Scott Technology Limited

SCT.NZ

Industrial - Machinery · Industrials

Price

NZ$2.80

+0.09 (+3.32%)

Market Cap

NZ$235.5M

Exchange

New Zealand Exchange

Winston Score

Winston is serious

Below-average fundamentals — multiple weak pillars.

Data as of Aug 13, 2026 · filings through Feb 28, 2026

Share count rising — dilution

+5.0% over 4y

The company has issued more shares over this period, which dilutes each existing shareholder’s stake.

Diluted shares outstanding: 78.4M (2021) → 82.4M (2025)

Scott Technology Limited is a New Zealand-based company that builds automated machines and robotic systems for factories. Its main products include robotic processing lines used in meat and food processing, as well as automation equipment for appliance manufacturing and other industrial customers. The company is one of the few specialized providers of robotic meat-processing technology in the world, serving large food producers across New Zealand, Australia, Europe, and the Americas.

Scott Technology earns money by designing, building, and selling custom automation systems, and also generates ongoing revenue from maintenance contracts and spare parts. The company operates globally but is headquartered in Dunedin, New Zealand, and has a market cap of roughly NZ$200 million. Its competitive edge comes from deep technical expertise in a narrow, specialized field that requires significant engineering knowledge to enter. The key growth driver is rising demand for factory automation in food processing, though its negative gross margin in recent periods signals ongoing pressure on project costs and profitability.

Winston Score History

Growth Profile

For growth stock investors

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

+5.3% YoY

YoY Growth Rate

Slow revenue growth

EPS Growth

-3.7% YoY

YoY Growth Rate

Earnings declining

R&D Spend

$0/ year

↓ Declining (-100% vs prior year)

0.0% of revenue

Below sector average (4%)

R&D spend declining — could signal cost-cutting or efficiency

Insider Activity

0.0%ownership

Relatively low insider ownership

Cash Position

Cash flow positive

$17M cash & investments

Quarterly Free Cash Flow

↓ Burn rate worsening

Company generates more cash than it spends — no dilution risk from fundraising

Growth context

Scott Technology Limited is growing revenue at 5% year-over-year. The Winston Score measures business quality today — these growth metrics show what could matter tomorrow.

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Score breakdown

Every number that matters to educated investors.

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Quality

Gross Margin

5.2%

Thin — 5.2% gross margin

Operating Margin

5.2%

Thin — 5.2% operating margin

ROCE

4.0%

Weak — 4.0% return on capital

ROIC between 0% and 5%. They earn a few cents back per dollar invested in the business.

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Growth

Sales YoY

+9.6%

Steady sales growth (+9.6% YoY)

EPS YoY

+79.2%

Earnings growing fast (+79.2% YoY)

Earnings growing 25%+ a year. The compounder zone.

EPS Consistency

3/8 quarters

Earnings rarely grow — volatile business

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Cash Flow

Cash Conversion

76%

Modest — 76% of profit becomes cash

FCF Margin

2.4%

Thin free cash flow (2.4%)

FCF margin between 0% and 10%. Some cash from sales, but not a lot.

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Stability

Debt / Equity

0.26

Conservative — low debt load (0.26)

Interest Cover

4.29x

Adequate interest coverage (4.3x)

Interest coverage between 3 and 8. Profits cover interest several times over.

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Valuation

P/E Ratio (TTM)

16.3x

Fair value — P/E 16.3

P/E in the normal range. Price is roughly $15 for every $1 of yearly profit.

P/E vs Forward

+1.9

GROWING

Earnings expected to grow — slightly cheaper on forward P/E

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Dividends

Dividend Yield

3.61%

Moderate income — 3.61% yield

Standard yield zone for stable dividend payers. A meaningful piece of total return.

Dividend Growth

-12.5%

Dividend cut (-12.5% YoY) — warning sign

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