HLSE:SRV1V

Stock Analysis Report

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Executive Summary

SRV Yhtiöt Oyj, a construction company, engages in the development, construction, and commercialization of various projects in Finland and internationally.


Snowflake Analysis

Fair value with moderate growth potential.


Similar Companies

Share Price & News

How has SRV Yhtiöt Oyj's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: SRV1V's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-2.1%

SRV1V

3.0%

FI Construction

-1.8%

FI Market


1 Year Return

-72.2%

SRV1V

-8.4%

FI Construction

-3.9%

FI Market

Return vs Industry: SRV1V underperformed the Finnish Construction industry which returned -8.4% over the past year.

Return vs Market: SRV1V underperformed the Finnish Market which returned -3.9% over the past year.


Shareholder returns

SRV1VIndustryMarket
7 Day-2.1%3.0%-1.8%
30 Day-18.7%-3.5%-4.6%
90 Day-46.7%26.3%19.1%
1 Year-62.1%-72.2%-6.0%-8.4%1.9%-3.9%
3 Year-87.0%-90.6%-2.4%-11.5%9.0%-5.0%
5 Year-77.6%-87.3%22.4%1.6%38.3%10.8%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is SRV Yhtiöt Oyj undervalued compared to its fair value and its price relative to the market?

40.1%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: SRV1V (€0.47) is trading below our estimate of fair value (€0.79)

Significantly Below Fair Value: SRV1V is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: SRV1V is unprofitable, so we can't compare its PE Ratio to the Construction industry average.

PE vs Market: SRV1V is unprofitable, so we can't compare its PE Ratio to the Finnish market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate SRV1V's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: SRV1V is good value based on its PB Ratio (0.2x) compared to the XE Construction industry average (1.1x).


Next Steps

Future Growth

How is SRV Yhtiöt Oyj forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

93.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SRV1V is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (0.4%).

Earnings vs Market: SRV1V is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: SRV1V's is expected to become profitable in the next 3 years.

Revenue vs Market: SRV1V's revenue is expected to decline over the next 3 years (-0.3% per year).

High Growth Revenue: SRV1V's revenue is forecast to decline over the next 3 years (-0.3% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: SRV1V's Return on Equity is forecast to be low in 3 years time (1.2%).


Next Steps

Past Performance

How has SRV Yhtiöt Oyj performed over the past 5 years?

-79.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SRV1V is currently unprofitable.

Growing Profit Margin: SRV1V is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: SRV1V is unprofitable, and losses have increased over the past 5 years at a rate of -79.9% per year.

Accelerating Growth: Unable to compare SRV1V's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: SRV1V is unprofitable, making it difficult to compare its past year earnings growth to the Construction industry (7.9%).


Return on Equity

High ROE: SRV1V has a negative Return on Equity (-72.39%), as it is currently unprofitable.


Next Steps

Financial Health

How is SRV Yhtiöt Oyj's financial position?


Financial Position Analysis

Short Term Liabilities: SRV1V's short term assets (€666.6M) exceed its short term liabilities (€310.1M).

Long Term Liabilities: SRV1V's short term assets (€666.6M) exceed its long term liabilities (€387.2M).


Debt to Equity History and Analysis

Debt Level: SRV1V's debt to equity ratio (196.8%) is considered high.

Reducing Debt: SRV1V's debt to equity ratio has increased from 107.7% to 196.8% over the past 5 years.


Balance Sheet


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: SRV1V has sufficient cash runway for more than 3 years based on its current free cash flow.

Forecast Cash Runway: Insufficient data to determine if SRV1V has enough cash runway if its free cash flow continues to grow or shrink based on historical rates.


Next Steps

Dividend

What is SRV Yhtiöt Oyj current dividend yield, its reliability and sustainability?

2.84%

Forecast Dividend Yield


Dividend Yield vs Market

Notable Dividend: Unable to evaluate SRV1V's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate SRV1V's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if SRV1V's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if SRV1V's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: SRV1V is not paying a notable dividend for the Finnish market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of SRV1V's dividend in 3 years as they are not forecast to pay a notable one for the Finnish market.


