Sathosa Motors (COSE:SMOT.N0000) - Share price, News & Analysis

SMOT.N0000 fundamental analysis
Snowflake Score
Valuation	0/6
Future Growth	0/6
Past Performance	2/6
Financial Health	4/6
Dividends	0/6

SMOT.N0000 Stock Overview

Sathosa Motors PLC, together with its subsidiary, Access Motors (Pvt) Limited, distributes Isuzu vehicles and spare parts in Sri Lanka.

Rewards

Became profitable this year

Risk Analysis

Earnings have declined by 64.5% per year over past 5 years

Does not have a meaningful market cap (LKR1B)

Sathosa Motors Competitors

C M Holdings

COSE:COLO.N0000

LK₨890.7m

Diesel & Motor Engineering

COSE:DIMO.N0000

LK₨3.9b

United Motors Lanka

COSE:UML.N0000

LK₨5.5b

Autodrome

COSE:AUTO.N0000

LK₨1.2b

Price History & Performance

Summary of all time highs, changes and price drops for Sathosa Motors
Historical stock prices
Current Share Price	LK₨178.75
52 Week High	LK₨288.00
52 Week Low	LK₨160.00
Beta	0.26
1 Month Change	11.03%
3 Month Change	-0.69%
1 Year Change	-23.94%
3 Year Change	-46.64%
5 Year Change	-40.44%
Change since IPO	376.67%

Shareholder Returns

	SMOT.N0000	LK Specialty Retail	LK Market
7D	0%	4.5%	9.8%
1Y	-23.9%	-18.6%	-3.6%

Return vs Industry: SMOT.N0000 underperformed the LK Specialty Retail industry which returned -18.6% over the past year.

Return vs Market: SMOT.N0000 underperformed the LK Market which returned -3.6% over the past year.

Price Volatility

Is SMOT.N0000's price volatile compared to industry and market?
SMOT.N0000 volatility
SMOT.N0000 Average Weekly Movement	4.9%
Specialty Retail Industry Average Movement	4.9%
Market Average Movement	8.6%
10% most volatile stocks in LK Market	13.4%
10% least volatile stocks in LK Market	5.3%

Stable Share Price: SMOT.N0000 is less volatile than 75% of LK stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: SMOT.N0000's weekly volatility (5%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1962	n/a	Joseph Joshua	https://www.sathosamotorsplc.com

Sathosa Motors PLC, together with its subsidiary, Access Motors (Pvt) Limited, distributes Isuzu vehicles and spare parts in Sri Lanka. The company operates through Vehicle Sales, Marine Engine Sales, Spare Sales, and Workshop Services segments. It offers double cab pickup trucks, light duty and heavy duty commercial vehicles, luxury passenger coaches, and special purpose vehicles, such as fire trucks, logging trucks, dump trucks, water and fuel bowsers, and various types of vehicles for construction, distribution of goods, etc. The company also provides lorries, double-cabs, buses, and SUV’s.

Sathosa Motors Fundamentals Summary

How do Sathosa Motors's earnings and revenue compare to its market cap?
SMOT.N0000 fundamental statistics
Market Cap	LK₨1.08b
Earnings (TTM)	LK₨18.52m
Revenue (TTM)	LK₨3.19b

58.2x

P/E Ratio

0.3x

P/S Ratio

Is SMOT.N0000 overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
SMOT.N0000 income statement (TTM)
Revenue	LK₨3.19b
Cost of Revenue	LK₨2.49b
Gross Profit	LK₨704.99m
Other Expenses	LK₨686.47m
Earnings	LK₨18.52m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	3.07
Gross Margin	22.07%
Net Profit Margin	0.58%
Debt/Equity Ratio	42.4%

How did SMOT.N0000 perform over the long term?

See historical performance and comparison

We’ve recently updated our valuation analysis.

Valuation

Is SMOT.N0000 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

0/6

Valuation Score 0/6

Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for SMOT.N0000?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for SMOT.N0000. This is calculated by dividing SMOT.N0000's market cap by their current preferred multiple.
What is SMOT.N0000's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	LK₨1.08b

SMOT.N0000 key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	0.8x
Enterprise Value/EBITDA	9.3x
PEG Ratio	n/a

Price to Earnings Ratio vs Peers

How does SMOT.N0000's PE Ratio compare to its peers?

