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. More Details


Snowflake Analysis

Adequate balance sheet and slightly overvalued.


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 is not significantly more volatile than the rest of UK stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: SVS's weekly volatility (5%) has been stable over the past year.


Market Performance


7 Day Return

-6.7%

SVS

-3.4%

GB Real Estate

-0.3%

GB Market


1 Year Return

-6.4%

SVS

-13.8%

GB Real Estate

-11.0%

GB Market

Return vs Industry: SVS exceeded the UK Real Estate industry which returned -10.7% over the past year.

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


Shareholder returns

SVSIndustryMarket
7 Day-6.7%-3.4%-0.3%
30 Day12.9%12.5%10.2%
90 Day13.6%8.8%6.4%
1 Year-6.4%-6.4%-12.4%-13.8%-7.4%-11.0%
3 Year6.2%-0.7%-4.5%-11.9%0.9%-11.5%
5 Year17.5%2.8%13.6%-2.8%26.5%-2.5%

Long-Term 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?

18.03x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: SVS (£9.3) is trading above our estimate of fair value (£3.92)

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 (18.1x) compared to the GB Real Estate industry average (13.6x).

PE vs Market: SVS is good value based on its PE Ratio (18.1x) compared to the UK market (20.4x).


Price to Earnings Growth Ratio

PEG Ratio: SVS is good value based on its PEG Ratio (0.9x)


Price to Book Ratio

PB vs Industry: SVS is overvalued based on its PB Ratio (2.4x) 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?

20.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SVS's forecast earnings growth (20.3% per year) is above the savings rate (1.2%).

Earnings vs Market: SVS's earnings (20.3% per year) are forecast to grow slower than the UK market (27.3% per year).

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

Revenue vs Market: SVS's revenue (5.5% per year) is forecast to grow slower than the UK market (6.7% per year).

High Growth Revenue: SVS's revenue (5.5% 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 (14.7%).


Next Steps

Past Performance

How has Savills performed over the past 5 years?

4.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SVS has high quality earnings.

Growing Profit Margin: SVS's current net profit margins (3.8%) are lower than last year (4%).


Past Earnings Growth Analysis

Earnings Trend: SVS's earnings have grown by 4.9% 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 (-6.2%) over the past year, making it difficult to compare to the Real Estate industry average (-10.5%).


Return on Equity

High ROE: SVS's Return on Equity (13.3%) is considered low.


Next Steps

Financial Health

How is Savills's financial position?


Financial Position Analysis

Short Term Liabilities: SVS's short term assets (£674.5M) exceed its short term liabilities (£610.1M).

Long Term Liabilities: SVS's short term assets (£674.5M) exceed its long term liabilities (£432.2M).


Debt to Equity History and Analysis

Debt Level: SVS's debt to equity ratio (42.2%) is considered high.

Reducing Debt: SVS's debt to equity ratio has increased from 37.7% to 42.2% over the past 5 years.

Debt Coverage: SVS's debt is well covered by operating cash flow (103.2%).

Interest Coverage: SVS's interest payments on its debt are well covered by EBIT (11x coverage).


Balance Sheet


Next Steps

Dividend

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

1.99%

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?

3.5yrs

Average management tenure


CEO

Mark Ridley (58 yo)

1.83yrs

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 ($USD2.86M) is above average for companies of similar size in the UK market ($USD1.79M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Mark Ridley
Group CEO1.83yrsUK£2.14m0.15%
£ 1.9m
Simon James Shaw
Group CFO11.67yrsUK£1.63m0.13%
£ 1.7m
Simon Hope
Global Head of Capital Markets & Member of Group Executive Board 12.75yrsUK£5.60k0.14%
£ 1.8m
Chris Lee
Group Legal Director12.25yrsno data0.082%
£ 1.0m
Raymond Lee
Chief Executive of Hong Kong9.83yrsno data0.077%
£ 973.3k
Christian Mancini
CEO of Asia Pacific (ex Greater China) & Member of Group Executive Board4.33yrsno data0.082%
£ 1.0m
Katrina White
Director of Operations2.67yrsno datano data
James Sparrow
CEO of UK & EMEA and Member of Group Executive Board2.5yrsno data0.044%
£ 554.8k
Mitchell Rudin
Member of Group Executive Board and Chairman & CEO of Savills North America1.83yrsno data0.025%
£ 316.6k
Alexander Jeffrey
CEO of Savills Investment Management & Member of Group Executive Board1yrno datano data
Philipe Fischer
Director of Investment3.67yrsno datano data
Shaun Rhodes
Head & Account Director of POP Marketing3.25yrsno datano data

3.5yrs

Average Tenure

55yo

Average Age

Experienced Management: SVS's management team is considered experienced (3.5 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Mark Ridley
Group CEO1.83yrsUK£2.14m0.15%
£ 1.9m
Simon James Shaw
Group CFO11.67yrsUK£1.63m0.13%
£ 1.7m
Nicholas Ferguson
Chairman of the Board4.5yrsUK£215.00k0.021%
£ 271.5k
Timothy George Freshwater
Senior Independent Non-Executive Director4.5yrsUK£62.00kno data
Stacey Cartwright
Independent Non-Executive Director2.08yrsUK£63.73k0.0036%
£ 46.3k
Rupert H. Robson
Independent Non-Executive Director5.42yrsUK£64.00k0.0058%
£ 74.0k
Florence Tondu-Melique
Independent Non-Executive Director2.08yrsUK£54.00kno data
Dana Roffman
Additional Independent Non-Executive Director1yrUK£9.12kno data

3.5yrs

Average Tenure

58.5yo

Average Age

Experienced Board: SVS's board of directors are considered experienced (3.5 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

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£1.271b
  • 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 com...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/11/27 20:02
End of Day Share Price2020/11/27 00:00
Earnings2020/06/30
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.