OB:SSC

Stock Analysis Report

Executive Summary

The Scottish Salmon Company PLC produces, processes, markets, and sells Scottish seafood products primarily in Scotland.


Snowflake Analysis

Flawless balance sheet with high growth potential.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: SSC has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0%

SSC

1.5%

NO Food

-0.8%

NO Market


1 Year Return

101.8%

SSC

19.3%

NO Food

4.9%

NO Market

Return vs Industry: SSC exceeded the Norwegian Food industry which returned 19% over the past year.

Return vs Market: SSC exceeded the Norwegian Market which returned 4.5% over the past year.


Shareholder returns

SSCIndustryMarket
7 Day0%1.5%-0.8%
30 Day0.2%0.4%1.1%
90 Day13.5%3.6%3.6%
1 Year108.7%101.8%24.4%19.3%10.5%4.9%
3 Year259.8%234.7%72.4%48.5%31.4%15.1%
5 Year527.4%483.7%200.1%134.6%64.3%26.9%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

15.15x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: SSC (NOK28.25) is trading above our estimate of fair value (NOK27.32)

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


Price To Earnings Ratio

PE vs Industry: SSC is good value based on its PE Ratio (15.1x) compared to the Food industry average (26.5x).

PE vs Market: SSC is poor value based on its PE Ratio (15.1x) compared to the Norwegian market (14.2x).


Price to Earnings Growth Ratio

PEG Ratio: SSC is good value based on its PEG Ratio (0.7x)


Price to Book Ratio

PB vs Industry: SSC is good value based on its PB Ratio (2.9x) compared to the NO Food industry average (4.2x).


Next Steps

Future Growth

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

22.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SSC's forecast earnings growth (22.9% per year) is above the savings rate (0.7%).

Earnings vs Market: SSC's earnings (22.9% per year) are forecast to grow faster than the Norwegian market (20.2% per year).

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

Revenue vs Market: SSC's revenue (4.3% per year) is forecast to grow faster than the Norwegian market (3.2% per year).

High Growth Revenue: SSC's revenue (4.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: SSC's Return on Equity is forecast to be high in 3 years time (25.8%)


Next Steps

Past Performance

How has Scottish Salmon performed over the past 5 years?

40.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SSC has high quality earnings.

Growing Profit Margin: SSC's current net profit margins (15.4%) are higher than last year (15.3%).


Past Earnings Growth Analysis

Earnings Trend: SSC's earnings have grown significantly by 40% per year over the past 5 years.

Accelerating Growth: SSC's earnings growth over the past year (10.5%) is below its 5-year average (40% per year).

Earnings vs Industry: SSC earnings growth over the past year (10.5%) exceeded the Food industry -5.9%.


Return on Equity

High ROE: SSC's Return on Equity (19%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Scottish Salmon's financial position?


Financial Position Analysis

Short Term Liabilities: SSC's short term assets (£146.3M) exceed its short term liabilities (£58.1M).

Long Term Liabilities: SSC's short term assets (£146.3M) exceed its long term liabilities (£44.2M).


Debt to Equity History and Analysis

Debt Level: SSC's debt to equity ratio (22.6%) is considered satisfactory.

Reducing Debt: SSC's debt to equity ratio has reduced from 69.8% to 22.6% over the past 5 years.

Debt Coverage: SSC's debt is well covered by operating cash flow (106.6%).

Interest Coverage: SSC's interest payments on its debt are well covered by EBIT (21.7x coverage).


Balance Sheet

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

Debt Coverage by Assets: SSC's debt is covered by short term assets (assets are 4.1x debt).


Next Steps

Dividend

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

2.02%

Current Dividend Yield


Dividend Yield vs Market

company2.0%marketbottom25%2.4%markettop25%5.5%industryaverage3.6%forecastin3Years4.7%

Current dividend yield vs market & industry

Notable Dividend: SSC's dividend (2.02%) isn’t notable compared to the bottom 25% of dividend payers in the Norwegian market (2.4%).

