LSE:SVS

Stock Analysis Report

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Executive Summary

Savills plc, together with its subsidiaries, provides real estate services in the Americas, the United Kingdom, Continental Europe, the Asia Pacific, Africa, and the Middle East.


Snowflake Analysis

Excellent balance sheet with proven track record.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

0.9%

SVS

2.8%

GB Real Estate

2.2%

GB Market


1 Year Return

9.4%

SVS

-5.4%

GB Real Estate

-10.0%

GB Market

Return vs Industry: SVS exceeded the UK Real Estate industry which returned -5.4% over the past year.

Return vs Market: SVS exceeded the UK Market which returned -10% over the past year.


Shareholder returns

SVSIndustryMarket
7 Day0.9%2.8%2.2%
30 Day-1.4%11.9%9.6%
90 Day-9.5%-12.2%-2.6%
1 Year10.0%9.4%-3.2%-5.4%-5.7%-10.0%
3 Year18.4%10.1%-7.5%-15.4%-1.8%-13.8%
5 Year15.6%0.7%7.8%-7.0%15.5%-10.2%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

15.61x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: SVS (£9.47) is trading above our estimate of fair value (£4.18)

Significantly Below Fair Value: SVS is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: SVS is poor value based on its PE Ratio (15.6x) compared to the Real Estate industry average (13.3x).

PE vs Market: SVS is poor value based on its PE Ratio (15.6x) compared to the UK market (15x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: SVS is overvalued based on its PB Ratio (2.6x) compared to the GB Real Estate industry average (0.9x).


Next Steps

Future Growth

How is Savills forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

3.7%

Forecasted annual revenue growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if SVS's forecast earnings growth is above the savings rate (1.2%).

Earnings vs Market: Insufficient data to determine if SVS's earnings are forecast to grow faster than the UK market

High Growth Earnings: Insufficient data to determine if earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: SVS's revenue (3.7% per year) is forecast to grow faster than the UK market (3.6% per year).

High Growth Revenue: SVS's revenue (3.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: SVS's Return on Equity is forecast to be high in 3 years time (20.8%)


Next Steps

Past Performance

How has Savills performed over the past 5 years?

6.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SVS has high quality earnings.

Growing Profit Margin: SVS's current net profit margins (4.3%) are lower than last year (4.4%).


Past Earnings Growth Analysis

Earnings Trend: SVS's earnings have grown by 6.3% per year over the past 5 years.

Accelerating Growth: SVS's earnings growth over the past year (8.1%) exceeds its 5-year average (6.3% per year).

Earnings vs Industry: SVS earnings growth over the past year (8.1%) exceeded the Real Estate industry -4.9%.


Return on Equity

High ROE: SVS's Return on Equity (16.6%) is considered low.


Next Steps

Financial Health

How is Savills's financial position?


Financial Position Analysis

Short Term Liabilities: SVS's short term assets (£790.1M) exceed its short term liabilities (£723.6M).

Long Term Liabilities: SVS's short term assets (£790.1M) exceed its long term liabilities (£422.7M).


Debt to Equity History and Analysis

Debt Level: SVS's debt to equity ratio (36%) is considered satisfactory.

Reducing Debt: SVS's debt to equity ratio has increased from 1.6% to 36% over the past 5 years.

Debt Coverage: SVS's debt is well covered by operating cash flow (52.6%).

Interest Coverage: SVS's interest payments on its debt are well covered by EBIT (13x coverage).


Balance Sheet


Next Steps

Dividend

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

3.66%

Forecast Dividend Yield


Dividend Yield vs Market

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

High Dividend: Unable to evaluate SVS'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 SVS's dividends per share have been stable in the past.

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


Current Payout to Shareholders

Dividend Coverage: SVS is not paying a notable dividend for the UK market.


Future Payout to Shareholders

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


Next Steps

Management

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

5.0yrs

Average management tenure


CEO

Mark Ridley (57yo)

1.42yrs

Tenure

UK£2,144,035

Compensation

Mr. Mark Ridley has been Group Chief Executive Officer of Savills plc since January 01, 2018. Mr. Ridley served as the Deputy Group Chief Executive at Savills plc since May 1, 2018 until January 01, 2018 a ...


