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SGH

Slater and GordonASX:SGH Stock Report

Market Cap

AU$109.2m

7D

-1.3%

1Y

-21.5%

Updated

26 Oct, 2021

Data

Company Financials +
SGH fundamental analysis
Snowflake Score
Valuation6/6
Future Growth3/6
Past Performance3/6
Financial Health3/6
Dividends0/6

SGH Overview

Slater and Gordon Limited, a law firm, provides legal practices in Australia.

Slater and Gordon Competitors

Shine Justice

ASX:SHJ

AU$230.8m

Price History & Performance

Summary of all time highs, changes and price drops for Slater and Gordon
Historical stock prices
Current Share PriceAU$0.79
52 Week HighAU$0.66
52 Week LowAU$1.07
Beta0.91
1 Month Change8.28%
3 Month Change16.30%
1 Year Change-21.50%
3 Year Change-70.93%
5 Year Change-97.82%
Change since IPO-99.44%

Recent News & Updates

Aug 29
Should You Think About Buying Slater and Gordon Limited (ASX:SGH) Now?

Should You Think About Buying Slater and Gordon Limited (ASX:SGH) Now?

Slater and Gordon Limited ( ASX:SGH ), might not be a large cap stock, but it saw a significant share price rise of...

Jun 07
Calculating The Intrinsic Value Of Slater and Gordon Limited (ASX:SGH)

Calculating The Intrinsic Value Of Slater and Gordon Limited (ASX:SGH)

Today we will run through one way of estimating the intrinsic value of Slater and Gordon Limited ( ASX:SGH ) by...

May 11
Returns At Slater and Gordon (ASX:SGH) Are On The Way Up

Returns At Slater and Gordon (ASX:SGH) Are On The Way Up

If we want to find a potential multi-bagger, often there are underlying trends that can provide clues. Typically, we'll...

Apr 06
What Is Slater and Gordon Limited's (ASX:SGH) Share Price Doing?

What Is Slater and Gordon Limited's (ASX:SGH) Share Price Doing?

While Slater and Gordon Limited ( ASX:SGH ) might not be the most widely known stock at the moment, it received a lot...

Mar 02
These 4 Measures Indicate That Slater and Gordon (ASX:SGH) Is Using Debt Extensively

These 4 Measures Indicate That Slater and Gordon (ASX:SGH) Is Using Debt Extensively

David Iben put it well when he said, 'Volatility is not a risk we care about. What we care about is avoiding the...

Shareholder Returns

SGHAU Consumer ServicesAU Market
7D-1.3%-0.06%0.8%
1Y-21.5%56.3%24.4%

Return vs Industry: SGH underperformed the Australian Consumer Services industry which returned 56.3% over the past year.

Return vs Market: SGH underperformed the Australian Market which returned 24.4% over the past year.

Price Volatility

Is SGH's price volatile compared to industry and market?
SGH volatility
SGH Beta0.91
Industry Beta0.95
Market Beta1

Stable Share Price: SGH is not significantly more volatile than the rest of Australian stocks over the past 3 months, typically moving +/- 8% a week.

Volatility Over Time: SGH's weekly volatility (8%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
1935n/aJohn Somervillehttps://www.slatergordon.com.au

Slater and Gordon Limited, a law firm, provides legal practices in Australia. The company provides legal services in various areas, such as workers compensation, motor vehicle and car accidents, public liability, medical law, asbestos, silicosis, military compensation, police compensation, comcare, institutional abuse; superannuation and disability insurance; class actions; dispute resolution; employment law; and will dispute, as well as provides union services. It also offers litigation and emerging services.

Slater and Gordon Fundamentals Summary

How do Slater and Gordon's earnings and revenue compare to its market cap?
SGH fundamental statistics
Market CapAU$109.19m
Earnings (TTM)AU$14.19m
Revenue (TTM)AU$155.35m

7.7x

P/E Ratio

0.7x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
SGH income statement (TTM)
RevenueAU$155.35m
Cost of RevenueAU$64.20m
Gross ProfitAU$91.14m
ExpensesAU$76.96m
EarningsAU$14.19m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)0.10
Gross Margin58.67%
Net Profit Margin9.13%
Debt/Equity Ratio49.4%

How did SGH perform over the long term?

