DB:SLD

Stock Analysis Report

Executive Summary

SEEK Limited, together with its subsidiaries, provides online employment marketplace services in Australia and internationally.

Snowflake

Fundamentals

Proven track record average dividend payer.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: SLD has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-4.3%

SLD

-0.1%

DE Professional Services

-0.3%

DE Market


1 Year Return

15.5%

SLD

18.7%

DE Professional Services

10.9%

DE Market

Return vs Industry: SLD underperformed the German Professional Services industry which returned 18.7% over the past year.

Return vs Market: SLD exceeded the German Market which returned 10.9% over the past year.


Shareholder returns

SLDIndustryMarket
7 Day-4.3%-0.1%-0.3%
30 Day0.8%4.3%2.6%
90 Day8.0%2.8%11.8%
1 Year18.3%15.5%22.1%18.7%14.4%10.9%
3 Year38.9%29.0%49.5%37.3%24.1%13.2%
5 Year25.4%10.6%83.7%59.9%33.0%14.8%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

Is SEEK undervalued compared to its fair value and its price relative to the market?

6.9%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: SLD (€13.4) is trading below our estimate of fair value (€14.39)

Significantly Below Fair Value: SLD is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: SLD is poor value based on its PE Ratio (42.7x) compared to the Professional Services industry average (20.1x).

PE vs Market: SLD is poor value based on its PE Ratio (42.7x) compared to the German market (19.9x).


Price to Earnings Growth Ratio

PEG Ratio: SLD is poor value based on its PEG Ratio (4.7x)


Price to Book Ratio

PB vs Industry: SLD is overvalued based on its PB Ratio (5.5x) compared to the XE Professional Services industry average (2.2x).


Next Steps

Future Growth

How is SEEK forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?

9.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SLD's forecast earnings growth (9.1% per year) is above the savings rate (0.2%).

Earnings vs Market: SLD's earnings (9.1% per year) are forecast to grow slower than the German market (12.8% per year).

High Growth Earnings: SLD's earnings are forecast to grow, but not significantly.

Revenue vs Market: SLD's revenue (12.2% per year) is forecast to grow faster than the German market (4.8% per year).

High Growth Revenue: SLD's revenue (12.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: SLD's Return on Equity is forecast to be low in 3 years time (14.6%).


Next Steps

Past Performance

How has SEEK performed over the past 5 years?

-13.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SLD has high quality earnings.

Growing Profit Margin: SLD's current net profit margins (11.6%) are higher than last year (4%).


Past Earnings Growth Analysis

Earnings Trend: SLD's earnings have declined by -13.7% per year over the past 5 years.

Accelerating Growth: SLD's earnings growth over the past year (245.4%) exceeds its 5-year average (-13.7% per year).

Earnings vs Industry: SLD earnings growth over the past year (245.4%) exceeded the Professional Services industry 7.1%.


Return on Equity

High ROE: SLD's Return on Equity (11.7%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is SEEK's financial position?


Financial Position Analysis

Short Term Liabilities: SLD's short term assets (A$693.2M) do not cover its short term liabilities (A$904.6M)

Long Term Liabilities: SLD's short term assets (A$693.2M) do not cover its long term liabilities (1.7B)


Debt to Equity History and Analysis

Debt Level: SLD's debt to equity ratio (96.1%) is considered high.

Reducing Debt: SLD's debt to equity ratio has increased from 27.7% to 96.1% over the past 5 years.

Debt Coverage: SLD's debt is well covered by operating cash flow (22.9%).

Interest Coverage: SLD's interest payments on its debt are well covered by EBIT (5.7x coverage).


Balance Sheet

Inventory Level: SLD has a low level of unsold assets or inventory.

Debt Coverage by Assets: SLD's debt is not covered by short term assets (assets are 0.4x debt).


Next Steps

Dividend

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

2.10%

Current Dividend Yield


Dividend Yield vs Market

company2.1%marketbottom25%1.4%markettop25%3.7%industryaverage2.5%forecastin3Years1.8%

Current dividend yield vs market & industry

Notable Dividend: SLD's dividend (2.1%) is higher than the bottom 25% of dividend payers in the German market (1.4%).

