ASX:SRH

Stock Analysis Report

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Executive Summary

Saferoads Holdings Limited provides road safety products and solutions in Australia. More Details


Snowflake Analysis

Flawless balance sheet and undervalued.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: Insufficient data to determine SRH's volatility over the past 3 months.

Volatility Over Time: Insufficient data to determine SRH's volatility change over the past year.


Market Performance


7 Day Return

0%

SRH

-1.0%

AU Infrastructure

2.3%

AU Market


1 Year Return

50.0%

SRH

-6.1%

AU Infrastructure

-0.3%

AU Market

Return vs Industry: SRH exceeded the Australian Infrastructure industry which returned -6.1% over the past year.

Return vs Market: SRH exceeded the Australian Market which returned -0.3% over the past year.


Shareholder returns

SRHIndustryMarket
7 Day0%-1.0%2.3%
30 Day42.1%5.3%7.2%
90 Day-3.6%8.3%8.7%
1 Year57.1%50.0%-3.0%-6.1%3.1%-0.3%
3 Year95.1%86.2%30.8%14.8%24.2%8.8%
5 Year76.8%68.8%75.7%41.7%55.4%24.4%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Saferoads Holdings 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: SRH (A$0.27) is trading below our estimate of fair value (A$1.66)

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


Price To Earnings Ratio

PE vs Industry: SRH is good value based on its PE Ratio (18.9x) compared to the XO Infrastructure industry average (50.5x).

PE vs Market: SRH is good value based on its PE Ratio (18.9x) compared to the Australian market (22.7x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate SRH's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: SRH is good value based on its PB Ratio (1.2x) compared to the AU Infrastructure industry average (1.7x).


Next Steps

Future Growth

How is Saferoads Holdings forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

44.1%

Forecasted Transportation industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Saferoads Holdings has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has Saferoads Holdings performed over the past 5 years?

31.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SRH has high quality earnings.

Growing Profit Margin: SRH became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: SRH has become profitable over the past 5 years, growing earnings by 31.8% per year.

Accelerating Growth: SRH has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: SRH has become profitable in the last year, making it difficult to compare its past year earnings growth to the Infrastructure industry (-22.4%).


Return on Equity

High ROE: SRH's Return on Equity (6.6%) is considered low.


Next Steps

Financial Health

How is Saferoads Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: SRH's short term assets (A$6.3M) exceed its short term liabilities (A$3.3M).

Long Term Liabilities: SRH's short term assets (A$6.3M) exceed its long term liabilities (A$3.6M).


Debt to Equity History and Analysis

Debt Level: SRH's debt to equity ratio (21.1%) is considered satisfactory.

Reducing Debt: SRH's debt to equity ratio has reduced from 44.4% to 21.1% over the past 5 years.

Debt Coverage: SRH's debt is well covered by operating cash flow (136.6%).

Interest Coverage: SRH's interest payments on its debt are well covered by EBIT (3.2x coverage).


Balance Sheet


Next Steps

Dividend

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

14.81%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: SRH's dividend (14.81%) is higher than the bottom 25% of dividend payers in the Australian market (2.09%).

High Dividend: SRH's dividend (14.81%) is in the top 25% of dividend payers in the Australian market (5%)


Stability and Growth of Payments

Stable Dividend: Too early to tell whether SRH's dividend payments have been stable as they only just started paying a dividend.

Growing Dividend: Too early to tell if SRH's dividend payments are increasing as they only just started paying a dividend.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

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

8.6yrs

Average board tenure


CEO

Darren Hotchkin (56 yo)

8.58yrs

Tenure

AU$345,880

Compensation

Mr. Darren John Hotchkin founded Saferoads Holdings Limited in 1992 and has been its Chief Executive Officer since June 30, 2012. Mr. Hotchkin served as an Acting Chief Executive Officer at Saferoads Holdi...


CEO Compensation Analysis

Compensation vs Market: Darren's total compensation ($USD254.29K) is about average for companies of similar size in the Australian market ($USD277.79K).

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


Board Members

NamePositionTenureCompensationOwnership
Darren Hotchkin
Founder8.58yrsAU$345.88k26.07%
A$ 2.6m
David Cleland
Non Executive Director9.92yrsAU$58.50k1.42%
A$ 143.3k
David Albert Ashmore
Non-Executive Chairman7.25yrsAU$74.25k3.9%
A$ 394.9k
Hayden Wallace
Independent Non-Executive Director0.67yrAU$11.50kno data

8.6yrs

Average Tenure

62yo

Average Age

Experienced Board: SRH's board of directors are considered experienced (8.6 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

Saferoads Holdings Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Saferoads Holdings Limited
  • Ticker: SRH
  • Exchange: ASX
  • Founded:
  • Industry: Highways and Railtracks
  • Sector: Transportation
  • Market Cap: AU$10.115m
  • Shares outstanding: 37.46m
  • Website: https://www.saferoads.com.au

Location

  • Saferoads Holdings Limited
  • 22 Commercial Drive
  • Pakenham
  • Victoria
  • 3810
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SRHASX (Australian Securities Exchange)YesOrdinary SharesAUAUDDec 2005
SRHCHIA (Chi-X Australia)YesOrdinary SharesAUAUDDec 2005

Biography

Saferoads Holdings Limited provides road safety products and solutions in Australia. The company offers flexible guide posts and signage products; rubber-based traffic calming products, including separatio...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/11/25 10:36
End of Day Share Price2020/11/13 00:00
Earnings2020/06/30
Annual Earnings2020/06/30


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.