NZSE:SCT

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

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. More Details


Snowflake Analysis

Excellent balance sheet and overvalued.

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

-4.5%

SCT

-1.6%

NZ Machinery

-1.5%

NZ Market


1 Year Return

-19.8%

SCT

3.8%

NZ Machinery

6.0%

NZ Market

Return vs Industry: SCT underperformed the NZ Machinery industry which returned 5.9% over the past year.

Return vs Market: SCT underperformed the NZ Market which returned 6.7% over the past year.


Shareholder returns

SCTIndustryMarket
7 Day-4.5%-1.6%-1.5%
30 Day6.7%10.7%4.0%
90 Day8.0%35.4%4.8%
1 Year-18.4%-19.8%6.4%3.8%10.3%6.0%
3 Year-40.4%-45.7%11.1%4.5%44.7%25.7%
5 Year68.1%35.7%152.1%100.2%95.1%47.4%

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 compared to its fair value and its price relative to the market?

1.53x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: SCT (NZ$1.9) is trading above our estimate of fair value (NZ$0.85)

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


Price To Earnings Ratio

PE vs Industry: SCT is unprofitable, so we can't compare its PE Ratio to the XO Machinery industry average.

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


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: SCT is good value based on its PB Ratio (1.5x) compared to the XO Machinery industry average (1.9x).


Next Steps

Future Growth

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

23.7%

Forecasted Capital Goods 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 Scott Technology 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.


Next Steps

Past Performance

How has Scott Technology performed over the past 5 years?

-3.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SCT is currently unprofitable.

Growing Profit Margin: SCT is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: SCT is unprofitable, and losses have increased over the past 5 years at a rate of 3.1% per year.

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

Earnings vs Industry: SCT is unprofitable, making it difficult to compare its past year earnings growth to the Machinery industry (19.7%).


Return on Equity

High ROE: SCT has a negative Return on Equity (-10.51%), as it is currently unprofitable.


Next Steps

Financial Health

How is Scott Technology's financial position?


Financial Position Analysis

Short Term Liabilities: SCT's short term assets (NZ$83.7M) exceed its short term liabilities (NZ$75.5M).

Long Term Liabilities: SCT's short term assets (NZ$83.7M) exceed its long term liabilities (NZ$21.6M).


Debt to Equity History and Analysis

Debt Level: SCT's debt to equity ratio (20.7%) is considered satisfactory.

Reducing Debt: SCT's debt to equity ratio has reduced from 53.9% to 20.7% over the past 5 years.

Debt Coverage: SCT's debt is well covered by operating cash flow (39.9%).

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


Balance Sheet


Next Steps

Dividend

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


Dividend Yield vs Market

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

High Dividend: Unable to evaluate SCT'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 SCT's dividends per share have been stable in the past.

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


Current Payout to Shareholders

Dividend Coverage: SCT is not paying a notable dividend for the NZ market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of SCT's dividend in 3 years as they are not forecast to pay a notable one for the NZ market.


Next Steps

Management

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

0.5yrs

Average management tenure


CEO

John Kippenberger

0.083

Tenure

Mr. John Robert Kippenberger serves as Chief Executive Officer and Executive Director at Scott Technology Limited since September 2020. Mr. John is an experienced business leader who has a successful caree ...


Leadership Team

NamePositionTenureCompensationOwnership
John Kippenberger
CEO & Executive Director0.083yrno datano data
Kate Rankin
Chief Financial Officer0.75yrno datano data
Chris Steedman
Chief Operating Officer0.33yrno datano data
Casey Jenkins
Director of Marketing & People2.75yrsno datano data
Donald Pooke
Chief Technical Officer of HTS-110no datano datano data

0.5yrs

Average Tenure

Experienced Management: SCT's management team is not considered experienced ( 0.5 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
John Kippenberger
CEO & Executive Director0.083yrno datano data
John Berry
Alternate Director3.58yrsno datano data
Stuart McLauchlan
Independent Chairman of the Board13.75yrsNZ$125.00k0.52%
NZ$ 796.1k
Edison Alvares
Non Independent Director4.42yrsno datano data
Brent Eastwood
Non Independent Director4.42yrsno datano data
Alan Byers
Director0.42yrno datano data
John Thorman
Non-Executive Independent Director2yrsNZ$70.00kno data
Derek Charge
Non-Executive Independent Director1.58yrsNZ$33.00kno data

2.8yrs

Average Tenure

Experienced Board: SCT's board of directors are not considered experienced ( 2.8 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

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$154.273m
  • Shares outstanding: 78.31m
  • Website: https://www.scottautomation.com

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 Analysis2020/10/29 10:33
End of Day Share Price2020/10/29 00:00
Earnings2020/02/29
Annual Earnings2019/08/31


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.