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Spotless Group Holdings

ASX:SPO
Snowflake Description

Mediocre balance sheet with questionable track record.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
SPO
ASX
A$2B
Market Cap
  1. Home
  2. AU
  3. Commercial Services
Company description

Spotless Group Holdings Limited provides outsourced facility, laundry and linen, technical and engineering, and maintenance and asset management services; and refrigeration solutions to various industries in Australia and New Zealand. The last earnings update was 109 days ago. More info.


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SPO Share Price and Events
7 Day Returns
-1.1%
ASX:SPO
-1.4%
AU Commercial Services
1.2%
AU Market
1 Year Returns
55.6%
ASX:SPO
19.2%
AU Commercial Services
4.7%
AU Market
SPO Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Spotless Group Holdings (SPO) -1.1% 4.5% 1.2% 55.6% 61.3% -5.1%
AU Commercial Services -1.4% 1.4% 7.1% 19.2% 16.9% 37.5%
AU Market 1.2% 1.1% 4.3% 4.7% 18.3% 9%
1 Year Return vs Industry and Market
  • SPO outperformed the Commercial Services industry which returned 19.2% over the past year.
  • SPO outperformed the Market in Australia which returned 4.7% over the past year.
Price Volatility
SPO
Industry
5yr Volatility vs Market

SPO Value

 Is Spotless Group Holdings undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Spotless Group Holdings to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Spotless Group Holdings.

ASX:SPO Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Extrapolated from most recent financials. See below
Discount Rate (Cost of Equity) See below 8%
Perpetual Growth Rate 10-Year AU Government Bond Rate 2.3%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for ASX:SPO
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year AU Govt Bond Rate 2.3%
Equity Risk Premium S&P Global 6%
Commercial Services Unlevered Beta Simply Wall St/ S&P Global 0.72
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.719 (1 + (1- 30%) (41.1%))
0.95
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.95
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.31% + (0.95 * 5.96%)
7.97%

Discounted Cash Flow Calculation for ASX:SPO using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Spotless Group Holdings is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

ASX:SPO DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (AUD, Millions) Source Present Value
Discounted (@ 7.97%)
2019 70.92 Est @ -10.23% 65.68
2020 66.33 Est @ -6.47% 56.90
2021 63.79 Est @ -3.83% 50.67
2022 62.52 Est @ -1.99% 46.00
2023 62.08 Est @ -0.7% 42.30
2024 62.21 Est @ 0.2% 39.26
2025 62.73 Est @ 0.84% 36.66
2026 63.53 Est @ 1.28% 34.39
2027 64.54 Est @ 1.59% 32.36
2028 65.70 Est @ 1.81% 30.51
Present value of next 10 years cash flows A$434.73
ASX:SPO DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= A$65.70 × (1 + 2.31%) ÷ (7.97% – 2.31%)
A$1,187.35
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= A$1,187.35 ÷ (1 + 7.97%)10
A$551.32
ASX:SPO Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= A$434.73 + A$551.32
A$986.05
Equity Value per Share
(AUD)
= Total value / Shares Outstanding
= A$986.05 / 1,102.24
A$0.89
ASX:SPO Discount to Share Price
Calculation Result
Value per share (AUD) From above. A$0.89
Current discount Discount to share price of A$1.75
= -1 x (A$1.75 - A$0.89) / A$0.89
-95.6%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of Spotless Group Holdings is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Spotless Group Holdings's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Spotless Group Holdings's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
ASX:SPO PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-12-31) in AUD A$0.07
ASX:SPO Share Price ** ASX (2019-05-24) in AUD A$1.75
Australia Commercial Services Industry PE Ratio Median Figure of 13 Publicly-Listed Commercial Services Companies 22.29x
Australia Market PE Ratio Median Figure of 543 Publicly-Listed Companies 16.23x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Spotless Group Holdings.

