ASX:SVW

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Executive Summary

Seven Group Holdings Limited engages in the heavy equipment sales and service, equipment hire, media, broadcasting, and energy assets businesses in Australia and internationally. More Details


Snowflake Analysis

Reasonable growth potential with mediocre balance sheet.


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

-2.7%

SVW

-1.5%

AU Trade Distributors

-0.3%

AU Market


1 Year Return

14.3%

SVW

22.2%

AU Trade Distributors

-6.9%

AU Market

Return vs Industry: SVW underperformed the Australian Trade Distributors industry which returned 22.2% over the past year.

Return vs Market: SVW exceeded the Australian Market which returned -6.9% over the past year.


Shareholder returns

SVWIndustryMarket
7 Day-2.7%-1.5%-0.3%
30 Day15.1%11.5%5.1%
90 Day16.9%32.0%4.2%
1 Year18.1%14.3%25.7%22.2%-3.5%-6.9%
3 Year72.6%59.6%59.4%42.3%18.1%3.0%
5 Year385.6%307.9%188.6%141.6%44.2%15.1%

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?

15.2%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: SVW (A$20.6) is trading below our estimate of fair value (A$24.3)

Significantly Below Fair Value: SVW is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: SVW is poor value based on its PE Ratio (60.3x) compared to the AU Trade Distributors industry average (36.2x).

PE vs Market: SVW is poor value based on its PE Ratio (60.3x) compared to the Australian market (21.5x).


Price to Earnings Growth Ratio

PEG Ratio: SVW is poor value based on its PEG Ratio (2.7x)


Price to Book Ratio

PB vs Industry: SVW is overvalued based on its PB Ratio (2.4x) compared to the AU Trade Distributors industry average (1.6x).


Next Steps

Future Growth

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

22.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SVW's forecast earnings growth (22.5% per year) is above the savings rate (2.3%).

Earnings vs Market: SVW's earnings (22.5% per year) are forecast to grow faster than the Australian market (17.7% per year).

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

Revenue vs Market: SVW's revenue (5.3% per year) is forecast to grow faster than the Australian market (4.6% per year).

High Growth Revenue: SVW's revenue (5.3% 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 (14.5%).


Next Steps

Past Performance

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

49.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SVW has a large one-off loss of A$124.8M impacting its June 30 2020 financial results.

Growing Profit Margin: SVW's current net profit margins (2.5%) are lower than last year (5%).


Past Earnings Growth Analysis

Earnings Trend: SVW has become profitable over the past 5 years, growing earnings by 49.3% per year.

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 (-42.4%) over the past year, making it difficult to compare to the Trade Distributors industry average (-38.9%).


Return on Equity

High ROE: SVW's Return on Equity (4.1%) is considered low.


Next Steps

Financial Health

How is Seven Group Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: SVW's short term assets (A$1.8B) exceed its short term liabilities (A$916.9M).

Long Term Liabilities: SVW's short term assets (A$1.8B) do not cover its long term liabilities (A$3.7B).


Debt to Equity History and Analysis

Debt Level: SVW's debt to equity ratio (89.5%) is considered high.

Reducing Debt: SVW's debt to equity ratio has increased from 58.3% to 89.5% over the past 5 years.

Debt Coverage: SVW's debt is well covered by operating cash flow (21%).

Interest Coverage: SVW's interest payments on its debt are well covered by EBIT (3.6x coverage).


Balance Sheet


Next Steps

Dividend

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

2.04%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: SVW's dividend (2.04%) isn’t notable compared to the bottom 25% of dividend payers in the Australian market (2.09%).

High Dividend: SVW's dividend (2.04%) is low compared to the top 25% of dividend payers in the Australian market (5.45%).


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 high payout ratio (123%), SVW's dividend payments are not 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 (31.9% payout ratio).


Next Steps

Management

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

5.2yrs

Average management tenure


CEO

Ryan Stokes (44 yo)

5.25yrs

Tenure

AU$4,111,998

Compensation

Mr. Ryan Kerry Stokes, B. Comm., FAIM, A.O., 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. M ...


CEO Compensation Analysis

Compensation vs Market: Ryan's total compensation ($USD2.92M) is about average for companies of similar size in the Australian market ($USD2.51M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Kerry Stokes
Executive Chairman10.5yrsAU$385.80kno data
Ryan Stokes
CEO, MD & Executive Director5.25yrsAU$4.11m0.13%
A$ 8.7m
Richard Richards
Group Chief Financial Officer7yrsAU$2.62m0.012%
A$ 858.5k
James Goth
Chief Operating Officer0.58yrAU$329.20kno data
Gitanjali Bhalla
Chief People Officer3yrsAU$1.03mno data
Jarvas Croome
Chief Executive Officer of WesTrac Australia6.58yrsAU$2.37m0.028%
A$ 2.0m
Murray Vitlich
Chief Executive Officer of Coates Hire1.08yrsAU$1.45mno data
Warren Coatsworth
Company Secretary & Legal Counsel10.5yrsAU$44.64kno data
Lawrence Luo
Chief Executive Officer of WesTrac China5.75yrsAU$1.20mno data
Gus Elliot
Chief Executive Officer of AllightSykes1.58yrsno datano data
Margaret Hall
Chief Executive Officer of SGH Energy5.08yrsno datano data

5.2yrs

Average Tenure

50yo

Average Age

Experienced Management: SVW's management team is seasoned and experienced (5.2 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Kerry Stokes
Executive Chairman10.5yrsAU$385.80kno data
Ryan Stokes
CEO, MD & Executive Director5.25yrsAU$4.11m0.13%
A$ 8.7m
Richard Uechtritz
Independent Non-Executive Director10.33yrsAU$210.00k0.063%
A$ 4.4m
Christopher MacKay
Independent Non-Executive Director10.33yrsAU$210.00kno data
Terry Davis
Independent Non-Executive Director10.33yrsAU$250.00k0.028%
A$ 2.0m
David McEvoy
Independent Non-Executive Director5.42yrsAU$210.00k0.0093%
A$ 645.8k
Sally Chaplain
Independent Non-Executive Director4.92yrsAU$290.00k0.010%
A$ 707.2k
Warwick Smith
Non-Executive Director6.08yrsAU$210.00k0.015%
A$ 1.0m
Katherine Farrar
Independent Non-Executive Director1.67yrsAU$205.15k0.0016%
A$ 114.4k

10.3yrs

Average Tenure

62yo

Average Age

Experienced Board: SVW's board of directors are seasoned and experienced ( 10.3 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 not been meaningfully diluted in the past year.


Top Shareholders

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$6.974b
  • Shares outstanding: 338.55m
  • 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 and internationally. It operates through WesTra ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/25 10:33
End of Day Share Price2020/10/23 00:00
Earnings2020/06/30
Annual Earnings2020/06/30


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.