Servcorp
Market Cap
AU$344.7m
Last Updated
2021/03/04 07:06 UTC
Data Sources
Company Financials +
Executive Summary
Servcorp Limited provides executive serviced and virtual offices, coworking and IT, communications, and secretarial services. More Details
Rewards
Risk Analysis
Snowflake Analysis
Adequate balance sheet average dividend payer.
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
Stable Share Price: SRV is not significantly more volatile than the rest of Australian stocks over the past 3 months, typically moving +/- 6% a week.
Volatility Over Time: SRV's weekly volatility (6%) has been stable over the past year.
Market Performance
7 Day Return
9.4%
SRV
3.8%
AU Real Estate
0.3%
AU Market
1 Year Return
-19.5%
SRV
-11.6%
AU Real Estate
12.5%
AU Market
Return vs Industry: SRV underperformed the Australian Real Estate industry which returned -11.6% over the past year.
Return vs Market: SRV underperformed the Australian Market which returned 12.5% over the past year.
Shareholder returns
| SRV | Industry | Market | |
|---|---|---|---|
| 7 Day | 9.4% | 3.8% | 0.3% |
| 30 Day | 27.3% | 8.9% | 2.2% |
| 90 Day | 8.4% | 0.003% | 4.0% |
| 1 Year | -14.2%-19.5% | -9.8%-11.6% | 16.1%12.5% |
| 3 Year | -15.6%-28.1% | -4.7%-12.5% | 31.1%15.1% |
| 5 Year | -36.2%-50.0% | 28.7%8.7% | 62.5%31.3% |
Long-Term 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
1 week ago | Simply Wall St
Servcorp's (ASX:SRV) Stock Price Has Reduced 60% In The Past Five Years3 weeks ago | Simply Wall St
Is Servcorp Limited (ASX:SRV) Potentially Undervalued?1 month ago | Simply Wall St
What Can We Conclude About Servcorp's (ASX:SRV) CEO Pay?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$3.5) is trading below our estimate of fair value (A$29.32)
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 (44.9x) compared to the AU Real Estate industry average (27.7x).
PE vs Market: SRV is poor value based on its PE Ratio (44.9x) compared to the Australian market (20x).
Price to Earnings Growth Ratio
PEG Ratio: SRV is poor value based on its PEG Ratio (1.4x)
Price to Book Ratio
PB vs Industry: SRV is overvalued based on its PB Ratio (1.6x) compared to the AU Real Estate industry average (1.1x).
Next Steps
Future Growth
How is Servcorp forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?
31.8%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: SRV's forecast earnings growth (31.8% per year) is above the savings rate (2%).
Earnings vs Market: SRV's earnings (31.8% per year) are forecast to grow faster than the Australian market (15.6% per year).
High Growth Earnings: earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: SRV's revenue (2% per year) is forecast to grow slower than the Australian market (5.6% per year).
High Growth Revenue: SRV's revenue (2% 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 (13.7%).
Next Steps
Past Performance
How has Servcorp performed over the past 5 years?
-33.1%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: SRV has a large one-off loss of A$21.2M impacting its December 31 2020 financial results.
Growing Profit Margin: SRV's current net profit margins (2.4%) are lower than last year (9.4%).
Past Earnings Growth Analysis
Earnings Trend: SRV's earnings have declined by 33.1% per year over the past 5 years.
Accelerating Growth: SRV's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: SRV had negative earnings growth (-77%) over the past year, making it difficult to compare to the Real Estate industry average (-13.3%).
Return on Equity
High ROE: SRV's Return on Equity (3.7%) is considered low.
Next Steps
Financial Health
How is Servcorp's financial position?
Financial Position Analysis
Short Term Liabilities: SRV's short term assets (A$133.5M) do not cover its short term liabilities (A$166.1M).
Long Term Liabilities: SRV's short term assets (A$133.5M) do not cover its long term liabilities (A$283.9M).
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 1.4%.
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
Next Steps
Dividend
What is Servcorp current dividend yield, its reliability and sustainability?
5.71%
Current Dividend Yield
Upcoming Dividend Payment
Dividend Yield vs Market
Notable Dividend: SRV's dividend (5.71%) is higher than the bottom 25% of dividend payers in the Australian market (2.09%).
High Dividend: SRV's dividend (5.71%) is in the top 25% of dividend payers in the Australian market (5.52%)
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: With its high payout ratio (231%), SRV's dividend payments are not well 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?
10.7yrs
Average management tenure
CEO
Alf Moufarrige
21.58yrs
Tenure
AU$475,233
Compensation
Mr. Alfred George Moufarrige, A.O., also known as Alf, has been the Chief Executive Officer and Managing Director of ServCorp Limited since August 24, 1999. Mr. Moufarrige is primarily responsible for Serv...
CEO Compensation Analysis
Compensation vs Market: Alf's total compensation ($USD371.33K) is about average for companies of similar size in the Australian market ($USD509.85K).
Compensation vs Earnings: Alf's compensation has been consistent with company performance over the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Founder | 21.58yrs | AU$475.23k | 2.02% A$ 7.0m | |
| Chief Financial Officer | 4.92yrs | AU$354.69k | no data | |
| Chief Executive Officer of Middle East | no data | AU$702.17k | no data | |
| General Manager of Japan | no data | AU$1.17m | no data | |
| General Manager of Australia & New Zealand | 10.67yrs | AU$480.72k | no data | |
| General Manager of USA | 0.92yr | AU$443.68k | no data | |
| Chief Information Officer | no data | no data | no data | |
| Chief Property Officer | no data | no data | no data | |
| Global Head of Online Marketing | no data | no data | no data | |
| Chief Operating Officer of Australia & New Zealand | no data | no data | no data | |
| Company Secretary | 21.58yrs | AU$161.17k | no data |
10.7yrs
Average Tenure
Experienced Management: SRV's management team is seasoned and experienced (10.7 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Founder | 21.58yrs | AU$475.23k | 2.02% A$ 7.0m | |
| Independent Chairman | 1.33yrs | AU$142.29k | 0.030% A$ 103.4k | |
| Independent Non-Executive Director | 1.58yrs | AU$79.87k | 0.056% A$ 193.8k | |
| Independent Non-Executive Director | 3.42yrs | AU$95.00k | no data |
2.5yrs
Average Tenure
Experienced Board: SRV's board of directors are not considered experienced ( 2.5 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: SRV 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 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$344.672m
- 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
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| SRV | ASX (Australian Securities Exchange) | Yes | Ordinary Shares | AU | AUD | Dec 1999 |
| SRV | CHIA (Chi-X Australia) | Yes | Ordinary Shares | AU | AUD | Dec 1999 |
Biography
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 add...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/03/04 07:06 |
| End of Day Share Price | 2021/03/04 00:00 |
| Earnings | 2020/12/31 |
| Annual Earnings | 2020/06/30 |
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.