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 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


Market Performance


7 Day Return

-0.5%

SRV

3.3%

AU Real Estate

0.4%

AU Market


1 Year Return

11.7%

SRV

3.1%

AU Real Estate

9.8%

AU Market

Return vs Industry: SRV exceeded the Australian Real Estate industry which returned 3.1% over the past year.

Return vs Market: SRV exceeded the Australian Market which returned 9.8% over the past year.


Shareholder returns

SRVIndustryMarket
7 Day-0.5%3.3%0.4%
30 Day2.4%3.7%-1.3%
90 Day15.9%13.9%-0.5%
1 Year19.1%11.7%6.5%3.1%16.1%9.8%
3 Year-37.5%-47.0%25.1%11.7%36.1%17.9%
5 Year2.7%-18.4%40.6%15.9%49.4%15.7%

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 compared to its fair value and its price relative to the market?

45.8%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: SRV (A$4.3) is trading below our estimate of fair value (A$7.93)

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 (77.4x) compared to the Real Estate industry average (12.9x).

PE vs Market: SRV is poor value based on its PE Ratio (77.4x) compared to the Australian market (18.2x).


Price to Earnings Growth Ratio

PEG Ratio: SRV is poor value based on its PEG Ratio (2.2x)


Price to Book Ratio

PB vs Industry: SRV is overvalued based on its PB Ratio (1.7x) 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 (2.3%).

Earnings vs Market: SRV's earnings (34.7% per year) are forecast to grow faster than the Australian market (10.3% 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 (3.6% 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


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 (-2.1%).


Return on Equity

High ROE: SRV's Return on Equity (2.3%) is considered low.


Return on Assets

ROA vs Industry: SRV's Return on Assets is below or equal to the Real Estate industry average last year.


Return on Capital Employed

ROCE Improving: SRV's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Servcorp's financial position?


Financial Position Analysis

Short Term Liabilities: SRV's short term assets (A$138.4M) exceeds its short term liabilities (A$102.6M)

Long Term Liabilities: SRV's short term assets (138.4M) exceeds its long term liabilities (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?

4.65%

Current Dividend Yield


Dividend Yield vs Market

company4.7%marketbottom25%2.4%markettop25%5.6%industryaverage2.7%forecastin3Years5.0%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: SRV's dividend (4.65%) is higher than the bottom 25% of dividend payers in the Australian market (2.44%).

High Dividend: SRV's dividend (4.65%) is low compared to the top 25% of dividend payers in the Australian market (5.59%).

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

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

9.3yrs

Average management tenure


CEO

Alf Moufarrige 0

20.2yrs

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 ($USD350.67K) is about average for companies of similar size in the Australian market ($USD464.02K).

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


Management Age and Tenure

9.3yrs

Average Tenure

Experienced Management: SRV's management team is seasoned and experienced (9.3 years average tenure).


Board Age and Tenure

14.2yrs

Average Tenure

69yo

Average Age

Experienced Board: SRV's board of directors are seasoned and experienced ( 14.2 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyAU$24,16517 May 19
Mark Anthony Vaile
EntityIndividual
Role
Member of the Board of Directors
Independent Non-Executive Director
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
Chief Executive Officer
Founder
Shares500,000
Max PriceAU$3.18
BuyAU$1,51218 Dec 18
Robert Corlett
EntityIndividual
Role
Chairman of the Board
Independent 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
Independent Chairman of the Board
Shares10,000
Max PriceAU$3.05
BuyAU$36,07520 Nov 18
Robert Corlett
EntityIndividual
Role
Chairman of the Board
Independent 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

  • Alf Moufarrige

    Founder

    • Tenure: 20.2yrs
    • Compensation: AU$512.23k
  • Olga Vlietstra

    General Manager of Japan

    • Tenure: 0yrs
    • Compensation: AU$932.04k
  • Warren James

    Chief Property Officer

    • Tenure: 0yrs
  • Liane Gorman

    General Manager of Australia & New Zealand

    • Tenure: 9.3yrs
    • Compensation: AU$417.80k
  • Steve Gainer

    Head of Global Accounts - Japan

    • Tenure: 0yrs
  • Daniel Kukucka

    Chief Technology Officer

    • Tenure: 0yrs
  • Matthew Baumgartner

    Chief Information Officer

    • Tenure: 0yrs
  • Anton Clowes

    Chief Financial Officer

    • Tenure: 3.5yrs
    • Compensation: AU$307.97k
  • Charles Robinson

    Senior Vice President of USA

    • Tenure: 0yrs
    • Compensation: AU$413.53k
  • David Godchaux

    CEO of Middle East

    • Tenure: 0yrs
    • Compensation: AU$573.35k

Board Members

  • Rick Holliday-Smith (69yo)

    Independent Non-Executive Director

    • Tenure: 20yrs
    • Compensation: AU$109.91k
  • Alf Moufarrige

    Founder

    • Tenure: 20.2yrs
    • Compensation: AU$512.23k
  • Robert Corlett (74yo)

    Independent Chairman of the Board

    • Tenure: 20yrs
    • Compensation: AU$175.00k
  • Mark Anthony Vaile (63yo)

    Independent Non-Executive Director

    • Tenure: 8.3yrs
    • Compensation: AU$100.00k
  • Tony McGrath

    Independent Non-Executive Director

    • Tenure: 0.2yrs
  • Wallis Graham

    Independent Non-Executive Director

    • Tenure: 2yrs
    • Compensation: AU$100.00k

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$420.190m
  • 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

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 Analysis2019/10/21 10:30
End of Day Share Price2019/10/21 00:00
Earnings2019/06/30
Annual Earnings2019/06/30


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.