ASX:SGH

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

Worrying balance sheet with weak fundamentals.

Risks

  • Slater and Gordon has significant price volatility in the past 3 months.
  • Slater and Gordon is not covered by any analysts.

Similar Companies

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

0%

ASX:SGH

1.1%

AU Consumer Services

-0.1%

AU Market


1 Year Return

-44.1%

ASX:SGH

33.4%

AU Consumer Services

4.9%

AU Market

SGH underperformed the Consumer Services industry which returned 33.4% over the past year.

SGH underperformed the Market in Australia which returned 4.9% over the past year.


Share holder returns

SGHIndustryMarket
7 Day0%1.1%-0.1%
30 Day-15.1%0.8%1.7%
90 Day-16.9%7.3%5.8%
1 Year-44.1%-44.1%36.7%33.4%11.0%4.9%
3 Year-96.1%-96.1%12.0%4.6%37.6%19.7%
5 Year-99.7%-99.7%-1.0%-18.3%43.5%12.1%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Slater and Gordon undervalued based on future cash flows and its price relative to the stock market?

2.56x

Price to Book (PB) ratio


Intrinsic Value Based on Future Cash Flows

Unable to calculate intrinsic value for Slater and Gordon to establish if it is available at moderate discount.

Unable to calculate intrinsic value for Slater and Gordon to establish if it is available at substantial discount.


Price Based on Earnings

Slater and Gordon is loss making, we can't compare its value to the AU Consumer Services industry average.

Slater and Gordon is loss making, we can't compare the value of its earnings to the Australia market.


Price Based on Expected Growth

Unable to calculate PEG ratio for Slater and Gordon, we can't assess if its growth is good value.


Price Based on Value of Assets

Slater and Gordon is overvalued based on assets compared to the AU Consumer Services industry average.


Next Steps

Future Growth

How is Slater and Gordon expected to perform in the next 1 to 3 years based on estimates from 0 analysts?

21.2%

Forecasted Consumer Services industry annual growth in earnings


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 Slater and Gordon 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 SimplyWall St do have past financial data.


Next Steps

Past Performance

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

-5.2%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Slater and Gordon does not make a profit and their year on year earnings growth rate was negative over the past 5 years.

Unable to compare Slater and Gordon's 1-year earnings growth to the 5-year average as it is not currently profitable.

Unable to compare Slater and Gordon's 1-year growth to the AU Consumer Services industry average as it is not currently profitable.


Return on Equity

It is difficult to establish if Slater and Gordon has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) as it is loss-making.


Return on Assets

It is difficult to establish if Slater and Gordon has efficiently used its assets last year compared to the AU Consumer Services industry average (Return on Assets) as it is loss-making.


Return on Capital Employed

It is difficult to establish if Slater and Gordon improved its use of capital last year versus 3 years ago (Return on Capital Employed) as it is currently loss-making.


Next Steps

Financial Health

How is Slater and Gordon's financial position?


Financial Position Analysis

Slater and Gordon is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Slater and Gordon's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

Slater and Gordon's level of debt (368.1%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has increased over the past 5 years (26.8% vs 368.1% today).


Balance Sheet

High level of physical assets or inventory.

Debt is covered by short term assets, assets are 1.2x debt.


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Slater and Gordon has less than a year of cash runway based on current free cash flow.

Slater and Gordon has less than a year of cash runway if free cash flow continues to reduce at historical rates of -38.2% each year.


Next Steps

Dividend

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


Dividend Yield and Payments Analysis

Unable to evaluate Slater and Gordon's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.

Unable to evaluate Slater and Gordon's dividend against the top 25% market benchmark as the company has not reported any payouts.

Unable to perform a dividend volatility check as Slater and Gordon has not reported any payouts.

Unable to verify if Slater and Gordon's dividend has been increasing as the company has not reported any payouts.


Current Payout to Shareholders

Unable to calculate sustainability of dividends as Slater and Gordon 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.


Next Steps

Management

What is the CEO of Slater and Gordon's salary, the management and board of directors tenure and is there insider trading?

1.3yrs

Average management tenure


CEO

John Somerville

1.4yrs

Tenure

AU$536,718

Compensation

Mr. John Somerville has been the Chief Executive Officer of Slater and Gordon Limited since February 07, 2018.John Somerville is Managing Director and director since September 26, 2018. 


CEO Compensation Analysis

John's remuneration is higher than average for companies of similar size in Australia.

Insufficient data for John to compare compensation growth.


Management Age and Tenure

1.3yrs

Average Tenure

The average tenure for the Slater and Gordon management team is less than 2 years, this suggests a new team.


Board Age and Tenure

1.3yrs

Average Tenure

The average tenure for the Slater and Gordon board of directors is less than 3 years, this suggests a new board.


Insider Trading

No 3 month individual insider trading information.


Ownership Breakdown


Management Team

  • Julie Clayton

    Principal Lawyer of Project Litigation

    • Tenure: 23.5yrs
  • Kirsten Morrison

    Executive Officer

    • Tenure: 1.2yrs
  • Michael Neilson

    Executive Director of Legal & Governance and Director

    • Tenure: 1.2yrs
  • John Somerville

    CEO, MD & Director

    • Tenure: 1.4yrs
    • Compensation: A$536.72k
  • Carolyn Noumertzis

    Chief Human Resources Officer

    • Tenure: 1.8yrs
  • Scott Butterworth

    Chief Financial Officer

    • Tenure: 0.7yrs
  • Dina Tutungi

    Chief Client Officer

  • Ben Hardwick

    Head of Class Actions

  • Kate Van Poelgeest

    National Media & Communications Manager

  • Dominique Requin

    Chief Operating Officer


Board Members

  • Elana Rubin

    Independent Non-Executive Director

    • Tenure: 1.3yrs
    • Compensation: A$56.54k
  • Mark Dewar

    Director

    • Tenure: 0.2yrs
  • Jacqui Walters

    Independent Non-Executive Director

    • Tenure: 1.3yrs
    • Compensation: A$56.54k
  • James MacKenzie

    Chairman of the Board

    • Tenure: 1.6yrs
    • Compensation: A$130.77k
  • Merrick Howes

    Non-Independent Non-Executive Director

    • Tenure: 1.6yrs
    • Compensation: A$82.44k
  • John Somerville

    CEO, MD & Director

    • Tenure: 0.8yrs
    • Compensation: A$536.72k
  • Michael Neilson

    Executive Director of Legal & Governance and Director

    • Tenure: 0.8yrs

Company Information

Slater and Gordon Limited's company bio, 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$109.158m
  • Shares outstanding: 69.53m
  • Website: Click here

Number of Employees


Location

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

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SGHASX (Australian Securities Exchange)YesOrdinary SharesAUAUDMay 2007
OQHDB (Deutsche Boerse AG)YesOrdinary SharesDEEURMay 2007

Biography

Slater and Gordon Limited, a law firm, operates legal practices in Australia. It primarily offers legal services in consumer law-personal Injury law and general law. The company provides legal services in  ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/07/16 11:50
End of Day Share Price2019/07/15 00:00
Earnings2018/12/31
Annual Earnings2018/06/30


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.