BIT:SRS

Stock Analysis Report

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Executive Summary

Saras S.p.A. engages in the oil refinery business in Italy and internationally.


Snowflake Analysis

Reasonable growth potential second-rate dividend payer.

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

-6.7%

SRS

-3.2%

IT Oil and Gas

-2.0%

IT Market


1 Year Return

-57.7%

SRS

-32.7%

IT Oil and Gas

-13.9%

IT Market

Return vs Industry: SRS underperformed the Italian Oil and Gas industry which returned -32.7% over the past year.

Return vs Market: SRS underperformed the Italian Market which returned -13.9% over the past year.


Shareholder returns

SRSIndustryMarket
7 Day-6.7%-3.2%-2.0%
30 Day-22.6%-10.1%-2.1%
90 Day-29.6%-4.7%10.2%
1 Year-57.7%-57.7%-28.4%-32.7%-11.6%-13.9%
3 Year-65.9%-69.8%1.5%-13.5%-5.7%-14.2%
5 Year-56.6%-67.2%9.8%-15.5%-8.8%-38.2%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

0.63x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: SRS (€0.63) is trading above our estimate of fair value (€0.41)

Significantly Below Fair Value: SRS is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: SRS is unprofitable, so we can't compare its PE Ratio to the XE Oil and Gas industry average.

PE vs Market: SRS is unprofitable, so we can't compare its PE Ratio to the Italian market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate SRS's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: SRS's PB Ratio (0.6x) is in line with the XE Oil and Gas industry average.


Next Steps

Future Growth

How is Saras forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?

40.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SRS is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (2%).

Earnings vs Market: SRS is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: SRS's is expected to become profitable in the next 3 years.

Revenue vs Market: SRS's revenue (9.8% per year) is forecast to grow faster than the Italian market (4.1% per year).

High Growth Revenue: SRS's revenue (9.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: SRS's Return on Equity is forecast to be low in 3 years time (6.1%).


Next Steps

Past Performance

How has Saras performed over the past 5 years?

-2.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SRS is currently unprofitable.

Growing Profit Margin: SRS is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: SRS is unprofitable, and losses have increased over the past 5 years at a rate of -2.3% per year.

Accelerating Growth: Unable to compare SRS's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: SRS is unprofitable, making it difficult to compare its past year earnings growth to the Oil and Gas industry (-16.2%).


Return on Equity

High ROE: SRS has a negative Return on Equity (-8.81%), as it is currently unprofitable.


Next Steps

Financial Health

How is Saras's financial position?


Financial Position Analysis

Short Term Liabilities: SRS's short term assets (€1.7B) do not cover its short term liabilities (€1.8B).

Long Term Liabilities: SRS's short term assets (€1.7B) exceed its long term liabilities (€480.8M).


Debt to Equity History and Analysis

Debt Level: SRS's debt to equity ratio (67.2%) is considered high.

Reducing Debt: SRS's debt to equity ratio has reduced from 104.4% to 67.2% over the past 5 years.

Debt Coverage: SRS's debt is not well covered by operating cash flow (10.2%).

Interest Coverage: Insufficient data to determine if SRS's interest payments on its debt are well covered by EBIT.


Balance Sheet


Next Steps

Dividend

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

6.35%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: SRS's dividend (6.35%) is higher than the bottom 25% of dividend payers in the Italian market (1.87%).

High Dividend: SRS's dividend (6.35%) is in the top 25% of dividend payers in the Italian market (5.3%)


Stability and Growth of Payments

Stable Dividend: SRS has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: SRS has only been paying a dividend for 4 years, and since then payments have fallen.


Current Payout to Shareholders

Dividend Coverage: SRS is paying a dividend but the company is unprofitable.


Future Payout to Shareholders

Future Dividend Coverage: SRS's dividends in 3 years are forecast to be covered by earnings (53.5% payout ratio).


Next Steps

Management

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

1.8yrs

Average management tenure


CEO

Dario Scaffardi (62yo)

2.17yrs

Tenure

€1,438,427

Compensation

Mr. Dario Scaffardi has been the Chief Executive Officer of Saras S.p.A. since May 03, 2018 and has been its General Manager since October 2006 . Mr. Scaffardi served as an Executive Vice President of Sara ...


