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SCL

ScalesNZSE:SCL Stock Report

Last Price

NZ$5.24

Market Cap

NZ$747.1m

7D

-2.1%

1Y

5.9%

Updated

23 Jan, 2022

Data

Company Financials +
SCL fundamental analysis
Snowflake Score
Valuation1/6
Future Growth3/6
Past Performance3/6
Financial Health6/6
Dividends1/6

SCL Stock Overview

Scales Corporation Limited engages in the agribusiness activities in New Zealand.

Price History & Performance

Summary of all time highs, changes and price drops for Scales
Historical stock prices
Current Share PriceNZ$5.24
52 Week HighNZ$5.89
52 Week LowNZ$4.22
Beta0.15
1 Month Change-3.85%
3 Month Change-3.85%
1 Year Change5.86%
3 Year Change19.91%
5 Year Change51.88%
Change since IPO231.65%

Recent News & Updates

Shareholder Returns

SCLNZ FoodNZ Market
7D-2.1%-2.1%-3.2%
1Y5.9%-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

Is SCL's price volatile compared to industry and market?
SCL volatility
SCL Average Weekly Movement3.9%
Food Industry Average Movement3.5%
Market Average Movement3.8%
10% most volatile stocks in NZ Market6.5%
10% least volatile stocks in NZ Market2.4%

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

FoundedEmployeesCEOWebsite
1897n/aAndy Borlandhttps://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

How do Scales's earnings and revenue compare to its market cap?
SCL fundamental statistics
Market CapNZ$747.10m
Earnings (TTM)NZ$23.99m
Revenue (TTM)NZ$471.25m

31.1x

P/E Ratio

1.6x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
SCL income statement (TTM)
RevenueNZ$471.25m
Cost of RevenueNZ$361.95m
Gross ProfitNZ$109.30m
ExpensesNZ$85.31m
EarningsNZ$23.99m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)0.17
Gross Margin23.19%
Net Profit Margin5.09%
Debt/Equity Ratio14.0%

How did SCL perform over the long term?

See historical performance and comparison

Dividends

3.6%

Current Dividend Yield

111%

Payout Ratio

Valuation

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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/01/23 06:01
End of Day Share Price2022/01/21 00:00
Earnings2021/06/30
Annual Earnings2020/12/31


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.