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SRV

ServcorpASX:SRV Stock Report

Last Price

AU$3.79

Market Cap

AU$366.9m

7D

-1.0%

1Y

19.9%

Updated

17 Jan, 2022

Data

Company Financials +
SRV fundamental analysis
Snowflake Score
Valuation3/6
Future Growth3/6
Past Performance4/6
Financial Health4/6
Dividends4/6

SRV Stock Overview

Servcorp Limited provides executive serviced and virtual offices, coworking and IT, communications, and secretarial services.

Servcorp Competitors

Victory Offices

ASX:VOL

AU$20.5m

WeWork

NYSE:WE

US$6.6b

Price History & Performance

Summary of all time highs, changes and price drops for Servcorp
Historical stock prices
Current Share PriceAU$3.79
52 Week HighAU$4.75
52 Week LowAU$2.71
Beta1.34
1 Month Change-4.53%
3 Month Change-4.05%
1 Year Change19.94%
3 Year Change21.09%
5 Year Change-47.94%
Change since IPO48.63%

Recent News & Updates

Jan 08
Is Now The Time To Put Servcorp (ASX:SRV) On Your Watchlist?

Is Now The Time To Put Servcorp (ASX:SRV) On Your Watchlist?

Some have more dollars than sense, they say, so even companies that have no revenue, no profit, and a record of falling...

Sep 18
Is There Now An Opportunity In Servcorp Limited (ASX:SRV)?

Is There Now An Opportunity In Servcorp Limited (ASX:SRV)?

Servcorp Limited ( ASX:SRV ), might not be a large cap stock, but it saw a double-digit share price rise of over 10% in...

Shareholder Returns

SRVAU Real EstateAU Market
7D-1.0%-2.1%-0.5%
1Y19.9%-6.4%10.4%

Return vs Industry: SRV exceeded the Australian Real Estate industry which returned -6.4% over the past year.

Return vs Market: SRV exceeded the Australian Market which returned 10.4% over the past year.

Price Volatility

Is SRV's price volatile compared to industry and market?
SRV volatility
SRV Average Weekly Movement7.5%
Real Estate Industry Average Movement4.9%
Market Average Movement8.4%
10% most volatile stocks in AU Market15.2%
10% least volatile stocks in AU Market3.6%

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

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

About the Company

FoundedEmployeesCEOWebsite
1978630Alf Moufarrigehttps://www.servcorp.com

Servcorp Limited provides executive serviced and virtual offices, coworking and IT, communications, and secretarial services. It offers office space solutions; virtual office services, such as business address, secretary and receptionist, mail forwarding, and telephone answering services; and co-working and meeting room services. The company operates in Australia, New Zealand, Southeast Asia, the United States, Europe, the Middle East, North Asia, and internationally.

Servcorp Fundamentals Summary

How do Servcorp's earnings and revenue compare to its market cap?
SRV fundamental statistics
Market CapAU$366.94m
Earnings (TTM)AU$22.12m
Revenue (TTM)AU$269.94m

16.6x

P/E Ratio

1.4x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
SRV income statement (TTM)
RevenueAU$269.94m
Cost of RevenueAU$97.87m
Gross ProfitAU$172.07m
ExpensesAU$149.95m
EarningsAU$22.12m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)0.23
Gross Margin63.74%
Net Profit Margin8.19%
Debt/Equity Ratio0%

How did SRV perform over the long term?

See historical performance and comparison

Dividends

4.7%

Current Dividend Yield

79%

Payout Ratio

Valuation

Is Servcorp 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: SRV (A$3.79) is trading below our estimate of fair value (A$15.61)

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


Price To Earnings Ratio

PE vs Industry: SRV is poor value based on its PE Ratio (16.6x) compared to the Australian Real Estate industry average (16.2x).

PE vs Market: SRV is good value based on its PE Ratio (16.6x) compared to the Australian market (19.3x).


