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SEK

SEEKASX:SEK Stock Report

Market Cap

AU$11.5b

7D

1.2%

1Y

41.6%

Updated

21 Oct, 2021

Data

Company Financials +
SEK fundamental analysis
Snowflake Score
Valuation1/6
Future Growth4/6
Past Performance1/6
Financial Health4/6
Dividends0/6

SEK Overview

SEEK Limited, together with its subsidiaries, provides online employment marketplace services.

SEEK Competitors

Price History & Performance

Summary of all time highs, changes and price drops for SEEK
Historical stock prices
Current Share PriceAU$32.67
52 Week HighAU$19.78
52 Week LowAU$34.15
Beta1.1
1 Month Change9.96%
3 Month Change6.77%
1 Year Change41.55%
3 Year Change81.30%
5 Year Change118.97%
Change since IPO1,320.44%

Recent News & Updates

Oct 12
Here's Why SEEK (ASX:SEK) Can Manage Its Debt Responsibly

Here's Why SEEK (ASX:SEK) Can Manage Its Debt Responsibly

The external fund manager backed by Berkshire Hathaway's Charlie Munger, Li Lu, makes no bones about it when he says...

Aug 30
Statutory Profit Doesn't Reflect How Good SEEK's (ASX:SEK) Earnings Are

Statutory Profit Doesn't Reflect How Good SEEK's (ASX:SEK) Earnings Are

The subdued stock price reaction suggests that SEEK Limited's ( ASX:SEK ) strong earnings didn't offer any surprises...

Shareholder Returns

SEKAU Interactive Media and ServicesAU Market
7D1.2%1.2%1.5%
1Y41.6%28.4%21.1%

Return vs Industry: SEK exceeded the Australian Interactive Media and Services industry which returned 26.5% over the past year.

Return vs Market: SEK exceeded the Australian Market which returned 20.2% over the past year.

Price Volatility

Is SEK's price volatile compared to industry and market?
SEK volatility
SEK Beta1.1
Industry Beta1.03
Market Beta1

Stable Share Price: SEK is less volatile than 75% of Australian stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: SEK's weekly volatility (3%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
199710,000Ian Narevhttps://www.seek.com.au

SEEK Limited, together with its subsidiaries, provides online employment marketplace services. It operates through Asia Pacific & Americas and Portfolio Investments segments. The company engages in the provision of online matching of hirers and candidates with career opportunities and other related services; investing in early stage businesses and technologies, which are in the human capital management market; and distribution and provision of higher education courses.

SEEK Fundamentals Summary

How do SEEK's earnings and revenue compare to its market cap?
SEK fundamental statistics
Market CapAU$11.49b
Earnings (TTM)AU$104.90m
Revenue (TTM)AU$760.30m

110.1x

P/E Ratio

15.2x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
SEK income statement (TTM)
RevenueAU$760.30m
Cost of RevenueAU$279.40m
Gross ProfitAU$480.90m
ExpensesAU$376.00m
EarningsAU$104.90m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)0.30
Gross Margin63.25%
Net Profit Margin13.80%
Debt/Equity Ratio59.1%

How did SEK perform over the long term?

See historical performance and comparison

Dividends

0.6%

Current Dividend Yield

67%

Payout Ratio

Valuation

Is SEEK undervalued compared to its fair value and its price relative to the market?

110.15x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: SEK (A$32.49) is trading above our estimate of fair value (A$21.68)

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 (109.5x) compared to the Australian Interactive Media and Services industry average (57.9x).

PE vs Market: SEK is poor value based on its PE Ratio (109.5x) compared to the Australian market (19.7x).


Price to Earnings Growth Ratio

PEG Ratio: SEK is poor value based on its PEG Ratio (8.2x)


Price to Book Ratio

PB vs Industry: SEK is good value based on its PB Ratio (6.3x) compared to the AU Interactive Media and Services industry average (7.1x).


Future Growth

How is SEEK forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?

13.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SEK's forecast earnings growth (13.4% per year) is above the savings rate (1.9%).

Earnings vs Market: SEK's earnings (13.4% per year) are forecast to grow faster than the Australian market (11.9% per year).

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

Revenue vs Market: SEK's revenue (12.3% per year) is forecast to grow faster than the Australian market (5.4% per year).

High Growth Revenue: SEK's revenue (12.3% 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 high in 3 years time (20.3%)


Past Performance

How has SEEK performed over the past 5 years?

-45.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SEK has a large one-off loss of A$45.2M impacting its June 30 2021 financial results.

Growing Profit Margin: SEK became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: SEK's earnings have declined by 45.7% per year over the past 5 years.

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

Earnings vs Industry: SEK has become profitable in the last year, making it difficult to compare its past year earnings growth to the Interactive Media and Services industry (10.8%).


Return on Equity

High ROE: SEK's Return on Equity (5.4%) is considered low.


Financial Health

How is SEEK's financial position?


Financial Position Analysis

Short Term Liabilities: SEK's short term assets (A$2.3B) exceed its short term liabilities (A$1.3B).

Long Term Liabilities: SEK's short term assets (A$2.3B) exceed its long term liabilities (A$1.4B).


Debt to Equity History and Analysis

Debt Level: SEK's debt to equity ratio (59.1%) is considered high.

Reducing Debt: SEK's debt to equity ratio has increased from 45.3% to 59.1% over the past 5 years.

Debt Coverage: SEK's debt is well covered by operating cash flow (30.5%).

Interest Coverage: SEK's interest payments on its debt are well covered by EBIT (4.9x coverage).


Balance Sheet


Dividend

What is SEEK current dividend yield, its reliability and sustainability?

0.61%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: SEK's dividend (0.62%) isn’t notable compared to the bottom 25% of dividend payers in the Australian market (2.27%).

High Dividend: SEK's dividend (0.62%) is low compared to the top 25% of dividend payers in the Australian market (5.33%).


Stability and Growth of Payments

Stable Dividend: SEK is not paying a notable dividend for the Australian market, therefore no need to check if payments are stable.

Growing Dividend: SEK is not paying a notable dividend for the Australian market, therefore no need to check if payments are increasing.


Current Payout to Shareholders

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


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of SEK'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?

3.8yrs

Average management tenure


CEO

Ian Narev (54 yo)

0.25

Tenure

AU$4,941,673

Compensation

Mr. Ian Mark Narev, B.A., LL B (Hons) (Auck), LL M (cantab), LLM (NYU), serves as Managing Director, Chief Executive Officer and Executive Director at SEEK Limited since July 1, 2021. Mr. Narev served as...


CEO Compensation Analysis

Compensation vs Market: Ian's total compensation ($USD3.69M) is above average for companies of similar size in the Australian market ($USD2.16M).

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


Leadership Team

Experienced Management: SEK's management team is considered experienced (3.8 years average tenure).


Board Members

Experienced Board: SEK's board of directors are not considered experienced ( 2.9 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 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$11.491b
  • Shares outstanding: 353.67m
  • Website: https://www.seek.com.au

Number of Employees


Location

  • SEEK Limited
  • 60 Cremorne Street
  • Cremorne
  • Victoria
  • 3121
  • Australia

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/10/21 07:05
End of Day Share Price2021/10/21 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.