ASX:SGF

Stock Analysis Report

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Executive Summary

SG Fleet Group Limited provides motor vehicle fleet management, vehicle leasing, short term hire, consumer vehicle finance, and salary packaging services in Australia, New Zealand, and the United Kingdom. More Details


Snowflake Analysis

Good value with adequate balance sheet.


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Share Price & News

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


Latest Share Price and Events

Stable Share Price: SGF is less volatile than 75% of Australian stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: SGF's weekly volatility (5%) has been stable over the past year.


Market Performance


7 Day Return

-1.8%

SGF

1.8%

AU Commercial Services

-0.2%

AU Market


1 Year Return

33.2%

SGF

-6.1%

AU Commercial Services

12.7%

AU Market

Return vs Industry: SGF exceeded the Australian Commercial Services industry which returned -6.1% over the past year.

Return vs Market: SGF exceeded the Australian Market which returned 12.7% over the past year.


Shareholder returns

SGFIndustryMarket
7 Day-1.8%1.8%-0.2%
30 Day2.7%-3.9%-2.0%
90 Day16.5%-5.2%1.8%
1 Year44.8%33.2%-3.2%-6.1%16.3%12.7%
3 Year-11.6%-28.3%5.8%-0.3%27.9%12.4%
5 Year-0.6%-25.5%10.2%1.1%60.3%29.5%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is SG Fleet Group undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: SGF (A$2.69) is trading below our estimate of fair value (A$5.94)

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


Price To Earnings Ratio

PE vs Industry: SGF is good value based on its PE Ratio (18.7x) compared to the AU Commercial Services industry average (21.4x).

PE vs Market: SGF is good value based on its PE Ratio (18.7x) compared to the Australian market (19.8x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate SGF's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: SGF's PB Ratio (2.4x) is in line with the AU Commercial Services industry average.


Next Steps

Future Growth

How is SG Fleet Group forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

0.9%

Forecasted annual revenue growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if SGF's forecast earnings growth is above the savings rate (2%).

Earnings vs Market: Insufficient data to determine if SGF's earnings are forecast to grow faster than the Australian market

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

Revenue vs Market: SGF's revenue (0.9% per year) is forecast to grow slower than the Australian market (5.6% per year).

High Growth Revenue: SGF's revenue (0.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: SGF's Return on Equity is forecast to be high in 3 years time (21%)


Next Steps

Past Performance

How has SG Fleet Group performed over the past 5 years?

-1.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SGF has high quality earnings.

Growing Profit Margin: SGF's current net profit margins (8.5%) are lower than last year (10.9%).


Past Earnings Growth Analysis

Earnings Trend: SGF's earnings have declined by 1.7% per year over the past 5 years.

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

Earnings vs Industry: SGF had negative earnings growth (-32.1%) over the past year, making it difficult to compare to the Commercial Services industry average (6.2%).


Return on Equity

High ROE: SGF's Return on Equity (13%) is considered low.


Next Steps

Financial Health

How is SG Fleet Group's financial position?


Financial Position Analysis

Short Term Liabilities: SGF's short term assets (A$211.9M) exceed its short term liabilities (A$82.9M).

Long Term Liabilities: SGF's short term assets (A$211.9M) do not cover its long term liabilities (A$338.8M).


Debt to Equity History and Analysis

Debt Level: SGF's debt to equity ratio (62%) is considered high.

Reducing Debt: SGF's debt to equity ratio has reduced from 81.9% to 62% over the past 5 years.

Debt Coverage: SGF's debt is well covered by operating cash flow (57%).

Interest Coverage: SGF's interest payments on its debt are well covered by EBIT (7.3x coverage).


Balance Sheet


Next Steps

Dividend

What is SG Fleet Group current dividend yield, its reliability and sustainability?

3.81%

Current Dividend Yield


Upcoming Dividend Payment


Dividend Yield vs Market

Notable Dividend: SGF's dividend (3.81%) is higher than the bottom 25% of dividend payers in the Australian market (2.12%).

