BIT:SCF

Stock Analysis Report

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Executive Summary

Salcef Group S.p.A. designs, constructs, and maintains railway infrastructure and civil works worldwide. More Details


Snowflake Analysis

Reasonable growth potential with adequate balance sheet.

Share Price & News

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


Latest Share Price and Events

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

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


Market Performance


7 Day Return

3.0%

SCF

2.1%

IT Construction

2.6%

IT Market


1 Year Return

22.8%

SCF

-22.8%

IT Construction

-8.5%

IT Market

Return vs Industry: SCF exceeded the Italian Construction industry which returned -22.8% over the past year.

Return vs Market: SCF exceeded the Italian Market which returned -8.5% over the past year.


Shareholder returns

SCFIndustryMarket
7 Day3.0%2.1%2.6%
30 Day2.1%26.8%22.3%
90 Day1.7%2.3%11.3%
1 Year27.7%22.8%-21.5%-22.8%-6.0%-8.5%
3 Yearn/a-56.9%-8.5%2.4%-7.6%
5 Yearn/a26.2%7.2%8.0%-25.5%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

11.5%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: SCF (€12) is trading below our estimate of fair value (€13.56)

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


Price To Earnings Ratio

PE vs Industry: SCF is poor value based on its PE Ratio (21.2x) compared to the XE Construction industry average (12x).

PE vs Market: SCF is poor value based on its PE Ratio (21.2x) compared to the Italian market (18x).


Price to Earnings Growth Ratio

PEG Ratio: SCF is good value based on its PEG Ratio (0.5x)


Price to Book Ratio

PB vs Industry: SCF is overvalued based on its PB Ratio (2.2x) compared to the IT Construction industry average (1.3x).


Next Steps

Future Growth

How is Salcef Group forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

40.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SCF's forecast earnings growth (40.8% per year) is above the savings rate (2%).

Earnings vs Market: SCF's earnings (40.8% per year) are forecast to grow faster than the Italian market (24.6% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: SCF's revenue (9.5% per year) is forecast to grow faster than the Italian market (3.2% per year).

High Growth Revenue: SCF's revenue (9.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: SCF's Return on Equity is forecast to be low in 3 years time (18.6%).


Next Steps

Past Performance

How has Salcef Group performed over the past 5 years?

22.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SCF has high quality earnings.

Growing Profit Margin: SCF's current net profit margins (7.5%) are lower than last year (9.6%).


Past Earnings Growth Analysis

Earnings Trend: SCF's earnings have grown significantly by 22.7% per year over the past 5 years.

Accelerating Growth: SCF's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: SCF had negative earnings growth (-18.4%) over the past year, making it difficult to compare to the Construction industry average (1.1%).


Return on Equity

High ROE: SCF's Return on Equity (10.2%) is considered low.


Next Steps

Financial Health

How is Salcef Group's financial position?


Financial Position Analysis

Short Term Liabilities: SCF's short term assets (€337.8M) exceed its short term liabilities (€202.2M).

Long Term Liabilities: SCF's short term assets (€337.8M) exceed its long term liabilities (€56.7M).


Debt to Equity History and Analysis

Debt Level: SCF's debt to equity ratio (47%) is considered high.

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

Debt Coverage: SCF's debt is well covered by operating cash flow (23.5%).

Interest Coverage: SCF's interest payments on its debt are well covered by EBIT (49.1x coverage).


Balance Sheet


Next Steps

Dividend

What is Salcef Group current dividend yield, its reliability and sustainability?

3.33%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: SCF's dividend (3.33%) is higher than the bottom 25% of dividend payers in the Italian market (1.5%).

High Dividend: SCF's dividend (3.33%) is low compared to the top 25% of dividend payers in the Italian market (4.76%).


Stability and Growth of Payments

Stable Dividend: Too early to tell whether SCF's dividend payments have been stable as they only just started paying a dividend.

Growing Dividend: Too early to tell if SCF's dividend payments are increasing as they only just started paying a dividend.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (70.8%), SCF's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: SCF's dividends in 3 years are forecast to be well covered by earnings (43.7% payout ratio).


Next Steps

Management

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

1.1yrs

Average board tenure


CEO

Valeriano Salciccia

2.08yrs

Tenure

Mr. Valeriano Salciccia serves as the Chief Executive Officer and Director at Salcef Group S.p.A. since October 2018.


Board Members

NamePositionTenureCompensationOwnership
Valeriano Salciccia
CEO & Director2.08yrsno datano data
Giovanni Cavallini
Directorno datano datano data
Attilio Arietti
Directorno datano datano data
Bruno Pavesi
Independent Directorno datano datano data
Roberto Schiesari
Statutory Auditorno datano datano data
Gilberto Salciccia
Chairman of the Board2.08yrsno datano data
Alessandro Di Paolo
Directorno datano datano data
Germano Maiolini
Directorno datano datano data
Daniela Lambardi
Chairman of the Board of Statutory Auditor0.083yrno datano data
Giovanni Bacicalupi
Standing Auditor0.083yrno datano data

1.1yrs

Average Tenure

70yo

Average Age

Experienced Board: SCF's board of directors are not considered experienced ( 1.1 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.


Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 8.7%.


Top Shareholders

Company Information

Salcef Group S.p.A.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Salcef Group S.p.A.
  • Ticker: SCF
  • Exchange: BIT
  • Founded: 1948
  • Industry: Construction and Engineering
  • Sector: Capital Goods
  • Market Cap: €515.338m
  • Shares outstanding: 42.94m
  • Website: https://www.salcef.com

Number of Employees


Location

  • Salcef Group S.p.A.
  • Via di Pietralata 140
  • Rome
  • Rome
  • 158
  • Italy

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SCFBIT (Borsa Italiana)YesOrdinary SharesITEURNov 2019

Biography

Salcef Group S.p.A. designs, constructs, and maintains railway infrastructure and civil works worldwide. The company is involved in the track construction activities, such as installation of permanent, tra...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/11/29 20:22
End of Day Share Price2020/11/27 00:00
Earnings2020/09/30
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.