CEO Compensation Analysis

Compensation vs Market: Dario's total compensation ($USD0.00) is below average for companies of similar size in the Italian market ($USD1.36M).

Compensation vs Earnings: Dario's compensation has increased whilst the company is unprofitable.


Leadership Team

NamePositionTenureCompensationOwnership
Dario Scaffardi
CEO, GM & Director2.17yrs€1.44m0.18% 1.0m
Angelo Moratti
Founder & Vice Chairman11.25yrs€309.11kno data
Franco Balsamo
Chief Financial Officer4.75yrsno datano data
Francesca Pezzoli
Head of Investor & Media Relationsno datano datano data
Simona Berri
General Counsel & Head of Corporate Affairs3.83yrs€93.75kno data
Patrizia Radice
Chief Human Resources Officer1.5yrsno datano data
Giuseppe Citterio
Chief Oil & Energy Officer1.75yrsno datano data
Vincenzo Greco
Chief Security ICT & Procurement Officer1.75yrsno datano data
Marco Schiavetti
Chief Commercial Officer1.5yrsno datano data
Carlo Guarrata
Chief Industrial Operations Officer1.5yrsno datano data

1.8yrs

Average Tenure

58.5yo

Average Age

Experienced Management: SRS's management team is not considered experienced ( 1.8 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Dario Scaffardi
CEO, GM & Director2.17yrs€1.44m0.18% 1.0m
Angelo Moratti
Founder & Vice Chairman11.25yrs€309.11kno data
Massimo Moratti
Chairman2.17yrsno datano data
Gilberto Callera
Lead Independent Director11.17yrs€125.00kno data
Angelo Mario Moratti
Directorno data€249.43kno data
Gabriele Moratti
Directorno data€135.81kno data
Isabelle Harvie-Watt
Independent Director5.5yrs€80.00kno data
Giancarla Branda
Chairman of Statutory Auditors4.58yrsno datano data
Laura Fidanza
Independent Director5.5yrs€80.00kno data
Adriana Cerretelli
Independent Director5.5yrs€80.00kno data

5.5yrs

Average Tenure

58yo

Average Age

Experienced Board: SRS's board of directors are considered experienced (5.5 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.


Ownership Breakdown

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


Top Shareholders

Company Information

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


Key Information

  • Name: Saras S.p.A.
  • Ticker: SRS
  • Exchange: BIT
  • Founded: 1962
  • Industry: Oil and Gas Refining and Marketing
  • Sector: Energy
  • Market Cap: €592.850m
  • Shares outstanding: 941.78m
  • Website: https://www.saras.it

Number of Employees


Location

  • Saras S.p.A.
  • Galleria Passarella, 2
  • Milan
  • Milan
  • 20122
  • Italy

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SRSBIT (Borsa Italiana)YesCommon StockITEURMay 2006
S7ABST (Boerse-Stuttgart)YesCommon StockDEEURMay 2006
0O2DLSE (London Stock Exchange)YesCommon StockGBEURMay 2006
SRSMBATS-CHIXE (BATS 'Chi-X Europe')YesCommon StockGBEURMay 2006
S7ADB (Deutsche Boerse AG)YesCommon StockDEEURMay 2006
SAAF.YOTCPK (Pink Sheets LLC)UNSPONSORED ADRUSUSDMay 2011

Biography

Saras S.p.A. engages in the oil refinery business in Italy and internationally. It operates through Refining, Marketing, Generation of Power By The Combined Cycle Plant, Generation of Power By Wind Farms, and Other Activities segments. The company sells and distributes oil products, such as diesel, gasoline, diesel fuel for heating, liquefied petroleum gas, virgin naphtha, and aviation fuel in the retail and wholesale markets. It also generates and sells electricity through an integrated gasification combined cycle plant with a total installed capacity of 575 megawatts; and a wind farm with a total installed capacity of 126 megawatts. In addition, the company provides consultancy, engineering, and technological development services in the oil refining, petrochemical, chemical, and energy industry sectors, as well as offers reinsurance products. Further, it owns and operates depots located in Arcola and Cartagena. The company was founded in 1962 and 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 Analysis2020/07/10 20:46
End of Day Share Price2020/07/10 00:00
Earnings2020/03/31
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.