NZSE:SCT

Stock Analysis Report

Executive Summary

Scott Technology Limited, an investment holding company, designs, manufactures, sells, and services automated and robotic production lines, and processes for various industries in New Zealand and internationally.

Snowflake

Fundamentals

Excellent balance sheet average dividend payer.

Risks

  • Scott Technology is not covered by any analysts.

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

2.7%

NZSE:SCT

1.2%

NZ Machinery

-2.4%

NZ Market


1 Year Return

-18.4%

NZSE:SCT

-1.1%

NZ Machinery

10.8%

NZ Market

SCT underperformed the Machinery industry which returned -3% over the past year.

SCT underperformed the Market in New Zealand which returned 10.8% over the past year.


Share holder returns

SCTIndustryMarket
7 Day2.7%1.2%-2.4%
30 Day4.4%5.5%-1.2%
90 Day6.9%2.2%3.5%
1 Year-14.9%-18.4%4.3%-1.1%15.7%10.8%
3 Year55.5%37.9%81.6%53.8%41.8%22.5%
5 Year114.1%63.7%108.0%52.4%101.4%55.8%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Scott Technology undervalued based on future cash flows and its price relative to the stock market?

15.77x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

Scott Technology's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).

Scott Technology's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).


Price Based on Earnings

Scott Technology is good value based on earnings compared to the Oceania Machinery industry average.

Scott Technology is good value based on earnings compared to the New Zealand market.


Price Based on Expected Growth

Unable to calculate PEG ratio for Scott Technology, we can't assess if its growth is good value.


Price Based on Value of Assets

Scott Technology is good value based on assets compared to the Oceania Machinery industry average.


Next Steps

Future Growth

How is Scott Technology expected to perform in the next 1 to 3 years based on estimates from 0 analysts?

-1.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Unable to determine if Scott Technology is high growth as no revenue estimate data is available.

Scott Technology's earnings are expected to decrease over the next 1-3 years, this is not considered high growth.

Unable to compare Scott Technology's revenue growth to the New Zealand market average as no estimate data is available.

Scott Technology's earnings are expected to decrease over the next 1-3 years, this is below the New Zealand market average.

Scott Technology's earnings are expected to decrease over the next 1-3 years, this is below the low risk savings rate of 2.4%.


Earnings per Share Growth Estimates


Future Return on Equity

Unable to establish if Scott Technology will efficiently use shareholders’ funds in the future without estimates of Return on Equity.


Next Steps

Past Performance

How has Scott Technology performed over the past 5 years?

27.1%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Scott Technology has delivered over 20% year on year earnings growth in the past 5 years.

Scott Technology's 1-year earnings growth is less than its 5-year average (20.6% vs 27.1%)

Scott Technology's earnings growth has not exceeded the Oceania Machinery industry average in the past year (20.6% vs 20.6%).


Return on Equity

Scott Technology has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Scott Technology used its assets more efficiently than the Oceania Machinery industry average last year based on Return on Assets.


Return on Capital Employed

Scott Technology's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Scott Technology's financial position?


Financial Position Analysis

Scott Technology is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Scott Technology's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

Scott Technology's level of debt (11.7%) compared to net worth is satisfactory (less than 40%).

The level of debt compared to net worth has been reduced over the past 5 years (22.7% vs 11.7% today).

Operating cash flow is negative therefore debt is not well covered.

Interest payments on debt are well covered by earnings (EBIT is 25.9x coverage).


Balance Sheet

High level of physical assets or inventory.

Debt is covered by short term assets, assets are 5.9x debt.


Next Steps

Dividend

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

3.82%

Current Dividend Yield


Dividend Yield and Payments Analysis

Scott Technology's pays a higher dividend yield than the bottom 25% of dividend payers in New Zealand (3.26%).

Scott Technology's dividend is below the markets top 25% of dividend payers in New Zealand (5.96%).

Dividends per share have been stable in the past 10 years.

Dividends per share have increased over the past 10 years.


Current Payout to Shareholders

Dividends paid are covered by earnings (1.7x coverage).


Future Payout to Shareholders

Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.


Next Steps

Management

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

1.6yrs

Average management tenure


CEO

Chris Hopkins

NZ$875,000

Compensation

Mr. Christopher Charles Hopkins, also known as Chris, BCom, CA, CF Inst D, has been the Managing Director of Scott Technology Limited since May 2006 and serves as its Chief Executive Officer. Mr. Hopkins s ...


CEO Compensation Analysis

Chris's remuneration is higher than average for companies of similar size in New Zealand.

Chris's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

1.6yrs

Average Tenure

The average tenure for the Scott Technology management team is less than 2 years, this suggests a new team.


Board Age and Tenure

3.3yrs

Average Tenure

The tenure for the Scott Technology board of directors is about average.


Insider Trading

No 3 month open market individual insider trading information.


Ownership Breakdown


Management Team

  • Chris Hopkins

    MD, CEO & Executive Director

    • Compensation: NZ$875.00k
  • Donald Pooke

    Chief Technical Officer of HTS-110

  • Richard Jenman

    Chief Operating Officer

    • Tenure: 1.2yrs
  • Kate Logan

    Director of Human Resources

    • Tenure: 1.6yrs
  • Casey Jenkins

    Director of Global Marketing

    • Tenure: 1.6yrs

Board Members

  • Chris Hopkins

    MD, CEO & Executive Director

    • Tenure: 18.0yrs
    • Compensation: NZ$875.00k
  • John Berry

    Alternate Director

    • Tenure: 2.5yrs
  • Stuart McLauchlan

    Chairman of the Board

    • Tenure: 12.6yrs
    • Compensation: NZ$125.00k
  • André Nogueira

    Non Independent Director

    • Tenure: 3.3yrs
  • Edison Alvares

    Non Independent Director

    • Tenure: 3.3yrs
  • Brent Eastwood

    Non Independent Director

    • Tenure: 3.3yrs
  • John Thorman

    Independent Director

    • Tenure: 0.8yrs
    • Compensation: NZ$23.00k
  • Derek Charge

    Director

    • Tenure: 0.4yrs

Company Information

Scott Technology Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Scott Technology Limited
  • Ticker: SCT
  • Exchange: NZSE
  • Founded: 1913
  • Industry: industrial machinery
  • Sector: capital goods
  • Market Cap: NZ$203.167m
  • Shares outstanding: 77.54m
  • Website: Click here

Number of Employees


Location

  • Scott Technology Limited
  • Private Bag 1960
  • Dunedin
  • 9054
  • New Zealand

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SCTNZSE (New Zealand Stock Exchange)YesOrdinary SharesNZNZDJul 1997

Biography

Scott Technology Limited, an investment holding company, designs, manufactures, sells, and services automated and robotic production lines, and processes for various industries in New Zealand and internati ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/08/18 10:33
End of Day Share Price2019/08/16 00:00
Earnings2019/02/28
Annual Earnings2018/08/31


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.