Executive Summary
Saipem S.p.A. engages in the engineering, drilling, and construction of projects in the energy and infrastructure sectors worldwide.
Rewards
Risk Analysis
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
| SPM | Industry | Market | |
|---|---|---|---|
| 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
3 days ago | Simply Wall St
Here's Why We Think Saipem's (BIT:SPM) Statutory Earnings Might Be Conservative1 month ago | Simply Wall St
Imagine Owning Saipem (BIT:SPM) And Taking A 96% Loss Square On The Chin2 months ago | Simply Wall St
Are Investors Undervaluing Saipem S.p.A. (BIT:SPM) By 30%?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
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
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| CEO & Director | 4.92yrs | €618.00k | no data | |
| Chief Financial Officer | 1.33yrs | no data | no data | |
| Corporate Head of M&A | no data | no data | no data | |
| Senior Vice President of Public Affairs & Communication | 3.58yrs | no data | no data | |
| Chief Operating Officer of the E&C Offshore Division | no data | no data | no data | |
| Digital Innovation Director & COO of XSIGHT Division | no data | no data | no data | |
| COO of the On-shore Engineering & Construction Division | 2yrs | no data | no data | |
| Head of Drilling Onshore Division | no data | no data | no 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
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| CEO & Director | 4.92yrs | €618.00k | no data | |
| Non-Executive & Independent Director | 1.83yrs | no data | no data | |
| Non-Executive & Independent Director | 1.83yrs | no data | no data | |
| Non-Executive & Non-Independent Director | no data | no data | no data | |
| Chairman of the Board of Auditors | 2.92yrs | €60.00k | no data | |
| Non-Executive & Independent Director | 4.92yrs | €53.00k | no data | |
| Independent Non-Executive Director | 4.92yrs | €49.00k | no data | |
| Non-Executive & Independent Director | 1.83yrs | no data | no data | |
| Non-Independent Chairman | 1.83yrs | no data | no data | |
| Non Independent Director | 0.17yr | no data | no 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
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| SPM | BIT (Borsa Italiana) | NPV | IT | EUR | No data | |
| SPMR | BIT (Borsa Italiana) | Saving Shares | IT | EUR | Jan 1987 | |
| 0RPJ | LSE (London Stock Exchange) | Saving Shares | GB | EUR | Jan 1987 | |
| SAPM.F | OTCPK (Pink Sheets LLC) | Yes | Ordinary Shares | US | USD | Jan 1992 |
| SPE1 | DB (Deutsche Boerse AG) | Yes | Ordinary Shares | DE | EUR | Jan 1992 |
| SPM | BIT (Borsa Italiana) | Yes | Ordinary Shares | IT | EUR | Jan 1992 |
| 0RPI | LSE (London Stock Exchange) | Yes | Ordinary Shares | GB | EUR | Jan 1992 |
| SPM | WBAG (Wiener Boerse AG) | Yes | Ordinary Shares | AT | EUR | Jan 1992 |
| SPMM | BATS-CHIXE (BATS 'Chi-X Europe') | Yes | Ordinary Shares | GB | EUR | Jan 1992 |
| SAPM.Y | OTCPK (Pink Sheets LLC) | UNSPONSORED ADR | US | USD | Oct 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
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/03/27 20:47 |
| End of Day Share Price | 2020/03/27 00:00 |
| Earnings | 2019/12/31 |
| Annual Earnings | 2019/12/31 |
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.