OTCPK:SAAF.Y

Stock Analysis Report

Executive Summary

Saras S.p.A. engages in the oil refinery business in Italy and internationally.

Snowflake

Fundamentals

Flawless balance sheet second-rate dividend payer.

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

0%

SAAF.Y

-1.8%

US Oil and Gas

0.4%

US Market


1 Year Return

n/a

SAAF.Y

-21.8%

US Oil and Gas

6.9%

US Market

Return vs Industry: Insufficient data to determine how SAAF.Y performed against the US Oil and Gas industry.

Return vs Market: Insufficient data to determine how SAAF.Y performed against the US Market.


Shareholder returns

SAAF.YIndustryMarket
7 Day0%-1.8%0.4%
30 Day0%-6.6%-1.2%
90 Dayn/a-9.2%-0.4%
1 Yearn/a-18.9%-21.8%9.3%6.9%
3 Yearn/a-8.3%-16.5%45.8%36.4%
5 Year63.4%35.7%-24.8%-35.3%62.9%45.1%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

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

19.4x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Undervalued: SAAF.Y ($7.95) is trading above our estimate of fair value ($4.73)

Significantly Undervalued: SAAF.Y is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: SAAF.Y is poor value based on its PE Ratio (19.4x) compared to the Oil and Gas industry average (9.8x).

PE vs Market: SAAF.Y is poor value based on its PE Ratio (19.4x) compared to the US market (17.6x).


Price to Earnings Growth Ratio

Low PEG Ratio: SAAF.Y's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: SAAF.Y is overvalued based on its PB Ratio (1.5x) compared to the US Oil and Gas industry average (0.9x).


Next Steps

Future Growth

How is Saras forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?

-6.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SAAF.Y's earnings are forecast to decline over the next 3 years (-6.6% per year).

Earnings vs Market: SAAF.Y's earnings are forecast to decline over the next 3 years (-6.6% per year).

High Growth Earnings: SAAF.Y's earnings are forecast to decline over the next 3 years.

Revenue vs Market: SAAF.Y's revenue (5.4% per year) is forecast to grow slower than the US market (7.2% per year).

High Growth Revenue: SAAF.Y's revenue (5.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: SAAF.Y's Return on Equity is forecast to be low in 3 years time (10%).


Next Steps

Past Performance

How has Saras performed over the past 5 years?

38.9%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: SAAF.Y has become profitable over the past 5 years, growing earnings by 38.9% per year.

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

Earnings vs Industry: SAAF.Y had negative earnings growth (-69%) over the past year, making it difficult to compare to the Oil and Gas industry average (22.6%).


Return on Equity

High ROE: SAAF.Y's Return on Equity (7.9%) is considered low.


Return on Assets

ROA vs Industry: SAAF.Y's Return on Assets is below or equal to the Oil and Gas industry average last year.


Return on Capital Employed

ROCE Improving: SAAF.Y's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Saras's financial position?


Financial Position Analysis

Short Term Liabilities: SAAF.Y's short term assets (€2.0B) exceeds its short term liabilities (€1.8B)

Long Term Liabilities: SAAF.Y's short term assets (2.0B) exceeds its long term liabilities (498.6M)


Debt to Equity History and Analysis

Debt Level: SAAF.Y's debt to equity ratio (34.3%) is considered satisfactory

Reducing Debt: SAAF.Y's debt to equity ratio has reduced from 63% to 34.3% over the past 5 years.

Debt Coverage: SAAF.Y's debt is well covered by operating cash flow (112.2%).

Interest Coverage: SAAF.Y's interest payments on its debt are well covered by EBIT (6x coverage).


Balance Sheet

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

Debt Coverage by Assets: SAAF.Y's debt is covered by short term assets (assets are 5.531360x debt).


Next Steps

Dividend

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

4.67%

Current Dividend Yield


Dividend Yield vs Market

company4.7%marketbottom25%1.4%markettop25%3.7%industryaverage4.2%forecastin3Years5.2%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: SAAF.Y's dividend (4.67%) is higher than the bottom 25% of dividend payers in the US market (1.45%).

High Dividend: SAAF.Y's dividend (4.67%) is in the top 25% of dividend payers in the US market (3.73%)

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

Growing Dividend: SAAF.Y's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (90.5%), SAAF.Y's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: SAAF.Y's dividends in 3 years are forecast to be covered by earnings (60.8% payout ratio).


Next Steps

Management

What is the CEO of Saras's salary, the management and board of directors tenure and is there insider trading?

