Smartgroup
Market Cap
AU$720.7m
Last Updated
2020/10/30 10:39 UTC
Data Sources
Company Financials +
Executive Summary
Smartgroup Corporation Ltd provides specialist employee management services in Australia and internationally. More Details
Rewards
Risk Analysis
Snowflake Analysis
Undervalued with excellent balance sheet.
Share Price & News
How has Smartgroup's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: SIQ has not had significant price volatility in the past 3 months.
Market Performance
7 Day Return
-7.0%
SIQ
-1.5%
AU Professional Services
-3.5%
AU Market
1 Year Return
-52.4%
SIQ
-10.6%
AU Professional Services
-9.2%
AU Market
Return vs Industry: SIQ underperformed the Australian Professional Services industry which returned -10.6% over the past year.
Return vs Market: SIQ underperformed the Australian Market which returned -9.2% over the past year.
Shareholder returns
| SIQ | Industry | Market | |
|---|---|---|---|
| 7 Day | -7.0% | -1.5% | -3.5% |
| 30 Day | -5.1% | -0.01% | 0.5% |
| 90 Day | -10.1% | 5.2% | 2.3% |
| 1 Year | -49.4%-52.4% | -7.6%-10.6% | -6.0%-9.2% |
| 3 Year | -37.1%-46.6% | 3.9%-6.9% | 12.4%-1.8% |
| 5 Year | 99.1%56.9% | 33.6%9.5% | 39.6%10.8% |
Price Volatility Vs. Market
How volatile is Smartgroup's share price compared to the market and industry in the last 5 years?
Simply Wall St News
1 day ago | Simply Wall St
Are Smartgroup's (ASX:SIQ) Statutory Earnings A Good Reflection Of Its Earnings Potential?1 week ago | Simply Wall St
Do Institutions Own Smartgroup Corporation Ltd (ASX:SIQ) Shares?3 weeks ago | Simply Wall St
Would Smartgroup Corporation Ltd (ASX:SIQ) Be Valuable To Income Investors?Valuation
Is Smartgroup 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: SIQ (A$5.43) is trading below our estimate of fair value (A$11.67)
Significantly Below Fair Value: SIQ is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: SIQ is good value based on its PE Ratio (14.6x) compared to the AU Professional Services industry average (16.3x).
PE vs Market: SIQ is good value based on its PE Ratio (14.6x) compared to the Australian market (20.8x).
Price to Earnings Growth Ratio
PEG Ratio: SIQ is poor value based on its PEG Ratio (1x)
Price to Book Ratio
PB vs Industry: SIQ is good value based on its PB Ratio (2.6x) compared to the AU Professional Services industry average (2.7x).
Next Steps
Future Growth
How is Smartgroup forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?
14.1%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: SIQ's forecast earnings growth (14.1% per year) is above the savings rate (2.3%).
Earnings vs Market: SIQ's earnings (14.1% per year) are forecast to grow slower than the Australian market (18.3% per year).
High Growth Earnings: SIQ's earnings are forecast to grow, but not significantly.
Revenue vs Market: SIQ's revenue (3.8% per year) is forecast to grow slower than the Australian market (5% per year).
High Growth Revenue: SIQ's revenue (3.8% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: SIQ's Return on Equity is forecast to be high in 3 years time (25.3%)
Next Steps
Past Performance
How has Smartgroup performed over the past 5 years?
23.6%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: SIQ has high quality earnings.
Growing Profit Margin: SIQ's current net profit margins (20.4%) are lower than last year (24.9%).
Past Earnings Growth Analysis
Earnings Trend: SIQ's earnings have grown significantly by 23.6% per year over the past 5 years.
Accelerating Growth: SIQ's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: SIQ had negative earnings growth (-21.3%) over the past year, making it difficult to compare to the Professional Services industry average (-5.6%).
Return on Equity
High ROE: SIQ's Return on Equity (17.8%) is considered low.
Next Steps
Financial Health
How is Smartgroup's financial position?
Financial Position Analysis
Short Term Liabilities: SIQ's short term assets (A$164.7M) exceed its short term liabilities (A$107.2M).
Long Term Liabilities: SIQ's short term assets (A$164.7M) exceed its long term liabilities (A$111.4M).
Debt to Equity History and Analysis
Debt Level: SIQ's debt to equity ratio (37%) is considered satisfactory.
Reducing Debt: SIQ's debt to equity ratio has increased from 1.7% to 37% over the past 5 years.
Debt Coverage: SIQ's debt is well covered by operating cash flow (87.2%).
Interest Coverage: SIQ's interest payments on its debt are well covered by EBIT (20.6x coverage).
