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SVT

Severn Trent LSE:SVT Stock Report

Last Price

UK£23.55

Market Cap

UK£5.9b

7D

-7.4%

1Y

-9.5%

Updated

02 Oct, 2022

Data

Company Financials +
SVT fundamental analysis
Snowflake Score
Valuation2/6
Future Growth5/6
Past Performance0/6
Financial Health1/6
Dividends3/6

SVT Stock Overview

Severn Trent Plc operates as a water and sewerage company in England and Wales.

Severn Trent Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Severn Trent
Historical stock prices
Current Share PriceUK£23.55
52 Week HighUK£32.28
52 Week LowUK£22.72
Beta0.30
1 Month Change-15.62%
3 Month Change-15.44%
1 Year Change-9.53%
3 Year Change12.20%
5 Year Change9.13%
Change since IPO379.58%

Recent News & Updates

Sep 23
We Think Severn Trent (LON:SVT) Is Taking Some Risk With Its Debt

We Think Severn Trent (LON:SVT) Is Taking Some Risk With Its Debt

Legendary fund manager Li Lu (who Charlie Munger backed) once said, 'The biggest investment risk is not the volatility...

Jul 15
Severn Trent (LON:SVT) Will Be Hoping To Turn Its Returns On Capital Around

Severn Trent (LON:SVT) Will Be Hoping To Turn Its Returns On Capital Around

There are a few key trends to look for if we want to identify the next multi-bagger. Amongst other things, we'll want...

Jun 19
Estimating The Intrinsic Value Of Severn Trent Plc (LON:SVT)

Estimating The Intrinsic Value Of Severn Trent Plc (LON:SVT)

Does the June share price for Severn Trent Plc ( LON:SVT ) reflect what it's really worth? Today, we will estimate the...

Shareholder Returns

SVTGB Water UtilitiesGB Market
7D-7.4%-8.3%-1.8%
1Y-9.5%-12.6%-15.2%

Return vs Industry: SVT exceeded the UK Water Utilities industry which returned -12.6% over the past year.

Return vs Market: SVT exceeded the UK Market which returned -15.1% over the past year.

Price Volatility

Is SVT's price volatile compared to industry and market?
SVT volatility
SVT Average Weekly Movement3.4%
Water Utilities Industry Average Movement3.8%
Market Average Movement5.5%
10% most volatile stocks in GB Market10.9%
10% least volatile stocks in GB Market2.9%

Stable Share Price: SVT is less volatile than 75% of UK stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: SVT's weekly volatility (3%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
19747,369Liv Garfieldhttps://www.severntrent.com

Severn Trent Plc operates as a water and sewerage company in England and Wales. It operates in two segments, Regulated Water and Waste Water, and Business Services. The Regulated Water and Waste Water segment offers water and waste water services to approximately 4.8 million households and businesses in the Midlands and Wales.

Severn Trent Fundamentals Summary

How do Severn Trent's earnings and revenue compare to its market cap?
SVT fundamental statistics
Market CapUK£5.93b
Earnings (TTM)-UK£87.20m
Revenue (TTM)UK£1.95b

3.0x

P/S Ratio

-68.0x

P/E Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
SVT income statement (TTM)
RevenueUK£1.95b
Cost of RevenueUK£1.42b
Gross ProfitUK£531.00m
Other ExpensesUK£618.20m
Earnings-UK£87.20m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)-0.35
Gross Margin27.25%
Net Profit Margin-4.48%
Debt/Equity Ratio526.4%

How did SVT perform over the long term?

See historical performance and comparison

Dividends

4.3%

Current Dividend Yield

-290%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

Is SVT undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

  • Price-To-Sales vs Peers

  • Price-To-Sales vs Industry

  • Price-To-Sales vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for SVT?

Other financial metrics that can be useful for relative valuation.

SVT key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue6.5x
Enterprise Value/EBITDA14.6x
PEG Ration/a

Price to Sales Ratio vs Peers

How does SVT's PS Ratio compare to its peers?

SVT PS Ratio vs Peers
The above table shows the PS ratio for SVT vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPSEstimated GrowthMarket Cap
Peer Average2x
UU. United Utilities Group
3.3x3.2%UK£6.1b
PNN Pennon Group
2.6x4.9%UK£2.1b
CNA Centrica
0.2x-5.4%UK£4.2b
SSE SSE
1.9x3.6%UK£16.5b
SVT Severn Trent
3x4.6%UK£5.9b

Price-To-Sales vs Peers: SVT is expensive based on its Price-To-Sales Ratio (3x) compared to the peer average (2x).


Price to Earnings Ratio vs Industry

How does SVT's PE Ratio compare vs other companies in the Global Water Utilities Industry?

Price-To-Sales vs Industry: SVT is expensive based on its Price-To-Sales Ratio (3x) compared to the Global Water Utilities industry average (2.4x)


Price to Sales Ratio vs Fair Ratio

What is SVT's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

SVT PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio3x
Fair PS Ratio1x

Price-To-Sales vs Fair Ratio: SVT is expensive based on its Price-To-Sales Ratio (3x) compared to the estimated Fair Price-To-Sales Ratio (1x).