ASX:SPO PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= ASX:SPO Share Price ÷ EPS (both in AUD)

= 1.75 ÷ 0.07

25.44x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Spotless Group Holdings is overvalued based on earnings compared to the AU Commercial Services industry average.
  • Spotless Group Holdings is overvalued based on earnings compared to the Australia market.
Price based on expected Growth
Does Spotless Group Holdings's expected growth come at a high price?
Raw Data
ASX:SPO PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 25.44x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 0 Analysts
Not available
Australia Commercial Services Industry PEG Ratio Median Figure of 9 Publicly-Listed Commercial Services Companies 1.63x
Australia Market PEG Ratio Median Figure of 358 Publicly-Listed Companies 1.41x

*Line of best fit is calculated by linear regression .

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to calculate PEG ratio for Spotless Group Holdings, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on Spotless Group Holdings's assets?
Raw Data
ASX:SPO PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-12-31) in AUD A$0.32
ASX:SPO Share Price * ASX (2019-05-24) in AUD A$1.75
Australia Commercial Services Industry PB Ratio Median Figure of 26 Publicly-Listed Commercial Services Companies 3.16x
Australia Market PB Ratio Median Figure of 1,682 Publicly-Listed Companies 1.66x
ASX:SPO PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= ASX:SPO Share Price ÷ Book Value per Share (both in AUD)

= 1.75 ÷ 0.32

5.44x

* Primary Listing of Spotless Group Holdings.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Spotless Group Holdings is overvalued based on assets compared to the AU Commercial Services industry average.
X
Value checks
We assess Spotless Group Holdings's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Commercial Services industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Commercial Services industry average (and greater than 0)? (1 check)
  5. Spotless Group Holdings has a total score of 0/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

SPO Future Performance

 How is Spotless Group Holdings expected to perform in the next 1 to 3 years based on estimates from 0 analysts?

In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Spotless Group Holdings has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by Simply Wall St do have past financial data. You can see them here.

Show me the analysis anyway

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
8.8%
Expected Commercial Services industry annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Spotless Group Holdings expected to grow at an attractive rate?
  • Unable to compare Spotless Group Holdings's earnings growth to the low risk savings rate as no estimate data is available.
Growth vs Market Checks
  • Unable to compare Spotless Group Holdings's earnings growth to the Australia market average as no estimate data is available.
  • Unable to compare Spotless Group Holdings's revenue growth to the Australia market average as no estimate data is available.
Annual Growth Rates Comparison
Raw Data
ASX:SPO Future Growth Rates Data Sources
Data Point Source Value (per year)
Australia Commercial Services Industry Earnings Growth Rate Market Cap Weighted Average 8.8%
Australia Commercial Services Industry Revenue Growth Rate Market Cap Weighted Average 1%
Australia Market Earnings Growth Rate Market Cap Weighted Average 7%
Australia Market Revenue Growth Rate Market Cap Weighted Average 3.2%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
ASX:SPO Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (4 months ago) See Below
Future Estimates Average of up to 0 Analyst Estimates (S&P Global) See Below
All numbers in AUD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
ASX:SPO Future Estimates Data
Date (Data in AUD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
ASX:SPO Past Financials Data
Date (Data in AUD Millions) Revenue Cash Flow Net Income *
2018-12-31 3,004 171 76
2018-09-30 3,024 154 37
2018-06-30 3,045 136 -2
2018-03-31 3,047 147 -16
2017-12-31 3,049 158 -29
2017-09-30 3,028 174 -188
2017-06-30 3,006 191 -347
2017-03-31 3,016 194 -316
2016-12-31 3,026 198 -284
2016-09-30 3,101 170 -81
2016-06-30 3,176 142 122
2016-03-31 3,154 159 126

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Unable to determine if Spotless Group Holdings is high growth as no earnings estimate data is available.
  • Unable to determine if Spotless Group Holdings is high growth as no revenue estimate data is available.
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
ASX:SPO Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (4 months ago) See Below
Future Estimates Average of up to 0 Analyst Estimates (S&P Global) See Below

