LSE:CKN

Stock Analysis Report

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Market Cap

UK£959.1m

Last Updated

2021/07/29 21:18 UTC

Data Sources

Company Financials +

Executive Summary

Clarkson PLC provides integrated shipping services worldwide. More Details


Snowflake Analysis

Flawless balance sheet average dividend payer.

Share Price & News

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


Latest Share Price and Events

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

Volatility Over Time: CKN's weekly volatility (3%) has been stable over the past year.


Market Performance


7 Day Return

6.7%

CKN

-1.9%

GB Shipping

1.6%

GB Market


1 Year Return

53.5%

CKN

123.2%

GB Shipping

21.7%

GB Market

Return vs Industry: CKN underperformed the UK Shipping industry which returned 119.2% over the past year.

Return vs Market: CKN exceeded the UK Market which returned 18.5% over the past year.


Shareholder returns

CKNIndustryMarket
7 Day6.7%-1.9%1.6%
30 Day-1.4%-6.0%0.4%
90 Day5.4%11.6%2.0%
1 Year61.3%53.5%129.5%123.2%27.2%21.7%
3 Year41.8%29.3%132.6%103.7%14.3%1.3%
5 Year97.6%70.8%190.6%142.4%40.9%13.8%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

3x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: CKN (£32) is trading above our estimate of fair value (£29.1)

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


Price To Earnings Ratio

PE vs Industry: CKN is unprofitable, so we can't compare its PE Ratio to the European Shipping industry average.

PE vs Market: CKN is unprofitable, so we can't compare its PE Ratio to the UK market.


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: CKN is overvalued based on its PB Ratio (3x) compared to the XE Shipping industry average (1.2x).


Future Growth

How is Clarkson forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

50.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CKN is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (0.9%).

Earnings vs Market: CKN is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: CKN's is expected to become profitable in the next 3 years.

Revenue vs Market: CKN's revenue (4.8% per year) is forecast to grow slower than the UK market (5.4% per year).

High Growth Revenue: CKN's revenue (4.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: CKN's Return on Equity is forecast to be low in 3 years time (11%).


Past Performance

How has Clarkson performed over the past 5 years?

-39.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CKN is currently unprofitable.

Growing Profit Margin: CKN is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: CKN is unprofitable, and losses have increased over the past 5 years at a rate of 39% per year.

Accelerating Growth: Unable to compare CKN's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: CKN is unprofitable, making it difficult to compare its past year earnings growth to the Shipping industry (62.6%).


Return on Equity

High ROE: CKN has a negative Return on Equity (-7.86%), as it is currently unprofitable.


Financial Health

How is Clarkson's financial position?


Financial Position Analysis

Short Term Liabilities: CKN's short term assets (£282.6M) exceed its short term liabilities (£177.4M).

Long Term Liabilities: CKN's short term assets (£282.6M) exceed its long term liabilities (£66.9M).


Debt to Equity History and Analysis

Debt Level: CKN's debt to equity ratio (0.03%) is considered satisfactory.

Reducing Debt: CKN's debt to equity ratio has reduced from 13.4% to 0.03% over the past 5 years.

Debt Coverage: CKN's debt is well covered by operating cash flow (65900%).

Interest Coverage: CKN's interest payments on its debt are well covered by EBIT (30.9x coverage).


Balance Sheet


Dividend

What is Clarkson current dividend yield, its reliability and sustainability?

4.13%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: CKN's dividend (4.13%) is higher than the bottom 25% of dividend payers in the UK market (1.3%).

High Dividend: CKN's dividend (4.13%) is in the top 25% of dividend payers in the UK market (3.92%)


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: CKN is paying a dividend but the company is unprofitable.


Future Payout to Shareholders

Future Dividend Coverage: CKN's dividends in 3 years are forecast to be covered by earnings (65.7% payout ratio).


Next Steps

Management

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

8.3yrs

Average management tenure


CEO

Andi Case (54 yo)

13.08yrs

Tenure

UK£3,150,000

Compensation

Mr. Andi L Case has been the Chief Executive Officer at Clarkson plc since June 17, 2008. Mr. Case served as an Interim Chief Executive of Clarkson plc from May 7, 2008 to June 2008 and served as its Chief...


CEO Compensation Analysis

Compensation vs Market: Andi's total compensation ($USD4.40M) is above average for companies of similar size in the UK market ($USD1.37M).

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


Leadership Team

Experienced Management: CKN's management team is seasoned and experienced (8.3 years average tenure).


Board Members

Experienced Board: CKN's board of directors are not considered experienced ( 2.8 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.


Top Shareholders

Company Information

Clarkson PLC's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Clarkson PLC
  • Ticker: CKN
  • Exchange: LSE
  • Founded: 1852
  • Industry: Marine
  • Sector: Transportation
  • Market Cap: UK£959.084m
  • Shares outstanding: 30.40m
  • Website: https://www.clarksons.com

Number of Employees


Location

  • Clarkson PLC
  • Commodity Quay
  • St. Katharine Docks
  • London
  • Greater London
  • E1W 1BF
  • United Kingdom

Listings


Biography

Clarkson PLC provides integrated shipping services worldwide. It operates through four segments: Broking, Financial, Support, and Research. The Broking segment provides services to ship owners and chartere...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/07/29 21:18
End of Day Share Price2021/07/29 00:00
Earnings2020/12/31
Annual Earnings2020/12/31


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.