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SCS

ScS GroupLSE:SCS Stock Report

Market Cap

UK£91.0m

7D

-7.1%

1Y

19.1%

Updated

26 Nov, 2021

Data

Company Financials +
SCS fundamental analysis
Snowflake Score
Valuation3/6
Future Growth1/6
Past Performance3/6
Financial Health6/6
Dividends4/6

SCS Stock Overview

ScS Group plc, together with its subsidiaries, engages in the retail of upholstered furniture, flooring, and related products in the United Kingdom.

ScS Group Competitors

Amazon.com

NasdaqGS:AMZN

US$1.8t

Wayfair

NYSE:W

US$28.9b

NEXT

LSE:NXT

UK£10.0b

Made.com Group

LSE:MADE

UK£530.1m

Price History & Performance

Summary of all time highs, changes and price drops for ScS Group
Historical stock prices
Current Share PriceUK£2.28
52 Week HighUK£3.41
52 Week LowUK£1.78
Beta0.66
1 Month Change-11.82%
3 Month Change-24.17%
1 Year Change19.11%
3 Year Change-3.19%
5 Year Change39.57%
Change since IPO19.74%

Recent News & Updates

Aug 10
Here's What's Concerning About ScS Group's (LON:SCS) Returns On Capital

Here's What's Concerning About ScS Group's (LON:SCS) Returns On Capital

To find a multi-bagger stock, what are the underlying trends we should look for in a business? Ideally, a business will...

Shareholder Returns

SCSGB Specialty RetailGB Market
7D-7.1%-2.5%-3.0%
1Y19.1%35.9%11.7%

Return vs Industry: SCS underperformed the UK Specialty Retail industry which returned 35.9% over the past year.

Return vs Market: SCS exceeded the UK Market which returned 11.7% over the past year.

Price Volatility

Is SCS's price volatile compared to industry and market?
SCS volatility
SCS Average Weekly Movement4.8%
Specialty Retail Industry Average Movement5.8%
Market Average Movement4.8%
10% most volatile stocks in GB Market9.7%
10% least volatile stocks in GB Market2.5%

Stable Share Price: SCS is not significantly more volatile than the rest of UK stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: SCS's weekly volatility (5%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
19961,855Steve Carsonhttps://www.scsplc.co.uk

ScS Group plc, together with its subsidiaries, engages in the retail of upholstered furniture, flooring, and related products in the United Kingdom. Its stores offer various furniture products; and flooring products, such as carpets, rugs, and laminate and vinyl tiling products. The company provides products under the Endurance, Inspire, and SiSi Italia brands, as well as third party brands, including La-Z-Boy and G Plan.

ScS Group Fundamentals Summary

How do ScS Group's earnings and revenue compare to its market cap?
SCS fundamental statistics
Market CapUK£90.96m
Earnings (TTM)UK£19.06m
Revenue (TTM)UK£310.57m

4.8x

P/E Ratio

0.3x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
SCS income statement (TTM)
RevenueUK£310.57m
Cost of RevenueUK£163.58m
Gross ProfitUK£146.99m
ExpensesUK£127.92m
EarningsUK£19.06m

Last Reported Earnings

Jul 31, 2021

Next Earnings Date

n/a

Earnings per share (EPS)0.48
Gross Margin47.33%
Net Profit Margin6.14%
Debt/Equity Ratio0%

How did SCS perform over the long term?

See historical performance and comparison

Dividends

4.4%

Current Dividend Yield

20%

Payout Ratio

Valuation

Is ScS Group undervalued compared to its fair value and its price relative to the market?

4.77x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: SCS (£2.28) is trading above our estimate of fair value (£1.84)

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


Price To Earnings Ratio

PE vs Industry: SCS is good value based on its PE Ratio (4.8x) compared to the UK Specialty Retail industry average (11.3x).

PE vs Market: SCS is good value based on its PE Ratio (4.8x) compared to the UK market (19.1x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate SCS's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: SCS is good value based on its PB Ratio (2x) compared to the GB Specialty Retail industry average (2.4x).


Future Growth

How is ScS Group forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

10.0%

Forecasted annual revenue growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if SCS's forecast earnings growth is above the savings rate (0.9%).

Earnings vs Market: Insufficient data to determine if SCS's earnings are forecast to grow faster than the UK market

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

Revenue vs Market: SCS's revenue (10% per year) is forecast to grow faster than the UK market (4.9% per year).

High Growth Revenue: SCS's revenue (10% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

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


Past Performance

How has ScS Group performed over the past 5 years?

2.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SCS has a large one-off gain of £14.4M impacting its July 31 2021 financial results.

Growing Profit Margin: SCS became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: SCS's earnings have grown by 2.7% per year over the past 5 years.

Accelerating Growth: SCS has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: SCS has become profitable in the last year, making it difficult to compare its past year earnings growth to the Specialty Retail industry (76.5%).


Return on Equity

High ROE: SCS's Return on Equity (42.8%) is considered outstanding.


Financial Health

How is ScS Group's financial position?


Financial Position Analysis

Short Term Liabilities: SCS's short term assets (£109.9M) exceed its short term liabilities (£96.2M).

Long Term Liabilities: SCS's short term assets (£109.9M) exceed its long term liabilities (£94.5M).


Debt to Equity History and Analysis

Debt Level: SCS is debt free.

Reducing Debt: SCS has not had any debt for past 5 years.

Debt Coverage: SCS has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: SCS has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet


Dividend

What is ScS Group current dividend yield, its reliability and sustainability?

4.40%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: SCS's dividend (4.4%) is higher than the bottom 25% of dividend payers in the UK market (1.37%).

High Dividend: SCS's dividend (4.4%) is in the top 25% of dividend payers in the UK market (4.15%)


Stability and Growth of Payments

Stable Dividend: SCS has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: SCS's dividend payments have increased, but the company has only paid a dividend for 7 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (19.8%), SCS's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: SCS's dividends in 3 years are forecast to be covered by earnings (61.1% payout ratio).


Next Steps

Management

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

5.6yrs

Average management tenure


CEO

Steve Carson

no data

Tenure

UK£817,676

Compensation

Mr. Steve Carson was Director of Retail & Customer Operations and Member of Group Executive Board at Home Retail Group plc. He is Group Chief Executive Officer and Director of ScS Group plc since January 0...


CEO Compensation Analysis

Compensation vs Market: Steve's total compensation ($USD1.09M) is above average for companies of similar size in the UK market ($USD324.88K).

Compensation vs Earnings: Insufficient data to compare Steve's compensation with company performance.


Leadership Team

Experienced Management: SCS's management team is seasoned and experienced (5.6 years average tenure).


Board Members

Experienced Board: SCS's board of directors are considered experienced (5.6 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.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 5.4%.


Top Shareholders

Company Information

ScS Group plc's employee growth, exchange listings and data sources


Key Information

  • Name: ScS Group plc
  • Ticker: SCS
  • Exchange: LSE
  • Founded: 1996
  • Industry: Homefurnishing Retail
  • Sector: Retail
  • Market Cap: UK£90.963m
  • Shares outstanding: 39.98m
  • Website: https://www.scsplc.co.uk

Number of Employees


Location

  • ScS Group plc
  • 45-49 Villiers Street
  • Sunderland
  • Tyne and Wear
  • SR1 1HA
  • United Kingdom

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/11/26 21:31
End of Day Share Price2021/11/26 00:00
Earnings2021/07/31
Annual Earnings2021/07/31


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.