LSE:CKN

Stock Analysis Report

Executive Summary

Clarkson PLC provides integrated shipping services worldwide.


Snowflake Analysis

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

Stable Share Price: CKN has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-3.4%

CKN

-2.8%

GB Shipping

0.3%

GB Market


1 Year Return

15.9%

CKN

16.0%

GB Shipping

6.5%

GB Market

Return vs Industry: CKN matched the UK Shipping industry which returned 16% over the past year.

Return vs Market: CKN exceeded the UK Market which returned 6.4% over the past year.


Shareholder returns

CKNIndustryMarket
7 Day-3.4%-2.8%0.3%
30 Day-6.7%-3.6%-0.5%
90 Day4.0%-5.9%3.8%
1 Year19.8%15.9%26.3%16.0%12.0%6.5%
3 Year28.3%17.8%14.3%0.1%18.7%3.8%
5 Year63.2%42.1%-1.2%-25.6%35.0%4.1%

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?

4.2%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: CKN (£28.5) is trading below our estimate of fair value (£29.73)

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 poor value based on its PE Ratio (27.8x) compared to the Shipping industry average (16.8x).

PE vs Market: CKN is poor value based on its PE Ratio (27.8x) compared to the UK market (18.6x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

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

10.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CKN's forecast earnings growth (10.8% per year) is above the savings rate (0.5%).

Earnings vs Market: CKN's earnings (10.8% per year) are forecast to grow slower than the UK market (12.9% 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 (3.6% 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 Forecasts


Future Return on Equity

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

Quality Earnings: CKN has high quality earnings.

Growing Profit Margin: CKN's current net profit margins (8.8%) are lower than last year (9.1%).


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 -15.3%.


Return on Equity

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


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Clarkson's financial position?


Financial Position Analysis

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

Long Term Liabilities: CKN's short term assets (£233.3M) exceed 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 38.2x debt).


Next Steps

Dividend

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

2.63%

Current Dividend Yield


Dividend Yield vs Market

company2.6%marketbottom25%1.8%markettop25%5.1%industryaverage2.3%forecastin3Years2.9%

Current dividend yield vs market & industry

Notable Dividend: CKN's dividend (2.63%) is higher than the bottom 25% of dividend payers in the UK market (1.8%).

High Dividend: CKN's dividend (2.63%) is low compared to the top 25% of dividend payers in the UK market (5.1%).


Stability and Growth of Payments

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

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

6.8yrs

Average management tenure


CEO

Andi Case (52yo)

11.7yrs

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 ($USD3.58M) is above average for companies of similar size in the UK market ($USD1.19M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Andi Case
CEO & Director11.7yrsUK£2.76m1.67% £14.4m
Jeff Woyda
CFO, COO & Executive Director13.3yrsUK£959.00k0.26% £2.2m
Kate Hoare
Head of Public Relations0yrsno datano data
John Beckwith
Head of Human Resources0yrsno datano data
Matt Russell
Head of Specialised Products5.8yrsno datano data
Richard Whittet
Managing Director of Specialised Products0yrsno datano data
Janet Sykes
Head of Media0yrsno datano data
Robert Stopford
Consultant of Maritime Economics and President of Clarkson Research Services7.9yrsUK£50.00kno data
Mike Cahill
Financial Controller0yrsno datano data
Rachel Spencer
Company Secretary1.8yrsno datano data

6.8yrs

Average Tenure

58yo

Average Age

Experienced Management: CKN's management team is seasoned and experienced (6.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Andi Case
CEO & Director11.7yrsUK£2.76m1.67% £14.4m
Jeff Woyda
CFO, COO & Executive Director13.3yrsUK£959.00k0.26% £2.2m
Peter Backhouse
Senior Independent Director6.3yrsUK£76.00k0.046% £399.0k
Birger Nergaard
Independent Non-Executive Director5yrsUK£57.00k0.10% £879.8k
Timothy John Miller
Independent Non-Executive Director1.8yrsUK£47.00kno data
Marie-Louise Clayton
Independent Non-Executive Director3.1yrsUK£76.00k0.0036% £31.4k
William Gennydd Thomas
Non-Executive Chairman1yrsno data0.0069% £59.3k
Heike Truol
Non-Executive Director0.08yrsno datano data

4.0yrs

Average Tenure

59yo

Average Age

Experienced Board: CKN's board of directors are considered experienced (4 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£862.251m
  • Shares outstanding: 30.25m
  • 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
CKNH.YOTCPK (Pink Sheets LLC)UNSPONSORED ADSUSUSDFeb 2020

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 charterers in the transportation of various cargoes by sea; and to buyers and sellers/yards related to sale and purchase transactions, as well as arranges principal-to-principal cash-settled contracts for differences based upon standardized freight contracts. 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; 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; 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 Analysis2020/02/23 20:37
End of Day Share Price2020/02/21 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.