Servcorp
Market Cap
AU$392.1m
Last Updated
2020/02/23 10:32 UTC
Data Sources
Company Financials +
Executive Summary
Servcorp Limited provides executive serviced and virtual offices; and coworking and IT, communications, and secretarial services.
Rewards
Risk Analysis
Snowflake Analysis
Flawless balance sheet with moderate growth potential.
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 has not had significant price volatility in the past 3 months.
Market Performance
7 Day Return
-0.5%
SRV
4.4%
AU Real Estate
0.02%
AU Market
1 Year Return
35.0%
SRV
32.6%
AU Real Estate
14.6%
AU Market
Return vs Industry: SRV exceeded the Australian Real Estate industry which returned 32.6% over the past year.
Return vs Market: SRV exceeded the Australian Market which returned 14.6% over the past year.
Shareholder returns
| SRV | Industry | Market | |
|---|---|---|---|
| 7 Day | -0.5% | 4.4% | 0.02% |
| 30 Day | -7.7% | 2.1% | 0.2% |
| 90 Day | -6.0% | -0.3% | 5.7% |
| 1 Year | 44.0%35.0% | 37.2%32.6% | 19.7%14.6% |
| 3 Year | -22.9%-34.7% | 27.1%13.9% | 38.7%20.2% |
| 5 Year | -15.5%-32.8% | 34.4%12.0% | 50.6%17.1% |
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
2 days ago | Simply Wall St
Could Servcorp Limited's (ASX:SRV) Investor Composition Influence The Stock Price?2 weeks ago | Simply Wall St
Should You Buy Servcorp Limited (ASX:SRV) For Its 4.5% Dividend?2 months ago | Simply Wall St
How Many Servcorp Limited (ASX:SRV) Shares Did Insiders Buy, In The Last Year?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$4.05) is trading below our estimate of fair value (A$8.44)
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 (72.9x) compared to the Real Estate industry average (16.4x).
PE vs Market: SRV is poor value based on its PE Ratio (72.9x) compared to the Australian market (18.9x).
Price to Earnings Growth Ratio
PEG Ratio: SRV is poor value based on its PEG Ratio (2.1x)
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 (1x).
Next Steps
Future Growth
How is Servcorp forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?
34.7%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: SRV's forecast earnings growth (34.7% per year) is above the savings rate (1.1%).
Earnings vs Market: SRV's earnings (34.7% per year) are forecast to grow faster than the Australian market (9.3% per year).
High Growth Earnings: earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: SRV's revenue (2.9% per year) is forecast to grow slower than the Australian market (4.2% per year).
High Growth Revenue: SRV's revenue (2.9% 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 (12.9%).
Next Steps
Past Performance
How has Servcorp performed over the past 5 years?
-24.2%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: SRV has a large one-off loss of A$18.9M impacting its June 30 2019 financial results.
Growing Profit Margin: SRV's current net profit margins (1.6%) are lower than last year (3.2%).
Past Earnings Growth Analysis
Earnings Trend: SRV's earnings have declined by -24.2% 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 (-46.5%) over the past year, making it difficult to compare to the Real Estate industry average (-30.1%).
Return on Equity
High ROE: SRV's Return on Equity (2.3%) is considered low.
Return on Assets
Return on Capital Employed
Next Steps
Financial Health
How is Servcorp's financial position?
Financial Position Analysis
Short Term Liabilities: SRV's short term assets (A$138.4M) exceed its short term liabilities (A$102.6M).
Long Term Liabilities: SRV's short term assets (A$138.4M) exceed its long term liabilities (A$30.8M).
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 1.9%.
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
Inventory Level: SRV has a high level of physical assets or inventory.
Debt Coverage by Assets: Insufficient data to determine if SRV's debt is covered by short term assets.
Next Steps
Dividend
What is Servcorp's current dividend yield, its reliability and sustainability?
4.94%
Current Dividend Yield
Dividend Yield vs Market
Current dividend yield vs market & industry
Notable Dividend: SRV's dividend (4.94%) is higher than the bottom 25% of dividend payers in the Australian market (2.29%).
High Dividend: SRV's dividend (4.94%) is low compared to the top 25% of dividend payers in the Australian market (5.35%).
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 fallen over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its high payout ratio (413.9%), 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 (64.7% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
9.6yrs
Average management tenure
CEO
Alf Moufarrige 0
20.5yrs
Tenure
AU$512,226
Compensation
Mr. Alfred George Moufarrige, A.O., also known as Alf, has been the Chief Executive Officer and Managing Director of ServCorp Limited since August 24, 1999. Mr. Moufarrigeis primarily responsible for Servc ...
CEO Compensation Analysis
Compensation vs Market: Alf's total compensation ($USD339.88K) is about average for companies of similar size in the Australian market ($USD450.00K).
Compensation vs Earnings: Alf's compensation has been consistent with company performance over the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Founder | 20.5yrs | AU$512.23k | 1.61% A$6.3m | |
| Chief Financial Officer | 3.8yrs | AU$307.97k | no data | |
| General Manager of Japan | 0yrs | AU$932.04k | no data | |
| General Manager of Australia & New Zealand | 9.6yrs | AU$417.80k | no data | |
| Senior Vice President of USA | 0yrs | AU$413.53k | no data | |
| CEO of Middle East | 0yrs | AU$573.35k | no data | |
| Chief Technology Officer | 0yrs | no data | no data | |
| Chief Information Officer | 0yrs | no data | no data | |
| Chief Property Officer | 0yrs | no data | no data | |
| Head of Global Accounts - Japan | 0yrs | no data | no data |
9.6yrs
Average Tenure
Experienced Management: SRV's management team is seasoned and experienced (9.6 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Founder | 20.5yrs | AU$512.23k | 1.61% A$6.3m | |
| Independent Non-Executive Director | 20.3yrs | AU$109.91k | 0.15% A$607.5k | |
| Independent Chairman of the Board | 20.3yrs | AU$175.00k | 0.47% A$1.8m | |
| Independent Chairman | 0.3yrs | AU$100.00k | 0.021% A$83.4k | |
| Independent Non-Executive Director | 0.5yrs | no data | no data | |
| Independent Non-Executive Director | 2.3yrs | AU$100.00k | no data |
11.3yrs
Average Tenure
69yo
Average Age
Experienced Board: SRV's board of directors are seasoned and experienced ( 11.3 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 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$392.112m
- 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; and coworking and IT, communications, and secretarial services. Its serviced offices include furnished CBD office suites with a receptionist, meeting rooms, IT infrastructure, and support services; and virtual offices provide services, facilities, and IT to businesses. The company operates in Australia, New Zealand, Southeast Asia, the United States, Europe, the Middle East, North Asia, and internationally. Servcorp Limited was founded in 1978 and is headquartered in Sydney, Australia.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/02/23 10:32 |
| End of Day Share Price | 2020/02/21 00:00 |
| Earnings | 2019/06/30 |
| 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.