SMOT.N0000 PE Ratio vs Peers

The above table shows the PE ratio for SMOT.N0000 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	9x
COLO.N0000 C M Holdings	9.3x	n/a	LK₨890.7m
DIMO.N0000 Diesel & Motor Engineering	5.6x	n/a	LK₨3.9b
UML.N0000 United Motors Lanka	17.6x	n/a	LK₨5.5b
AUTO.N0000 Autodrome	53x	n/a	LK₨1.2b
SMOT.N0000 Sathosa Motors	58.2x	n/a	LK₨1.1b

Price-To-Earnings vs Peers: SMOT.N0000 is expensive based on its Price-To-Earnings Ratio (58.2x) compared to the peer average (9x).

Price to Earnings Ratio vs Industry

How does SMOT.N0000's PE Ratio compare vs other companies in the Asian Specialty Retail Industry?

Price-To-Earnings vs Industry: SMOT.N0000 is expensive based on its Price-To-Earnings Ratio (58.2x) compared to the Asian Specialty Retail industry average (14.7x)

Price to Earnings Ratio vs Fair Ratio

What is SMOT.N0000's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

SMOT.N0000 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	58.2x
Fair PE Ratio	n/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate SMOT.N0000's Price-To-Earnings Fair Ratio for valuation analysis.

Share Price vs Fair Value

What is the Fair Price of SMOT.N0000 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: Insufficient data to calculate SMOT.N0000's fair value for valuation analysis.

Significantly Below Fair Value: Insufficient data to calculate SMOT.N0000's fair value for valuation analysis.

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Insufficient data to show price forecast.

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Future Growth

How is Sathosa Motors forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

Future Growth Score

0/6

Future Growth Score 0/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

16.9%

Forecasted Retail industry annual growth in earnings

In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Sathosa Motors has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.

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Examine Sathosa Motors's financial health to determine how well-positioned it is against times of financial stress by looking at its level of debt over time and how much cash it has left.

Past Performance

How has Sathosa Motors performed over the past 5 years?

Past Performance Score

2/6

Past Performance Score 2/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

-64.5%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: SMOT.N0000 has high quality earnings.

Growing Profit Margin: SMOT.N0000 became profitable in the past.

Past Earnings Growth Analysis

Earnings Trend: SMOT.N0000's earnings have declined by 64.5% per year over the past 5 years.

Accelerating Growth: SMOT.N0000 has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: SMOT.N0000 has become profitable in the last year, making it difficult to compare its past year earnings growth to the Specialty Retail industry (14.6%).

Return on Equity

High ROE: SMOT.N0000's Return on Equity (0.3%) is considered low.

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Financial Health

How is Sathosa Motors's financial position?

Financial Health Score

4/6

Financial Health Score 4/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: SMOT.N0000's short term assets (LKR1.9B) exceed its short term liabilities (LKR1.5B).

Long Term Liabilities: SMOT.N0000's short term assets (LKR1.9B) exceed its long term liabilities (LKR388.4M).

Debt to Equity History and Analysis

Debt Level: SMOT.N0000's net debt to equity ratio (34.3%) is considered satisfactory.

Reducing Debt: SMOT.N0000's debt to equity ratio has reduced from 42.5% to 42.4% over the past 5 years.

Debt Coverage: SMOT.N0000's debt is not well covered by operating cash flow (4.6%).

Interest Coverage: SMOT.N0000's interest payments on its debt are not well covered by EBIT (1x coverage).

Balance Sheet

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Dividend

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

Dividend Score

0/6

Dividend Score 0/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Cash Flow Coverage

Dividend Yield vs Market

Notable Dividend: Unable to evaluate SMOT.N0000's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate SMOT.N0000's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.

Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if SMOT.N0000's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if SMOT.N0000's dividend payments have been increasing.

Earnings Payout to Shareholders

Earnings Coverage: SMOT.N0000 is not paying a notable dividend for the LK market.

Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as SMOT.N0000 has not reported any payouts.

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Management

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

3.3yrs

Average management tenure

CEO

Joseph Joshua

3.33yrs

Tenure

Mr. Joseph Christopher Joshua serves as Executive Vice Chairman at Access Engineering PLC since 2022. He serves as Executive Director of Access Engineering PLC and had been its Managing Director since May...

Leadership Team

Experienced Management: SMOT.N0000's management team is considered experienced (3.3 years average tenure).

Board Members

Experienced Board: SMOT.N0000's board of directors are considered experienced (9.9 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.

Data	Last Updated (UTC time)
Company Analysis	2022/08/06 00:00
End of Day Share Price	2022/08/03 00:00
Earnings	2022/03/31
Annual Earnings	2022/03/31