High Dividend: SSC's dividend (2.02%) is low compared to the top 25% of dividend payers in the Norwegian market (5.71%).


Stability and Growth of Payments

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

Growing Dividend: SSC's dividend payments have increased, but the company has only paid a dividend for 9 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (33.4%), SSC's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: SSC's dividends in 3 years are forecast to be well covered by earnings (49.7% payout ratio).


Next Steps

Management

What is the CEO of Scottish Salmon's salary, the management and board of directors tenure and is there insider trading?

9.2yrs

Average board tenure


CEO

Scottish Salmon has no CEO, or we have no data on them.


Board Age and Tenure

9.2yrs

Average Tenure

Experienced Board: SSC's board of directors are considered experienced (9.2 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Buykr504,251,92727 Sep 19
P/F Bakkafrost
EntityCompany
Shares17,849,626
Max Pricekr28.25
Buykr459,00003 Mar 19
Craig Anderson
EntityIndividual
Role
Unit CEO
CEO of the Scottish Salmon Company Ltd and MD of the Scottish Salmon Company Ltd
Shares27,000
Max Pricekr17.00

Ownership Breakdown

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


Management Team

  • Su Cox

    Director of Sales & Communications

    • Iain MacDonald

      Head of Planning

      • Debra Nichol-Storie

        HR Director

        • Craig Anderson

          CEO of the Scottish Salmon Company Ltd and MD of the Scottish Salmon Company Ltd

          • Compensation: UK£351.00k

        Board Members

        • Bob Brown (72yo)

          Chairman of the Board

          • Tenure: 9.2yrs
          • Compensation: UK£90.00k
        • Martins Jaunarajs

          Non Executive Director

          • Tenure: 5.8yrs
          • Compensation: UK£37.50k
        • Merete Myhrstad (53yo)

          Non-Executive Director

          • Tenure: 9.2yrs
          • Compensation: UK£37.50k
        • Douglas Low

          Independent Director

          • Tenure: 3.1yrs
          • Compensation: UK£37.50k
        • Viacheslav Lavrentyev

          Non Executive Director

          • Tenure: 9.2yrs
          • Compensation: UK£37.50k

        Company Information

        The Scottish Salmon Company PLC's company bio, employee growth, exchange listings and data sources


        Key Information

        • Name: The Scottish Salmon Company PLC
        • Ticker: SSC
        • Exchange: OB
        • Founded: 2009
        • Industry: Packaged Foods and Meats
        • Sector: Food, Beverage & Tobacco
        • Market Cap: kr5.481b
        • Shares outstanding: 194.03m
        • Website: https://www.scottishsalmon.com

        Number of Employees


        Location

        • The Scottish Salmon Company PLC
        • 8 Melville Crescent
        • Edinburgh
        • EH3 7JA
        • United Kingdom

        Listings

        TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
        SSCOB (Oslo Bors)YesOrdinary SharesNONOKJul 2010
        0N0KLSE (London Stock Exchange)YesOrdinary SharesGBNOKJul 2010
        S22DB (Deutsche Boerse AG)YesOrdinary SharesDEEURJul 2010

        Biography

        The Scottish Salmon Company PLC produces, processes, markets, and sells Scottish seafood products primarily in Scotland. The company provides Scottish Salmon. It offers its products under the Native Hebridean Salmon, Tartan Salmon Label Rouge, and Lochlander Salmon brand names. The company also exports its products to 26 countries. The Scottish Salmon Company PLC was incorporated in 2009 and is headquartered in Edinburgh, the United Kingdom. As of October 8, 2019, The Scottish Salmon Company PLC operates as a subsidiary of P/F Bakkafrost. 


        Company Analysis and Financial Data Status

        All financial data provided by Standard & Poor's Capital IQ.
        DataLast Updated (UTC time)
        Company Analysis2019/12/10 21:56
        End of Day Share Price2019/12/10 00:00
        Earnings2019/06/30
        Annual Earnings2018/12/31


        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.