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SVW

Seven Group HoldingsASX:SVW Stock Report

Market Cap

AU$7.8b

7D

-0.1%

1Y

1.7%

Updated

16 Oct, 2021

Data

Company Financials +
SVW fundamental analysis
Snowflake Score
Valuation2/6
Future Growth2/6
Past Performance5/6
Financial Health4/6
Dividends4/6

SVW Overview

Seven Group Holdings Limited engages in the heavy equipment sales and service, equipment hire, building products and construction materials, media, broadcasting, and energy assets businesses.

Seven Group Holdings Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Seven Group Holdings
Historical stock prices
Current Share PriceAU$21.55
52 Week HighAU$19.15
52 Week LowAU$24.55
Beta1.47
1 Month Change3.66%
3 Month Change-7.55%
1 Year Change1.75%
3 Year Change13.06%
5 Year Change137.86%
Change since IPO189.26%

Recent News & Updates

Oct 08
Here's Why Seven Group Holdings (ASX:SVW) Can Manage Its Debt Responsibly

Here's Why Seven Group Holdings (ASX:SVW) Can Manage Its Debt Responsibly

Legendary fund manager Li Lu (who Charlie Munger backed) once said, 'The biggest investment risk is not the volatility...

Sep 27
Should You Be Adding Seven Group Holdings (ASX:SVW) To Your Watchlist Today?

Should You Be Adding Seven Group Holdings (ASX:SVW) To Your Watchlist Today?

Like a puppy chasing its tail, some new investors often chase 'the next big thing', even if that means buying 'story...

Sep 15
Seven Group Holdings (ASX:SVW) Is Increasing Its Dividend To AU$0.23

Seven Group Holdings (ASX:SVW) Is Increasing Its Dividend To AU$0.23

Seven Group Holdings Limited ( ASX:SVW ) has announced that it will be increasing its dividend on the 29th of October...

Sep 07
Seven Group Holdings (ASX:SVW) Is Doing The Right Things To Multiply Its Share Price

Seven Group Holdings (ASX:SVW) Is Doing The Right Things To Multiply Its Share Price

Finding a business that has the potential to grow substantially is not easy, but it is possible if we look at a few key...

Aug 27
Seven Group Holdings (ASX:SVW) Is Paying Out A Larger Dividend Than Last Year

Seven Group Holdings (ASX:SVW) Is Paying Out A Larger Dividend Than Last Year

Seven Group Holdings Limited's ( ASX:SVW ) dividend will be increasing to AU$0.23 on 29th of October. This will take...

Shareholder Returns

SVWAU Trade DistributorsAU Market
7D-0.1%-0.5%0.9%
1Y1.7%14.0%20.2%

Return vs Industry: SVW underperformed the Australian Trade Distributors industry which returned 14% over the past year.

Return vs Market: SVW underperformed the Australian Market which returned 20.2% over the past year.

Price Volatility

Is SVW's price volatile compared to industry and market?
SVW volatility
SVW Beta1.47
Industry Beta0.84
Market Beta1

Stable Share Price: SVW is less volatile than 75% of Australian stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: SVW's weekly volatility (4%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
20105,835Ryan Stokeshttps://www.sevengroup.com.au

Seven Group Holdings Limited engages in the heavy equipment sales and service, equipment hire, building products and construction materials, media, broadcasting, and energy assets businesses. It operates through WesTrac, Coates, Boral, Energy, Media Investments, and Other Investments segments. The company operates as a Caterpillar dealer providing heavy equipment sales and support services.

Seven Group Holdings Fundamentals Summary

How do Seven Group Holdings's earnings and revenue compare to its market cap?
SVW fundamental statistics
Market CapAU$7.83b
Earnings (TTM)AU$631.40m
Revenue (TTM)AU$5.22b

12.4x

P/E Ratio

1.5x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
SVW income statement (TTM)
RevenueAU$5.22b
Cost of RevenueAU$4.03b
Gross ProfitAU$1.19b
ExpensesAU$557.90m
EarningsAU$631.40m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)1.74
Gross Margin22.79%
Net Profit Margin12.10%
Debt/Equity Ratio61.1%

How did SVW perform over the long term?

See historical performance and comparison

Dividends

2.1%

Current Dividend Yield

25%

Payout Ratio

Valuation

Is Seven Group Holdings undervalued compared to its fair value and its price relative to the market?

12.4x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: SVW (A$21.55) is trading above our estimate of fair value (A$19.95)

Significantly Below Fair Value: SVW is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: SVW is good value based on its PE Ratio (12.4x) compared to the Australian Trade Distributors industry average (28.1x).

