Market Cap
NZ$604.5m
Last Updated
2020/03/31 11:05 UTC
Data Sources
Company Financials +
Executive Summary
Scales Corporation Limited engages in the agribusiness activities in New Zealand.
Rewards
Risk Analysis
Earnings are forecast to decline by an average of -0.4% per year for the next 3 years
Snowflake Analysis
Flawless balance sheet with proven track record.
Share Price & News
How has Scales's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: SCL has not had significant price volatility in the past 3 months.
Market Performance
7 Day Return
22.9%
SCL
7.6%
NZ Food
7.2%
NZ Market
1 Year Return
-11.7%
SCL
-1.6%
NZ Food
-7.4%
NZ Market
Return vs Industry: SCL underperformed the NZ Food industry which returned -1.5% over the past year.
Return vs Market: SCL underperformed the NZ Market which returned -7.7% over the past year.
Shareholder returns
| SCL | Industry | Market | |
|---|---|---|---|
| 7 Day | 22.9% | 7.6% | 7.2% |
| 30 Day | 2.8% | 1.8% | -14.2% |
| 90 Day | -11.2% | 2.2% | -17.8% |
| 1 Year | -7.6%-11.7% | -0.3%-1.6% | -4.1%-7.4% |
| 3 Year | 51.2%30.1% | 56.0%46.1% | 28.0%12.3% |
| 5 Year | 277.0%178.1% | 130.3%87.5% | 61.3%25.9% |
Price Volatility Vs. Market
How volatile is Scales's share price compared to the market and industry in the last 5 years?
Simply Wall St News
1 week ago | Simply Wall St
The Chief Executive Officer of Scales Logistics of Scales Corporation Limited (NZSE:SCL), Kent Ritchie, Just Bought 15% More Shares3 weeks ago | Simply Wall St
What Kind Of Shareholders Own Scales Corporation Limited (NZSE:SCL)?1 month ago | Simply Wall St
Should You Care About Scales Corporation Limited’s (NZSE:SCL) Investment Potential?Valuation
Is Scales undervalued compared to its fair value and its price relative to the market?
9.6%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: SCL (NZ$4.45) is trading below our estimate of fair value (NZ$4.92)
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 good value based on its PE Ratio (13.9x) compared to the Food industry average (14.7x).
PE vs Market: SCL is good value based on its PE Ratio (13.9x) compared to the NZ market (15x).
Price to Earnings Growth Ratio
PEG Ratio: SCL's earnings are forecast to decline next year, so we can't calculate its PEG ratio.
Price to Book Ratio
PB vs Industry: SCL is overvalued based on its PB Ratio (1.8x) compared to the NZ Food industry average (1x).
Next Steps
Future Growth
How is Scales forecast to perform in the next 1 to 3 years based on estimates from 3 analysts?
-0.4%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: SCL's earnings are forecast to decline over the next 3 years (-0.4% per year).
Earnings vs Market: SCL's earnings are forecast to decline over the next 3 years (-0.4% per year).
High Growth Earnings: SCL's earnings are forecast to decline over the next 3 years.
Revenue vs Market: SCL's revenue (3.9% per year) is forecast to grow slower than the NZ market (6.5% per year).
High Growth Revenue: SCL's revenue (3.9% 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 (10.5%).
Next Steps
Past Performance
How has Scales performed over the past 5 years?
6.4%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: SCL has a large one-off gain of NZ$19.6M impacting its December 31 2019 financial results.
Growing Profit Margin: SCL's current net profit margins (9.3%) are higher than last year (7.1%).
Past Earnings Growth Analysis
Earnings Trend: SCL's earnings have grown by 6.4% per year over the past 5 years.
Accelerating Growth: SCL's earnings growth over the past year (57.3%) exceeds its 5-year average (6.4% per year).
Earnings vs Industry: SCL earnings growth over the past year (57.3%) exceeded the Food industry 2.2%.
Return on Equity
High ROE: SCL's Return on Equity (13.5%) is considered low.
Next Steps
Financial Health
How is Scales's financial position?
Financial Position Analysis
Short Term Liabilities: SCL's short term assets (NZ$237.5M) exceed its short term liabilities (NZ$51.0M).
Long Term Liabilities: SCL's short term assets (NZ$237.5M) exceed its long term liabilities (NZ$148.7M).
Debt to Equity History and Analysis
Debt Level: SCL's debt to equity ratio (15.9%) is considered satisfactory.
