Braemar Shipping Services (LSE:BMS) - Share price, News & Analysis

BMS fundamental analysis
Snowflake Score
Valuation	4/6
Future Growth	0/6
Past Performance	2/6
Financial Health	4/6
Dividends	2/6

BMS Stock Overview

Braemar Shipping Services Plc provides shipbroking, financial advisory, and logistics services to the shipping, marine, and energy industries.

Rewards

Trading at 59.9% below our estimate of its fair value

Earnings have grown 50.5% per year over the past 5 years

Risk Analysis

Earnings are forecast to decline by an average of 21.7% per year for the next 3 years

Large one-off items impacting financial results

Latest financial reports are more than 6 months old

Braemar Shipping Services Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Braemar Shipping Services
Historical stock prices
Current Share Price	UK£2.75
52 Week High	UK£3.14
52 Week Low	UK£1.98
Beta	1.42
1 Month Change	4.76%
3 Month Change	10.66%
1 Year Change	18.03%
3 Year Change	35.80%
5 Year Change	-10.71%
Change since IPO	7.84%

Shareholder Returns

	BMS	GB Infrastructure	GB Market
7D	2.6%	-2.7%	-0.4%
1Y	18.0%	-48.0%	-4.0%

Return vs Industry: BMS exceeded the UK Infrastructure industry which returned -48% over the past year.

Return vs Market: BMS exceeded the UK Market which returned -4% over the past year.

Price Volatility

Is BMS's price volatile compared to industry and market?
BMS volatility
BMS Average Weekly Movement	4.4%
Infrastructure Industry Average Movement	4.8%
Market Average Movement	6.2%
10% most volatile stocks in GB Market	11.6%
10% least volatile stocks in GB Market	3.2%

Stable Share Price: BMS is less volatile than 75% of UK stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: BMS's weekly volatility (4%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1842	540	James Christopher Gundy	https://www.braemar.com

Braemar Shipping Services Plc provides shipbroking, financial advisory, and logistics services to the shipping, marine, and energy industries. Its Shipbroking segment is involved in the tanker chartering for crude oil, liquefied petrochemical gas, and liquefied natural gas; specialized tankers; purchase and sale of second-hand vessels; chartering of dry cargo and offshore vessels; and provision of research, valuation, consulting, and derivatives brokerage services. The company’s Financial segment provides transaction advisory, financing advisory and capital raising, asset and loan management, and restructuring and insolvency advisory services.

Braemar Shipping Services Fundamentals Summary

How do Braemar Shipping Services's earnings and revenue compare to its market cap?
BMS fundamental statistics
Market Cap	UK£87.10m
Earnings (TTM)	UK£11.47m
Revenue (TTM)	UK£116.40m

7.6x

P/E Ratio

0.7x

P/S Ratio

Is BMS overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
BMS income statement (TTM)
Revenue	UK£116.40m
Cost of Revenue	UK£16.49m
Gross Profit	UK£99.92m
Other Expenses	UK£88.45m
Earnings	UK£11.47m

Last Reported Earnings

Aug 31, 2021

Next Earnings Date

May 26, 2022

Earnings per share (EPS)	0.36
Gross Margin	85.84%
Net Profit Margin	9.85%
Debt/Equity Ratio	41.4%

How did BMS perform over the long term?

See historical performance and comparison

Dividends

1.5%

Current Dividend Yield

19%

Payout Ratio

Valuation

Is Braemar Shipping Services undervalued compared to its fair value and its price relative to the market?

Valuation Score

4/6

Valuation Score 4/6

Below Fair Value
Significantly Below Fair Value
PE vs Industry
PE vs Market
PEG Ratio
PB vs Industry

>50%

Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: BMS (£2.75) is trading below our estimate of fair value (£6.85)

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

Price To Earnings Ratio

PE vs Industry: BMS is good value based on its PE Ratio (7.6x) compared to the European Infrastructure industry average (12.3x).

PE vs Market: BMS is good value based on its PE Ratio (7.6x) compared to the UK market (15.4x).

Price to Earnings Growth Ratio

PEG Ratio: BMS's earnings are forecast to decline next year, so we can't calculate its PEG ratio.