All data from Spotless Group Holdings Company Filings, last reported 4 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

ASX:SPO Future Estimates Data
Date (Data in AUD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
ASX:SPO Past Financials Data
Date (Data in AUD Millions) EPS *
2018-12-31 0.07
2018-09-30 0.03
2018-06-30 0.00
2018-03-31 -0.01
2017-12-31 -0.03
2017-09-30 -0.17
2017-06-30 -0.32
2017-03-31 -0.29
2016-12-31 -0.26
2016-09-30 -0.07
2016-06-30 0.11
2016-03-31 0.12

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Unable to establish if Spotless Group Holdings will efficiently use shareholders’ funds in the future without estimates of Return on Equity.

Next steps:

  1. Spotless Group Holdings's future outlook can be gauged by looking at industry trends and market size, and determining how well-positioned the company is compared to its competitors. Take a look at other high-growth Commercial Services companies here
  2. Spotless Group Holdings's competitive advantages and company strategy can generally be found in its financial reports archived here.
  3. Use fundamentals to screen for another stock to analyse from our database of over 75,000 companies worldwide
X
Future performance checks
We assess Spotless Group Holdings's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Australia market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Australia market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Spotless Group Holdings has a total score of 0/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

SPO Past Performance

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

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Spotless Group Holdings's growth in the last year to its industry (Commercial Services).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Spotless Group Holdings's year on year earnings growth rate was negative over the past 5 years, however the most recent earnings are above average.
  • Spotless Group Holdings has become profitable in the last year making the earnings growth rate difficult to compare to the 5-year average.
  • Spotless Group Holdings has become profitable in the last year making it difficult to compare the AU Commercial Services industry average.
Earnings and Revenue History
Spotless Group Holdings's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Spotless Group Holdings Company Filings, last reported 4 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

ASX:SPO Past Revenue, Cash Flow and Net Income Data
Date (Data in AUD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-12-31 3,003.80 76.30 22.10
2018-09-30 3,024.20 37.00 23.20
2018-06-30 3,044.60 -2.30 24.30
2018-03-31 3,046.80 -15.60 29.00
2017-12-31 3,049.00 -28.90 33.70
2017-09-30 3,027.65 -188.15 31.70
2017-06-30 3,006.30 -347.40 29.70
2017-03-31 3,015.90 -315.70 25.85
2016-12-31 3,025.50 -284.00 22.00
2016-09-30 3,100.80 -80.90 22.35
2016-06-30 3,176.10 122.20 22.70
2016-03-31 3,154.35 126.45 20.95
2015-12-31 3,132.60 130.70 19.20
2015-09-30 3,002.85 136.75 15.30
2015-06-30 2,873.10 142.80 11.40
2015-03-31 2,777.20 86.05 12.65
2014-12-31 2,681.30 29.30 13.90
2014-09-30 2,651.00 -2.70 18.85
2014-06-30 2,620.70 -34.70 23.80
2014-03-31 2,603.60 -16.10 29.55
2013-12-31 2,586.50 2.50 35.30
2013-06-30 2,236.30 -54.20 36.00
2012-12-31 2,343.50 -50.60 44.80
2012-06-30 2,827.20 26.40 140.80

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Whilst Spotless Group Holdings has efficiently used shareholders’ funds last year (Return on Equity greater than 20%), this is metric is skewed due to its high level of debt.
  • Spotless Group Holdings used its assets more efficiently than the AU Commercial Services industry average last year based on Return on Assets.
  • Spotless Group Holdings has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Spotless Group Holdings's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Commercial Services industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Spotless Group Holdings has a total score of 2/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

SPO Health

 How is Spotless Group Holdings's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Spotless Group Holdings's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Spotless Group Holdings's short term (1 year) commitments are greater than its holdings of cash and other short term assets.
  • Spotless Group Holdings's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of Spotless Group Holdings's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Debt is not covered by short term assets, assets are 0.6x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Spotless Group Holdings Company Filings, last reported 4 months ago.