See historical performance and comparison

Valuation

Is Slater and Gordon 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: SGH (A$0.79) is trading below our estimate of fair value (A$2.43)

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


Price To Earnings Ratio

PE vs Industry: SGH is good value based on its PE Ratio (7.7x) compared to the Australian Consumer Services industry average (29.2x).

PE vs Market: SGH is good value based on its PE Ratio (7.7x) compared to the Australian market (20x).


Price to Earnings Growth Ratio

PEG Ratio: SGH is good value based on its PEG Ratio (0.6x)


Price to Book Ratio

PB vs Industry: SGH is good value based on its PB Ratio (0.6x) compared to the AU Consumer Services industry average (2.7x).


Future Growth

How is Slater and Gordon forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

12.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SGH's forecast earnings growth (12.7% per year) is above the savings rate (1.9%).

Earnings vs Market: SGH's earnings (12.7% per year) are forecast to grow faster than the Australian market (12.4% per year).

High Growth Earnings: SGH's earnings are forecast to grow, but not significantly.

Revenue vs Market: SGH's revenue (10.5% per year) is forecast to grow faster than the Australian market (5.3% per year).

High Growth Revenue: SGH's revenue (10.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: SGH's Return on Equity is forecast to be low in 3 years time (8.9%).


Past Performance

How has Slater and Gordon performed over the past 5 years?

89.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SGH has high quality earnings.

Growing Profit Margin: SGH became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: SGH has become profitable over the past 5 years, growing earnings by 89% per year.

Accelerating Growth: SGH has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: SGH has become profitable in the last year, making it difficult to compare its past year earnings growth to the Consumer Services industry (43.2%).


Return on Equity

High ROE: SGH's Return on Equity (7.9%) is considered low.


Financial Health

How is Slater and Gordon's financial position?


Financial Position Analysis

Short Term Liabilities: SGH's short term assets (A$211.4M) exceed its short term liabilities (A$90.5M).

Long Term Liabilities: SGH's short term assets (A$211.4M) exceed its long term liabilities (A$147.6M).


Debt to Equity History and Analysis

Debt Level: SGH's debt to equity ratio (49.4%) is considered high.

Reducing Debt: SGH's debt to equity ratio has reduced from 252.6% to 49.4% over the past 5 years.

Debt Coverage: SGH's debt is not well covered by operating cash flow (12.9%).

Interest Coverage: SGH's interest payments on its debt are not well covered by EBIT (2.9x coverage).


Balance Sheet


Dividend

What is Slater and Gordon current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate SGH's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate SGH's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if SGH's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if SGH's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: SGH is not paying a notable dividend for the Australian market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of SGH's dividend in 3 years as they are not forecast to pay a notable one for the Australian market.


Next Steps

Management

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

3.5yrs

Average management tenure


CEO

John Somerville

3.67yrs

Tenure

AU$1,549,682

Compensation

Mr. John Somerville, BSC GDip Applied Information Systems MBA has been the Chief Executive Officer of Slater and Gordon Limited since February 07, 2018. He is the Managing Director and a Director since Sep...


CEO Compensation Analysis

Compensation vs Market: John's total compensation ($USD1.16M) is above average for companies of similar size in the Australian market ($USD301.38K).

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


Leadership Team

Experienced Management: SGH's management team is considered experienced (3.5 years average tenure).


Board Members

Experienced Board: SGH's board of directors are considered experienced (3.1 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

Slater and Gordon Limited's employee growth, exchange listings and data sources


Key Information

  • Name: Slater and Gordon Limited
  • Ticker: SGH
  • Exchange: ASX
  • Founded: 1935
  • Industry: Specialized Consumer Services
  • Sector: Consumer Services
  • Market Cap: AU$109.188m
  • Shares outstanding: 139.09m
  • Website: https://www.slatergordon.com.au

Number of Employees


Location

  • Slater and Gordon Limited
  • 485 La Trobe Street
  • Level 12
  • Melbourne
  • Victoria
  • 3000
  • Australia

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/10/26 07:02
End of Day Share Price2021/10/26 00:00
Earnings2021/06/30
Annual Earnings2021/06/30


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.