ASX:SVW

Stock Analysis Report

Executive Summary

Seven Group Holdings Limited engages in the heavy equipment sales and service, equipment hire, media, broadcasting, and energy assets businesses in Australia, the United Arab Emirates, Indonesia, the United States, and New Zealand.

Snowflake

Fundamentals

Reasonable growth potential with questionable track record.


Similar Companies

Share Price & News

How has Seven Group Holdings's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: SVW has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

1.5%

SVW

0.6%

AU Trade Distributors

0.4%

AU Market


1 Year Return

15.6%

SVW

3.5%

AU Trade Distributors

14.8%

AU Market

Return vs Industry: SVW exceeded the Australian Trade Distributors industry which returned 3.5% over the past year.

Return vs Market: SVW exceeded the Australian Market which returned 14.8% over the past year.


Shareholder returns

SVWIndustryMarket
7 Day1.5%0.6%0.4%
30 Day10.9%5.7%0.4%
90 Day22.7%11.7%4.6%
1 Year18.3%15.6%5.6%3.5%21.4%14.8%
3 Year139.6%120.9%69.1%53.5%40.2%21.4%
5 Year305.9%229.5%131.6%97.0%54.5%19.5%

Price Volatility Vs. Market

How volatile is Seven Group Holdings's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

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

29.86x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: SVW (A$19.44) is trading above our estimate of fair value (A$6.54)

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


Price To Earnings Ratio

PE vs Industry: SVW is poor value based on its PE Ratio (29.9x) compared to the Trade Distributors industry average (22.9x).

PE vs Market: SVW is poor value based on its PE Ratio (29.9x) compared to the Australian market (18.6x).


Price to Earnings Growth Ratio

PEG Ratio: SVW is poor value based on its PEG Ratio (1.2x)


Price to Book Ratio

PB vs Industry: SVW is overvalued based on its PB Ratio (2.2x) compared to the AU Trade Distributors industry average (1.1x).


Next Steps

Future Growth

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

25.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SVW's forecast earnings growth (25.5% per year) is above the savings rate (2.3%).

Earnings vs Market: SVW's earnings (25.5% per year) are forecast to grow faster than the Australian market (9.8% per year).

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

Revenue vs Market: SVW's revenue (6.6% per year) is forecast to grow faster than the Australian market (3.6% per year).

High Growth Revenue: SVW's revenue (6.6% 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 (14.6%).


Next Steps

Past Performance

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

41.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SVW has high quality earnings.

Growing Profit Margin: SVW's current net profit margins (5.4%) are lower than last year (11%).


Past Earnings Growth Analysis

Earnings Trend: SVW's earnings have grown significantly by 41.1% per year over the past 5 years.

Accelerating Growth: SVW's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: SVW had negative earnings growth (-42.9%) over the past year, making it difficult to compare to the Trade Distributors industry average (-42.9%).


Return on Equity

High ROE: SVW's Return on Equity (7.3%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Seven Group Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: SVW's short term assets (A$1.6B) exceeds its short term liabilities (A$741.8M)

Long Term Liabilities: SVW's short term assets (1.6B) do not cover its long term liabilities (2.5B)


Debt to Equity History and Analysis

Debt Level: SVW's debt to equity ratio (70.7%) is considered high

Reducing Debt: SVW's debt to equity ratio has increased from 38.4% to 70.7% over the past 5 years.

Debt Coverage: SVW's debt is not well covered by operating cash flow (19.3%).

Interest Coverage: SVW's interest payments on its debt are well covered by EBIT (4.2x coverage).


Balance Sheet

Inventory Level: SVW has a high level of physical assets or inventory.

Debt Coverage by Assets: SVW's debt is not covered by short term assets (assets are 0.8x debt).


Next Steps

Dividend

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

2.16%

Current Dividend Yield


Dividend Yield vs Market

company2.2%marketbottom25%2.4%markettop25%5.6%industryaverage3.1%forecastin3Years2.4%

Current dividend yield vs market & industry

Notable Dividend: SVW's dividend (2.16%) isn’t notable compared to the bottom 25% of dividend payers in the Australian market (2.35%).

High Dividend: SVW's dividend (2.16%) is low compared to the top 25% of dividend payers in the Australian market (5.62%).


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, SVW has been paying a dividend for less than 10 years.

Growing Dividend: SVW's dividend payments have increased, but the company has only paid a dividend for 9 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (64.5%), SVW's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: SVW's dividends in 3 years are forecast to be well covered by earnings (27% payout ratio).


Next Steps

Management

What is the CEO of Seven Group Holdings's salary, the management and board of directors tenure and is there insider trading?

4.8yrs

Average management tenure


CEO

Ryan Stokes (43yo)

4.3yrs

Tenure

AU$4,846,088

Compensation

Mr. Ryan Kerry Stokes, B. Comm., FAIM, has been the Chief Executive Officer and Managing Director of Seven Group Holdings Limited since July 01, 2015 and its Executive Director since February 2010. Mr. Sto ...