Reducing Debt: SCL's debt to equity ratio has reduced from 28.4% to 15.9% over the past 5 years.
Debt Coverage: SCL's debt is well covered by operating cash flow (98.4%).
Interest Coverage: SCL's interest payments on its debt are well covered by EBIT (10.8x coverage).
Balance Sheet
Inventory Level: SCL has a high level of physical assets or inventory.
Debt Coverage by Assets: SCL's debt is covered by short term assets (assets are 4.2x debt).
Next Steps
Dividend
What is Scales's current dividend yield, its reliability and sustainability?
4.27%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: SCL's dividend (4.27%) is higher than the bottom 25% of dividend payers in the NZ market (3.61%).
High Dividend: SCL's dividend (4.27%) is low compared to the top 25% of dividend payers in the NZ market (8.01%).
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 5 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonable payout ratio (59.2%), SCL's dividend payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: SCL's dividends in 3 years are forecast to be covered by earnings (84.3% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
8.6yrs
Average management tenure
CEO
Andy Borland
no data
Tenure
Mr. Andrew James Borland, also known as Andy, has been the Chief Executive Officer of Scales Corporation Limited since joining in September 2007 and has been its Managing Director since 2011. Mr. Borland s ...
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| CEO, MD & Executive Director | no data | no data | 0.61% NZ$3.7m | |
| Chief Financial Officer | no data | no data | 0.088% NZ$530.6k | |
| Group Health & Safety | 3.17yrs | no data | 0.040% NZ$242.1k | |
| Managing Director - Fern Ridge | 12.17yrs | no data | no data | |
| Chief Executive Officer of Mr Apple | no data | no data | 0.13% NZ$799.0k | |
| Chief Executive Officer of Scales Logistics | no data | no data | 0.21% NZ$1.3m | |
| Chief Executive Officer of Meateor Group | 5yrs | no data | 0.12% NZ$720.2k | |
| President - Shelby Foods | 13.17yrs | no data | no data |
8.6yrs
Average Tenure
Experienced Management: SCL's management team is seasoned and experienced (8.6 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| CEO, MD & Executive Director | no data | no data | 0.61% NZ$3.7m | |
| Non Executive Independent Director | 9.17yrs | NZ$92.00k | 0.53% NZ$3.2m | |
| Non Executive Director | 1.17yrs | no data | no data | |
| Non Executive Independent Director | 5.67yrs | NZ$95.00k | 0.020% NZ$119.6k | |
| Non Executive Independent Chair | 2.67yrs | NZ$131.00k | 0.011% NZ$66.7k | |
| Non Executive Independent Director | 5.67yrs | NZ$80.00k | 0.071% NZ$427.0k | |
| Non-Executive Independent Director | 1yr | no data | no data |
4.2yrs
Average Tenure
Experienced Board: SCL's board of directors are considered experienced (4.2 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: SCL 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
Scales Corporation Limited's company bio, employee growth, exchange listings and data sources
Key Information
- Name: Scales Corporation Limited
- Ticker: SCL
- Exchange: NZSE
- Founded: 1897
- Industry: Packaged Foods and Meats
- Sector: Food, Beverage & Tobacco
- Market Cap: NZ$604.543m
- Shares outstanding: 141.58m
- Website: https://scalescorporation.co.nz
Number of Employees
Location
- Scales Corporation Limited
- 52 Cashel Street
- Christchurch
- 8013
- New Zealand
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| SCL | NZSE (New Zealand Stock Exchange) | Yes | Ordinary Shares | NZ | NZD | Jul 2014 |
| S05 | DB (Deutsche Boerse AG) | Yes | Ordinary Shares | DE | EUR | Jul 2014 |
Biography
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 pet food ingredients for the pet food industry. This segment also manufactures and sells apple, kiwifruit, and pear juice concentrates. The Horticulture segment is involved in growing, packaging, marketing, and exporting apples under the Mr Apple, Dazzle, Posy, and Fern Ridge Fresh brand names. The Logistics segment provides supply chain services for exporters, importers, and FMCG businesses. This segment operates cold storage facilities and bulk liquid storage facilities in Napier and Timaru; and engages in the sea and air freight of produce. The company also provides insurance services. Scales Corporation Limited was founded in 1897 and is based in Christchurch, New Zealand.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/03/31 11:05 |
| End of Day Share Price | 2020/03/31 00:00 |
| Earnings | 2019/12/31 |
| Annual Earnings | 2019/12/31 |
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.