Next Steps

Management

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

1.6yrs

Average management tenure


CEO

Saku Sipola (52yo)

0.83

Tenure

€145,000

Compensation

Mr. Saku Sipola, M.Sc. (Eng) (Tech) has been Chief Executive Officer and President of SRV Yhtiöt Oyj since September 1, 2019. Mr. Sipola served as Chief Executive Officer and President of SATO Oyj from Dec ...


CEO Compensation Analysis

Compensation vs Market: Saku's total compensation ($USD163.01K) is below average for companies of similar size in the Finnish market ($USD326.03K).

Compensation vs Earnings: Insufficient data to compare Saku's compensation with company performance.


Leadership Team

NamePositionTenureCompensationOwnership
Saku Sipola
President & CEO0.83yr€145.00k0.00076% 936.2
Timo Nieminen
Executive VPno data€203.00k0.26% 317.9k
Ilkka Pitkänen
Chief Financial Officer5.58yrsno data0.0069% 8.5k
Jarkko Rantala
Senior Vice President of Investments1.5yrsno datano data
Johanna Ylitalo
Manager of Communicationno datano datano data
Johanna Metsä-Tokila
Senior VP & General Counsel4.08yrsno data0.012% 15.1k
Maija Karhusaari
Senior Vice President of Communications & Marketing1.58yrsno datano data
Juha Toimela
Executive VP & Senior VP of Business premisesno datano data0.0066% 8.1k
Anders Liljenstolpe
Senior V Head of Business Operations In Russia3.58yrsno datano data
Kimmo Kurki
Senior Vice President of Internal Services Business Unit0.50yrno datano data

1.6yrs

Average Tenure

52yo

Average Age

Experienced Management: SRV1V's management team is not considered experienced ( 1.6 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Olli-Pekka Kallasvuo
Independent Vice Chairman of the Board9.33yrs€68.00k0.051% 62.7k
Hannu Leinonen
Director0.33yrno datano data
Minna Alitalo
Independent Director8.33yrs€57.00kno data
Heikki Leppanen
Director0.33yrno datano data
Timo Kokkila
Director10.33yrs€56.00k2.91% 3.6m
Tomi Yli-Kyyny
Independent Chairman0.33yr€43.00k0.0011% 1.4k

4.3yrs

Average Tenure

58yo

Average Age

Experienced Board: SRV1V's board of directors are considered experienced (4.3 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.


Ownership Breakdown

Dilution of Shares: Shareholders have been substantially diluted in the past year, with total shares outstanding growing by 339.9%.


Top Shareholders

Company Information

SRV Yhtiöt Oyj's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: SRV Yhtiöt Oyj
  • Ticker: SRV1V
  • Exchange: HLSE
  • Founded: 1987
  • Industry: Construction and Engineering
  • Sector: Capital Goods
  • Market Cap: €123.186m
  • Shares outstanding: 262.10m
  • Website: https://www.srv.fi

Number of Employees


Location

  • SRV Yhtiöt Oyj
  • Derby Business Park
  • Tarvonsalmenkatu 15
  • Espoo
  • 2601
  • Finland

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SRV1VHLSE (OMX Nordic Exchange Helsinki)YesRegistered SharesFIEURJun 2007
B7JDB (Deutsche Boerse AG)YesRegistered SharesDEEURJun 2007
0JBJLSE (London Stock Exchange)YesRegistered SharesGBEURJun 2007
B7JXTRA (XETRA Trading Platform)YesRegistered SharesDEEURJun 2007

Biography

SRV Yhtiöt Oyj, a construction company, engages in the development, construction, and commercialization of various projects in Finland and internationally. It is involved in the construction of residential, office, infrastructure construction; and construction of business premises primarily comprises office and commercial premises, logistics facilities, and rock construction. The company also engages in the provision of facility management services; and rental of construction equipment. It serves private consumers and companies, pension funds, property investors and developers, and public sector organizations; and logistics service providers, and commercial and industrial companies. SRV Yhtiöt Oyj was founded in 1987 and is headquartered in Espoo, Finland. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/07/05 20:51
End of Day Share Price2020/07/03 00:00
Earnings2020/03/31
Annual Earnings2019/12/31


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.