SRG

SRG GlobalASX:SRG Stock Report

Market Cap

AU$222.9m

7D

-2.9%

1Y

61.3%

Updated

22 Sep, 2021

Data

Company Financials +
SRG fundamental analysis
Snowflake Score
Valuation4/6
Future Growth4/6
Past Performance2/6
Financial Health5/6
Dividends3/6

SRG Overview

SRG Global Limited provides engineering-led specialist asset, construction, and mining services.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: SRG is not significantly more volatile than the rest of Australian stocks over the past 3 months, typically moving +/- 7% a week.

Volatility Over Time: SRG's weekly volatility (7%) has been stable over the past year.


Market Performance


7 Day Return

-2.9%

SRG

-5.5%

AU Construction

-2.2%

AU Market


1 Year Return

61.3%

SRG

-3.6%

AU Construction

23.7%

AU Market

Return vs Industry: SRG exceeded the Australian Construction industry which returned -3.6% over the past year.

Return vs Market: SRG exceeded the Australian Market which returned 23.7% over the past year.


Shareholder returns

SRGIndustryMarket
7 Day-2.9%-5.5%-2.2%
30 Day-9.9%-6.1%-2.7%
90 Day-1.0%-0.6%0.1%
1 Year67.8%61.3%0.5%-3.6%29.0%23.7%
3 Year-20.1%-28.6%-50.2%-54.4%33.2%16.9%
5 Yearn/a-24.8%-34.7%62.7%30.9%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

SRG Global Fundamentals Summary

How do SRG Global's earnings and revenue compare to its market cap?
SRG fundamental statistics
Market CapAU$222.90m
Earnings (TTM)AU$12.05m
Revenue (TTM)AU$570.40m

18.5x

P/E Ratio

0.4x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
SRG income statement (TTM)
RevenueAU$570.40m
Cost of RevenueAU$277.37m
Gross ProfitAU$293.03m
ExpensesAU$280.98m
EarningsAU$12.05m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)0.027
Gross Margin51.37%
Net Profit Margin2.11%
Debt/Equity Ratio4.3%

How did SRG perform over the long term?

See historical performance and comparison

Dividends

4.0%

Current Dividend Yield

74%

Payout Ratio

Valuation

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

40.4%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: SRG (A$0.5) is trading below our estimate of fair value (A$0.84)

Significantly Below Fair Value: SRG is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: SRG is poor value based on its PE Ratio (18.5x) compared to the Australian Construction industry average (14.1x).

PE vs Market: SRG's PE Ratio (18.5x) is in line with the Australian market.


Price to Earnings Growth Ratio

PEG Ratio: SRG is good value based on its PEG Ratio (0.8x)


Price to Book Ratio

PB vs Industry: SRG is good value based on its PB Ratio (1x) compared to the AU Construction industry average (2.1x).


Future Growth

How is SRG Global forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

24.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SRG's forecast earnings growth (24% per year) is above the savings rate (1.9%).

Earnings vs Market: SRG's earnings (24% per year) are forecast to grow faster than the Australian market (11.5% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: SRG's revenue (7.7% per year) is forecast to grow faster than the Australian market (5.6% per year).

High Growth Revenue: SRG's revenue (7.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: SRG's Return on Equity is forecast to be low in 3 years time (10.7%).


Past Performance

How has SRG Global performed over the past 5 years?

-47.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SRG has high quality earnings.

Growing Profit Margin: SRG became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: SRG's earnings have declined by 47.5% per year over the past 5 years.

Accelerating Growth: SRG has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: SRG has become profitable in the last year, making it difficult to compare its past year earnings growth to the Construction industry (25%).


Return on Equity

High ROE: SRG's Return on Equity (5.3%) is considered low.


Financial Health

How is SRG Global's financial position?


Financial Position Analysis

Short Term Liabilities: SRG's short term assets (A$206.6M) exceed its short term liabilities (A$177.2M).

Long Term Liabilities: SRG's short term assets (A$206.6M) exceed its long term liabilities (A$38.9M).


Debt to Equity History and Analysis

Debt Level: SRG's debt to equity ratio (4.3%) is considered satisfactory.

Reducing Debt: SRG's debt to equity ratio has increased from 0% to 4.3% over the past 5 years.

Debt Coverage: SRG's debt is well covered by operating cash flow (571.4%).

Interest Coverage: SRG's interest payments on its debt are well covered by EBIT (27.2x coverage).


Balance Sheet


Dividend

What is SRG Global current dividend yield, its reliability and sustainability?

4.00%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: SRG's dividend (4%) is higher than the bottom 25% of dividend payers in the Australian market (2.32%).

High Dividend: SRG's dividend (4%) is low compared to the top 25% of dividend payers in the Australian market (5.55%).


Stability and Growth of Payments

Stable Dividend: SRG has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: SRG has only been paying a dividend for 3 years, and since then payments have not increased.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (74%), SRG's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: SRG's dividends in 3 years are forecast to be well covered by earnings (49.6% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

4.3yrs

Average management tenure


CEO

David Macgeorge

7.33yrs

Tenure

AU$847,867

Compensation

Mr. David William Macgeorge is a Managing Director of Global Construction Services Ltd and has been its Director since September 11, 2018. Mr. Macgeorge has been the Managing Director of SRG Global Limited...


CEO Compensation Analysis

Compensation vs Market: David's total compensation ($USD612.66K) is about average for companies of similar size in the Australian market ($USD533.16K).

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


Leadership Team

Experienced Management: SRG's management team is considered experienced (4.3 years average tenure).


Board Members

Experienced Board: SRG's board of directors are considered experienced (7 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

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


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

SRG Global Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: SRG Global Limited
  • Ticker: SRG
  • Exchange: ASX
  • Founded: 1961
  • Industry: Construction and Engineering
  • Sector: Capital Goods
  • Market Cap: AU$222.898m
  • Shares outstanding: 445.80m
  • Website: https://www.srgglobal.com.au

Number of Employees


Location

  • SRG Global Limited
  • 338 Barker Road
  • Level 1
  • Subiaco
  • Western Australia
  • 6008
  • Australia

Listings


Biography

SRG Global Limited provides engineering-led specialist asset, construction, and mining services. It operates through Construction, Asset Services, and Mining Services segments. The Construction segment sup...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/09/22 15:13
End of Day Share Price2021/09/22 00:00
Earnings2021/06/30
Annual Earnings2021/06/30


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.