ASX:SPO Past Debt and Equity Data
Date (Data in AUD Millions) Total Equity Total Debt Cash & Short Term Investments
2018-12-31 354.30 792.70 94.50
2018-09-30 354.30 792.70 94.50
2018-06-30 424.10 827.00 91.20
2018-03-31 424.10 827.00 91.20
2017-12-31 386.60 881.90 78.90
2017-09-30 386.60 881.90 78.90
2017-06-30 420.80 848.30 66.00
2017-03-31 420.80 848.30 66.00
2016-12-31 415.30 902.00 53.90
2016-09-30 415.30 902.00 53.90
2016-06-30 827.30 844.10 54.30
2016-03-31 827.30 844.10 54.30
2015-12-31 793.20 842.30 39.90
2015-09-30 793.20 842.30 39.90
2015-06-30 810.40 668.70 105.20
2015-03-31 810.40 668.70 105.20
2014-12-31 770.90 640.40 79.50
2014-09-30 770.90 640.40 79.50
2014-06-30 719.20 632.20 105.40
2014-03-31 719.20 632.20 105.40
2013-12-31 83.50 1,206.60 54.70
2013-06-30 545.70 582.50
2012-12-31
2012-06-30 438.40 377.50 62.20
  • Spotless Group Holdings's level of debt (223.7%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has been reduced over the past 5 years (1325.3% vs 223.7% today).
  • Debt is well covered by operating cash flow (21.6%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 7.5x coverage).
X
Financial health checks
We assess Spotless Group Holdings's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Spotless Group Holdings has a total score of 3/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

SPO Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0%
Current annual income from Spotless Group Holdings dividends.
If you bought A$2,000 of Spotless Group Holdings shares you are expected to receive A$0 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Unable to evaluate Spotless Group Holdings's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
  • Unable to evaluate Spotless Group Holdings's dividend against the top 25% market benchmark as the company has not reported any payouts.
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
ASX:SPO Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 0 Analyst Estimates (S&P Global) See Below
Australia Commercial Services Industry Average Dividend Yield Market Cap Weighted Average of 11 Stocks 2.6%
Australia Market Average Dividend Yield Market Cap Weighted Average of 414 Stocks 4.2%
Australia Minimum Threshold Dividend Yield 10th Percentile 1.6%
Australia Bottom 25% Dividend Yield 25th Percentile 2.6%
Australia Top 25% Dividend Yield 75th Percentile 5.6%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

ASX:SPO Future Dividends Estimate Data
Date (Data in A$) Dividend per Share (annual) Avg. No. Analysts
ASX:SPO Past Annualized Dividends Data
Date (Data in A$) Dividend per share (annual) Avg. Yield (%)
2019-02-06 0.000 0.000
2018-08-15 0.000 0.000
2018-02-20 0.000 0.000
2017-08-23 0.000 0.000
2017-02-27 0.064 5.971
2016-08-23 0.085 8.592
2015-08-24 0.110 8.396
2015-02-23 0.090 4.203
2014-08-25 0.000 0.000

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to perform a dividend volatility check as Spotless Group Holdings has not reported any payouts.
  • Unable to verify if Spotless Group Holdings's dividend has been increasing as the company has not reported any payouts.
Current Payout to shareholders
What portion of Spotless Group Holdings's earnings are paid to the shareholders as a dividend.
  • Unable to calculate sustainability of dividends as Spotless Group Holdings has not reported any payouts.
Future Payout to shareholders
  • Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.
X
Income/ dividend checks
We assess Spotless Group Holdings's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.6%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Spotless Group Holdings afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Spotless Group Holdings has a total score of 0/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

SPO Management

 What is the CEO of Spotless Group Holdings's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Peter Tompkins
TENURE AS CEO 0.6 years
CEO Bio

