LSE:CKN

Stock Analysis Report

Executive Summary

Clarkson PLC provides integrated shipping services worldwide.

Snowflake

Fundamentals

Excellent balance sheet established 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


Market Performance


7 Day Return

20.1%

CKN

4.0%

GB Shipping

2.0%

GB Market


1 Year Return

10.7%

CKN

6.2%

GB Shipping

3.3%

GB Market

Return vs Industry: CKN exceeded the UK Shipping industry which returned 6.2% over the past year.

Return vs Market: CKN exceeded the UK Market which returned 3.3% over the past year.


Share holder returns

CKNIndustryMarket
7 Day20.1%4.0%2.0%
30 Day23.4%-2.9%-1.0%
90 Day8.8%9.2%-1.7%
1 Year14.5%10.7%15.1%6.2%8.3%3.3%
3 Year58.1%45.2%22.1%6.6%19.0%4.5%
5 Year57.0%36.7%13.3%-14.5%38.4%8.4%

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 based on future cash flows and its price relative to the stock market?

28.24x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

Undervalued: CKN (£29) is trading above our estimate of fair value (£28.12)

Significantly Undervalued: CKN is trading above our estimate of fair value.


Price Based on Earnings

PE vs Industry: CKN is poor value based on its PE Ratio (28.2x) compared to the Shipping industry average (11.4x).

PE vs Market: CKN is poor value based on its PE Ratio (28.2x) compared to the UK market (16.4x).


Price Based on Expected Growth

Low PEG Ratio: CKN is poor value based on its PEG Ratio (2.6x)


Price Based on Value of Assets

PB vs Industry: CKN is overvalued based on its PB Ratio (2x) compared to the XE Shipping industry average (0.8x).


Next Steps

Future Growth

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

10.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Earnings vs Savings Rate: CKN's forecast earnings growth (10.7% per year) is above the savings rate (1.2%).

Earnings vs Market: CKN's earnings (10.7% per year) are forecast to grow slower than the UK market (12.3% per year).

High Growth Earnings: CKN's earnings are forecast to grow, but not significantly.

Revenue vs Market: CKN's revenue (4.5% per year) is forecast to grow faster than the UK market (4% per year).

High Growth Revenue: CKN's revenue (4.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Estimates


Future Return on Equity

High Future ROE: CKN's Return on Equity is forecast to be low in 3 years time (9.2%).


Next Steps

Past Performance

How has Clarkson performed over the past 5 years?

14.1%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: CKN's earnings have grown by 14.1% per year over the past 5 years.

Accelerating Growth: CKN's earnings growth over the past year (6.9%) is below its 5-year average (14.1% per year).

Earnings vs Industry: CKN earnings growth over the past year (6.9%) exceeded the Shipping industry -1%.


Return on Equity

High ROE: CKN's Return on Equity (7.8%) is considered low.


Return on Assets

ROA vs Industry: CKN's Return on Assets is below or equal to the Shipping industry average last year.


Return on Capital Employed

ROCE Improving: CKN's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Clarkson's financial position?


Financial Position Analysis

Short Term Liabilities: CKN's short term assets (£233.3M) exceeds its short term liabilities (£143.4M)

Long Term Liabilities: CKN's short term assets (233.3M) exceeds its long term liabilities (65.1M)


Debt to Equity History and Analysis

Debt Level: CKN's debt to equity ratio (1.4%) is considered satisfactory

Reducing Debt: Insufficient data to determine if CKN's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: CKN's debt is well covered by operating cash flow (944.3%).

Interest Coverage: CKN's interest payments on its debt are well covered by EBIT (230x coverage).


Balance Sheet

Inventory Level: CKN has a low level of unsold assets or inventory.

Debt Coverage by Assets: CKN's debt is covered by short term assets (assets are 38.245900x debt).


Next Steps

Dividend

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

2.82%

Expected Dividend Yield


Dividend Yield vs Market

company2.6%marketbottom25%2.0%markettop25%5.4%industryaverage2.6%forecastin3Years2.8%

Current dividend yield vs market & industry


Dividend Yield and Payments Analysis

Notable Dividend: CKN's dividend (2.59%) is higher than the bottom 25% of dividend payers in the UK market (2%).

