LSE:CKN

Stock Analysis Report

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Executive Summary

Clarkson PLC provides integrated shipping services worldwide.


Snowflake Analysis

Excellent balance sheet with moderate growth potential.

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's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-4.3%

CKN

-8.1%

GB Shipping

1.3%

GB Market


1 Year Return

-2.9%

CKN

32.1%

GB Shipping

-14.4%

GB Market

Return vs Industry: CKN underperformed the UK Shipping industry which returned 41% over the past year.

Return vs Market: CKN exceeded the UK Market which returned -15.3% over the past year.


Shareholder returns

CKNIndustryMarket
7 Day-4.3%-8.1%1.3%
30 Day5.2%5.1%5.9%
90 Day-11.9%9.0%-14.4%
1 Year-1.8%-2.9%34.2%32.1%-10.3%-14.4%
3 Year-5.1%-11.5%7.6%-5.4%-7.2%-18.5%
5 Year7.8%-4.7%-14.8%-30.8%9.5%-15.0%

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?

9.8%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: CKN (£23.4) is trading below our estimate of fair value (£25.95)

Significantly Below Fair Value: CKN is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: CKN is unprofitable, so we can't compare its PE Ratio to the 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 (1.9x) compared to the XE Shipping industry average (0.6x).


Next Steps

Future Growth

How is Clarkson forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

53.8%

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 (1.2%).

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 (3.5% per year) is forecast to grow slower than the UK market (3.7% per year).

High Growth Revenue: CKN's revenue (3.5% 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 (10%).


Next Steps

Past Performance

How has Clarkson performed over the past 5 years?

-0.3%

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 -0.3% 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 (-25.3%).


Return on Equity

High ROE: CKN has a negative Return on Equity (-2.86%), as it is currently unprofitable.


Next Steps

Financial Health

How is Clarkson's financial position?


Financial Position Analysis

Short Term Liabilities: CKN's short term assets (£269.5M) exceed its short term liabilities (£170.6M).

Long Term Liabilities: CKN's short term assets (£269.5M) exceed its long term liabilities (£68.2M).


Debt to Equity History and Analysis

Debt Level: CKN's debt to equity ratio (0.3%) is considered satisfactory.

Reducing Debt: CKN's debt to equity ratio has reduced from 0.3% to 0.3% over the past 5 years.

Debt Coverage: CKN's debt is well covered by operating cash flow (5215.4%).

Interest Coverage: CKN is unprofitable, therefore interest payments are not well covered by earnings.


Balance Sheet


Next Steps

Dividend

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

3.47%

Forecast Dividend Yield


Dividend Yield vs Market

Notable Dividend: Unable to evaluate CKN's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate CKN's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if CKN's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if CKN's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: CKN is not paying a notable dividend for the UK market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of CKN's dividend in 3 years as they are not forecast to pay a notable one for the UK market.


Next Steps

Management

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

7.1yrs

Average management tenure


CEO

Andi Case (52yo)

11.92yrs

Tenure

UK£3,297,000

Compensation

Mr. Andi 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 O ...


CEO Compensation Analysis

Compensation vs Market: Andi's total compensation ($USD4.02M) is above average for companies of similar size in the UK market ($USD1.23M).

Compensation vs Earnings: Andi's compensation has increased whilst the company is unprofitable.


Leadership Team

NamePositionTenureCompensationOwnership
Andi Case
CEO & Executive Director11.92yrsUK£3.30m1.73% £12.3m
Jeff Woyda
CFO, COO & Executive Director13.5yrsUK£1.20m0.27% £1.9m
Kate Hoare
Head of Public Relationsno datano datano data
John Beckwith
Head of Human Resourcesno datano datano data
Matt Russell
Head of Specialised Products6yrsno datano data
Richard Whittet
Managing Director of Specialised Productsno datano datano data
Janet Sykes
Head of Mediano datano datano data
Robert Stopford
Consultant of Maritime Economics and President of Clarkson Research Services8.17yrsUK£50.00kno data
Mike Cahill
Financial Controllerno datano datano data
Rachel Spencer
Group Company Secretary2.08yrsno datano data

7.1yrs

Average Tenure

58yo

Average Age

Experienced Management: CKN's management team is seasoned and experienced (7.1 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Andi Case
CEO & Executive Director11.92yrsUK£3.30m1.73% £12.3m
Jeff Woyda
CFO, COO & Executive Director13.5yrsUK£1.20m0.27% £1.9m
Peter Backhouse
Senior Independent Director6.5yrsUK£76.00k0.046% £327.6k
Birger Nergaard
Independent Non-Executive Director5.25yrsUK£58.00k0.10% £722.3k
Timothy John Miller
Independent Non-Executive Director2yrsUK£88.00kno data
Marie-Louise Clayton
Independent Non-Executive Director3.33yrsUK£76.00k0.0036% £25.7k
William Gennydd Thomas
Non-Executive Chairman1.25yrsUK£162.00k0.0069% £48.8k
Heike Truol
Independent Non-Executive Director0.33yrno datano data

4.3yrs

Average Tenure

59yo

Average Age

Experienced Board: CKN's board of directors are considered experienced (4.3 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 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£710.720m
  • Shares outstanding: 30.37m
  • Website: https://www.clarksons.com

Number of Employees


Location

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

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CKNH.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJan 1992
CKNLSE (London Stock Exchange)YesOrdinary SharesGBGBPJan 1992
CKNlBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBGBPJan 1992
1DHDB (Deutsche Boerse AG)YesOrdinary SharesDEEURJan 1992

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 charterers in the transportation of various cargoes by sea; and to buyers and sellers/yards related to sale and purchase transactions, as well as futures broking operation. This segment deals in containers, dry cargo, deep sea tankers, liquefied petroleum gas and ammonia, liquefied natural gas, offshore, petrochemical gases, renewables, shortsea, specialized products, sale and purchase, and PCTC markets; and towage, salvage, and transportation markets. The Financial segment offers investment banking services for maritime, oil services, and natural resources sectors; structured asset finance services and projects in the shipping, offshore, and real estate sectors; and freight derivative products. This segment also provides equity and fixed income sales and trading; equity and credit research; and corporate access and corporate finance services, including advising clients on various equity and debt capital markets, and M&A transactions. The Support segment offers port and agency, freight forwarding, supplies, and tools for the marine and offshore industries. The Research segment provides shipping-related information and publications; and collects, validates, analyses, and manages data to inform various business decisions. This segment offers web products, such as Shipping Intelligence Network and World Fleet Register to printed publications, including Shipping Intelligence Weekly and Offshore Intelligence Monthly; data and analysis services for IPO and bond issues; customer service contracts, primarily to the financial, government, insurance, equipment, and shipbuilding sectors; and valuations to owners and the financial community. The company also provides property related services. Clarkson PLC was founded in 1852 and is headquartered in London, the United Kingdom. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/05/26 14:31
End of Day Share Price2020/05/22 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.