to the GB Chemicals industry average.


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

Scapa Group's revenue is expected to grow by 2.5% yearly, however this is not considered high growth (20% yearly).

Scapa Group's earnings are expected to grow significantly at over 20% yearly.

Scapa Group's revenue growth is positive but not above the United Kingdom of Great Britain and Northern Ireland market average.

Scapa Group's earnings growth is expected to exceed the United Kingdom of Great Britain and Northern Ireland market average.

Scapa Group's earnings growth is expected to exceed the low risk savings rate of 1.2%.


Earnings per Share Growth Estimates


Future Return on Equity

Unable to establish if Scapa Group will efficiently use shareholders’ funds in the future without estimates of Return on Equity.


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

Scapa Group has delivered over 20% year on year earnings growth in the past 5 years.

Scapa Group's 1-year earnings growth is negative, it can't be compared to the 5-year average.

Scapa Group's 1-year earnings growth is negative, it can't be compared to the GB Chemicals industry average.


Return on Equity

Scapa Group has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Scapa Group used its assets less efficiently than the GB Chemicals industry average last year based on Return on Assets.


Return on Capital Employed

Scapa Group's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Scapa Group's financial position?


Financial Position Analysis

Scapa Group is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Scapa Group's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

Scapa Group's level of debt (39.3%) compared to net worth is satisfactory (less than 40%).

The level of debt compared to net worth has increased over the past 5 years (17% vs 39.3% today).

Debt is well covered by operating cash flow (20.4%, greater than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 20.9x coverage).


Balance Sheet

High level of physical assets or inventory.

Debt is covered by short term assets, assets are 2.3x debt.


Next Steps

Dividend

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

1.28%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Scapa Group's pays a lower dividend yield than the bottom 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (2.09%).

Scapa Group's dividend is below the markets top 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (5.76%).

Whilst dividend payments have been stable, Scapa Group has been paying a dividend for less than 10 years.

Dividend payments have increased, but Scapa Group only paid a dividend in the past 6 years.


Current Payout to Shareholders

Dividends paid are covered by earnings (1.8x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be thoroughly covered by earnings (6.9x coverage).


Next Steps

Management

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

1.3yrs

Average management tenure


CEO

Heejae Chae (50yo)

9.8yrs

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 a Non-executive Director at IP Group Plc since May 3, 2018. He also serves on the Board of Ove ...


CEO Compensation Analysis

Heejae's remuneration is higher than average for companies of similar size in United Kingdom of Great Britain and Northern Ireland.

Heejae's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

1.3yrs

Average Tenure

54yo

Average Age

The average tenure for the Scapa Group management team is less than 2 years, this suggests a new team.


Board Age and Tenure

1.1yrs

Average Tenure

56yo

Average Age

The average tenure for the Scapa Group board of directors is less than 3 years, this suggests a new board.


Insider Trading

More shares have been bought than sold by Scapa Group individual insiders in the past 3 months.


Recent Insider Transactions

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

Ownership Breakdown


Management Team

  • Heejae Chae (50yo)

    Group Chief Executive Officer

    • Tenure: 9.8yrs
    • Compensation: £1.23m
  • Sevan Demirdogen (58yo)

    President

    • Tenure: 1.3yrs
    • Compensation: £390.46k
  • Oskar Zahn (55yo)

    CFO & Director

    • Tenure: 0.8yrs
    • Compensation: £279.30k
  • Sayoung Jung

    Managing Director of Global Corporate Development & Strategy

    • Tenure: 5.2yrs
  • Wendy Baker

    Group General Counsel & Company Secretary

  • Joe Doherty (53yo)

    President of Healthcare & Executive Director

    • Tenure: 0.6yrs
    • Compensation: £99.41k

Board Members

  • Larry Pentz (64yo)

    Non-Executive Chairman

    • Tenure: 2.4yrs
    • Compensation: £125.00k
  • David Blackwood (60yo)

    Senior Independent Director

    • Tenure: 1.1yrs
    • Compensation: £48.00k
  • Sevan Demirdogen (58yo)

    President

    • Tenure: 0.6yrs
    • Compensation: £390.46k
  • Pierre Roger Guyot (55yo)

    Independent Non-Executive Director

    • Tenure: 1.6yrs
    • Compensation: £42.00k
  • Oskar Zahn (55yo)

    CFO & Director

    • Tenure: 0.8yrs
    • Compensation: £279.30k
  • Brendan McAtamney (56yo)

    Independent Non-Executive Director

    • Tenure: 1.5yrs
    • Compensation: £42.00k
  • Joe Doherty (53yo)

    President of Healthcare & Executive Director

    • Tenure: 0.6yrs
    • Compensation: £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£336.770m
  • Shares outstanding: 155.19m
  • Website: Click here

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 Analysis2019/08/17 20:36
End of Day Share Price2019/08/16 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.