SCATEC ASA (SCATC.OL) Stock Fundamental Analysis
Europe - Euronext Oslo - OSL:SCATC - NO0010715139 - Common Stock
120.5 NOK
+1.7 (+1.43%)
We assign a fundamental rating of 3 out of 10 to SCATC. SCATC was compared to 21 industry peers in the Independent Power and Renewable Electricity Producers industry. There are concerns on the financial health of SCATC while its profitability can be described as average. SCATC is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
- In the past year SCATC was profitable.
- In the past year SCATC had a positive cash flow from operations.
- The reported net income has been mixed in the past 5 years: SCATC reported negative net income in multiple years.
- SCATC had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- The Return On Assets of SCATC (1.87%) is comparable to the rest of the industry.
- SCATC has a Return On Equity (8.78%) which is comparable to the rest of the industry.
- With a Return On Invested Capital value of 2.48%, SCATC perfoms like the industry average, outperforming 52.38% of the companies in the same industry.
- The Average Return On Invested Capital over the past 3 years for SCATC is below the industry average of 5.69%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.87% | ||
| ROE | 8.78% | ||
| ROIC | 2.48% |
ROA(3y)0.24%
ROA(5y)0.02%
ROE(3y)1.13%
ROE(5y)0.43%
ROIC(3y)2.96%
ROIC(5y)3.3%
1.3 Margins
- The Profit Margin of SCATC (23.80%) is better than 90.48% of its industry peers.
- In the last couple of years the Profit Margin of SCATC has grown nicely.
- SCATC has a better Operating Margin (36.40%) than 95.24% of its industry peers.
- In the last couple of years the Operating Margin of SCATC has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 36.4% | ||
| PM (TTM) | 23.8% | ||
| GM | N/A |
OM growth 3Y2.82%
OM growth 5Y-1.73%
PM growth 3Y32.88%
PM growth 5YN/A
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
- SCATC has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
- The number of shares outstanding for SCATC remains at a similar level compared to 1 year ago.
- The number of shares outstanding for SCATC has been increased compared to 5 years ago.
- SCATC has a better debt/assets ratio than last year.
2.2 Solvency
- SCATC has an Altman-Z score of 0.55. This is a bad value and indicates that SCATC is not financially healthy and even has some risk of bankruptcy.
- Looking at the Altman-Z score, with a value of 0.55, SCATC is doing worse than 76.19% of the companies in the same industry.
- A Debt/Equity ratio of 2.75 is on the high side and indicates that SCATC has dependencies on debt financing.
- Looking at the Debt to Equity ratio, with a value of 2.75, SCATC is doing worse than 80.95% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.75 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.55 |
ROIC/WACC0.34
WACC7.33%
2.3 Liquidity
- SCATC has a Current Ratio of 1.47. This is a normal value and indicates that SCATC is financially healthy and should not expect problems in meeting its short term obligations.
- SCATC's Current ratio of 1.47 is in line compared to the rest of the industry. SCATC outperforms 47.62% of its industry peers.
- SCATC has a Quick Ratio of 1.47. This is a normal value and indicates that SCATC is financially healthy and should not expect problems in meeting its short term obligations.
- SCATC has a Quick ratio (1.47) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.47 | ||
| Quick Ratio | 1.47 |
3. Growth
3.1 Past
- SCATC shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -53.06%.
- Measured over the past years, SCATC shows a very strong growth in Earnings Per Share. The EPS has been growing by 50.44% on average per year.
- SCATC shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -14.60%.
- The Revenue has been growing by 19.27% on average over the past years. This is quite good.
EPS 1Y (TTM)-53.06%
EPS 3Y50.44%
EPS 5YN/A
EPS Q2Q%-100.2%
Revenue 1Y (TTM)-14.6%
Revenue growth 3Y12.87%
Revenue growth 5Y19.27%
Sales Q2Q%-63.6%
3.2 Future
- Based on estimates for the next years, SCATC will show a very negative growth in Earnings Per Share. The EPS will decrease by -27.61% on average per year.
- Based on estimates for the next years, SCATC will show a quite strong growth in Revenue. The Revenue will grow by 10.53% on average per year.
EPS Next Y-4.91%
EPS Next 2Y-22.22%
EPS Next 3Y-4.57%
EPS Next 5Y-27.61%
Revenue Next Year-19.81%
Revenue Next 2Y-3.77%
Revenue Next 3Y11.13%
Revenue Next 5Y10.53%
3.3 Evolution
- The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
- Although the future Revenue growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
4. Valuation
4.1 Price/Earnings Ratio
- A Price/Earnings ratio of 21.52 indicates a rather expensive valuation of SCATC.
- 61.90% of the companies in the same industry are more expensive than SCATC, based on the Price/Earnings ratio.
- SCATC is valuated rather cheaply when we compare the Price/Earnings ratio to 27.21, which is the current average of the S&P500 Index.
- With a Price/Forward Earnings ratio of 24.17, SCATC is valued on the expensive side.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of SCATC is on the same level as its industry peers.
- When comparing the Price/Forward Earnings ratio of SCATC to the average of the S&P500 Index (24.26), we can say SCATC is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.52 | ||
| Fwd PE | 24.17 |
4.2 Price Multiples
- 61.90% of the companies in the same industry are cheaper than SCATC, based on the Enterprise Value to EBITDA ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 16.9 |
4.3 Compensation for Growth
- SCATC's earnings are expected to decrease with -4.57% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-22.22%
EPS Next 3Y-4.57%
5. Dividend
5.1 Amount
- SCATC has a Yearly Dividend Yield of 2.81%.
- SCATC's Dividend Yield is a higher than the industry average which is at 2.25.
- SCATC's Dividend Yield is rather good when compared to the S&P500 average which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.81% |
5.2 History
- The dividend of SCATC has a limited annual growth rate of 0.64%.
Dividend Growth(5Y)0.64%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
- 19.55% of the earnings are spent on dividend by SCATC. This is a low number and sustainable payout ratio.
DP19.55%
EPS Next 2Y-22.22%
EPS Next 3Y-4.57%
SCATEC ASA / SCATC.OL FAQ
Can you provide the ChartMill fundamental rating for SCATEC ASA?
ChartMill assigns a fundamental rating of 3 / 10 to SCATC.OL.
What is the valuation status for SCATC stock?
ChartMill assigns a valuation rating of 2 / 10 to SCATEC ASA (SCATC.OL). This can be considered as Overvalued.
What is the profitability of SCATC stock?
SCATEC ASA (SCATC.OL) has a profitability rating of 4 / 10.
Can you provide the expected EPS growth for SCATC stock?
The Earnings per Share (EPS) of SCATEC ASA (SCATC.OL) is expected to decline by -4.91% in the next year.
Is the dividend of SCATEC ASA sustainable?
The dividend rating of SCATEC ASA (SCATC.OL) is 6 / 10 and the dividend payout ratio is 19.55%.