NZSE:SKL

Stock Analysis Report

Executive Summary

Skellerup Holdings Limited manufactures, markets, and distributes technical polymer and elastomer products for various specialist industrial and agricultural applications.


Snowflake Analysis

Flawless balance sheet and fair value.

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

2.3%

SKL

-6.1%

NZ Machinery

3.2%

NZ Market


1 Year Return

-16.1%

SKL

-25.4%

NZ Machinery

-8.1%

NZ Market

Return vs Industry: SKL exceeded the NZ Machinery industry which returned -25.4% over the past year.

Return vs Market: SKL underperformed the NZ Market which returned -8.1% over the past year.


Shareholder returns

SKLIndustryMarket
7 Day2.3%-6.1%3.2%
30 Day-16.1%-32.6%-18.0%
90 Day-26.9%-35.0%-20.0%
1 Year-10.4%-16.1%-23.7%-25.4%-4.8%-8.1%
3 Year43.7%18.0%-47.1%-49.2%26.2%10.5%
5 Year76.9%24.6%16.3%-6.6%58.3%23.6%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

30.2%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: SKL (NZ$1.77) is trading below our estimate of fair value (NZ$2.53)

Significantly Below Fair Value: SKL is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: SKL is poor value based on its PE Ratio (12.4x) compared to the Machinery industry average (10.8x).

PE vs Market: SKL is good value based on its PE Ratio (12.4x) compared to the NZ market (14.8x).


Price to Earnings Growth Ratio

PEG Ratio: SKL is poor value based on its PEG Ratio (2.3x)


Price to Book Ratio

PB vs Industry: SKL is overvalued based on its PB Ratio (2x) compared to the XO Machinery industry average (1.1x).


Next Steps

Future Growth

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

5.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SKL's forecast earnings growth (5.5% per year) is above the savings rate (1.3%).

Earnings vs Market: SKL's earnings (5.5% per year) are forecast to grow slower than the NZ market (10.1% per year).

High Growth Earnings: SKL's earnings are forecast to grow, but not significantly.

Revenue vs Market: SKL's revenue (4% per year) is forecast to grow slower than the NZ market (6.4% per year).

High Growth Revenue: SKL's revenue (4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: SKL's Return on Equity is forecast to be low in 3 years time (17.1%).


Next Steps

Past Performance

How has Skellerup Holdings performed over the past 5 years?

2.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SKL has high quality earnings.

Growing Profit Margin: SKL's current net profit margins (11.2%) are lower than last year (11.9%).


Past Earnings Growth Analysis

Earnings Trend: SKL's earnings have grown by 2% per year over the past 5 years.

Accelerating Growth: SKL's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: SKL had negative earnings growth (-4.4%) over the past year, making it difficult to compare to the Machinery industry average (15.8%).


Return on Equity

High ROE: SKL's Return on Equity (15.7%) is considered low.


Next Steps

Financial Health

How is Skellerup Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: SKL's short term assets (NZ$105.1M) exceed its short term liabilities (NZ$29.9M).

Long Term Liabilities: SKL's short term assets (NZ$105.1M) exceed its long term liabilities (NZ$68.8M).


Debt to Equity History and Analysis

Debt Level: SKL's debt to equity ratio (27.3%) is considered satisfactory.

Reducing Debt: SKL had negative shareholder equity 5 years ago, but is now positive and has therefore improved.

Debt Coverage: SKL's debt is well covered by operating cash flow (82.6%).

Interest Coverage: SKL's interest payments on its debt are well covered by EBIT (22.6x coverage).


Balance Sheet

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

Debt Coverage by Assets: SKL's debt is covered by short term assets (assets are 2.2x debt).


Next Steps

Dividend

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

7.34%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: SKL's dividend (7.34%) is higher than the bottom 25% of dividend payers in the NZ market (3.6%).

High Dividend: SKL's dividend (7.34%) is low compared to the top 25% of dividend payers in the NZ market (7.93%).