High Dividend: SLD's dividend (2.1%) is low compared to the top 25% of dividend payers in the German market (3.73%).


Stability and Growth of Payments

Stable Dividend: SLD's dividend payments have been volatile in the past 10 years.

Growing Dividend: SLD's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: At its current payout ratio (89.6%), SLD's payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: SLD's dividends in 3 years are forecast to be covered by earnings (66.9% payout ratio).


Next Steps

Management

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

3.7yrs

Average management tenure


CEO

Andrew Bassat (53yo)

8.8yrs

Tenure

AU$4,825,142

Compensation

Mr. Andrew R. Bassat co-founded Seek Limited in 1997 and has been its Chief Executive Officer since February 2011. Mr. Bassat also serves as Managing Director of Seek Limited. He served as a Joint Chief Ex ...


CEO Compensation Analysis

Compensation vs Market: Andrew's total compensation ($USD3.28M) is about average for companies of similar size in the German market ($USD3.62M).

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


Management Age and Tenure

3.7yrs

Average Tenure

Experienced Management: SLD's management team is considered experienced (3.7 years average tenure).


Board Age and Tenure

2.7yrs

Average Tenure

57.5yo

Average Age

Experienced Board: SLD's board of directors are not considered experienced ( 2.7 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: SLD insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyAU$91,56130 Aug 19
Leigh Jasper
EntityIndividual
Role
Member of the Board of Directors
Independent Non-Executive Director
Shares7,380
Max PriceAU$12.54
SellAU$15,211,86215 Jul 19
First Sentier Investors (Australia) IM Ltd
EntityCompany
Shares1,179,133
Max PriceAU$13.05
BuyAU$828,79615 Jul 19
Realindex Investments Pty Limited
EntityCompany
Shares66,638
Max PriceAU$12.44
SellAU$4,082,79215 Jul 19
Realindex Investments Pty Limited
EntityCompany
Shares332,402
Max PriceAU$12.28
BuyAU$12,893,43015 Jul 19
First Sentier Investors (Australia) IM Ltd
EntityCompany
Shares1,082,922
Max PriceAU$12.14
SellAU$56,91515 Jul 19
ASB Group Investments Ltd.
EntityCompany
Shares4,388
Max PriceAU$12.97
BuyAU$115,35115 Jul 19
ASB Group Investments Ltd.
EntityCompany
Shares9,953
Max PriceAU$11.59
BuyAU$25,62229 May 19
Julie Fahey
EntityIndividual
Role
Member of the Board of Directors
Independent Non-Executive Director
Shares2,000
Max PriceAU$12.81
SellAU$009 Apr 19
FIL Limited
EntityCompany
Shares7,772,360
Max PriceAU$13.76
BuyAU$1,823,72215 Mar 19
Realindex Investments Pty Limited
EntityCompany
Shares164,884
Max PriceAU$11.06
BuyAU$29,508,29015 Mar 19
First Sentier Investors (Australia) IM Ltd
EntityCompany
Shares2,716,831
Max PriceAU$11.33
BuyAU$191,69415 Mar 19
ASB Group Investments Ltd.
EntityCompany
Shares18,485
Max PriceAU$10.37
SellAU$58,426,63804 Mar 19
First State Super
EntityCompany
Shares5,259,735
Max PriceAU$11.12
SellAU$60,514,01604 Mar 19
Hyperion Asset Management Limited
EntityCompany
Shares5,455,914
Max PriceAU$11.11
SellAU$72,338,69514 Feb 19
Hyperion Asset Management Limited
EntityCompany
Shares6,205,374
Max PriceAU$11.66
BuyAU$46,306,71914 Feb 19
Hyperion Asset Management Limited
EntityCompany
Shares3,771,521
Max PriceAU$12.28
BuyAU$35,92930 Jan 19
BlackRock, Inc.
EntityCompany
Shares1,371,743
Max PriceAU$12.92
BuyAU$16,048,35017 Dec 18
The Vanguard Group, Inc.
EntityCompany
Shares1,126,786
Max PriceAU$14.33
SellAU$2,702,25417 Dec 18
The Vanguard Group, Inc.
EntityCompany
Shares191,638
Max PriceAU$14.12

