Executive Summary
SEEK Limited, together with its subsidiaries, provides online employment marketplace services in Australia and internationally.
Rewards
Risk Analysis
Snowflake Analysis
Reasonable growth potential with proven track record and pays a dividend.
Similar Companies
Share Price & News
How has SEEK's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: SEK's share price has been volatile over the past 3 months.
Market Performance
7 Day Return
4.1%
SEK
5.7%
AU Interactive Media and Services
2.5%
AU Market
1 Year Return
1.3%
SEK
9.9%
AU Interactive Media and Services
-10.8%
AU Market
Return vs Industry: SEK underperformed the Australian Interactive Media and Services industry which returned 9.9% over the past year.
Return vs Market: SEK exceeded the Australian Market which returned -10.8% over the past year.
Shareholder returns
| SEK | Industry | Market | |
|---|---|---|---|
| 7 Day | 4.1% | 5.7% | 2.5% |
| 30 Day | 10.8% | 6.4% | 1.0% |
| 90 Day | 55.8% | 50.9% | 21.8% |
| 1 Year | 3.5%1.3% | 11.9%9.9% | -7.1%-10.8% |
| 3 Year | 43.7%34.0% | 64.2%54.9% | 19.2%3.4% |
| 5 Year | 74.9%54.3% | 128.3%104.8% | 35.9%6.6% |
Price Volatility Vs. Market
How volatile is SEEK's share price compared to the market and industry in the last 5 years?
Simply Wall St News
2 weeks ago | Simply Wall St
We Think SEEK (ASX:SEK) Can Stay On Top Of Its Debt3 weeks ago | Simply Wall St
How Many SEEK Limited (ASX:SEK) Shares Did Insiders Buy, In The Last Year?1 month ago | Simply Wall St
Read This Before Buying SEEK Limited (ASX:SEK) For Its DividendValuation
Is SEEK undervalued compared to its fair value and its price relative to the market?
50.01x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: SEK (A$22.27) is trading above our estimate of fair value (A$20.79)
Significantly Below Fair Value: SEK is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: SEK is poor value based on its PE Ratio (50x) compared to the Interactive Media and Services industry average (30.9x).
PE vs Market: SEK is poor value based on its PE Ratio (50x) compared to the Australian market (15.6x).
Price to Earnings Growth Ratio
PEG Ratio: SEK is poor value based on its PEG Ratio (1.4x)
Price to Book Ratio
PB vs Industry: SEK is overvalued based on its PB Ratio (5.6x) compared to the AU Interactive Media and Services industry average (3.8x).
Next Steps
Future Growth
How is SEEK forecast to perform in the next 1 to 3 years based on estimates from 12 analysts?
36.5%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: SEK's forecast earnings growth (36.5% per year) is above the savings rate (2.3%).
Earnings vs Market: SEK's earnings (36.5% per year) are forecast to grow faster than the Australian market (15.1% per year).
High Growth Earnings: earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: SEK's revenue (14.8% per year) is forecast to grow faster than the Australian market (4.2% per year).
High Growth Revenue: SEK's revenue (14.8% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: SEK's Return on Equity is forecast to be low in 3 years time (14.6%).
Next Steps
Past Performance
How has SEEK performed over the past 5 years?
-19.4%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: SEK has high quality earnings.
Growing Profit Margin: SEK's current net profit margins (9.4%) are higher than last year (3.3%).
Past Earnings Growth Analysis
Earnings Trend: SEK's earnings have declined by -19.4% per year over the past 5 years.
Accelerating Growth: SEK's earnings growth over the past year (232.5%) exceeds its 5-year average (-19.4% per year).
Earnings vs Industry: SEK earnings growth over the past year (232.5%) exceeded the Interactive Media and Services industry 1.4%.
Return on Equity
High ROE: SEK's Return on Equity (10.5%) is considered low.
Next Steps
Financial Health
How is SEEK's financial position?
Financial Position Analysis
Short Term Liabilities: SEK's short term assets (A$819.3M) do not cover its short term liabilities (A$933.5M).
Long Term Liabilities: SEK's short term assets (A$819.3M) do not cover its long term liabilities (A$1.9B).
Debt to Equity History and Analysis
Debt Level: SEK's debt to equity ratio (109.1%) is considered high.
Reducing Debt: SEK's debt to equity ratio has increased from 43.9% to 109.1% over the past 5 years.
Debt Coverage: SEK's debt is well covered by operating cash flow (20.5%).
Interest Coverage: SEK's interest payments on its debt are well covered by EBIT (4.7x coverage).
Balance Sheet
Next Steps
Dividend
What is SEEK current dividend yield, its reliability and sustainability?
