ASX:SRV

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

Flawless balance sheet average dividend payer.

Risks

  • Servcorp is covered by less than 3 analysts.

Similar Companies

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

2.5%

ASX:SRV

-2.0%

AU Real Estate

-2.5%

AU Market


1 Year Return

-1.9%

ASX:SRV

-22.7%

AU Real Estate

-0.6%

AU Market

SRV outperformed the Real Estate industry which returned -22.7% over the past year.

SRV underperformed the Market in Australia which returned -0.6% over the past year.


Share holder returns

SRVIndustryMarket
7 Day2.5%-2.0%-2.5%
30 Day13.8%-3.9%-3.7%
90 Day26.7%0.6%0.5%
1 Year5.6%-1.9%-20.3%-22.7%5.1%-0.6%
3 Year-39.0%-47.9%0.9%-9.7%30.2%13.1%
5 Year3.2%-17.8%23.0%0.6%36.5%5.9%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

50%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Servcorp's share price is below the future cash flow value, and at a moderate discount (> 20%).

Servcorp's share price is below the future cash flow value, and at a substantial discount (> 40%).


Price Based on Earnings

Servcorp is loss making, we can't compare its value to the AU Real Estate industry average.

Servcorp 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 Servcorp, we can't assess if its growth is good value.


Price Based on Value of Assets

Servcorp is overvalued based on assets compared to the AU Real Estate industry average.


Next Steps

Future Growth

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

50.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Servcorp's revenue is expected to grow by 1% yearly, however this is not considered high growth (20% yearly).

Servcorp's earnings are expected to grow significantly at over 20% yearly.

Servcorp's revenue growth is positive but not above the Australia market average.

Servcorp's earnings growth is expected to exceed the Australia market average.

Servcorp's earnings growth is expected to exceed the low risk savings rate of 2.3%.


Earnings per Share Growth Estimates


Future Return on Equity

Servcorp is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


Next Steps

Past Performance

How has Servcorp performed over the past 5 years?

-12.1%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

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

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

Unable to compare Servcorp's 1-year growth to the AU Real Estate industry average as it is not currently profitable.


Return on Equity

It is difficult to establish if Servcorp 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 Servcorp has efficiently used its assets last year compared to the AU Real Estate industry average (Return on Assets) as it is loss-making.


Return on Capital Employed

It is difficult to establish if Servcorp 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 Servcorp's financial position?


Financial Position Analysis

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

Servcorp's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

Servcorp has no debt.

Servcorp has no debt compared to 5 years ago when it was 1.2%.

Servcorp has no debt, it does not need to be covered by operating cash flow.

Servcorp has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet

High level of physical assets or inventory.

Servcorp has no debt, it does not need to be covered by short term assets.


Next Steps

Dividend

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

5.52%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Servcorp's pays a higher dividend yield than the bottom 25% of dividend payers in Australia (2.67%).

Servcorp's dividend is above the markets top 25% of dividend payers in Australia (5.85%).

Dividends per share have been volatile in the past 10 years (annual drop of over 20%).

Dividends per share have increased over the past 10 years.


Current Payout to Shareholders

The company is paying a dividend however it is incurring a loss.


Future Payout to Shareholders

Dividends after 3 years are expected to be covered by earnings (1.2x coverage).


Next Steps

Management

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

9.1yrs

Average management tenure


CEO

Alf Moufarrige

20.0yrs

Tenure

AU$516,864

Compensation

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


CEO Compensation Analysis

Alf's remuneration is lower than average for companies of similar size in Australia.

Alf's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

9.1yrs

Average Tenure

The average tenure for the Servcorp management team is over 5 years, this suggests they are a seasoned and experienced team.


Board Age and Tenure

19.8yrs

Average Tenure

69yo

Average Age

The average tenure for the Servcorp board of directors is over 10 years, this suggests they are a seasoned and experienced board.


Insider Trading

No 3 month open market individual insider trading information.


Recent Insider Transactions

BuyAU$24,16517 May 19
Mark Anthony Vaile
EntityIndividual
Role
Member of the Board of Directors
Shares7,670
Max PriceAU$3.15
BuyAU$2,579,25610 Apr 19
FMR LLC
EntityCompany
Shares913,474
Max PriceAU$3.07
BuyAU$279,05308 Mar 19
Sovori Pty Ltd
EntityCompany
Shares90,017
Max PriceAU$3.10
BuyAU$1,587,70427 Feb 19
Alfred Moufarrige
EntityIndividual
Role
Founder
Member of the Board of Directors
Shares500,000
Max PriceAU$3.18
BuyAU$1,51218 Dec 18
Robert Corlett
EntityIndividual
Role
Chairman of the Board
Shares560
Max PriceAU$2.70
BuyAU$2,867,46517 Dec 18
FMR LLC
EntityCompany
Shares734,720
Max PriceAU$3.90
BuyAU$30,50026 Nov 18
Robert Corlett
EntityIndividual
Role
Chairman of the Board
Shares10,000
Max PriceAU$3.05
BuyAU$36,07520 Nov 18
Robert Corlett
EntityIndividual
Role
Chairman of the Board
Shares11,000
Max PriceAU$3.28
BuyAU$800,00013 Nov 18
Sovori Pty Ltd
EntityCompany
Shares200,000
Max PriceAU$4.00

Ownership Breakdown


Management Team

  • Liane Gorman

    General Manager of Australia & New Zealand

    • Tenure: 9.1yrs
    • Compensation: A$400.07k
  • Taine Moufarrige

    Executive Officer

    • Compensation: A$579.97k
  • Olga Vlietstra

    General Manager of Japan

    • Compensation: A$809.94k
  • Anton Clowes

    Chief Financial Officer

    • Tenure: 3.3yrs
    • Compensation: A$323.84k
  • Matthew Baumgartner

    Chief Information Officer

  • Daniel Kukucka

    Chief Technology Officer

  • Laudy Lahdo

    General Manager of Middle East

    • Compensation: A$436.35k
  • Steve Gainer

    Head of Global Accounts - Japan

  • Alf Moufarrige

    Founder

    • Tenure: 20.0yrs
    • Compensation: A$516.86k
  • Warren James

    Chief Property Officer


Board Members

  • Rick Holliday-Smith (69yo)

    Independent Non-Executive Director

    • Tenure: 19.8yrs
    • Compensation: A$110.00k
  • Alf Moufarrige

    Founder

    • Tenure: 20.0yrs
    • Compensation: A$516.86k
  • Robert Corlett (74yo)

    Chairman of the Board

    • Tenure: 19.8yrs
    • Compensation: A$175.00k
  • Mark Anthony Vaile (63yo)

    Independent Non-Executive Director

    • Tenure: 8.2yrs
    • Compensation: A$100.00k
  • Wallis Graham

    Independent Non-Executive Director

    • Tenure: 1.8yrs
    • Compensation: A$75.00k

Company Information

Servcorp Limited's company bio, 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
  • Market Cap: AU$390.176m
  • Shares outstanding: 96.82m
  • Website: Click here

Number of Employees


Location

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

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SRVASX (Australian Securities Exchange)YesOrdinary SharesAUAUDDec 1999
SRVCHIA (Chi-X Australia)YesOrdinary SharesAUAUDDec 1999

Biography

Servcorp Limited provides executive serviced and virtual offices; and coworking and IT, communications, and secretarial services. Its serviced offices include furnished CBD office suites with a receptionis ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/08/18 10:30
End of Day Share Price2019/08/16 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.