Severn Trent
Market Cap
UK£6.2b
Last Updated
2020/02/16 21:06 UTC
Data Sources
Company Financials +
Executive Summary
Severn Trent Plc operates as a water and sewerage company in the United Kingdom and internationally.
Rewards
Risk Analysis
Snowflake Analysis
Solid track record established dividend payer.
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 has not had significant price volatility in the past 3 months.
Market Performance
7 Day Return
2.0%
SVT
2.8%
GB Water Utilities
-0.2%
GB Market
1 Year Return
34.1%
SVT
34.3%
GB Water Utilities
6.1%
GB Market
Return vs Industry: SVT matched the UK Water Utilities industry which returned 34.3% over the past year.
Return vs Market: SVT exceeded the UK Market which returned 6.1% over the past year.
Shareholder returns
| SVT | Industry | Market | |
|---|---|---|---|
| 7 Day | 2.0% | 2.8% | -0.2% |
| 30 Day | 1.0% | 3.9% | -1.8% |
| 90 Day | 10.5% | 16.5% | 4.0% |
| 1 Year | 40.3%34.1% | 40.8%34.3% | 11.8%6.1% |
| 3 Year | 28.3%12.9% | 33.8%16.5% | 17.5%2.6% |
| 5 Year | 56.1%27.3% | 50.6%20.7% | 34.8%3.7% |
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
2 days ago | Simply Wall St
Managing Director of Business Services Andrew Smith Just Sold A Bunch Of Shares In Severn Trent Plc (LON:SVT)5 days ago | Simply Wall St
Is Severn Trent Plc's (LON:SVT) High P/E Ratio A Problem For Investors?2 weeks ago | Simply Wall St
Does Severn Trent Plc's (LON:SVT) CEO Salary Reflect Performance?Valuation
Is Severn Trent undervalued compared to its fair value and its price relative to the market?
20.83x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: SVT (£26.09) is trading above our estimate of fair value (£21.25)
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 (20.8x) compared to the Water Utilities industry average (17.3x).
PE vs Market: SVT is poor value based on its PE Ratio (20.8x) compared to the UK market (18.5x).
Price to Earnings Growth Ratio
PEG Ratio: SVT is poor value based on its PEG Ratio (30x)
Price to Book Ratio
PB vs Industry: SVT is overvalued based on its PB Ratio (5x) compared to the XE Water Utilities industry average (1.8x).
Next Steps
Future Growth
How is Severn Trent forecast to perform in the next 1 to 3 years based on estimates from 11 analysts?
0.7%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: SVT's forecast earnings growth (0.7% per year) is above the savings rate (0.5%).
Earnings vs Market: SVT's earnings (0.7% per year) are forecast to grow slower than the UK market (12.2% per year).
High Growth Earnings: SVT's earnings are forecast to grow, but not significantly.
Revenue vs Market: SVT's revenue (0.8% per year) is forecast to grow slower than the UK market (3.4% per year).
High Growth Revenue: SVT's revenue (0.8% 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 (22.2%)
Next Steps
Past Performance
How has Severn Trent performed over the past 5 years?
8.2%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: SVT has high quality earnings.
Growing Profit Margin: SVT's current net profit margins (16.5%) are higher than last year (14.8%).
Past Earnings Growth Analysis
Earnings Trend: SVT's earnings have grown by 8.2% per year over the past 5 years.
Accelerating Growth: SVT's earnings growth over the past year (15%) exceeds its 5-year average (8.2% per year).
Earnings vs Industry: SVT earnings growth over the past year (15%) exceeded the Water Utilities industry 7.5%.
Return on Equity
High ROE: Whilst SVT's Return on Equity (24.14%) is high, this metric is skewed due to their high level of debt.
Return on Assets
Return on Capital Employed
Next Steps
Financial Health
How is Severn Trent's financial position?
Financial Position Analysis
Short Term Liabilities: SVT's short term assets (£696.8M) do not cover its short term liabilities (£1.0B).
Long Term Liabilities: SVT's short term assets (£696.8M) do not cover its long term liabilities (£8.2B).
Debt to Equity History and Analysis
Debt Level: SVT's debt to equity ratio (501.8%) is considered high.
Reducing Debt: SVT's debt to equity ratio has increased from 434.8% to 501.8% over the past 5 years.
Debt Coverage: SVT's debt is not well covered by operating cash flow (12.9%).
Interest Coverage: SVT's interest payments on its debt are well covered by EBIT (3.2x coverage).
Balance Sheet
Inventory Level: SVT has a high level of physical assets or inventory.
Debt Coverage by Assets: SVT's debt is not covered by short term assets (assets are 0.1x debt).
Next Steps
Dividend
What is Severn Trent's current dividend yield, its reliability and sustainability?
