OTCPK:SRRL.F

Stock Analysis Report

Executive Summary

Sirius Real Estate Limited, a real estate company, engages in the investment, development, and operation of commercial properties in Germany.


Snowflake Analysis

Fair value with acceptable track record.

Share Price & News

How has Sirius Real Estate's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: SRRL.F has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0%

SRRL.F

19.0%

US Real Estate

7.2%

US Market


1 Year Return

n/a

SRRL.F

-30.9%

US Real Estate

-10.4%

US Market

Return vs Industry: Insufficient data to determine how SRRL.F performed against the US Real Estate industry.

Return vs Market: Insufficient data to determine how SRRL.F performed against the US Market.


Shareholder returns

SRRL.FIndustryMarket
7 Day0%19.0%7.2%
30 Day0%-30.3%-12.6%
90 Day0%-37.8%-19.4%
1 Yearn/a-30.3%-30.9%-8.5%-10.4%
3 Yearn/a-15.3%-17.4%15.8%8.3%
5 Yearn/a-31.1%-33.2%35.8%21.0%

Price Volatility Vs. Market

How volatile is Sirius Real Estate's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Sirius Real Estate undervalued compared to its fair value and its price relative to the market?

8.33x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: SRRL.F ($0.93) is trading above our estimate of fair value ($0.46)

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


Price To Earnings Ratio

PE vs Industry: SRRL.F is good value based on its PE Ratio (8.3x) compared to the Real Estate industry average (25.3x).

PE vs Market: SRRL.F is good value based on its PE Ratio (8.3x) compared to the US market (18.9x).


Price to Earnings Growth Ratio

PEG Ratio: SRRL.F's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: SRRL.F is good value based on its PB Ratio (1.4x) compared to the US Real Estate industry average (1.5x).


Next Steps

Future Growth

How is Sirius Real Estate forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

-14.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SRRL.F's earnings are forecast to decline over the next 3 years (-14.8% per year).

Earnings vs Market: SRRL.F's earnings are forecast to decline over the next 3 years (-14.8% per year).

High Growth Earnings: SRRL.F's earnings are forecast to decline over the next 3 years.

Revenue vs Market: SRRL.F's revenue is expected to decline over the next 3 years (-5.1% per year).

High Growth Revenue: SRRL.F's revenue is forecast to decline over the next 3 years (-5.1% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if SRRL.F's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Sirius Real Estate performed over the past 5 years?

28.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SRRL.F has a large one-off gain of €99.4M impacting its September 30 2019 financial results.

Growing Profit Margin: SRRL.F's current net profit margins (88.7%) are higher than last year (76.8%).


Past Earnings Growth Analysis

Earnings Trend: SRRL.F's earnings have grown significantly by 28.9% per year over the past 5 years.

Accelerating Growth: SRRL.F's earnings growth over the past year (27.5%) is below its 5-year average (28.9% per year).

Earnings vs Industry: SRRL.F earnings growth over the past year (27.5%) exceeded the Real Estate industry -25%.


Return on Equity

High ROE: SRRL.F's Return on Equity (16.4%) is considered low.


Next Steps

Financial Health

How is Sirius Real Estate's financial position?


Financial Position Analysis

Short Term Liabilities: SRRL.F's short term assets (€109.3M) exceed its short term liabilities (€53.1M).

Long Term Liabilities: SRRL.F's short term assets (€109.3M) do not cover its long term liabilities (€383.5M).


Debt to Equity History and Analysis

Debt Level: SRRL.F's debt to equity ratio (43%) is considered high.

Reducing Debt: SRRL.F's debt to equity ratio has reduced from 93.9% to 43% over the past 5 years.

Debt Coverage: SRRL.F's debt is not well covered by operating cash flow (19.2%).

Interest Coverage: SRRL.F's interest payments on its debt are well covered by EBIT (6.5x coverage).


Balance Sheet

Inventory Level: SRRL.F has a high level of physical assets or inventory.

Debt Coverage by Assets: SRRL.F's debt is not covered by short term assets (assets are 0.3x debt).


Next Steps

Dividend

What is Sirius Real Estate's current dividend yield, its reliability and sustainability?

3.37%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: SRRL.F's dividend (3.37%) is higher than the bottom 25% of dividend payers in the US market (1.4%).

