| Snowflake Score | |
|---|---|
| Valuation | 1/6 |
| Future Growth | 3/6 |
| Past Performance | 3/6 |
| Financial Health | 6/6 |
| Dividends | 1/6 |
SCL Stock Overview
Scales Corporation Limited engages in the agribusiness activities in New Zealand.
Price History & Performance
| Historical stock prices | |
|---|---|
| Current Share Price | NZ$5.24 |
| 52 Week High | NZ$5.89 |
| 52 Week Low | NZ$4.22 |
| Beta | 0.15 |
| 1 Month Change | -3.85% |
| 3 Month Change | -3.85% |
| 1 Year Change | 5.86% |
| 3 Year Change | 19.91% |
| 5 Year Change | 51.88% |
| Change since IPO | 231.65% |
Recent News & Updates
Shareholder Returns
| SCL | NZ Food | NZ Market | |
|---|---|---|---|
| 7D | -2.1% | -2.1% | -3.2% |
| 1Y | 5.9% | -35.1% | -11.4% |
Return vs Industry: SCL exceeded the NZ Food industry which returned -35.1% over the past year.
Return vs Market: SCL exceeded the NZ Market which returned -11.4% over the past year.
Price Volatility
| SCL volatility | |
|---|---|
| SCL Average Weekly Movement | 3.9% |
| Food Industry Average Movement | 3.5% |
| Market Average Movement | 3.8% |
| 10% most volatile stocks in NZ Market | 6.5% |
| 10% least volatile stocks in NZ Market | 2.4% |
Stable Share Price: SCL is not significantly more volatile than the rest of NZ stocks over the past 3 months, typically moving +/- 4% a week.
Volatility Over Time: SCL's weekly volatility (4%) has been stable over the past year.
About the Company
| Founded | Employees | CEO | Website |
|---|---|---|---|
| 1897 | n/a | Andy Borland | https://scalescorporation.co.nz |
Scales Corporation Limited engages in the agribusiness activities in New Zealand. The company operates through Food Ingredients, Horticulture, and Logistics segments. The Food Ingredients segment processes and markets food ingredients, such as pet food ingredients and juice concentrates.
Scales Fundamentals Summary
| SCL fundamental statistics | |
|---|---|
| Market Cap | NZ$747.10m |
| Earnings (TTM) | NZ$23.99m |
| Revenue (TTM) | NZ$471.25m |
31.1x
P/E Ratio1.6x
P/S RatioIs SCL overvalued?
See Fair Value and valuation analysisEarnings & Revenue
| SCL income statement (TTM) | |
|---|---|
| Revenue | NZ$471.25m |
| Cost of Revenue | NZ$361.95m |
| Gross Profit | NZ$109.30m |
| Expenses | NZ$85.31m |
| Earnings | NZ$23.99m |
Last Reported Earnings
Jun 30, 2021
Next Earnings Date
n/a
| Earnings per share (EPS) | 0.17 |
| Gross Margin | 23.19% |
| Net Profit Margin | 5.09% |
| Debt/Equity Ratio | 14.0% |
How did SCL perform over the long term?
See historical performance and comparisonDividends
3.6%
Current Dividend Yield111%
Payout RatioValuation
Is Scales undervalued compared to its fair value and its price relative to the market?
12.6%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: SCL (NZ$5.24) is trading below our estimate of fair value (NZ$5.99)
Significantly Below Fair Value: SCL is trading below fair value, but not by a significant amount.
Price To Earnings Ratio
PE vs Industry: SCL is poor value based on its PE Ratio (31.1x) compared to the NZ Food industry average (18.9x).
PE vs Market: SCL is poor value based on its PE Ratio (31.1x) compared to the NZ market (18.8x).
Price to Earnings Growth Ratio
PEG Ratio: SCL is poor value based on its PEG Ratio (2.9x)
Price to Book Ratio
PB vs Industry: SCL is overvalued based on its PB Ratio (2x) compared to the NZ Food industry average (1x).