PE vs Market: SVW is good value based on its PE Ratio (12.4x) compared to the Australian market (19.8x).


Price to Earnings Growth Ratio

PEG Ratio: SVW is poor value based on its PEG Ratio (1.3x)


Price to Book Ratio

PB vs Industry: SVW is overvalued based on its PB Ratio (1.9x) compared to the AU Trade Distributors industry average (1.6x).


Future Growth

How is Seven Group Holdings forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

9.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SVW's forecast earnings growth (9.3% per year) is above the savings rate (1.9%).

Earnings vs Market: SVW's earnings (9.3% per year) are forecast to grow slower than the Australian market (11.8% per year).

High Growth Earnings: SVW's earnings are forecast to grow, but not significantly.

Revenue vs Market: SVW's revenue (16.9% per year) is forecast to grow faster than the Australian market (5.4% per year).

High Growth Revenue: SVW's revenue (16.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: SVW's Return on Equity is forecast to be low in 3 years time (15.2%).


Past Performance

How has Seven Group Holdings performed over the past 5 years?

26.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SVW has high quality earnings.

Growing Profit Margin: SVW's current net profit margins (12.1%) are higher than last year (2.5%).


Past Earnings Growth Analysis

Earnings Trend: SVW's earnings have grown significantly by 26% per year over the past 5 years.

Accelerating Growth: SVW's earnings growth over the past year (447.6%) exceeds its 5-year average (26% per year).

Earnings vs Industry: SVW earnings growth over the past year (447.6%) exceeded the Trade Distributors industry 28.1%.


Return on Equity

High ROE: SVW's Return on Equity (15.6%) is considered low.


Financial Health

How is Seven Group Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: SVW's short term assets (A$1.8B) exceed its short term liabilities (A$1.8B).

Long Term Liabilities: SVW's short term assets (A$1.8B) do not cover its long term liabilities (A$2.9B).


Debt to Equity History and Analysis

Debt Level: SVW's debt to equity ratio (61.1%) is considered high.

Reducing Debt: SVW's debt to equity ratio has reduced from 64.4% to 61.1% over the past 5 years.

Debt Coverage: SVW's debt is well covered by operating cash flow (25.1%).

Interest Coverage: SVW's interest payments on its debt are well covered by EBIT (6.1x coverage).


Balance Sheet


Dividend

What is Seven Group Holdings's current dividend yield, its reliability and sustainability?

2.13%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: SVW's dividend (2.13%) isn’t notable compared to the bottom 25% of dividend payers in the Australian market (2.27%).

High Dividend: SVW's dividend (2.13%) is low compared to the top 25% of dividend payers in the Australian market (5.32%).


Stability and Growth of Payments

Stable Dividend: SVW's dividends per share have been stable in the past 10 years.

Growing Dividend: SVW's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (25%), SVW's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: SVW's dividends in 3 years are forecast to be well covered by earnings (24.2% payout ratio).


Next Steps

Management

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

6.1yrs

Average management tenure


CEO

Ryan Stokes (45 yo)

6.25yrs

Tenure

AU$4,791,349

Compensation

Mr. Ryan Kerry Stokes, B. Comm., FAIM, A.O., has been the Non-Executive Chairman of the Board of Boral Limited since July 30, 2021. He has been the Chief Executive Officer and Managing Director of Seven Gr...


CEO Compensation Analysis

Compensation vs Market: Ryan's total compensation ($USD3.56M) is above average for companies of similar size in the Australian market ($USD2.16M).

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


Leadership Team

Experienced Management: SVW's management team is seasoned and experienced (6.1 years average tenure).


Board Members

Experienced Board: SVW's board of directors are considered experienced (9.2 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: SVW insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 7.3%.


Top Shareholders

Company Information

Seven Group Holdings Limited's employee growth, exchange listings and data sources


Key Information

  • Name: Seven Group Holdings Limited
  • Ticker: SVW
  • Exchange: ASX
  • Founded: 2010
  • Industry: Trading Companies and Distributors
  • Sector: Capital Goods
  • Market Cap: AU$7.826b
  • Shares outstanding: 363.17m
  • Website: https://www.sevengroup.com.au

Number of Employees


Location

  • Seven Group Holdings Limited
  • 175 Liverpool Street
  • Level 30
  • Sydney
  • New South Wales
  • 2000
  • Australia

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/10/16 07:04
End of Day Share Price2021/10/15 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.