Share Price vs Fair Value

What is the Fair Price of SVT when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: SVT (£23.55) is trading below our estimate of fair value (£24.25)

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


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.


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Future Growth

How is Severn Trent forecast to perform in the next 1 to 3 years based on estimates from 11 analysts?

Future Growth Score

5/6

Future Growth Score 5/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


33.2%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SVT is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (0.9%).

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

High Growth Earnings: SVT is expected to become profitable in the next 3 years.

Revenue vs Market: SVT's revenue (4.6% per year) is forecast to grow faster than the UK market (4.5% per year).

High Growth Revenue: SVT's revenue (4.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: SVT's Return on Equity is forecast to be high in 3 years time (32.4%)


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Past Performance

How has Severn Trent performed over the past 5 years?

Past Performance Score

0/6

Past Performance Score 0/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


-33.6%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: SVT is currently unprofitable.

Growing Profit Margin: SVT is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: SVT is unprofitable, and losses have increased over the past 5 years at a rate of 33.6% per year.

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

Earnings vs Industry: SVT is unprofitable, making it difficult to compare its past year earnings growth to the Water Utilities industry (-47.9%).


Return on Equity

High ROE: SVT has a negative Return on Equity (-6.9%), as it is currently unprofitable.


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Financial Health

How is Severn Trent's financial position?

Financial Health Score

1/6

Financial Health Score 1/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: SVT's short term assets (£787.6M) do not cover its short term liabilities (£1.1B).

Long Term Liabilities: SVT's short term assets (£787.6M) do not cover its long term liabilities (£9.2B).


Debt to Equity History and Analysis

Debt Level: SVT's net debt to equity ratio (517.3%) is considered high.

Reducing Debt: SVT's debt to equity ratio has reduced from 559.2% to 526.4% over the past 5 years.

Debt Coverage: SVT's debt is not well covered by operating cash flow (13.4%).

Interest Coverage: SVT's interest payments on its debt are not well covered by EBIT (1.9x coverage).


Balance Sheet


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Dividend

What is Severn Trent current dividend yield, its reliability and sustainability?

Dividend Score

3/6

Dividend Score 3/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage


4.34%

Current Dividend Yield

Dividend Yield vs Market

Severn Trent Dividend Yield vs Market
How does Severn Trent dividend yield compare to the market?
SegmentDividend Yield
Company (Severn Trent)4.3%
Market Bottom 25% (GB)2.1%
Market Top 25% (GB)6.1%
Industry Average (Water Utilities)4.6%
Analyst forecast in 3 Years (Severn Trent)4.9%

Notable Dividend: SVT's dividend (4.34%) is higher than the bottom 25% of dividend payers in the UK market (2.12%).

High Dividend: SVT's dividend (4.34%) is low compared to the top 25% of dividend payers in the UK market (6.11%).


Stability and Growth of Payments

Stable Dividend: SVT's dividends per share have been stable in the past 10 years.

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


Earnings Payout to Shareholders

Earnings Coverage: SVT is paying a dividend but the company is unprofitable.


Cash Payout to Shareholders

Cash Flow Coverage: With its high cash payout ratio (105.4%), SVT's dividend payments are not well covered by cash flows.


Discover strong dividend paying companies

Management

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

5.2yrs

Average management tenure


CEO

Liv Garfield (46 yo)

8.5yrs

Tenure

UK£3,913,400

Compensation

Ms. Olivia R. Garfield, also known as Liv, CBE, BA (Hons), has been Executive Director of Hafren Dyfrdwy Cyfyngedig (formerly known as Hafren Dyfrdwy Limited) since February 17, 2017. She has been the Chie...


CEO Compensation Analysis

Liv Garfield's Compensation vs Severn Trent Earnings
How has Liv Garfield's remuneration changed compared to Severn Trent's earnings?
DateTotal Comp.SalaryCompany Earnings
Mar 31 2022UK£4mUK£755k

-UK£87m

Dec 31 2021n/an/a

-UK£78m

Sep 30 2021n/an/a

-UK£69m

Jun 30 2021n/an/a

UK£71m

Mar 31 2021UK£3mUK£738k

UK£212m

Dec 31 2020n/an/a

UK£163m

Sep 30 2020n/an/a

UK£114m

Jun 30 2020n/an/a

UK£136m

Mar 31 2020UK£3mUK£721k

UK£159m

Dec 31 2019n/an/a

UK£228m

Sep 30 2019n/an/a

UK£297m

Jun 30 2019n/an/a

UK£306m

Mar 31 2019UK£2mUK£704k

UK£315m

Dec 31 2018n/an/a

UK£287m

Sep 30 2018n/an/a

UK£258m

Jun 30 2018n/an/a

UK£249m

Mar 31 2018UK£2mUK£687k

UK£240m

Dec 31 2017n/an/a

UK£261m

Sep 30 2017n/an/a

UK£283m

Jun 30 2017n/an/a

UK£302m

Mar 31 2017UK£2mUK£674k

UK£322m

Dec 31 2016n/an/a

UK£343m

Sep 30 2016n/an/a

UK£365m

Jun 30 2016n/an/a

UK£340m

Mar 31 2016UK£2mUK£660k

UK£315m

Compensation vs Market: Liv's total compensation ($USD4.36M) is above average for companies of similar size in the UK market ($USD3.00M).