Price to Earnings Growth Ratio

PEG Ratio: SRV is poor value based on its PEG Ratio (1.2x)


Price to Book Ratio

PB vs Industry: SRV is overvalued based on its PB Ratio (1.8x) compared to the AU Real Estate industry average (1.1x).


Future Growth

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

14.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SRV's forecast earnings growth (14.3% per year) is above the savings rate (1.9%).

Earnings vs Market: SRV's earnings (14.3% per year) are forecast to grow faster than the Australian market (11.3% per year).

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

Revenue vs Market: SRV's revenue (5.3% per year) is forecast to grow faster than the Australian market (4.9% per year).

High Growth Revenue: SRV's revenue (5.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: SRV's Return on Equity is forecast to be low in 3 years time (14.7%).


Past Performance

How has Servcorp performed over the past 5 years?

-28.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SRV has high quality earnings.

Growing Profit Margin: SRV's current net profit margins (8.2%) are higher than last year (2%).


Past Earnings Growth Analysis

Earnings Trend: SRV's earnings have declined by 28.5% per year over the past 5 years.

Accelerating Growth: SRV's earnings growth over the past year (219%) exceeds its 5-year average (-28.5% per year).

Earnings vs Industry: SRV earnings growth over the past year (219%) exceeded the Real Estate industry 84%.


Return on Equity

High ROE: SRV's Return on Equity (11%) is considered low.


Financial Health

How is Servcorp's financial position?


Financial Position Analysis

Short Term Liabilities: SRV's short term assets (A$138.1M) do not cover its short term liabilities (A$161.7M).

Long Term Liabilities: SRV's short term assets (A$138.1M) do not cover its long term liabilities (A$262.0M).


Debt to Equity History and Analysis

Debt Level: SRV is debt free.

Reducing Debt: SRV has no debt compared to 5 years ago when its debt to equity ratio was 0.6%.

Debt Coverage: SRV has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: SRV has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet


Dividend

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

4.75%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: SRV's dividend (4.75%) is higher than the bottom 25% of dividend payers in the Australian market (2.18%).

High Dividend: SRV's dividend (4.75%) is low compared to the top 25% of dividend payers in the Australian market (5.39%).


Stability and Growth of Payments

Stable Dividend: SRV's dividend payments have been volatile in the past 10 years.

Growing Dividend: SRV's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: At its current payout ratio (78.8%), SRV's payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: SRV's dividends in 3 years are forecast to be covered by earnings (63% payout ratio).


Next Steps

Management

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

8.6yrs

Average management tenure


CEO

Alf Moufarrige

22.42yrs

Tenure

AU$687,229

Compensation

Mr. Alfred George Moufarrige, A.O., also known as Alf, has been the Chief Executive Officer and Managing Director of ServCorp Limited since August 24, 1999. Mr. Moufarrige is primarily responsible for Serv...


CEO Compensation Analysis

Compensation vs Market: Alf's total compensation ($USD496.52K) is about average for companies of similar size in the Australian market ($USD532.68K).

Compensation vs Earnings: Alf's compensation has increased by more than 20% in the past year.


Leadership Team

Experienced Management: SRV's management team is seasoned and experienced (8.6 years average tenure).


Board Members

Experienced Board: SRV's board of directors are considered experienced (7.4 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.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Servcorp Limited's employee growth, exchange listings and data sources


Key Information

  • Name: Servcorp Limited
  • Ticker: SRV
  • Exchange: ASX
  • Founded: 1978
  • Industry: Real Estate Operating Companies
  • Sector: Real Estate
  • Implied Market Cap: AU$366.940m
  • Shares outstanding: 96.82m
  • Website: https://www.servcorp.com

Number of Employees


Location

  • Servcorp Limited
  • MLC Centre
  • Level 63
  • Sydney
  • New South Wales
  • 2000
  • Australia

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/01/17 16:21
End of Day Share Price2022/01/17 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.