Braemar Shipping Services

LN: BMS

Market Cap£89m

Last Close 275p

Braemar Shipping Services is the second largest shipbroker in the world, providing broking services to the dry cargo, deep sea tanker, specialised tanker and sale and purchase markets. It also addresses the fast-growing areas of offshore and renewables, securities and financial markets.

More Braemar Shipping Services content >

Investment summary

Braemar recently completed a corporate transformation that will see it move away from being a widely spread shipping services company, to grow into a clearly focused shipbroking operation. Allied to the transformation is the company’s growth strategy, supported by growing global trade, and shipping’s status as the most energy-efficient and lowest carbon method of freight transport, that has management focused on doubling the business inside four years. We value the shares at 400p, a c 40% premium to the current price, but see greater upside as evidence of success is delivered over the next two to three years.

Y/E Feb
Revenue (£m)
EBITDA (£m)
PBT (£m)
EPS (fd) (p)
P/E (x)
P/CF (x)
2020A 117.7 14.4 9.4 27.28 10.1 8.8
2021A 111.8 12.6 8.1 16.57 16.6 6.5
2022E 101.1 13.5 8.7 17.12 16.1 6.0
2023E 105.2 15.8 11.5 23.00 12.0 5.8
Content on Braemar Shipping Services
Braemar Shipping Services – Ambition to double size in four years
Industrials | research Initiation | 23 May 2022
View more
Register to receive research on Braemar Shipping Services as it is published
Share price graph
Balance sheet
Forecast net debt (£m) 5.6
Forecast gearing ratio (%) 8
Price performance
%
1m
3m
12m
Actual 4.8 10.7 17.0
Relative* 5.5 11.2 12.9
52-week high/low 310.0p/201.0p
*% relative to local index