1.0yrs

Average management tenure


CEO

Dario Scaffardi (61yo)

1.4yrs

Tenure

€1,438,427

Compensation

Mr. Dario Scaffardi has been the Chief Executive Officer of Saras S.p.A. since May 03, 2018 and has been its General Manager since October 2006 . Mr. Scaffardi served as an Executive Vice President of Sara ...


CEO Compensation Analysis

Compensation vs. Market: Insufficient data to establish whether Dario's total compensation is reasonable compared to companies of similar size in the US market.

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


Management Age and Tenure

1.0yrs

Average Tenure

57.5yo

Average Age

Experienced Management: SAAF.Y's management team is not considered experienced ( 1 years average tenure), which suggests a new team.


Board Age and Tenure

10.4yrs

Average Tenure

57yo

Average Age

Experienced Board: SAAF.Y's board of directors are seasoned and experienced ( 10.4 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown


Management Team

  • Angelo Moratti (56yo)

    Founder & Vice Chairman

    • Tenure: 10.5yrs
    • Compensation: €309.11k
  • Francesca Pezzoli

    Head of Investor & Media Relations

    • Tenure: 0yrs
  • Dario Scaffardi (61yo)

    CEO, GM & Director

    • Tenure: 1.4yrs
    • Compensation: €1.44m
  • Giuseppe Citterio (62yo)

    Chief Oil & Energy Officer

    • Tenure: 1yrs
  • Vincenzo Greco (59yo)

    Chief Security ICT & Procurement Officer

    • Tenure: 1yrs
  • Marco Schiavetti (53yo)

    Chief Commercial Officer

    • Tenure: 0.8yrs
  • Franco Balsamo

    Chief Financial Officer

    • Tenure: 4yrs
  • Simona Berri (54yo)

    General Counsel & Head of Corporate Affairs

    • Tenure: 3.1yrs
    • Compensation: €93.75k
  • Carlo Guarrata

    Chief Industrial Operations Officer

    • Tenure: 0.8yrs
  • Patrizia Radice

    Chief Human Resources Officer

    • Tenure: 0.8yrs

Board Members

  • Massimo Moratti (74yo)

    Chairman

    • Tenure: 1.4yrs
  • Gilberto Callera (80yo)

    Lead Independent Director

    • Tenure: 10.4yrs
    • Compensation: €125.00k
  • Angelo Moratti (56yo)

    Founder & Vice Chairman

    • Tenure: 10.5yrs
    • Compensation: €309.11k
  • Angelo Mario Moratti (46yo)

    Non-Executive Director

    • Tenure: 0yrs
    • Compensation: €249.43k
  • Dario Scaffardi (61yo)

    CEO, GM & Director

    • Tenure: 1.4yrs
    • Compensation: €1.44m
  • Gabriele Moratti (41yo)

    Non Executive Director

    • Tenure: 0yrs
    • Compensation: €135.81k
  • Isabelle Harvie-Watt

    Independent Director

    • Tenure: 0yrs
    • Compensation: €80.00k
  • Giancarla Branda (58yo)

    Chairman of Statutory Auditors

    • Tenure: 3.8yrs
  • Laura Fidanza (46yo)

    Independent Director

    • Tenure: 0yrs
    • Compensation: €80.00k
  • Adriana Cerretelli

    Independent Director

    • Tenure: 0yrs
    • Compensation: €80.00k

Company Information

Saras S.p.A.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Saras S.p.A.
  • Ticker: SAAF.Y
  • Exchange: OTCPK
  • Founded: 1962
  • Industry: Oil and Gas Refining and Marketing
  • Sector: Energy
  • Market Cap: €1.614b
  • Listing Market Cap: €1.798b
  • Shares outstanding: 941.78m
  • Website: https://www.saras.it

Number of Employees


Location

  • Saras S.p.A.
  • Via Dell'Unione, 1
  • Milan
  • Milan
  • 20122
  • Italy

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SRSBIT (Borsa Italiana)YesCommon StockITEURMay 2006
S7ABST (Boerse-Stuttgart)YesCommon StockDEEURMay 2006
0O2DLSE (London Stock Exchange)YesCommon StockGBEURMay 2006
SRSMBATS-CHIXE (BATS 'Chi-X Europe')YesCommon StockGBEURMay 2006
SAAF.YOTCPK (Pink Sheets LLC)UNSPONSORED ADRUSUSDMay 2011

Biography

Saras S.p.A. engages in the oil refinery business in Italy and internationally. The company operates through Refining, Marketing, Generation of Power By The Combined Cycle Plant, Generation of Power By Win ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/19 00:19
End of Day Share Price2019/09/18 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.