High Dividend: CKN's dividend (2.59%) is low compared to the top 25% of dividend payers in the UK market (5.42%).

Stable Dividend: CKN's dividends per share have been stable in the past 10 years.

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


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (74%), CKN's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: CKN's dividends in 3 years are forecast to be covered by earnings (62.5% payout ratio).


Next Steps

Management

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

6.5yrs

Average management tenure


CEO

Andi Case (52yo)

11.3yrs

Tenure

UK£2,758,000

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 ($USD3.50M) is about average for companies of similar size in the UK market ($USD1.17M).

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


Management Age and Tenure

6.5yrs

Average Tenure

58yo

Average Age

Experienced Management: CKN's management team is seasoned and experienced (6.5 years average tenure).


Board Age and Tenure

4.9yrs

Average Tenure

60.5yo

Average Age

Experienced Board: CKN's board of directors are considered experienced (4.9 years average tenure).


Insider Trading

Insider Buying: CKN insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUK£1,744,68825 Sep 19
Birger Nergaard
EntityIndividual
Role
Member of the Board of Directors
Independent Non-Executive Director
Shares75,000
Max PriceUK£23.26
BuyUK£23,00025 Mar 19
Peter Backhouse
EntityIndividual
Role
Lead Director
Senior Independent Director
Shares1,000
Max PriceUK£23.00
BuyUK£71,88015 Mar 19
Peter Backhouse
EntityIndividual
Role
Lead Director
Senior Independent Director
Shares3,000
Max PriceUK£23.96
BuyUK£49,68015 Mar 19
William Gennydd Thomas
EntityIndividual
Role
Chairman of the Board
Non-Executive Chairman
Shares2,083
Max PriceUK£23.85
BuyUK£13,99419 Feb 19
James Hughes-Hallett
EntityIndividual
Role
Member of the Board of Directors
Independent Non-Executive Director
Shares663
Max PriceUK£21.11

Ownership Breakdown


Management Team

  • Jeff Woyda (58yo)

    CFO, COO & Executive Director

    • Tenure: 12.9yrs
    • Compensation: UK£959.00k
  • Robert Stopford (71yo)

    Consultant of Maritime Economics and President of Clarkson Research Services

    • Tenure: 7.6yrs
    • Compensation: UK£50.00k
  • Andi Case (52yo)

    CEO & Director

    • Tenure: 11.3yrs
    • Compensation: UK£2.76m
  • Mike Cahill

    Financial Controller

    • Tenure: 0yrs
  • Matt Russell

    Head of Specialised Products

    • Tenure: 5.4yrs
  • Richard Whittet

    Managing Director of Specialised Products

    • Tenure: 0yrs
  • Rachel Spencer

    Company Secretary

    • Tenure: 1.5yrs
  • Janet Sykes

    Head of Media

    • Tenure: 0yrs
  • Kate Hoare

    Head of Public Relations

    • Tenure: 0yrs
  • John Beckwith

    Head of Human Resources

    • Tenure: 0yrs

Board Members

  • Peter Backhouse (68yo)

    Senior Independent Director

    • Tenure: 5.9yrs
    • Compensation: UK£76.00k
  • Jeff Woyda (58yo)

    CFO, COO & Executive Director

    • Tenure: 12.9yrs
    • Compensation: UK£959.00k
  • Birger Nergaard (68yo)

    Independent Non-Executive Director

    • Tenure: 4.7yrs
    • Compensation: UK£57.00k
  • John Hughes-Hallett (69yo)

    Independent Non-Executive Director

    • Tenure: 5.2yrs
    • Compensation: UK£167.00k
  • Tim Miller (62yo)

    Independent Non-Executive Director

    • Tenure: 1.4yrs
    • Compensation: UK£47.00k
  • Marie-Louise Clayton (58yo)

    Independent Non-Executive Director

    • Tenure: 2.8yrs
    • Compensation: UK£76.00k
  • Bill Gennydd Thomas (59yo)

    Non-Executive Chairman

    • Tenure: 0.7yrs
  • Andi Case (52yo)

    CEO & Director

    • Tenure: 11.3yrs
    • Compensation: UK£2.76m

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£876.021m
  • Shares outstanding: 30.21m
  • 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 includes services provided to ship owners and ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/13 20:36
End of Day Share Price2019/10/11 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.

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