Balance Sheet
Next Steps
Dividend
What is Smartgroup current dividend yield, its reliability and sustainability?
7.92%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: SIQ's dividend (7.92%) is higher than the bottom 25% of dividend payers in the Australian market (2.17%).
High Dividend: SIQ's dividend (7.92%) is in the top 25% of dividend payers in the Australian market (5.52%)
Stability and Growth of Payments
Stable Dividend: Whilst dividend payments have been stable, SIQ has been paying a dividend for less than 10 years.
Growing Dividend: SIQ's dividend payments have increased, but the company has only paid a dividend for 6 years.
Current Payout to Shareholders
Dividend Coverage: With its high payout ratio (103.4%), SIQ's dividend payments are not well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: SIQ's dividends in 3 years are forecast to be covered by earnings (67.2% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
1.5yrs
Average management tenure
CEO
Tim Looi
0.58
Tenure
AU$717,124
Compensation
Mr. Timothy Looi, also known as Tim, serves as Managing Director and Chief Executive Officer at Smartgroup Corporation Ltd since February 29, 2020 and serves as its Director since February 29, 2020. Mr. Lo ...
CEO Compensation Analysis
Compensation vs Market: Tim's total compensation ($USD502.96K) is below average for companies of similar size in the Australian market ($USD724.04K).
Compensation vs Earnings: Tim's compensation has been consistent with company performance over the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| MD, CEO & Director | 0.58yr | AU$717.12k | 0.92% A$ 6.7m | |
| Chief Legal Officer & Joint Company Secretary | 3.92yrs | AU$609.49k | 0.24% A$ 1.7m | |
| 0.58yr | AU$1.53m | 2.53% A$ 18.2m | ||
| Chief Executive of Salary Packaging | 2.58yrs | AU$506.70k | no data | |
| Chief Financial Officer | 0.50yr | no data | no data | |
| Chief Technology Officer | 1.75yrs | no data | no data | |
| Chief Human Resources Officer | 2.17yrs | no data | no data | |
| Chief Risk Officer | 2.33yrs | no data | no data | |
| Chief Commercial Officer | 0.75yr | no data | no data | |
| Joint Company Secretary | 1.17yrs | no data | no data | |
| General Counsel | no data | no data | no data |
1.5yrs
Average Tenure
Experienced Management: SIQ's management team is not considered experienced ( 1.5 years average tenure), which suggests a new team.
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| MD, CEO & Director | 0.58yr | AU$717.12k | 0.92% A$ 6.7m | |
| Independent Non-Executive Chairman | 6.58yrs | AU$251.85k | 1.84% A$ 13.2m | |
| Independent Non-Executive Director | 4.42yrs | AU$131.40k | 0.0051% A$ 36.8k | |
| Independent Non-Executive Director | 6.58yrs | AU$145.09k | 0.060% A$ 431.7k | |
| Independent Non-Executive Director | 6.58yrs | AU$147.83k | 0.039% A$ 278.0k | |
| Independent Non-Executive Director | 8.75yrs | AU$134.14k | 0.20% A$ 1.4m | |
| Independent Non-Executive Director | 1.58yrs | AU$96.99k | 0.0054% A$ 38.9k | |
| Independent Non-Executive Director | 5.25yrs | AU$145.09k | 0.082% A$ 592.3k |
5.9yrs
Average Tenure
Experienced Board: SIQ's board of directors are considered experienced (5.9 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: SIQ 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
Smartgroup Corporation Ltd's company bio, employee growth, exchange listings and data sources
Key Information
- Name: Smartgroup Corporation Ltd
- Ticker: SIQ
- Exchange: ASX
- Founded: 1999
- Industry: Human Resource and Employment Services
- Sector: Commercial Services
- Market Cap: AU$720.708m
- Shares outstanding: 129.62m
- Website: https://www.smartgroup.com.au
Number of Employees
Location
- Smartgroup Corporation Ltd
- 133 Castlereagh Street
- Level 8
- Sydney
- New South Wales
- 2000
- Australia
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| SIQ | ASX (Australian Securities Exchange) | Yes | Ordinary Shares | AU | AUD | Jul 2014 |
| SIQ | CHIA (Chi-X Australia) | Yes | Ordinary Shares | AU | AUD | Jul 2014 |
Biography
Smartgroup Corporation Ltd provides specialist employee management services in Australia and internationally. It operates through Outsourced Administration (OA); Vehicle Services (VS); and Software, Distri ...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/10/30 10:39 |
| End of Day Share Price | 2020/10/30 00:00 |
| Earnings | 2020/06/30 |
| Annual Earnings | 2019/12/31 |
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.