High Dividend: SGF's dividend (3.81%) is low compared to the top 25% of dividend payers in the Australian market (5.58%).


Stability and Growth of Payments

Stable Dividend: SGF has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: SGF's dividend payments have increased, but the company has only paid a dividend for 7 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (71.3%), SGF's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: SGF's dividends in 3 years are forecast to be covered by earnings (66.5% payout ratio).


Next Steps

Management

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

12.1yrs

Average management tenure


CEO

Robbie Blau (51 yo)

14.67yrs

Tenure

AU$727,346

Compensation

Mr. Robert Pinkas Blau, also known as Robbie, B.Com., L.L.B. (cum laude), HDip Tax Law, serves as Non-Executive Director of Carly Holdings Limited (formerly known as Collaborate Corporation Limited) since ...


CEO Compensation Analysis

Compensation vs Market: Robbie's total compensation ($USD556.76K) is about average for companies of similar size in the Australian market ($USD723.50K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Robert Blau
CEO & Executive Director14.67yrsAU$727.35k2.64%
A$ 18.6m
Kevin Wundram
CFO & Executive Director5.58yrsAU$417.37k0.27%
A$ 1.9m
Andy Mulcaster
Managing Director of Australia14.17yrsAU$421.00k0.19%
A$ 1.3m
Geoff Tipene
Managing Director of New Zealand8.17yrsAU$280.17k0.00027%
A$ 1.9k
Peter Davenport
Managing Director of United Kingdom2.25yrsAU$333.48k0.13%
A$ 948.6k
Yves Noldus
Corporate Services & Investor Relations Executiveno datano datano data
Roy Waghorn
General Manager of Corporate Sales12.08yrsno datano data
Andy Graham
Group Head of Innovation & Technologyno datano datano data
Tawanda Mutengwa
Company Secretary1.25yrsno datano data

12.1yrs

Average Tenure

Experienced Management: SGF's management team is seasoned and experienced (12.1 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Robert Blau
CEO & Executive Director14.67yrsAU$727.35k2.64%
A$ 18.6m
Kevin Wundram
CFO & Executive Director5.58yrsAU$417.37k0.27%
A$ 1.9m
Graham Maloney
Independent Non-Executive Director7.17yrsAU$111.00k0.011%
A$ 74.7k
Andrew Reitzer
Independent Non-Executive Chairman7.08yrsAU$185.01k0.032%
A$ 224.0k
Edwin Jankelowitz
Independent Non-Executive Director5.58yrsAU$101.75k0.0076%
A$ 53.8k
Cheryl Bart
Independent Non-Executive Director7.17yrsAU$108.69k0.010%
A$ 72.7k
Peter Mountford
Non-Executive Director7.08yrsAU$108.69k0.21%
A$ 1.5m
Colin Brown
Alternate Director7.08yrsno data0.041%
A$ 290.8k

7.1yrs

Average Tenure

63.5yo

Average Age

Experienced Board: SGF's board of directors are considered experienced (7.1 years average tenure).


Ownership

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


Insider Trading Volume

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


Ownership Breakdown

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


Top Shareholders

Company Information

SG Fleet Group Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: SG Fleet Group Limited
  • Ticker: SGF
  • Exchange: ASX
  • Founded: 1986
  • Industry: Diversified Support Services
  • Sector: Commercial Services
  • Market Cap: AU$705.210m
  • Shares outstanding: 262.16m
  • Website: https://www.sgfleet.com

Number of Employees


Location

  • SG Fleet Group Limited
  • Building 3
  • Level 2
  • Pymble
  • New South Wales
  • 2073
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SGFASX (Australian Securities Exchange)YesOrdinary SharesAUAUDMar 2014
SGFCHIA (Chi-X Australia)YesOrdinary SharesAUAUDMar 2014

Biography

SG Fleet Group Limited provides motor vehicle fleet management, vehicle leasing, short term hire, consumer vehicle finance, and salary packaging services in Australia, New Zealand, and the United Kingdom. ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/03/06 07:08
End of Day Share Price2021/03/05 00:00
Earnings2020/12/31
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.