Price to Book Ratio

PB vs Industry: BMS is overvalued based on its PB Ratio (1.3x) compared to the GB Infrastructure industry average (0.6x).

Future Growth

How is Braemar Shipping Services forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

Future Growth Score

0/6

Future Growth Score 0/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

-21.7%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: BMS's earnings are forecast to decline over the next 3 years (-21.7% per year).

Earnings vs Market: BMS's earnings are forecast to decline over the next 3 years (-21.7% per year).

High Growth Earnings: BMS's earnings are forecast to decline over the next 3 years.

Revenue vs Market: BMS's revenue (0.7% per year) is forecast to grow slower than the UK market (4% per year).

High Growth Revenue: BMS's revenue (0.7% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: BMS's Return on Equity is forecast to be low in 3 years time (10.2%).

Past Performance

How has Braemar Shipping Services performed over the past 5 years?

Past Performance Score

2/6

Past Performance Score 2/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

50.5%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: BMS has a large one-off gain of £5.6M impacting its August 31 2021 financial results.

Growing Profit Margin: BMS's current net profit margins (9.9%) are higher than last year (9.7%).

Past Earnings Growth Analysis

Earnings Trend: BMS's earnings have grown significantly by 50.5% per year over the past 5 years.

Accelerating Growth: BMS's earnings growth over the past year (14.5%) is below its 5-year average (50.5% per year).

Earnings vs Industry: BMS earnings growth over the past year (14.5%) underperformed the Infrastructure industry 32%.

Return on Equity

High ROE: BMS's Return on Equity (16.8%) is considered low.

Financial Health

How is Braemar Shipping Services's financial position?

Financial Health Score

4/6

Financial Health Score 4/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: BMS's short term assets (£67.1M) do not cover its short term liabilities (£78.2M).

Long Term Liabilities: BMS's short term assets (£67.1M) exceed its long term liabilities (£17.1M).

Debt to Equity History and Analysis

Debt Level: BMS's net debt to equity ratio (28.1%) is considered satisfactory.

Reducing Debt: BMS's debt to equity ratio has increased from 7.2% to 41.4% over the past 5 years.

Debt Coverage: BMS's debt is well covered by operating cash flow (29.6%).

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

Balance Sheet

Dividend

What is Braemar Shipping Services's current dividend yield, its reliability and sustainability?

Dividend Score

2/6

Dividend Score 2/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

1.45%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: BMS's dividend (1.45%) isn’t notable compared to the bottom 25% of dividend payers in the UK market (1.8%).

High Dividend: BMS's dividend (1.45%) is low compared to the top 25% of dividend payers in the UK market (4.86%).

Stability and Growth of Payments

Stable Dividend: BMS's dividend payments have been volatile in the past 10 years.

Growing Dividend: BMS's dividend payments have fallen over the past 10 years.

Earnings Payout to Shareholders

Earnings Coverage: With its low payout ratio (19.1%), BMS's dividend payments are well covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: With its low cash payout ratio (18.6%), BMS's dividend payments are well covered by cash flows.

Discover strong dividend paying companies

Management

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

1.3yrs

Average management tenure

CEO

James Christopher Gundy (56 yo)

1.33yrs

Tenure

UK£738,800

Compensation

Mr. James Christopher Duchar Gundy serves as Group Chief Executive Officer at Braemar Shipping Services Plc since January 1, 2021 and serves its Executive Director since January 1, 2021. He has been the Ch...

CEO Compensation Analysis

Compensation vs Market: James Christopher's total compensation ($USD928.92K) is above average for companies of similar size in the UK market ($USD319.38K).

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

Leadership Team

Experienced Management: BMS's management team is not considered experienced ( 1.3 years average tenure), which suggests a new team.

Board Members

Experienced Board: BMS's board of directors are not considered experienced ( 1 years average tenure), which suggests a new board.

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 not been meaningfully diluted in the past year.

Data	Last Updated (UTC time)
Company Analysis	2022/05/23 00:00
End of Day Share Price	2022/05/23 00:00
Earnings	2021/08/31
Annual Earnings	2021/02/28