BIT:SPM

Stock Analysis Report

Executive Summary

Saipem S.p.A. engages in the engineering, drilling, and construction of projects in the energy and infrastructure sectors worldwide.


Snowflake Analysis

Reasonable growth potential with mediocre balance sheet.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: SPM's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-0.7%

SPM

3.0%

IT Energy Services

6.3%

IT Market


1 Year Return

-52.7%

SPM

-57.9%

IT Energy Services

-24.2%

IT Market

Return vs Industry: SPM exceeded the Italian Energy Services industry which returned -55.5% over the past year.

Return vs Market: SPM underperformed the Italian Market which returned -21.4% over the past year.


Shareholder returns

SPMIndustryMarket
7 Day-0.7%3.0%6.3%
30 Day-37.9%-44.0%-26.9%
90 Day-49.1%-53.0%-28.8%
1 Year-52.7%-52.7%-56.8%-57.9%-20.9%-24.2%
3 Year-47.5%-47.5%-64.0%-67.6%-13.3%-22.0%
5 Year-81.7%-97.7%-76.6%-87.2%-23.1%-49.3%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

40.4%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: SPM (€2.23) is trading below our estimate of fair value (€3.75)

Significantly Below Fair Value: SPM is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: SPM is poor value based on its PE Ratio (185.3x) compared to the Energy Services industry average (9.2x).

PE vs Market: SPM is poor value based on its PE Ratio (185.3x) compared to the Italian market (12.9x).


Price to Earnings Growth Ratio

PEG Ratio: SPM is poor value based on its PEG Ratio (5.3x)


Price to Book Ratio

PB vs Industry: SPM is overvalued based on its PB Ratio (0.6x) compared to the XE Energy Services industry average (0.4x).


Next Steps

Future Growth

How is Saipem forecast to perform in the next 1 to 3 years based on estimates from 18 analysts?

34.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SPM's forecast earnings growth (34.6% per year) is above the savings rate (1.2%).

Earnings vs Market: SPM's earnings (34.6% per year) are forecast to grow faster than the Italian market (11.8% per year).

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

Revenue vs Market: SPM's revenue (3.2% per year) is forecast to grow faster than the Italian market (1.9% per year).

High Growth Revenue: SPM's revenue (3.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: SPM's Return on Equity is forecast to be low in 3 years time (5.6%).


Next Steps

Past Performance

How has Saipem performed over the past 5 years?

19.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SPM has a large one-off loss of €91.0M impacting its December 31 2019 financial results.

Growing Profit Margin: SPM became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: SPM has become profitable over the past 5 years, growing earnings by 19.3% per year.

Accelerating Growth: SPM has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: SPM has become profitable in the last year, making it difficult to compare its past year earnings growth to the Energy Services industry (0.7%).


Return on Equity

High ROE: SPM's Return on Equity (2.4%) is considered low.


Next Steps

Financial Health

How is Saipem's financial position?


Financial Position Analysis

Short Term Liabilities: SPM's short term assets (€-64.0M) do not cover its short term liabilities (€4.7B).

Long Term Liabilities: SPM's short term assets (€-64.0M) do not cover its long term liabilities (€-3.4B).


Debt to Equity History and Analysis

Debt Level: SPM's debt to equity ratio (8%) is considered satisfactory.

Reducing Debt: SPM's debt to equity ratio has reduced from 145.6% to 8% over the past 5 years.


Balance Sheet

Inventory Level: SPM has a high level of physical assets or inventory.

Debt Coverage by Assets: SPM's debt is not covered by short term assets (assets are -0.2x debt).


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: SPM is profitable, therefore cash runway is not a concern.

Forecast Cash Runway: SPM is profitable, therefore cash runway is not a concern.


Next Steps

Dividend

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

0.45%

Current Dividend Yield


Upcoming Dividend Payment

TodayMar 28 2020Ex Dividend DateMay 18 2020Dividend Pay DateMay 20 20202 days from Ex DividendBuy in the next 50 days to receive the upcoming dividend

Dividend Yield vs Market

Notable Dividend: SPM's dividend (0.45%) isn’t notable compared to the bottom 25% of dividend payers in the Italian market (2.49%).

High Dividend: SPM's dividend (0.45%) is low compared to the top 25% of dividend payers in the Italian market (5.81%).


Stability and Growth of Payments

Stable Dividend: SPM is not paying a notable dividend for the Italian market, therefore no need to check if payments are stable.

Growing Dividend: SPM is not paying a notable dividend for the Italian market, therefore no need to check if payments are increasing.


Current Payout to Shareholders

Dividend Coverage: SPM is not paying a notable dividend for the Italian market.


Future Payout to Shareholders

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


Next Steps

Management

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

2.8yrs

Average management tenure


CEO

Stefano Cao (68yo)

4.92s

Tenure

€618,000

Compensation

Mr. Stefano Cao has been the Chief Executive Officer and Director at Saipem SpA since April 30, 2015. Mr. Cao served as the Chief Executive Officer at Sintonia S.A. from February 2009 to July 2012. He serv ...


