LSE:SVT

Stock Analysis Report

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Executive Summary

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


Snowflake Analysis

Average dividend payer with limited growth.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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.


Market Performance


7 Day Return

1.7%

SVT

1.6%

GB Water Utilities

-2.4%

GB Market


1 Year Return

-8.7%

SVT

-9.5%

GB Water Utilities

-8.0%

GB Market

Return vs Industry: SVT matched the UK Water Utilities industry which returned -9.5% over the past year.

Return vs Market: SVT matched the UK Market which returned -8% over the past year.


Shareholder returns

SVTIndustryMarket
7 Day1.7%1.6%-2.4%
30 Day0.5%0.7%-0.5%
90 Day-2.6%2.0%18.1%
1 Year-4.9%-8.7%-5.6%-9.5%-4.4%-8.0%
3 Year41.5%23.9%44.8%26.1%3.7%-9.0%
5 Year33.4%8.6%33.9%7.1%43.1%15.6%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

49.56x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: SVT (£23.68) is trading above our estimate of fair value (£16.3)

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 (49.6x) compared to the XE Water Utilities industry average (28.3x).

PE vs Market: SVT is poor value based on its PE Ratio (49.6x) compared to the UK market (22.9x).


Price to Earnings Growth Ratio

PEG Ratio: SVT is poor value based on its PEG Ratio (5.2x)


Price to Book Ratio

PB vs Industry: SVT is overvalued based on its PB Ratio (5.6x) compared to the XE Water Utilities industry average (1.4x).


Next Steps

Future Growth

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

9.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SVT's forecast earnings growth (9.5% per year) is above the savings rate (1%).

Earnings vs Market: SVT's earnings (9.5% per year) are forecast to grow slower than the UK market (24% per year).

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

Revenue vs Market: SVT's revenue (2.6% per year) is forecast to grow slower than the UK market (6.4% per year).

High Growth Revenue: SVT's revenue (2.6% 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 (24.4%)


Next Steps

Past Performance

How has Severn Trent performed over the past 5 years?

-7.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SVT has high quality earnings.

Growing Profit Margin: SVT's current net profit margins (6.2%) are lower than last year (16.4%).


Past Earnings Growth Analysis

Earnings Trend: SVT's earnings have declined by 7.7% per year over the past 5 years.

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

Earnings vs Industry: SVT had negative earnings growth (-61.6%) over the past year, making it difficult to compare to the Water Utilities industry average (-28.3%).


Return on Equity

High ROE: SVT's Return on Equity (11.2%) is considered low.


Next Steps

Financial Health

How is Severn Trent's financial position?


Financial Position Analysis

Short Term Liabilities: SVT's short term assets (£580.8M) do not cover its short term liabilities (£1.1B).

Long Term Liabilities: SVT's short term assets (£580.8M) do not cover its long term liabilities (£8.8B).


Debt to Equity History and Analysis

Debt Level: SVT's debt to equity ratio (619.8%) is considered high.

Reducing Debt: SVT's debt to equity ratio has increased from 505.3% to 619.8% over the past 5 years.

Debt Coverage: SVT's debt is not well covered by operating cash flow (14.3%).

Interest Coverage: SVT's interest payments on its debt are not well covered by EBIT (2.9x coverage).


Balance Sheet


Next Steps

Dividend

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

4.23%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: SVT's dividend (4.23%) is higher than the bottom 25% of dividend payers in the UK market (1.52%).

High Dividend: SVT's dividend (4.23%) is low compared to the top 25% of dividend payers in the UK market (4.59%).


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 (210.7%), 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 (76.9% payout ratio).


Next Steps

Management

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

3.3yrs

Average management tenure


CEO

Liv Garfield (44 yo)

6.75yrs

Tenure

UK£2,733,400

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 ($USD3.75M) is above average for companies of similar size in the UK market ($USD2.63M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Olivia Garfield
CEO & Executive Director6.75yrsUK£2.73m0.095%
£ 5.4m
James Bowling
CFO & Executive Director5.75yrsUK£1.42m0.030%
£ 1.7m
Andrew Smith
Director of Customer Retail & Technology0.33yrUK£776.10k0.0080%
£ 453.1k
Richard Eadie
Head of Investor Relation3yrsno datano data
Bronagh Kennedy
General Counsel & Company Secretary9.58yrsno datano data
Kathryn Greenwood
Head of Communicationsno datano datano data
Neil Morrison
Director of Human Resources3.42yrsno datano data
Shane Anderson
Head of Economic Regulationno datano datano data
James Jesic
Managing Director of Customer Operations3.08yrsno data0.0023%
£ 130.7k
Bob Stear
Chief Engineer2.17yrsno data0.0013%
£ 73.5k
Malcolm Horne
Head of Water Quality and Environmentno datano datano data
Frank Thompson
Head of Capital Designno datano datano data

3.3yrs

Average Tenure

51yo

Average Age

Experienced Management: SVT's management team is considered experienced (3.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Olivia Garfield
CEO & Executive Director6.75yrsUK£2.73m0.095%
£ 5.4m
James Bowling
CFO & Executive Director5.75yrsUK£1.42m0.030%
£ 1.7m
Dominique J. Reiniche
Independent Non-Executive Director4.5yrsUK£56.40k0.00017%
£ 9.6k
Christine Hodgson
Independent Chairman0.75yrUK£14.10k0.00085%
£ 48.1k
Kevin Beeston
Senior Independent Non Executive Director4.5yrsUK£66.50k0.0013%
£ 72.4k
John Coghlan
Independent Non Executive Director6.67yrsUK£96.50k0.0011%
£ 63.4k
Philip Remnant
Independent Non Executive Director6.83yrsUK£71.40k0.00082%
£ 46.4k
Sharmila Nebhrajani
Non-Executive Director0.67yrno data0.000040%
£ 2.3k
Angela R. Strank
Independent Non-Executive Director7yrsUK£69.50k0.00019%
£ 10.7k

5.8yrs

Average Tenure

59.5yo

Average Age

Experienced Board: SVT's board of directors are considered experienced (5.8 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

Severn Trent Plc's company bio, 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£5.657b
  • Shares outstanding: 238.87m
  • 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

Biography

Severn Trent Plc operates as a water and sewerage company in England and Wales. It operates through two segments, Regulated Water and Waste Water, and Business Services. The Regulated Water and Waste Water...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/01/28 02:24
End of Day Share Price2021/01/27 00:00
Earnings2020/09/30
Annual Earnings2020/03/31


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.