Mr. Peter John Tompkins serves as Chief Executive Officer, Managing Director & Director of Spotless Group Holdings Limited since October 16, 2018. Mr. Tompkins was Company Secretary and Group General Counsel of Downer EDI Limited since July 27, 2011 until October 2018 and since 2010 until October 2018 respectively. Mr. Tompkins served as a Director at Downer Group Finance Pty Limited until March 4, 2019. Mr. Tompkins was responsible for legal and secretarial issues across Downer Group. He joined Downer in 2008. He has providing commercial and legal advice to Downer and its divisions for over four years. He serves as a Director of Keolis Downer, which is responsible for the operations of the Yarra Tram network in Victoria and the Gold Coast light rail in Queensland. He serves as a Director of Downer EDI Works Pty Ltd., Downer Construction (New Zealand) Limited, Downer New Zealand Limited, Downer EDI Engineering Power Pty Limited, Downer EDI Engineering Group Pty Limited, Downer EDI Engineering Electrical Pty. Ltd., Downer EDI Mining Pty Ltd. He has been a Director at KDR Victoria Pty Ltd. since September 24, 2015, Works Finance (NZ) Limited since September 2011, Downer Utilities Australia Pty Ltd. since October 31, 2014, Downer Utilities Alliance New Zealand Limited since October 31, 2014, Downer EDI Rail Pty Limited since August 18, 2011. He served as a Director of Calibre Consulting Limited until February 3, 2014. He holds Degrees in Law and Commerce from Deakin University and is an Admitted Solicitor in New South Wales. He holds degree in Corporate Governance from the Governance Institute of Australia.

CEO Compensation
  • Insufficient data for Peter to compare compensation growth.
  • Insufficient data for Peter to establish whether their remuneration is reasonable compared to companies of similar size in Australia.
Management Team Tenure

Average tenure of the Spotless Group Holdings management team in years:

2.5
Average Tenure
  • The tenure for the Spotless Group Holdings management team is about average.
Management Team

Chris Storey

TITLE
Chief Financial Officer
COMPENSATION
A$555K
TENURE
1.1 yrs

Paul Mahoney

TITLE
Executive General Manager of Government
COMPENSATION
A$726K
TENURE
1.2 yrs

Peter Tompkins

TITLE
CEO, MD & Director
TENURE
0.6 yrs

Shainal Kavar

TITLE
Chief Information Officer
TENURE
4.4 yrs

Michael Sharp

TITLE
Group Head of Corporate Affairs & Investor Relations

Paul Morris

TITLE
General Counsel & Company Secretary
TENURE
6.7 yrs

Leanne Gough

TITLE
General Manager of Group Marketing
TENURE
3.3 yrs

Catherine Walsh

TITLE
Executive General Manager of People and Customer
TENURE
2.8 yrs

Harley Oaten

TITLE
Executive General Manager of Laundries
TENURE
2.3 yrs

Geoff Bryant

TITLE
General Manager of Investor Relations
Board of Directors Tenure

Average tenure and age of the Spotless Group Holdings board of directors in years:

1.8
Average Tenure
62
Average Age
  • The average tenure for the Spotless Group Holdings board of directors is less than 3 years, this suggests a new board.
Board of Directors

John Humphrey

TITLE
Chairman
COMPENSATION
A$403K
AGE
63
TENURE
1.8 yrs

Peter Tompkins

TITLE
CEO, MD & Director
TENURE
2.6 yrs

Simon McKeon

TITLE
Non-Executive Director
COMPENSATION
A$259K
AGE
62
TENURE
2.4 yrs

Grant Thorne

TITLE
Non-Executive Director
COMPENSATION
A$174K
TENURE
1.8 yrs

Michael Ferguson

TITLE
Non Executive Director
TENURE
1.8 yrs

Grant Fenn

TITLE
Non-Executive Director
AGE
53
TENURE
1.4 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (A$) Value (A$)
X
Management checks
We assess Spotless Group Holdings's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Spotless Group Holdings has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