Compensation vs Earnings: Liv's compensation has increased whilst the company is unprofitable.


Leadership Team

Experienced Management: SVT's management team is seasoned and experienced (5.2 years average tenure).


Board Members

Experienced Board: SVT's board of directors are considered experienced (6.3 years average tenure).


Ownership

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


Insider Trading Volume

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


Recent Insider Transactions

LSE:SVT Recent Insider Transactions by Companies or Individuals
DateValueNameEntityRoleSharesMax Price
07 Jul 22BuyUK£9,771Gillian SheldonIndividual350UK£27.92
20 Jun 22SellUK£26,060James JesicIndividual932UK£27.96
08 Feb 22BuyUK£49,915Kevin BeestonIndividual1,781UK£28.03

Ownership Breakdown

What is the ownership structure of SVT?
Owner TypeNumber of SharesOwnership Percentage
Public Companies72,2010.03%
Employee Share Scheme149,8850.06%
Private Companies416,3470.2%
State or Government480,2590.2%
Individual Insiders497,9550.2%
General Public37,623,82414.9%
Institutions212,477,59784.4%

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


Top Shareholders

Top 25 shareholders own 60.49% of the company
OwnershipNameSharesCurrent ValueChange %Portfolio %
9.39%
BlackRock, Inc.
23,631,467£556.5m8.39%0.02%
5.53%
Lazard Asset Management LLC
13,910,349£327.6m0.5%0.37%
4.61%
Qatar Holding LLC
11,599,565£273.2m0%0.67%
4.33%
The Vanguard Group, Inc.
10,887,865£256.4m2.48%0.01%
3.8%
Legal & General Investment Management Limited
9,568,763£225.3m-2.23%0.08%
3.57%
Pictet Asset Management Limited
8,976,362£211.4m7.33%0.21%
2.81%
Amundi Asset Management
7,061,479£166.3m8.67%0.06%
2.69%
State Street Global Advisors, Inc.
6,770,990£159.5m-3.73%0.01%
2.52%
Aviva Investors Global Services Limited
6,355,602£149.7m-2.54%0.34%
2.34%
Norges Bank Investment Management
5,892,739£138.8m7.39%0.02%
2.26%
Impax Asset Management Group plc
5,684,050£133.9m-11.32%0.5%
2.02%
Magellan Asset Management Limited
5,096,473£120.0m24.31%0.45%
1.96%
Royal London Asset Management Limited
4,925,016£116.0m7.98%0.25%
1.32%
Fidelity International Ltd
3,323,396£78.3m-10.77%0.05%
1.24%
BNPP Asset Management France
3,121,426£73.5m3.31%0.27%
1.21%
Ignis Investment Services Limited
3,044,421£71.7m-10.96%0.31%
1.19%
Invesco Ltd.
2,993,037£70.5m-7.85%0.03%
1.19%
Northern Trust Global Investments
2,989,487£70.4m8.01%0.02%
1.13%
Maple-Brown Abbott Limited
2,838,160£66.8m-16.32%6.02%
1.1%
UBS Asset Management
2,766,548£65.2m17.22%0.01%
1.01%
Janus Henderson Group plc
2,534,077£59.7m-15.15%0.04%
0.95%
ATLAS Infrastructure Partners (UK) Ltd
2,388,424£56.2m227.86%9.96%
0.79%
Allianz Asset Management AG
1,989,731£46.9m-2.28%0.05%
0.78%
Societe Generale Group, Banking Investments
1,958,577£46.1m447.81%0.51%
0.77%
HSBC Global Asset Management (UK) Limited
1,949,434£45.9m-2.04%0.04%

Company Information

Severn Trent Plc's employee growth, exchange listings and data sources


Key Information

  • Name: Severn Trent Plc
  • Ticker: SVT
  • Exchange: LSE
  • Founded: 1974
  • Industry: Water Utilities
  • Sector: Utilities
  • Implied Market Cap: UK£5.928b
  • Shares outstanding: 251.72m
  • Website: https://www.severntrent.com

Number of Employees


Location

  • Severn Trent Plc
  • Severn Trent Centre
  • 2 St John’s Street
  • Coventry
  • West Midlands
  • CV1 2LZ
  • United Kingdom


Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SVTR.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJan 1992
SVTLSE (London Stock Exchange)YesOrdinary SharesGBGBPJan 1992
SVT1DB (Deutsche Boerse AG)YesOrdinary SharesDEEURJan 1992
SVTLBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBGBPJan 1992
STRN.YOTCPK (Pink Sheets LLC)SPONSORED ADRUSUSDMar 2012

Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/10/02 00:00
End of Day Share Price2022/09/30 00:00
Earnings2022/03/31
Annual Earnings2022/03/31


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.