CEO Compensation Analysis

Compensation vs Market: Mark's total compensation ($USD2.70M) is above average for companies of similar size in the UK market ($USD1.68M).

Compensation vs Earnings: Mark's compensation has increased by more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Mark Ridley
Group CEO1.42yrsUK£2.14m0.15% £2.0m
Simon James Shaw
Group CFO11.25yrsUK£1.63m0.13% £1.7m
Simon Hope
Global Head of Capital Markets & Member of Group Executive Board 12.33yrsUK£5.60k0.14% £1.8m
Chris Lee
Group Legal Director11.83yrsno data0.082% £1.1m
Raymond Lee
Chief Executive of Hong Kong9.42yrsno data0.077% £993.8k
Mitchell Steir
Chairman & CEO of Savills US and Member of Group Executive Board6.08yrsno data0.038% £496.9k
Christian Mancini
CEO of Asia Pacific (ex Greater China) & Member of Group Executive Board3.92yrsno data0.082% £1.1m
Katrina White
Director of Operations2.25yrsno datano data
James Sparrow
CEO of UK & EMEA and Member of Group Executive Board2.08yrsno data0.043% £556.7k
Mitchell Rudin
Member of Group Executive Board & President of Savills US1.42yrsno data0.025% £323.3k

5.0yrs

Average Tenure

54yo

Average Age

Experienced Management: SVS's management team is seasoned and experienced (5 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Mark Ridley
Group CEO1.42yrsUK£2.14m0.15% £2.0m
Simon James Shaw
Group CFO11.25yrsUK£1.63m0.13% £1.7m
Nicholas Ferguson
Chairman of the Board4.08yrsUK£215.00k0.021% £277.2k
Timothy George Freshwater
Senior Independent Non-Executive Director4.08yrsUK£62.00kno data
Stacey Cartwright
Independent Non-Executive Director1.67yrsUK£63.73k0.0036% £47.2k
Rupert H. Robson
Independent Non-Executive Director5yrsUK£64.00k0.0058% £75.5k
Florence Tondu-Melique
Independent Non-Executive Director1.67yrsUK£54.00kno data
Dana Roffman
Additional Independent Non-Executive Director0.58yrUK£9.12kno data

3.1yrs

Average Tenure

57.5yo

Average Age

Experienced Board: SVS's board of directors are considered experienced (3.1 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: SVS 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

Savills plc's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Savills plc
  • Ticker: SVS
  • Exchange: LSE
  • Founded: 1855
  • Industry: Real Estate Services
  • Sector: Real Estate
  • Market Cap: UK£1.297b
  • Shares outstanding: 137.07m
  • Website: https://www.savills.com

Number of Employees


Location

  • Savills plc
  • 33 Margaret Street
  • London
  • Greater London
  • W1G 0JD
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SVSLSE (London Stock Exchange)YesOrdinary SharesGBGBPJan 1992
SVLP.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJan 1992
SVSLBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBGBPJan 1992
1YZDB (Deutsche Boerse AG)YesOrdinary SharesDEEURJan 1992

Biography

Savills plc, together with its subsidiaries, provides real estate services in the Americas, the United Kingdom, Continental Europe, the Asia Pacific, Africa, and the Middle East. The company advises on commercial, residential, rural, and leisure properties; and offers corporate finance advisory, investment management, and a range of property-related financial services. It operates through four segments: Transaction Advisory, Consultancy, Property and Facilities Management, and Investment Management. The Transaction Advisory segment provides commercial, residential, leisure, and agricultural leasing services; and tenant representation, as well as investment advice on purchases and sales. The Consultancy segment offers various professional property services, such as valuation, building and housing consultancy, environmental consultancy, landlord and tenant, rating, development, planning, strategic projects, research, and corporate services. The Property and Facilities Management segment manages commercial, residential, leisure, and agricultural properties for owners; and provides services to occupiers of property, including strategic advice and project management, as well as services relating to a property. The Investment Management segment is involved in the investment management of commercial and residential property portfolios for institutional, corporate, or private investors on a pooled or segregated account basis. Savills plc was founded in 1855 and is headquartered in London, the United Kingdom. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/06/04 21:37
End of Day Share Price2020/06/04 00:00
Earnings2019/12/31
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.