SPO News

Simply Wall St News

What Should You Know About Spotless Group Holdings Limited's (ASX:SPO) Capital Returns?

and looking to gauge the potential return on investment in Spotless Group Holdings Limited (ASX:SPO). … You need to pay attention to this because your return on investment is linked to dividends and internal investments to improve the business, which can only occur if the company is expected to produce adequate earnings with the capital that has been provided. … Therefore, looking at how efficiently Spotless Group Holdings is able to use capital to create earnings will help us understand your potential return.

Simply Wall St -

What You Must Know About Spotless Group Holdings Limited's (ASX:SPO) Market Risks

This means that the change in SPO's value, whether it goes up or down, will be of a smaller degree than the change in value of the entire stock market index. … SPO’s beta indicates it is a stock that investors may find valuable if they want to reduce the overall market risk exposure of their stock portfolio. … I test SPO’s ratio of fixed assets to total assets in order to determine how high the risk is associated with this type of constraint.

Simply Wall St -

What You Must Know About Spotless Group Holdings Limited's (ASX:SPO) Financial Strength

How does SPO’s operating cash flow stack up against its debt? … Additionally, SPO has produced AU$190.60M in operating cash flow over the same time period, resulting in an operating cash to total debt ratio of 22.47%, meaning that SPO’s operating cash is sufficient to cover its debt. … Running high debt, while not yet making money, can be risky in unexpected downturns as liquidity may dry up, making it hard to operate.Next Steps: SPO’s high debt levels is not met with high cash flow coverage.

Simply Wall St -

Is Spotless Group Holdings Limited (ASX:SPO) Cheap For A Reason?

Two major red flags for SPO are its debt level exceeds equity on its balance sheet, and its cash from its core activities is only enough to cover a mere 17.86% of this large debt amount. … Although SPO has high near term liquidity, with short term assets (cash and other liquid assets) covering upcoming one-year liabilities, it is not enough to cover longer term liabilities. … One reason I do like SPO as a business is its low level of fixed assets on its balance sheet (16.81% of total assets).

Simply Wall St -

Have Investors Priced In Spotless Group Holdings Limited's (ASX:SPO) Growth?

Spotless Group Holdings Limited (ASX:SPO), a commercial services company based in Australia, saw its share price hover around a small range of A$1.1 to A$1.16 over the last few weeks. … Let’s take a look at Spotless Group Holdings’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change. … What’s more interesting is that, Spotless Group Holdings’s share price is quite stable, which could mean two things: firstly, it may take the share price a while to move to its intrinsic value, and secondly, there may be less chances to buy low in the future once it reaches that value.

Simply Wall St -

When Can We Expect A Profit From Spotless Group Holdings Limited (ASX:SPO)?

Spotless Group Holdings Limited's (ASX:SPO): Spotless Group Holdings Limited provides outsourced facility, laundry and linen, technical and engineering, and maintenance and asset management services; and refrigeration solutions to various industries in Australia and New Zealand. … In this article, I will touch on the expectations for SPO’s growth and when analysts expect the company to become profitable. … Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on Spotless Group Holdings’s board and the CEO’s back ground.

Simply Wall St -

Was Spotless Group Holdings Limited's (ASX:SPO) Earnings Growth Better Than The Industry's?

ASX:SPO Income Statement Feb 23rd 18 We can further analyze Spotless Group Holdings's loss by looking at what the industry has been experiencing over the past few years. … The most valuable step is to examine company-specific issues Spotless Group Holdings may be facing and whether management guidance has dependably been met in the past. … I suggest you continue to research Spotless Group Holdings to get a more holistic view of the stock by looking at: 1.

