Insights

Is shipbuilder ASC listed on the ASX?

Why is it so hard to find the shipbuilding company ASC on the ASX? That’s because it’s a private company. Here’s what we know.
The post Is shipbuilder ASC listed on the ASX? appeared first on The Motley Fool Australia. –

The Australian government’s recent decision to leave negotiations dead in the water with French defence contractor Naval Group has cast concern on the sustainability of its workforce. Fortunately, Adelaide-based shipbuilder ASC has offered its help to workers who might be impacted by the fallout — leaving ASX investors wondering if the company is listed.

This follows Prime Minister Scott Morrison announcing a new alliance with the United States and the United Kingdom, known as AUKUS, on Thursday. As part of the alliance, Australia will do away with its previous plan of a $90 billion diesel-powered fleet made by Naval Group, in place of a new nuclear-powered fleet.

The sudden bombshell decision has left uncertainty for the 350 people employed by Naval Group in South Australia. That’s in addition to a further 40 people who had relocated to France in anticipation of the multibillion-dollar contract.

A shipbuilder in unknown waters

Plans for nuclear submarines weren’t the only thing announced by the government last week. Rather, the government also revealed a plan to extend the life of all 6 Collins Class submarines and retain full cycle docking of the fleet at Osborne, South Australia. In short, ASC will now be responsible for the extensive maintenance and upgrade of several submarines.

Additionally, in an announcement, the company noted it would work with the government to “support, train, and grow the workforce needed to build Australia’s nuclear-powered submarines”. However, the government hasn’t decided who will construct the newest fleet.

It appears the company is busier than ever at the moment. Following the Naval news, ASC broadcasted it could take on workers impacted by the contract scrapping. In fact, ASC chair Bruce Carter stated, “We will welcome them into ASC if they want to come here. We need every single person, hands on deck, at the moment.”

The positive developments for ASC has ASX investors looking for ways to capitalise. Though, at this point, the 36-year-old shipbuilding company is not tradeable on the public market. Instead, it is wholly owned by the Australian government. The last of its privately-owned shares were acquired by the government in the year 2000.

How much are ASC shares worth?

Given that ASC is not a publicly listed company, it is difficult to know how much ASC shares are worth. Luckily, the company shares its annual reports with the public. So, let’s take a look at the most recent one.

The company’s annual report for 2020 (for the year ending September 2020) shows ASC made $675.9 million in revenue during FY20. Meanwhile, its after-tax earnings came to $22.6 million. For comparison, global shipbuilding company Austal Ltd (ASX: ASB) pulled in $1,572 million in revenue and $81.1 million in earnings in FY21.

Currently, Austal is trading on a price-to-earnings (P/E) ratio of 7.7 times, giving it a market capitalisation of $616.6 million. However, the global aerospace and defence industry trades on an average of 29.8 times earnings.

Based on this, if ASC was a public company, it could be valued somewhere between $174 million to $673 million.

Can you invest in ASC on the ASX?

As we’ve pointed out, ASC is government-owned and not listed on the ASX. However, there are alternative investments available to keen defence investors. As previously mentioned, Austal is an ASX-listed shipbuilder that would likely give an investor close resemblance to ASC.

On the other hand, there are many other listed companies operating in defence more broadly. For example, these include Electro Optic Systems Ltd (ASX: EOS) and Droneshield Ltd (ASX: DRO).

The post Is shipbuilder ASC listed on the ASX? appeared first on The Motley Fool Australia.

Wondering where you should invest $1,000 right now?

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes could be the five best ASX stocks for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now.

*Returns as of August 16th 2021

More reading

BlueScope Steel (ASX:BSL) share price sinks 7% despite strategy update
The Pilbara Minerals (ASX:PLS) share price is down 6% today. Is it a buy?
Etherstack (ASX:ESK) share price soars 7% on initial order with telecommunications giant
Just when you thought the AMP (ASX:AMP) share price couldn’t sink any lower…
Why is the CBA (ASX:CBA) share price outperforming its big four peers today?

Motley Fool contributor Mitchell Lawler owns shares of Electro Optic Systems Holdings Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Austal Limited, DroneShield Ltd, and Electro Optic Systems Holdings Limited. The Motley Fool Australia owns shares of and has recommended Electro Optic Systems Holdings Limited. The Motley Fool Australia has recommended DroneShield Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;


To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.


An active and funded account with a positive trading balance is required to continue to have access to the tools;


Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;


Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!