CEO Compensation Analysis

Compensation vs Market: Ryan's total compensation ($USD3.31M) is above average for companies of similar size in the Australian market ($USD2.28M).

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


Management Age and Tenure

4.8yrs

Average Tenure

51yo

Average Age

Experienced Management: SVW's management team is considered experienced (4.8 years average tenure).


Board Age and Tenure

9.4yrs

Average Tenure

61yo

Average Age

Experienced Board: SVW's board of directors are considered experienced (9.4 years average tenure).


Insider Trading

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


Recent Insider Transactions

BuyAU$51,50822 Mar 19
Katherine Farrar
EntityIndividual
Role
Member of the Board of Directors
Independent Non-Executive Director
Shares2,750
Max PriceAU$18.74
SellAU$1,218,80928 Feb 19
Richard Uechtritz
EntityIndividual
Role
Member of the Board of Directors
Non-Executive Director
Shares63,000
Max PriceAU$19.35
BuyAU$153,37526 Nov 18
Bruce McWilliam
EntityIndividual
Role
Member of the Board of Directors
Commercial Director & Executive Director
Shares10,000
Max PriceAU$15.39
BuyAU$159,30026 Nov 18
Sally Chaplain
EntityIndividual
Role
Member of the Board of Directors
Non-Executive Director
Shares10,000
Max PriceAU$15.93

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 8.4%.


Management Team

  • Graham McWilliam (60yo)

    Commercial Director & Executive Director

    • Tenure: 9.6yrs
    • Compensation: AU$969.80k
  • Ryan Stokes (43yo)

    CEO, MD & Executive Director

    • Tenure: 4.3yrs
    • Compensation: AU$4.85m
  • Kerry Stokes (78yo)

    Executive Chairman

    • Tenure: 9.6yrs
    • Compensation: AU$360.61k
  • Murray Vitlich

    Group Chief Operating Officer

    • Tenure: 2.4yrs
    • Compensation: AU$1.38m
  • Warren Coatsworth

    Company Secretary & Legal Counsel

    • Tenure: 9.6yrs
    • Compensation: AU$44.64k
  • Jarvas Croome (47yo)

    Chief Executive Officer of WesTrac Australia

    • Tenure: 5.7yrs
    • Compensation: AU$2.29m
  • Richard Richards (51yo)

    Group Chief Financial Officer

    • Tenure: 6.1yrs
    • Compensation: AU$2.43m
  • Gitanjali Bhalla

    Group Executive of People

    • Tenure: 2.1yrs
    • Compensation: AU$888.38k
  • Lawrence Luo

    Chief Executive Officer of WesTrac China

    • Tenure: 4.8yrs
    • Compensation: AU$1.20m

Board Members

  • Graham McWilliam (60yo)

    Commercial Director & Executive Director

    • Tenure: 9.6yrs
    • Compensation: AU$969.80k
  • Richard Uechtritz (65yo)

    Non-Executive Director

    • Tenure: 9.4yrs
    • Compensation: AU$202.50k
  • Chris MacKay (56yo)

    Non-Executive Director

    • Tenure: 9.4yrs
    • Compensation: AU$202.50k
  • Terry Davis (61yo)

    Non-Executive Director

    • Tenure: 9.4yrs
    • Compensation: AU$242.50k
  • David McEvoy (72yo)

    Non-Executive Director

    • Tenure: 4.5yrs
    • Compensation: AU$202.50k
  • Ryan Stokes (43yo)

    CEO, MD & Executive Director

    • Tenure: 4.3yrs
    • Compensation: AU$4.85m
  • Kerry Stokes (78yo)

    Executive Chairman

    • Tenure: 9.6yrs
    • Compensation: AU$360.61k
  • Sally Chaplain (61yo)

    Non-Executive Director

    • Tenure: 4yrs
    • Compensation: AU$282.50k
  • Warwick Smith

    Non-Executive Director

    • Tenure: 5.2yrs
    • Compensation: AU$202.50k
  • Kate Farrar

    Independent Non-Executive Director

    • Tenure: 0.8yrs
    • Compensation: AU$61.83k

Company Information

Seven Group Holdings Limited's company bio, 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$6.589b
  • Shares outstanding: 338.95m
  • 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

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SVWASX (Australian Securities Exchange)YesOrdinary SharesAUAUDApr 2010
SVNW.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDApr 2010
9SGDB (Deutsche Boerse AG)YesOrdinary SharesDEEURApr 2010
SVWCHIA (Chi-X Australia)YesOrdinary SharesAUAUDApr 2010
9SGHMSE (Hamburg Stock Exchange)YesOrdinary SharesDEEURApr 2010

Biography

Seven Group Holdings Limited engages in the heavy equipment sales and service, equipment hire, media, broadcasting, and energy assets businesses in Australia, the United Arab Emirates, Indonesia, the Unite ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/11/13 10:34
End of Day Share Price2019/11/13 00:00
Earnings2019/06/30
Annual Earnings2019/06/30


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.