Simply Wall St -

Why Spotless Group Holdings Limited’s (ASX:SPO) Cash Is A Factor You Need To Consider

The two ways to assess whether Spotless Group Holdings’s FCF is sufficient, is to compare the FCF yield to the market index yield, as well as determine whether the top-line operating cash flows will continue to grow. … Free Cash Flow = Operating Cash Flows – Net Capital Expenditure Free Cash Flow Yield = Free Cash Flow / Enterprise Value where Enterprise Value = Market Capitalisation + Net Debt Although, Spotless Group Holdings generate sufficient cash from its operational activities, its FCF yield of 9.64% is roughly in-line with the broader market’s high single-digit yield. … Current +1 year +2 year +3 year Operating Cash Flow (OCF) A$191M A$191M A$194M A$168M OCF Growth Year-On-Year 0.0021% 1.57% -13.37% OCF Growth From Current Year 1.78% -11.82% Next Steps: Spotless Group Holdings is compensating investors at a cash yield similar to the wider market portfolio, but holding the stock on its own is riskier than investing in the diversified market, which means the yield is not that attractive on a risk-return basis.

Simply Wall St -

What does Spotless Group Holdings Limited's (ASX:SPO) Balance Sheet Tell Us Abouts Its Future?

SPO's debt level has been constant at around A$848.3M over the previous year – this includes both the current and long-term debt. … SPO’s high debt levels is not met with high cash flow coverage. … SPO's high debt levels along with poor cash coverage in addition to low liquidity coverage of near-term obligations may scare some investors away intially.

Simply Wall St -

At $1.145, Is Spotless Group Holdings Limited (ASX:SPO) A Buy?

Spotless Group Holdings Limited (ASX:SPO), a commercial services and supplies company based in Australia, maintained its current share price over the past couple of month on the ASX, with a relatively tight range of A$1.07 to A$1.15. … SPO’s future growth appears to have been factored into the current share price, with shares trading around its fair value. … Will you have enough confidence to invest in the company should the price drop below its fair value?

Simply Wall St -

SPO Company Info

Description

Spotless Group Holdings Limited provides outsourced facility, laundry and linen, technical and engineering, and maintenance and asset management services; and refrigeration solutions to various industries in Australia and New Zealand. The company operates through Facility Services and Laundry Services segments. It offers air-conditioning, mechanical, and electrical services; asset maintenance and management services; catering and hospitality services; cleaning services; facilities management services; laundry management services; sustainability services; security and electronics solutions; and utility support services. The company offers its services under the Spotless, AE Smith, Alliance, Asset Services, Ensign, EPICURE, Clean Domain, Clean Event, Mustard, Nuvo group, Skilltech, Taylors, TechGuard Security, and UASG brand names. It serves defense, education, government, healthcare, senior living, industrial, commercial, property, resources, airports, utilities, and public private partnerships, as well as sports, venues, leisure, and hospitality industries. Spotless Group Holdings Limited was founded in 1946 and is headquartered in Melbourne, Australia. Spotless Group Holdings Limited is a subsidiary of Downer EDI Services Pty Limited.

Details
Name: Spotless Group Holdings Limited
SPO
Exchange: ASX
Founded: 1946
A$1,928,919,793
1,102,239,882
Website: http://www.spotless.com
Address: Spotless Group Holdings Limited
549 St Kilda Road,
Melbourne,
Victoria, 3004,
Australia
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
ASX SPO New Ordinary Shares Australian Securities Exchange AU AUD 23. May 2014
DB 0S5 New Ordinary Shares Deutsche Boerse AG DE EUR 23. May 2014
CHIA SPO New Ordinary Shares Chi-X Australia AU AUD 23. May 2014
Number of employees
Current staff
Staff numbers
36,000
Spotless Group Holdings employees.
Industry
Diversified Support Services
Commercial Services
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/05/26 10:35
End of day share price update: 2019/05/24 00:00
Last estimates confirmation: 2018/08/15
Last earnings filing: 2019/02/06
Last earnings reported: 2018/12/31
Last annual earnings reported: 2018/06/30


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.