LSE:SVS

Stock Analysis Report

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

Fundamentals

Adequate balance sheet average dividend payer.


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


Market Performance


7 Day Return

3.7%

SVS

2.1%

GB Real Estate

0.08%

GB Market


1 Year Return

32.0%

SVS

6.4%

GB Real Estate

3.5%

GB Market

Return vs Industry: SVS exceeded the UK Real Estate industry which returned 6.4% over the past year.

Return vs Market: SVS exceeded the UK Market which returned 3.5% over the past year.


Shareholder returns

SVSIndustryMarket
7 Day3.7%2.1%0.08%
30 Day5.1%4.8%-1.3%
90 Day3.5%6.0%-2.2%
1 Year36.7%32.0%10.7%6.4%9.0%3.5%
3 Year52.6%38.3%-1.6%-8.6%18.1%3.1%
5 Year80.3%53.4%22.0%7.2%36.2%5.3%

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?

17.31x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: SVS (£9.57) is trading above our estimate of fair value (£3.74)

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 (17.3x) compared to the Real Estate industry average (12.3x).

PE vs Market: SVS is poor value based on its PE Ratio (17.3x) compared to the UK market (16.7x).


Price to Earnings Growth Ratio

PEG Ratio: SVS is poor value based on its PEG Ratio (1.5x)


Price to Book Ratio

PB vs Industry: SVS is overvalued based on its PB Ratio (2.8x) compared to the GB Real Estate industry average (1.1x).


Next Steps

Future Growth

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

11.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SVS's forecast earnings growth (11.4% per year) is above the savings rate (1.2%).

Earnings vs Market: SVS's earnings (11.4% per year) are forecast to grow slower than the UK market (12.4% per year).

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

Revenue vs Market: SVS's revenue (3.9% per year) is forecast to grow slower than the UK market (4% per year).

High Growth Revenue: SVS's revenue (3.9% 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 low in 3 years time (18.4%).


Next Steps

Past Performance

How has Savills performed over the past 5 years?

6.9%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: SVS's earnings have grown by 6.9% per year over the past 5 years.

Accelerating Growth: SVS's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: SVS had negative earnings growth (-2.1%) over the past year, making it difficult to compare to the Real Estate industry average (9%).


Return on Equity

High ROE: SVS's Return on Equity (16.4%) is considered low.


Return on Assets

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


Return on Capital Employed

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


Next Steps

Financial Health

How is Savills's financial position?


Financial Position Analysis

Short Term Liabilities: SVS's short term assets (£655.9M) exceeds its short term liabilities (£642.9M)

Long Term Liabilities: SVS's short term assets (655.9M) exceeds its long term liabilities (437.8M)


Debt to Equity History and Analysis

Debt Level: SVS's debt to equity ratio (65%) is considered high

Reducing Debt: SVS's debt to equity ratio has increased from 30.2% to 65% over the past 5 years.

Debt Coverage: SVS's debt is well covered by operating cash flow (28.7%).

Interest Coverage: SVS's interest payments on its debt are well covered by EBIT (18.7x coverage).


Balance Sheet

Inventory Level: SVS has a high level of physical assets or inventory.

Debt Coverage by Assets: SVS's debt is covered by short term assets (assets are 2.185600x debt).


Next Steps

Dividend

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

3.28%

Current Dividend Yield


Dividend Yield vs Market

company3.3%marketbottom25%2.0%markettop25%5.4%industryaverage3.1%forecastin3Years3.4%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: SVS's dividend (3.28%) is higher than the bottom 25% of dividend payers in the UK market (1.98%).

High Dividend: SVS's dividend (3.28%) is low compared to the top 25% of dividend payers in the UK market (5.37%).

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

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


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (28.5%), SVS's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: SVS's dividends in 3 years are forecast to be well covered by earnings (43.5% payout ratio).


Next Steps

Management

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

4.3yrs

Average management tenure


CEO

Mark Ridley (57yo)

0.8yrs

Tenure

UK£1,303,002

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 has recently become CEO, making it difficult to compare their total compensation against companies of similar size in the UK market.

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


Management Age and Tenure

4.3yrs

Average Tenure

54yo

Average Age

Experienced Management: SVS's management team is considered experienced (4.3 years average tenure).


Board Age and Tenure

3.4yrs

Average Tenure

57.5yo

Average Age

Experienced Board: SVS's board of directors are considered experienced (3.4 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

BuyUK£12213 May 19
Simon Hope
EntityIndividual
Role
Member of Management Board
Global Head of Capital Markets & Member of Group Executive Board
Shares14
Max PriceUK£8.75
BuyUK£14913 May 19
James Sparrow
EntityIndividual
Role
Member of Management Board
CEO of UK & EMEA and Member of Group Executive Board
Shares17
Max PriceUK£8.75
BuyUK£12312 Feb 19
Simon Hope
EntityIndividual
Role
Member of Management Board
Global Head of Capital Markets & Member of Group Executive Board
Shares15
Max PriceUK£8.23
BuyUK£15612 Feb 19
James Sparrow
EntityIndividual
Role
Member of Management Board
CEO of UK & EMEA and Member of Group Executive Board
Shares19
Max PriceUK£8.23

Ownership Breakdown


Management Team

  • Simon James Shaw (54yo)

    Group CFO

    • Tenure: 10.6yrs
    • Compensation: UK£1.58m
  • Mitch Rudin (66yo)

    Member of Group Executive Board

    • Tenure: 0.8yrs
  • Simon Hope (54yo)

    Global Head of Capital Markets & Member of Group Executive Board

    • Tenure: 11.7yrs
    • Compensation: UK£5.60k
  • Mitch Steir

    Member of Group Executive Board

    • Tenure: 5.4yrs
  • Raymond Lee (54yo)

    Member of Group Executive Board

    • Tenure: 8.8yrs
  • Chris Lee (53yo)

    Group Legal Director

    • Tenure: 11.2yrs
  • Mark Ridley (57yo)

    Group CEO

    • Tenure: 0.8yrs
    • Compensation: UK£1.30m
  • Chris Mancini

    Member of Group Executive Board

    • Tenure: 3.3yrs
  • James Sparrow

    CEO of UK & EMEA and Member of Group Executive Board

    • Tenure: 1.4yrs
  • Katrina White

    Director of Operations

    • Tenure: 1.6yrs

Board Members

  • Nicholas Ferguson (71yo)

    Chairman of the Board

    • Tenure: 3.4yrs
    • Compensation: UK£207.50k
  • Simon James Shaw (54yo)

    Group CFO

    • Tenure: 10.6yrs
    • Compensation: UK£1.58m
  • Tim Freshwater (74yo)

    Senior Independent Non-Executive Director

    • Tenure: 3.4yrs
    • Compensation: UK£60.65k
  • Stacey Cartwright (55yo)

    Additional Independent Non-Executive Director

    • Tenure: 1yrs
    • Compensation: UK£13.33k
  • Rupert H. Robson (58yo)

    Independent Non-Executive Director

    • Tenure: 4.3yrs
    • Compensation: UK£61.82k
  • Mark Ridley (57yo)

    Group CEO

    • Tenure: 0.8yrs
    • Compensation: UK£1.30m
  • Florence Tondu-Melique

    Additional Independent Non-Executive Director

    • Tenure: 1yrs
    • Compensation: UK£13.33k

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£1.303b
  • Shares outstanding: 136.17m
  • 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 com ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/23 20:48
End of Day Share Price2019/10/23 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.