ASX:SEK

Stock Analysis Report

Executive Summary

SEEK Limited, together with its subsidiaries, provides online employment marketplace services in Australia and internationally.


Snowflake Analysis

Proven track record with reasonable growth potential and pays a dividend.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: SEK's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

8.2%

SEK

6.6%

AU Professional Services

4.9%

AU Market


1 Year Return

-7.1%

SEK

-13.7%

AU Professional Services

-14.2%

AU Market

Return vs Industry: SEK exceeded the Australian Professional Services industry which returned -16.7% over the past year.

Return vs Market: SEK exceeded the Australian Market which returned -17.5% over the past year.


Shareholder returns

SEKIndustryMarket
7 Day8.2%6.6%4.9%
30 Day-14.1%-14.2%-8.9%
90 Day-29.0%-30.1%-22.7%
1 Year-5.1%-7.1%-11.2%-13.7%-10.3%-14.2%
3 Year5.6%-1.5%3.0%-5.6%2.6%-11.6%
5 Year8.3%-4.5%15.1%1.0%13.9%-11.8%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

42.3%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: SEK (A$16.32) is trading below our estimate of fair value (A$28.26)

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


Price To Earnings Ratio

PE vs Industry: SEK is poor value based on its PE Ratio (36.6x) compared to the Professional Services industry average (12.6x).

PE vs Market: SEK is poor value based on its PE Ratio (36.6x) compared to the Australian market (13.5x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: SEK is overvalued based on its PB Ratio (4.1x) compared to the AU Professional Services industry average (1.5x).


Next Steps

Future Growth

How is SEEK forecast to perform in the next 1 to 3 years based on estimates from 11 analysts?

27.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SEK's forecast earnings growth (27.8% per year) is above the savings rate (1.1%).

Earnings vs Market: SEK's earnings (27.8% per year) are forecast to grow faster than the Australian market (10.5% per year).

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

Revenue vs Market: SEK's revenue (14.2% per year) is forecast to grow faster than the Australian market (4% per year).

High Growth Revenue: SEK's revenue (14.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: SEK's Return on Equity is forecast to be low in 3 years time (14.5%).


Next Steps

Past Performance

How has SEEK performed over the past 5 years?

-19.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SEK has high quality earnings.

Growing Profit Margin: SEK's current net profit margins (9.4%) are higher than last year (3.3%).


Past Earnings Growth Analysis

Earnings Trend: SEK's earnings have declined by -19.4% per year over the past 5 years.

Accelerating Growth: SEK's earnings growth over the past year (232.5%) exceeds its 5-year average (-19.4% per year).

Earnings vs Industry: SEK earnings growth over the past year (232.5%) exceeded the Professional Services industry 12.7%.


Return on Equity

High ROE: SEK's Return on Equity (10.5%) is considered low.


Next Steps

Financial Health

How is SEEK's financial position?


Financial Position Analysis

Short Term Liabilities: SEK's short term assets (A$819.3M) do not cover its short term liabilities (A$933.5M).

Long Term Liabilities: SEK's short term assets (A$819.3M) do not cover its long term liabilities (A$1.9B).


Debt to Equity History and Analysis

Debt Level: SEK's debt to equity ratio (109.1%) is considered high.

Reducing Debt: SEK's debt to equity ratio has increased from 43.5% to 109.1% over the past 5 years.

Debt Coverage: SEK's debt is well covered by operating cash flow (20.5%).

Interest Coverage: SEK's interest payments on its debt are well covered by EBIT (4.7x coverage).


Balance Sheet


Next Steps

Dividend

What is SEEK's current dividend yield, its reliability and sustainability?

2.82%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: SEK's dividend (2.82%) isn’t notable compared to the bottom 25% of dividend payers in the Australian market (2.99%).

High Dividend: SEK's dividend (2.82%) is low compared to the top 25% of dividend payers in the Australian market (7.83%).


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: At its current payout ratio (78.6%), SEK's payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: SEK's dividends in 3 years are forecast to be covered by earnings (70.8% payout ratio).