Future Growth
How is Scales forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?
10.6%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: SCL's forecast earnings growth (10.6% per year) is above the savings rate (2.1%).
Earnings vs Market: SCL's earnings (10.6% per year) are forecast to grow faster than the NZ market (7.3% per year).
High Growth Earnings: SCL's earnings are forecast to grow, but not significantly.
Revenue vs Market: SCL's revenue (6.9% per year) is forecast to grow faster than the NZ market (4.8% per year).
High Growth Revenue: SCL's revenue (6.9% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: SCL's Return on Equity is forecast to be low in 3 years time (8.3%).
Past Performance
How has Scales performed over the past 5 years?
-5.5%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: SCL has high quality earnings.
Growing Profit Margin: SCL's current net profit margins (5.1%) are higher than last year (5.1%).
Past Earnings Growth Analysis
Earnings Trend: SCL's earnings have declined by 5.5% per year over the past 5 years.
Accelerating Growth: SCL's earnings growth over the past year (2.9%) exceeds its 5-year average (-5.5% per year).
Earnings vs Industry: SCL earnings growth over the past year (2.9%) underperformed the Food industry 2.9%.
Return on Equity
High ROE: SCL's Return on Equity (8.2%) is considered low.
Financial Health
How is Scales's financial position?
Financial Position Analysis
Short Term Liabilities: SCL's short term assets (NZ$286.9M) exceed its short term liabilities (NZ$104.6M).
Long Term Liabilities: SCL's short term assets (NZ$286.9M) exceed its long term liabilities (NZ$141.3M).
Debt to Equity History and Analysis
Debt Level: SCL has more cash than its total debt.
Reducing Debt: SCL's debt to equity ratio has reduced from 31.6% to 14% over the past 5 years.
Debt Coverage: SCL's debt is well covered by operating cash flow (79.4%).
Interest Coverage: SCL's interest payments on its debt are well covered by EBIT (15.7x coverage).
Balance Sheet
Dividend
What is Scales's current dividend yield, its reliability and sustainability?
3.62%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: SCL's dividend (3.63%) is higher than the bottom 25% of dividend payers in the NZ market (2.76%).
High Dividend: SCL's dividend (3.63%) is low compared to the top 25% of dividend payers in the NZ market (4.97%).
Stability and Growth of Payments
Stable Dividend: Whilst dividend payments have been stable, SCL has been paying a dividend for less than 10 years.
Growing Dividend: SCL's dividend payments have increased, but the company has only paid a dividend for 7 years.
Current Payout to Shareholders
Dividend Coverage: With its high payout ratio (111.3%), SCL's dividend payments are not well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: SCL's dividends in 3 years are not forecast to be well covered by earnings (91.2% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
12.5yrs
Average management tenure
CEO
Andy Borland
11yrs
Tenure
Mr. Andrew James Borland, also known as Andy, serves as the Chief Executive Officer of Scales Corporation Limited and has been its Managing Director since 2011. Mr. Borland serves as an Executive Director...
Leadership Team
Experienced Management: SCL's management team is seasoned and experienced (12.5 years average tenure).
Board Members
Experienced Board: SCL's board of directors are considered experienced (7.6 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: SCL insiders have only sold shares 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
Scales Corporation Limited's employee growth, exchange listings and data sources
Key Information
- Name: Scales Corporation Limited
- Ticker: SCL
- Exchange: NZSE
- Founded: 1897
- Industry: Agricultural Products
- Sector: Food, Beverage & Tobacco
- Implied Market Cap: NZ$747.096m
- Shares outstanding: 142.58m
- Website: https://scalescorporation.co.nz
Number of Employees
Location
- Scales Corporation Limited
- 52 Cashel Street
- Christchurch
- 8013
- New Zealand
Listings
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2022/01/23 06:01 |
| End of Day Share Price | 2022/01/21 00:00 |
| Earnings | 2021/06/30 |
| Annual Earnings | 2020/12/31 |
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.