High Dividend: SRRL.F's dividend (3.37%) is low compared to the top 25% of dividend payers in the US market (3.66%).


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, SRRL.F has been paying a dividend for less than 10 years.

Growing Dividend: SRRL.F's dividend payments have increased, but the company has only paid a dividend for 6 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (27.8%), SRRL.F's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: SRRL.F's dividends in 3 years are forecast to be covered by earnings (69.2% payout ratio).


Next Steps

Management

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

6.8yrs

Average management tenure


CEO

Andrew Coombs (54yo)

8s

Tenure

€6,631,533

Compensation

Mr. Andrew James Coombs has been the Chief Executive Officer at Sirius Facilities GmbH since December 2009. Mr. Coombs has been the Chief Executive Officer of Sirius Real Estate Limited since May 1, 2014.  ...


CEO Compensation Analysis

Compensation vs Market: Andrew's total compensation ($USD8.80M) is above average for companies of similar size in the US market ($USD3.86M).

Compensation vs Earnings: Andrew's compensation has increased by more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Andrew Coombs
CEO & Executive Director8yrs€6.63m0.87% 10.5m
Alistair Marks
CFO & Director5.67yrs€6.39m0.69% 8.3m
Tim Robertson
Investor Relations Contactno datano datano data
Rüdiger Swoboda
Sales Director10yrsno data0.11% 1.4m
Anja Paprocki
Human Resources Directorno datano datano data
Neil J. Tsappis
Interim Company Secretary0.25yrno datano data

6.8yrs

Average Tenure

50yo

Average Age

Experienced Management: SRRL.F's management team is seasoned and experienced (6.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Andrew Coombs
CEO & Executive Director8yrs€6.63m0.87% 10.5m
Alistair Marks
CFO & Director5.67yrs€6.39m0.69% 8.3m
Justin Atkinson
Independent Non-Executive Director2.83yrs€54.15k0.0084% 102.1k
Daniel Kitchen
Non-Executive Chairman1.33yrs€71.02kno data
Mark Cherry
Independent Non-Executive Director0.58yrno datano data
Andrew Peggie
Senior Independent Director2.83yrs€97.13k0.13% 1.6m
Jill May
Independent Non-Executive Director2.17yrs€45.60kno data

2.8yrs

Average Tenure

57yo

Average Age

Experienced Board: SRRL.F's board of directors are not considered experienced ( 2.8 years average tenure), which suggests a new board.


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 5.3%.


Top Shareholders

Company Information

Sirius Real Estate Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Sirius Real Estate Limited
  • Ticker: SRRL.F
  • Exchange: OTCPK
  • Founded: 2007
  • Industry: Real Estate Operating Companies
  • Sector: Real Estate
  • Market Cap: UK£912.360m
  • Listing Market Cap: UK£1.210b
  • Shares outstanding: 1.03b
  • Website: https://www.sirius-real-estate.com

Number of Employees


Location

  • Sirius Real Estate Limited
  • Trafalgar Court
  • 2nd Floor
  • Saint Peter Port
  • Guernsey
  • GY1 3EL
  • Channel Islands

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SRELSE (London Stock Exchange)YesOrdinary SharesGBGBPMay 2007
SREJSE (The Johannesburg Securities Exchange)YesOrdinary SharesZAZARMay 2007
SRRL.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDMay 2007
SRELBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBGBPMay 2007
SRET NBMV (Bolsa Mexicana de Valores)YesOrdinary SharesMXMXNMay 2007

Biography

Sirius Real Estate Limited, a real estate company, engages in the investment, development, and operation of commercial properties in Germany. The company owns and operates offices; warehouses, storerooms, and self-storage spaces; and production and workshop spaces. It serves small to medium-sized enterprises under the Sirius brand name. As of March 31, 2019, it owned a portfolio of owned 55 and managed 2 additional business parks with approximately 1.5 million square meters of lettable space. The company was formerly known as Dawnay, Day Sirius Limited and changed its name to Sirius Real Estate Limited in October 2008. Sirius Real Estate Limited was founded in 2007 and is based in Saint Peter Port, the Channel Islands. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/01/02 00:38
End of Day Share Price2019/10/04 00:00
Earnings2019/09/30
Annual Earnings2019/03/31


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.