Next Steps

Management

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

4.1yrs

Average management tenure


CEO

Andrew Bassat (53yo)

9.17s

Tenure

AU$4,825,142

Compensation

Mr. Andrew R. Bassat co-founded Seek Limited in 1997 and has been its Chief Executive Officer since February 2011. Mr. Bassat also serves as Managing Director of Seek Limited. He served as a Joint Chief Ex ...


CEO Compensation Analysis

Compensation vs Market: Andrew's total compensation ($USD3.01M) is about average for companies of similar size in the Australian market ($USD2.56M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Andrew Bassat
Co-Founder9.17yrsAU$4.83m4.2% A$233.1m
Geoffrey Roberts
Group Chief Financial Officer4.5yrsAU$2.10m0.027% A$1.5m
Ian Narev
Group COO and Asia Pacific & Americas CEO1yrAU$898.59kno data
Ronnie Fink
Managing Director of Corporate Development5.08yrsno datano data
Kathleen McCudden
Group Human Resources Director3.92yrsno datano data
Isar Mazer
Chief Operating Officer of Investments5.08yrsAU$1.61mno data
Simon Lusted
Managing Director of Strategy & Platforms - AP&A2.25yrsno datano data
Kendra Banks
Managing Director of ANZ2.25yrsno datano data
Tennealle O'Shannessy
Managing Director of Americas - AP &A2.25yrsno datano data
Lynne Jensen
Company Secretary4.33yrsno datano data

4.1yrs

Average Tenure

Experienced Management: SEK's management team is considered experienced (4.1 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Andrew Bassat
Co-Founder9.17yrsAU$4.83m4.2% A$233.1m
Jason Lenga
Special Advisor of Seek International & Director of Zhaopin Ltdno datano datano data
Leigh Jasper
Independent Non-Executive Director1yrAU$42.38k0.019% A$1.1m
Vanessa Wallace
Independent Non-Executive Director3.08yrsAU$189.00k0.0048% A$268.4k
Graham Goldsmith
Independent Chairman1.25yrsAU$308.83k0.014% A$790.1k
Julie Fahey
Independent Non-Executive Director5.75yrsAU$173.50k0.0025% A$140.6k
Michael Wachtel
Independent Non-Executive Director1.58yrsAU$150.58k0.0011% A$63.3k

2.3yrs

Average Tenure

56yo

Average Age

Experienced Board: SEK's board of directors are not considered experienced ( 2.3 years average tenure), which suggests a new board.


Ownership

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


Insider Trading Volume

Insider Buying: SEK 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

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


Key Information

  • Name: SEEK Limited
  • Ticker: SEK
  • Exchange: ASX
  • Founded: 1997
  • Industry: Human Resource and Employment Services
  • Sector: Commercial Services
  • Market Cap: AU$5.556b
  • Shares outstanding: 351.66m
  • Website: https://www.seek.com.au

Number of Employees


Location

  • SEEK Limited
  • 541 St Kilda Road
  • Level 6
  • Melbourne
  • Victoria
  • 3004
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SEKASX (Australian Securities Exchange)YesOrdinary SharesAUAUDApr 2005
SLDDB (Deutsche Boerse AG)YesOrdinary SharesDEEURApr 2005
SKLT.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDApr 2005
SEKCHIA (Chi-X Australia)YesOrdinary SharesAUAUDApr 2005
SKLT.YOTCPK (Pink Sheets LLC)UNSPONSORD ADRUSUSDApr 2010

Biography

SEEK Limited, together with its subsidiaries, provides online employment marketplace services in Australia and internationally. It operates through SEEK Asia Pacific & Americas, and SEEK Investments segments. The company matches hirers and candidates with career opportunities and related services; and distributes and provides higher education courses. It also provides advice in relation to career related education. The company was founded in 1997 and is headquartered in Melbourne, Australia. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/09 10:38
End of Day Share Price2020/04/09 00:00
Earnings2019/12/31
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.