CEO Compensation Analysis

Compensation vs Market: Stefano's total compensation ($USD0.00) is below average for companies of similar size in the Italian market ($USD2.42M).

Compensation vs Earnings: Insufficient data to compare Stefano's compensation with company performance.


Leadership Team

NamePositionTenureCompensationOwnership
Stefano Cao
CEO & Director4.92yrs€618.00kno data
Stefano Cavacini
Chief Financial Officer1.33yrsno datano data
Davide Ruvolo
Corporate Head of M&Ano datano datano data
Gaetano Colucci
Senior Vice President of Public Affairs & Communication3.58yrsno datano data
Francesco Racheli
Chief Operating Officer of the E&C Offshore Divisionno datano datano data
Mauro Piasere
Digital Innovation Director & COO of XSIGHT Divisionno datano datano data
Maurizio Coratella
COO of the On-shore Engineering & Construction Division2yrsno datano data
Stefano Porcari
Head of Drilling Onshore Divisionno datano datano data

2.8yrs

Average Tenure

50.5yo

Average Age

Experienced Management: SPM's management team is considered experienced (2.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Stefano Cao
CEO & Director4.92yrs€618.00kno data
Paolo Fumagalli
Non-Executive & Independent Director1.83yrsno datano data
Paul Schapira
Non-Executive & Independent Director1.83yrsno datano data
Claudia Carloni
Non-Executive & Non-Independent Directorno datano datano data
Mario Busso
Chairman of the Board of Auditors2.92yrs€60.00kno data
Maria Elena Bruna Cappello
Non-Executive & Independent Director4.92yrs€53.00kno data
Federico Ferro-Luzzi
Independent Non-Executive Director4.92yrs€49.00kno data
Ines Mazzilli
Non-Executive & Independent Director1.83yrsno datano data
Francesco Caio
Non-Independent Chairman1.83yrsno datano data
Alessandra Ferone
Non Independent Director0.17yrno datano data

1.8yrs

Average Tenure

58yo

Average Age

Experienced Board: SPM's board of directors are not considered experienced ( 1.8 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.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

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


Key Information

  • Name: Saipem S.p.A.
  • Ticker: SPM
  • Exchange: BIT
  • Founded:
  • Industry: Oil and Gas Equipment and Services
  • Sector: Energy
  • Market Cap: €2.224b
  • Shares outstanding: 996.25m
  • Website: https://www.saipem.com

Number of Employees


Location

  • Saipem S.p.A.
  • Via Martiri di Cefalonia 67
  • San Donato Milanese
  • Milan
  • Milan
  • 20097
  • Italy

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SPMBIT (Borsa Italiana)NPVITEURNo data
SPMRBIT (Borsa Italiana)Saving SharesITEURJan 1987
0RPJLSE (London Stock Exchange)Saving SharesGBEURJan 1987
SAPM.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJan 1992
SPE1DB (Deutsche Boerse AG)YesOrdinary SharesDEEURJan 1992
SPMBIT (Borsa Italiana)YesOrdinary SharesITEURJan 1992
0RPILSE (London Stock Exchange)YesOrdinary SharesGBEURJan 1992
SPMWBAG (Wiener Boerse AG)YesOrdinary SharesATEURJan 1992
SPMMBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBEURJan 1992
SAPM.YOTCPK (Pink Sheets LLC)UNSPONSORED ADRUSUSDOct 2008

Biography

Saipem S.p.A. engages in the engineering, drilling, and construction of projects in the energy and infrastructure sectors worldwide. The company operates through five divisions: Offshore Engineering & Construction (E&C), Onshore E&C, Offshore Drilling, Onshore Drilling, and Floaters segments. It provides engineering, procurement, project management, and construction services primarily for the oil and gas, complex civil and marine infrastructure, and environmental markets. The company offers offshore E&C products and services, including platforms, pipelines, subsea field developments, and MMO activities; and designs and constructs hydrocarbon production and treatment facilities, and large onshore treatment and transportation systems and facilities. It also provides offshore and onshore drilling services in deep water, in frontier, and remote areas and environment for oil and gas industries, national companies, and independent operators; and refinery, syngas and fertilizer, petrochemical, upstream, LNG, high tech floater, offshore full field development, trunkline, and renewable and green technologies, as well as life-cycle services under the XSIGHT name. In addition, the company offers vessels and fabrication yards; and research and technology development services, as well as engineering, technology, and commissioning services. As of December 31, 2018, its offshore drilling fleet consisted of 12 vessels, including 6 ultra-deep-water units, 2 high specification jack-ups, 3 standard jack-ups, and 1 barge tender rig; and onshore drilling rig fleet comprised 87 units. Saipem S.p.A. is headquartered in Milan, Italy. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/03/27 20:47
End of Day Share Price2020/03/27 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.