2.07%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: SEK's dividend (2.07%) isn’t notable compared to the bottom 25% of dividend payers in the Australian market (2.47%).
High Dividend: SEK's dividend (2.07%) is low compared to the top 25% of dividend payers in the Australian market (6.44%).
Stability and Growth of Payments
Stable Dividend: SEK's dividends per share have been stable in the past 10 years.
Growing Dividend: SEK's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: At its current payout ratio (78.6%), SEK's payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: SEK's dividends in 3 years are forecast to be covered by earnings (67.1% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
4.4yrs
Average management tenure
CEO
Andrew Bassat (54yo)
9.42yrs
Tenure
AU$4,825,142
Compensation
Mr. Andrew R. Bassat co-founded Seek Limited in 1997 and has been its Chief Executive Officer since February 2011. Mr. Bassat also serves as Managing Director of Seek Limited. He served as a Joint Chief Ex ...
CEO Compensation Analysis
Compensation vs Market: Andrew's total compensation ($USD3.35M) is about average for companies of similar size in the Australian market ($USD3.01M).
Compensation vs Earnings: Andrew's compensation has been consistent with company performance over the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Co-Founder | 9.42yrs | AU$4.83m | 4.18% A$328.6m | |
| Group Chief Financial Officer | 4.75yrs | AU$2.10m | 0.027% A$2.1m | |
| Group COO and Asia Pacific & Americas CEO | 1.25yrs | AU$898.59k | no data | |
| Managing Director of Corporate Development | 5.33yrs | no data | no data | |
| Group Human Resources Director | 4.17yrs | no data | no data | |
| Chief Operating Officer of Investments | 5.33yrs | AU$1.61m | no data | |
| Managing Director of Strategy | 2.5yrs | no data | no data | |
| Managing Director of Australia & New Zealand | 2.5yrs | no data | no data | |
| Managing Director of Americas - AP &A | 2.5yrs | no data | no data | |
| Company Secretary | 4.58yrs | no data | no data |
4.4yrs
Average Tenure
Experienced Management: SEK's management team is considered experienced (4.4 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Co-Founder | 9.42yrs | AU$4.83m | 4.18% A$328.6m | |
| Special Advisor of Seek International & Director of Zhaopin Ltd | no data | no data | no data | |
| Independent Non-Executive Director | 1.25yrs | AU$42.38k | 0.019% A$1.5m | |
| Independent Non-Executive Director | 3.33yrs | AU$189.00k | 0.0048% A$378.5k | |
| Independent Chairman | 1.5yrs | AU$308.83k | 0.014% A$1.1m | |
| Independent Non-Executive Director | 6yrs | AU$173.50k | 0.0025% A$197.9k | |
| Independent Non-Executive Director | 1.83yrs | AU$150.58k | 0.0011% A$88.7k |
2.6yrs
Average Tenure
57yo
Average Age
Experienced Board: SEK's board of directors are not considered experienced ( 2.6 years average tenure), which suggests a new board.
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.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Top Shareholders
Company Information
SEEK Limited's company bio, employee growth, exchange listings and data sources
Key Information
- Name: SEEK Limited
- Ticker: SEK
- Exchange: ASX
- Founded: 1997
- Industry: Interactive Media and Services
- Sector: Media
- Market Cap: AU$7.853b
- Shares outstanding: 352.63m
- Website: https://www.seek.com.au
Number of Employees
Location
- SEEK Limited
- 541 St Kilda Road
- Level 6
- Melbourne
- Victoria
- 3004
- Australia
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| SEK | ASX (Australian Securities Exchange) | Yes | Ordinary Shares | AU | AUD | Apr 2005 |
| SLD | DB (Deutsche Boerse AG) | Yes | Ordinary Shares | DE | EUR | Apr 2005 |
| SKLT.F | OTCPK (Pink Sheets LLC) | Yes | Ordinary Shares | US | USD | Apr 2005 |
| SEK | CHIA (Chi-X Australia) | Yes | Ordinary Shares | AU | AUD | Apr 2005 |
| SKLT.Y | OTCPK (Pink Sheets LLC) | UNSPONSORD ADR | US | USD | Apr 2010 |
Biography
SEEK Limited, together with its subsidiaries, provides online employment marketplace services in Australia and internationally. It operates through SEEK Asia Pacific & Americas, and SEEK Investments segments. The company matches hirers and candidates with career opportunities and related services; and distributes and provides higher education courses. It also provides advice in relation to career related education. The company was founded in 1997 and is headquartered in Melbourne, Australia.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/07/05 10:33 |
| End of Day Share Price | 2020/07/03 00:00 |
| Earnings | 2019/12/31 |
| Annual Earnings | 2019/06/30 |
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.