Seven Group Holdings (ASX:SVW) - Share price, News & Analysis

SVW fundamental analysis
Snowflake Score
Valuation	3/6
Future Growth	0/6
Past Performance	5/6
Financial Health	3/6
Dividends	4/6

SVW Stock 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.

Rewards

Price-To-Earnings ratio (5.2x) is below the Australian market (15.9x)

Earnings grew by 198.7% over the past year

Risk Analysis

Earnings are forecast to decline by an average of 15.5% per year for the next 3 years

Debt is not well covered by operating cash flow

Significant insider selling over the past 3 months

Seven Group Holdings Competitors

Reece

ASX:REH

AU$9.8b

Emeco Holdings

ASX:EHL

AU$407.0m

Coventry Group

ASX:CYG

AU$117.0m

Acrow Formwork and Construction Services

ASX:ACF

AU$116.1m

Price History & Performance

Summary of all time highs, changes and price drops for Seven Group Holdings
Historical stock prices
Current Share Price	AU$18.82
52 Week High	AU$24.55
52 Week Low	AU$18.28
Beta	1.42
1 Month Change	-5.85%
3 Month Change	-15.19%
1 Year Change	-7.52%
3 Year Change	0.32%
5 Year Change	56.57%
Change since IPO	152.62%

Recent News & Updates

May 11

Here's Why I Think Seven Group Holdings (ASX:SVW) Is An Interesting Stock

Some have more dollars than sense, they say, so even companies that have no revenue, no profit, and a record of falling...

Shareholder Returns

	SVW	AU Trade Distributors	AU Market
7D	0.1%	-0.8%	-1.3%
1Y	-7.5%	-18.8%	-2.0%

Return vs Industry: SVW exceeded the Australian Trade Distributors industry which returned -18.8% over the past year.

Return vs Market: SVW underperformed the Australian Market which returned -2% over the past year.

Price Volatility

Is SVW's price volatile compared to industry and market?
SVW volatility
SVW Average Weekly Movement	3.2%
Trade Distributors Industry Average Movement	5.0%
Market Average Movement	9.3%
10% most volatile stocks in AU Market	16.3%
10% least volatile stocks in AU Market	4.1%

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

Volatility Over Time: SVW's weekly volatility (3%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
2010	5,835	Ryan Stokes	https://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 Cap	AU$6.83b
Earnings (TTM)	AU$1.31b
Revenue (TTM)	AU$7.59b

5.2x

P/E Ratio

0.9x

P/S Ratio

Is SVW overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
SVW income statement (TTM)
Revenue	AU$7.59b
Cost of Revenue	AU$5.51b
Gross Profit	AU$2.08b
Other Expenses	AU$765.50m
Earnings	AU$1.31b

Last Reported Earnings

Dec 31, 2021

Next Earnings Date

Aug 24, 2022

Earnings per share (EPS)	3.62
Gross Margin	27.39%
Net Profit Margin	17.30%
Debt/Equity Ratio	132.9%

How did SVW perform over the long term?

See historical performance and comparison

Dividends

2.4%

Current Dividend Yield

12%

Payout Ratio

New valuation analysis is now available for all ASX stocks. This is in beta.

Future Growth

How is Seven Group Holdings forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?

Future Growth Score

0/6

Future Growth Score 0/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

-15.5%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: SVW's earnings are forecast to decline over the next 3 years (-15.5% per year).

Earnings vs Market: SVW's earnings are forecast to decline over the next 3 years (-15.5% per year).

High Growth Earnings: SVW's earnings are forecast to decline over the next 3 years.

Revenue vs Market: SVW's revenue (4.2% per year) is forecast to grow slower than the Australian market (5.1% per year).

High Growth Revenue: SVW's revenue (4.2% 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 (13.6%).

Past Performance

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

Past Performance Score

5/6

Past Performance Score 5/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

42.7%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: SVW has high quality earnings.

Growing Profit Margin: SVW's current net profit margins (17.3%) are higher than last year (9.1%).

Past Earnings Growth Analysis

Earnings Trend: SVW's earnings have grown significantly by 42.7% per year over the past 5 years.

Accelerating Growth: SVW's earnings growth over the past year (198.7%) exceeds its 5-year average (42.7% per year).

Earnings vs Industry: SVW earnings growth over the past year (198.7%) exceeded the Trade Distributors industry 42.8%.

Return on Equity

High ROE: Whilst SVW's Return on Equity (22.74%) is high, this metric is skewed due to their high level of debt.

Financial Health

How is Seven Group Holdings's financial position?

Financial Health Score

3/6

Financial Health Score 3/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: SVW's short term assets (A$7.8B) exceed its short term liabilities (A$5.4B).

Long Term Liabilities: SVW's short term assets (A$7.8B) exceed its long term liabilities (A$6.2B).

Debt to Equity History and Analysis

Debt Level: SVW's net debt to equity ratio (69.9%) is considered high.

Reducing Debt: SVW's debt to equity ratio has increased from 70% to 132.9% over the past 5 years.

Debt Coverage: SVW's debt is not well covered by operating cash flow (7.7%).

Interest Coverage: SVW's interest payments on its debt are well covered by EBIT (8.2x coverage).

Balance Sheet

Dividend

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

Dividend Score

4/6

Dividend Score 4/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

2.44%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: SVW's dividend (2.44%) isn’t notable compared to the bottom 25% of dividend payers in the Australian market (2.6%).

High Dividend: SVW's dividend (2.44%) is low compared to the top 25% of dividend payers in the Australian market (6.23%).

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.

Earnings Payout to Shareholders

Earnings Coverage: With its low payout ratio (12.5%), SVW's dividend payments are thoroughly covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: With its reasonable cash payout ratio (55%), SVW's dividend payments are covered by cash flows.

Discover strong dividend paying companies

Management

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

6.7yrs

Average management tenure

CEO

Ryan Stokes (45 yo)

6.83yrs

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 ($USD3.43M) is above average for companies of similar size in the Australian market ($USD2.51M).

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 (6.7 years average tenure).

Board Members

Experienced Board: SVW's board of directors are considered experienced (7.7 years average tenure).

Ownership

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

Insider Trading Volume

Insider Buying: SVW insiders have only sold shares in the past 3 months.

Recent Insider Transactions

Ownership Breakdown

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

Data	Last Updated (UTC time)
Company Analysis	2022/05/29 00:00
End of Day Share Price	2022/05/27 00:00
Earnings	2021/12/31
Annual Earnings	2021/06/30