company background image
SVT

Severn TrentLSE:SVT Stock Report

Market Cap

UK£6.7b

7D

-3.3%

1Y

9.1%

Updated

25 Sep, 2021

Data

Company Financials +
SVT fundamental analysis
Snowflake Score
Valuation0/6
Future Growth2/6
Past Performance4/6
Financial Health0/6
Dividends4/6

SVT 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£26.93
52 Week HighUK£21.48
52 Week LowUK£29.30
Beta0.30
1 Month Change-2.74%
3 Month Change7.46%
1 Year Change9.12%
3 Year Change45.65%
5 Year Change7.51%
Change since IPO448.41%

Recent News & Updates

Shareholder Returns

SVTGB Water UtilitiesGB Market
7D-3.3%-3.1%0.6%
1Y9.1%2.9%23.4%

Return vs Industry: SVT exceeded the UK Water Utilities industry which returned 2.9% over the past year.

Return vs Market: SVT underperformed the UK Market which returned 23.4% over the past year.

Price Volatility

Is SVT's price volatile compared to industry and market?
SVT volatility
SVT Beta0.30
Industry Beta0.30
Market Beta1

Stable Share Price: SVT is less volatile than 75% of UK stocks over the past 3 months, typically moving +/- 2% a week.

Volatility Over Time: SVT's weekly volatility (2%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
19747,087Liv 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 4.6 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£6.75b
Earnings (TTM)UK£212.20m
Revenue (TTM)UK£1.83b

31.8x

P/E Ratio

3.7x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
SVT income statement (TTM)
RevenueUK£1.83b
Cost of RevenueUK£1.32b
Gross ProfitUK£510.70m
ExpensesUK£298.50m
EarningsUK£212.20m

Last Reported Earnings

Mar 31, 2021

Next Earnings Date

Nov 23, 2021

Earnings per share (EPS)0.85
Gross Margin27.95%
Net Profit Margin11.61%
Debt/Equity Ratio578.6%

How did SVT perform over the long term?

See historical performance and comparison

Dividends

3.8%

Current Dividend Yield

114%

Payout Ratio

Valuation

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

31.79x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: SVT (£26.93) is trading above our estimate of fair value (£24.76)

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


Price To Earnings Ratio

PE vs Industry: SVT is poor value based on its PE Ratio (31.8x) compared to the European Water Utilities industry average (20.8x).

PE vs Market: SVT is poor value based on its PE Ratio (31.8x) compared to the UK market (23.4x).


Price to Earnings Growth Ratio

PEG Ratio: SVT is poor value based on its PEG Ratio (3.6x)


Price to Book Ratio

PB vs Industry: SVT is overvalued based on its PB Ratio (5.9x) compared to the XE Water Utilities industry average (1.6x).


Future Growth

How is Severn Trent forecast to perform in the next 1 to 3 years based on estimates from 12 analysts?

8.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SVT's forecast earnings growth (8.8% per year) is above the savings rate (0.9%).

Earnings vs Market: SVT's earnings (8.8% per year) are forecast to grow slower than the UK market (13.2% per year).

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

Revenue vs Market: SVT's revenue (3% per year) is forecast to grow slower than the UK market (5.4% per year).

High Growth Revenue: SVT's revenue (3% 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 (21.5%)


Past Performance

How has Severn Trent performed over the past 5 years?

-14.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SVT has high quality earnings.

Growing Profit Margin: SVT's current net profit margins (11.6%) are higher than last year (8.6%).


Past Earnings Growth Analysis

Earnings Trend: SVT's earnings have declined by 14% per year over the past 5 years.

Accelerating Growth: SVT's earnings growth over the past year (33.6%) exceeds its 5-year average (-14% per year).

Earnings vs Industry: SVT earnings growth over the past year (33.6%) exceeded the Water Utilities industry 0.7%.


Return on Equity

High ROE: SVT's Return on Equity (18.6%) is considered low.


Financial Health

How is Severn Trent's financial position?


Financial Position Analysis

Short Term Liabilities: SVT's short term assets (£606.0M) do not cover its short term liabilities (£1.1B).

Long Term Liabilities: SVT's short term assets (£606.0M) do not cover its long term liabilities (£8.8B).


Debt to Equity History and Analysis

Debt Level: SVT's debt to equity ratio (578.6%) is considered high.

Reducing Debt: SVT's debt to equity ratio has increased from 488.8% to 578.6% over the past 5 years.

Debt Coverage: SVT's debt is not well covered by operating cash flow (13.3%).

Interest Coverage: SVT's interest payments on its debt are not well covered by EBIT (2.6x coverage).


Balance Sheet


Dividend

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

3.77%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: SVT's dividend (3.77%) is higher than the bottom 25% of dividend payers in the UK market (1.34%).

High Dividend: SVT's dividend (3.77%) is low compared to the top 25% of dividend payers in the UK market (3.93%).


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.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (114%), SVT's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: SVT's dividends in 3 years are forecast to be covered by earnings (81.7% payout ratio).


Next Steps

Management

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

3.8yrs

Average management tenure


CEO

Liv Garfield (45 yo)

7.42yrs

Tenure

UK£2,807,800

Compensation

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


CEO Compensation Analysis

Compensation vs Market: Liv's total compensation ($USD3.84M) is above average for companies of similar size in the UK market ($USD2.18M).

Compensation vs Earnings: Liv's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: SVT's management team is considered experienced (3.8 years average tenure).


Board Members

Experienced Board: SVT's board of directors are considered experienced (6.9 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 been diluted in the past year, with total shares outstanding growing by 4.9%.


Top Shareholders

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
  • Market Cap: UK£6.745b
  • Shares outstanding: 250.47m
  • 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


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/09/25 17:55
End of Day Share Price2021/09/24 00:00
Earnings2021/03/31
Annual Earnings2021/03/31


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.