Stability and Growth of Payments

Stable Dividend: SKL's dividend payments have been volatile in the past 10 years.

Growing Dividend: SKL's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (91.1%), SKL's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: SKL's dividends in 3 years are forecast to be covered by earnings (84.6% payout ratio).


Next Steps

Management

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

8.2yrs

Average management tenure


CEO

David Mair

8.58s

Tenure

NZ$864,000

Compensation

Mr. David William Mair, B.E., M.B.A. has been the Chief Executive Officer of Skellerup Holdings Limited since August 2011 and served as its Acting Chief Executive Officer since July 2010. Mr. Mair served a ...


CEO Compensation Analysis

Compensation vs Market: David's total compensation ($USD521.39K) is about average for companies of similar size in the NZ market ($USD490.21K).

Compensation vs Earnings: David's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
David Mair
CEO & Executive Director8.58yrsNZ$864.00k2.81% NZ$9.7m
Graham Leaming
Chief Financial Officer7.25yrsno datano data
Michael Robins
President of Gulf US Inc8.17yrsno datano data

8.2yrs

Average Tenure

Experienced Management: SKL's management team is seasoned and experienced (8.2 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
David Mair
CEO & Executive Director8.58yrsNZ$864.00k2.81% NZ$9.7m
Elizabeth Coutts
Independent Chairman3.17yrsNZ$171.00k0.47% NZ$1.6m
Bevan Cushing
Non-Executive Director2.58yrsNZ$85.50kno data
Alan Isaac
Independent Director3.58yrsNZ$110.50k0.026% NZ$88.5k
John Strowger
Independent Director5yrsNZ$85.50k0.061% NZ$209.4k

3.6yrs

Average Tenure

Experienced Board: SKL's board of directors are considered experienced (3.6 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: SKL insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

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


Top Shareholders

Company Information

Skellerup Holdings Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Skellerup Holdings Limited
  • Ticker: SKL
  • Exchange: NZSE
  • Founded: 1910
  • Industry: Industrial Machinery
  • Sector: Capital Goods
  • Market Cap: NZ$344.713m
  • Shares outstanding: 194.75m
  • Website: https://www.skellerupholdings.com

Number of Employees


Location

  • Skellerup Holdings Limited
  • 205 Great South Road
  • Level 3
  • Auckland
  • 1051
  • New Zealand

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SKLNZSE (New Zealand Stock Exchange)YesOrdinary SharesNZNZDJun 2002
SKLM.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJun 2002
SKLU.YOTCPK (Pink Sheets LLC)UNSPONSORD ADRUSUSDOct 2008

Biography

Skellerup Holdings Limited manufactures, markets, and distributes technical polymer and elastomer products for various specialist industrial and agricultural applications. It operates through Agri and Industrial segments. The company offers food grade dairy rubberware, including liners and tubing products, and rubber footwear for agricultural applications; milk filters; milk liners, tubing, and accessories; feeding teats; dairy vacuum pumps; and dairy hygiene and livestock health management products, as well as mastitis prevention and mastitis detection equipment. It also provides sealing and waterproofing products for roofing, plumbing, and civil/underground applications; pipe seals, diaphragms, washers, gaskets, customized rubber moldings, check valves, O rings, disks, and other components for use in automotive, industrial, mining pipe, valve, and medical industries; high precision rubber and plastic components for the automotive, flow control, appliance, and industrial markets; and fabric reinforced diaphragms, and rubber metal seat valves and injector components. In addition, the company offers EVA, PE, and various blended foams for marine, sports, leisure, orthotic, and construction applications; foam and soft material products; and live wall systems for installation in new and existing chutes. It operates primarily in New Zealand, Australia, North America, the United Kingdom, Ireland, rest of Europe, Asia, and internationally. Skellerup Holdings Limited was founded in 1910 and is based in Auckland, New Zealand. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/03/28 10:37
End of Day Share Price2020/03/27 00:00
Earnings2019/12/31
Annual Earnings2019/06/30


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.