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • Geoff Roberts

    Group Chief Financial Officer

    • Tenure: 4.1yrs
    • Compensation: AU$2.10m
  • Andrew Bassat (53yo)

    Co-Founder

    • Tenure: 8.8yrs
    • Compensation: AU$4.83m
  • Lynne Jensen

    Company Secretary

    • Tenure: 3.9yrs
  • Ian Narev (52yo)

    Group COO and Asia Pacific & Americas CEO

    • Tenure: 0.6yrs
    • Compensation: AU$898.59k
  • Kathleen McCudden

    Group Human Resources Director

    • Tenure: 3.5yrs
  • Isar Mazer

    Chief Operating Officer of Investments

    • Tenure: 4.7yrs
    • Compensation: AU$1.61m
  • Ronnie Fink

    Managing Director of Corporate Development

    • Tenure: 4.7yrs
  • Simon Lusted

    Managing Director of Strategy & Platforms - AP&A

    • Tenure: 1.8yrs
  • Kendra Banks

    Managing Director of ANZ

    • Tenure: 1.8yrs
  • Tennealle O’Shannessy

    Managing Director of Americas - AP &A

    • Tenure: 1.8yrs

Board Members

  • Jason Lenga (45yo)

    Special Advisor of Seek International & Director of Zhaopin Ltd

    • Tenure: 0yrs
  • Andrew Bassat (53yo)

    Co-Founder

    • Tenure: 8.8yrs
    • Compensation: AU$4.83m
  • Leigh Jasper (45yo)

    Independent Non-Executive Director

    • Tenure: 0.6yrs
    • Compensation: AU$42.38k
  • Denise Bradley (77yo)

    Independent Non-Executive Director

    • Tenure: 9.8yrs
    • Compensation: AU$169.50k
  • Vanessa Wallace (56yo)

    Independent Non-Executive Director

    • Tenure: 2.7yrs
    • Compensation: AU$189.00k
  • Graham Goldsmith (59yo)

    Independent Chairman

    • Tenure: 0.8yrs
    • Compensation: AU$308.83k
  • Julie Fahey (62yo)

    Independent Non-Executive Director

    • Tenure: 5.3yrs
    • Compensation: AU$173.50k
  • Michael Wachtel (64yo)

    Independent Non-Executive Director

    • Tenure: 1.2yrs
    • Compensation: AU$150.58k

Company Information

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


Key Information

  • Name: SEEK Limited
  • Ticker: SLD
  • Exchange: DB
  • Founded: 1997
  • Industry: Human Resource and Employment Services
  • Sector: Commercial Services
  • Market Cap: AU$7.695b
  • Listing Market Cap: AU$4.721b
  • Shares outstanding: 350.73m
  • Website: https://www.seek.com.au

Number of Employees


Location

  • SEEK Limited
  • 541 St Kilda Road
  • Level 6
  • Melbourne
  • Victoria
  • 3004
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SEKASX (Australian Securities Exchange)YesOrdinary SharesAUAUDApr 2005
SLDDB (Deutsche Boerse AG)YesOrdinary SharesDEEURApr 2005
SKLT.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDApr 2005
SEKCHIA (Chi-X Australia)YesOrdinary SharesAUAUDApr 2005
SKLT.YOTCPK (Pink Sheets LLC)UNSPONSORD ADRUSUSDApr 2010

Biography

SEEK Limited, together with its subsidiaries, provides online employment marketplace services in Australia and internationally. It operates through SEEK Asia Pacific & Americas, and SEEK Investments segmen ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/11/21 20:52
End of Day Share Price2019/11/21 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.