3.84%
Current Dividend Yield
Dividend Yield vs Market
Current dividend yield vs market & industry
Notable Dividend: SVT's dividend (3.84%) is higher than the bottom 25% of dividend payers in the UK market (1.83%).
High Dividend: SVT's dividend (3.84%) is low compared to the top 25% of dividend payers in the UK market (5.1%).
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: At its current payout ratio (76.7%), SVT's payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: SVT's dividends in 3 years are forecast to be covered by earnings (82.2% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
5.0yrs
Average management tenure
CEO
Liv Garfield (43yo)
5.8yrs
Tenure
UK£2,395,400
Compensation
Ms. Olivia R. Garfield, also known as Liv, BA (Hons), has been Executive Director of Hafren Dyfrdwy Limited since February 17, 2017. She has been the Chief Executive Officer at Severn Trent Plc and Severn ...
CEO Compensation Analysis
Compensation vs Market: Liv's total compensation ($USD3.12M) is about average for companies of similar size in the UK market ($USD3.35M).
Compensation vs Earnings: Liv's compensation has been consistent with company performance over the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| CEO & Executive Director | 5.8yrs | UK£2.40m | 0.076% £4.7m | |
| CFO & Executive Director | 4.8yrs | UK£1.25m | 0.021% £1.3m | |
| Head of Investor Relation | 2.1yrs | no data | no data | |
| General Counsel & Company Secretary | 8.7yrs | no data | no data | |
| Director of Human Resources | 2.5yrs | no data | no data | |
| Managing Director of Business Services | 5.6yrs | UK£776.10k | 0.0043% £267.2k | |
| Chief Customer Officer | 5.2yrs | no data | no data | |
| Capital Delivery & Commercial Director | 0yrs | no data | 0.0068% £421.3k | |
| Head of Economic Regulation | 0yrs | no data | no data | |
| Managing Director of Production | 2.2yrs | no data | 0.0013% £80.2k |
5.0yrs
Average Tenure
48yo
Average Age
Experienced Management: SVT's management team is seasoned and experienced (5 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| CEO & Executive Director | 5.8yrs | UK£2.40m | 0.076% £4.7m | |
| CFO & Executive Director | 4.8yrs | UK£1.25m | 0.021% £1.3m | |
| Non-Executive Chairman | 9.6yrs | UK£287.60k | 0.0034% £213.8k | |
| Independent Non-Executive Director | 3.6yrs | UK£55.10k | 0.00017% £10.6k | |
| Independent Non-Executive Director | 0.08yrs | no data | no data | |
| Senior Independent Non Executive Director | 3.6yrs | UK£65.10k | 0.00094% £58.4k | |
| Independent Non Executive Director | 5.8yrs | UK£85.10k | 0.0011% £69.6k | |
| Independent Non Executive Director | 5.9yrs | UK£70.10k | 0.00083% £51.6k | |
| Independent Non-Executive Director | 6.1yrs | UK£68.10k | 0.00019% £11.8k |
5.8yrs
Average Tenure
60yo
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: SVT insiders have only sold shares 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£6.214b
- Shares outstanding: 238.17m
- 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
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| SVTR.F | OTCPK (Pink Sheets LLC) | Yes | Ordinary Shares | US | USD | Jan 1992 |
| SVT | LSE (London Stock Exchange) | Yes | Ordinary Shares | GB | GBP | Jan 1992 |
| SVT1 | DB (Deutsche Boerse AG) | Yes | Ordinary Shares | DE | EUR | Jan 1992 |
| SVTL | BATS-CHIXE (BATS 'Chi-X Europe') | Yes | Ordinary Shares | GB | GBP | Jan 1992 |
| STRN.Y | OTCPK (Pink Sheets LLC) | SPONSORED ADR | US | USD | Mar 2012 |
Biography
Severn Trent Plc operates as a water and sewerage company in the United Kingdom and internationally. It operates through two segments, Regulated Water and Waste Water, and Business Services. The Regulated Water and Waste Water segment offers water and sewerage services to approximately 4.5 million households and businesses in the Midlands and Wales. The Business Services segment provides sludge treatment and related renewable energy generating services; and generates renewable energy from anaerobic digestion, crop, hydropower, wind turbines, and solar technology. It also provides contract services to municipal and industrial clients in the United Kingdom and Ireland; and the United Kingdom Ministry of Defense for design, build, and operation of water and waste water treatment facilities and networks, as well as services to developers. In addition, this segment manages and sells land; and offers developer, property search, and others services. The company was founded in 1974 and is headquartered in Coventry, the United Kingdom.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/02/16 21:06 |
| End of Day Share Price | 2020/02/14 00:00 |
| Earnings | 2019/09/30 |
| Annual Earnings | 2019/03/31 |
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.