AUSTRALIAN COMPANY NEWS BITES
STOCK REPORT
Seven Group Holdings Limited (ASX:SVW), Australia's 2nd largest capital goods company by market capitalisation, climbed $1.18 (or 12.0%) over the past three trading days, after rising 2% on Monday, 4.2% on Tuesday and 4.7% on Wednesday to close at $11.0. Compared with the All Ordinaries Index, which rose 21.3 points (or 0.4%) on the day, this was a relative price change of 4.2%.
RELATIVE VALUATION INDICATORS [RVI] FUNDAMENTALS
Bullish Signals:
Valuation
- The Price to Book of 1.9 is lower than the average of 2.5 for the Capital Goods sector and 2.7 for the Total Australian Market. We estimate the shares are trading at a current year Price to Book of 1.9 and a forward year Price to Book of 2.
- Tobin's Q Ratio, defined as MCap divided by Total Assets, is 0.6. Compared with the rest of the market the stock is undervalued.
Bearish Signals:
Valuation
- Price/Earnings of 20.4 versus sector average of 17.9 and market average of 21.0.
- Price/Sales of 0.7 versus sector average of 0.6 and market average of 1.4. We estimate the shares are trading at a current year Price/Sales of 0.4 and a forward year Price/Sales of 0.2.
- Dividend Yield of 1.6% (based on trailing 12 months dividends of 18.0c) versus sector average of 2.4% and market average of 2.8%.
Performance
- Return on Equity of 6.5% versus sector average of 9.5% and market average of 8.9%.
- Total Liabilities/ EBITDA of 9.8 is more than or equal to 5, this compares unfavourably with the Joseph Piotroski benchmark of 5.
- Return on Assets of 2.9% versus sector average of 4.1% and market average of 1.8%.
Description | Value | Rank In Market |
Price to Sales | 0.7 | In Top Quartile |
Return on Assets [ROA] % | 2.9 | In Bottom Quartile |
Dividend Yield % | 1.6% | In Bottom Quartile |
Total Debt to Equity | 0.7 | In Bottom Quartile |
Return on Capital Employed [ROCE] % | 5.5 | In Bottom Quartile |
Net Profit Margin % | 3.5 | In Bottom Quartile |
EBITDA Margin % | 7 | In Bottom Quartile |
Earnings Yield % | 4.9 | In Bottom Quartile |
RELATIVE VALUATION INDICATORS [RVI] TECHNICALS
- Compared with the All Ordinaries Index which rose 3.9% for the month, this represented a relative price increase of 19.8% for the month.
- In the Australian market of 1,245 stocks and 59 units traded today, the stock has a 6-month relative price strength of 78 (it has outperformed 78% of the market).
Beta: The Beta of this stock is 1.6. A Beta greater than 1 suggests this is a high risk, high return stock with volatility greater than that of the market.
Volume: there were 1,925,625 shares worth $21.2 million traded. The volume was 4.3 times the average trading of 446,545 shares.
% Discount to high: it is at a discount of 0.7% to the 12-month high of $11.08 (traded on 27 Feb, 2013).
- The present value of $1,000 (PV$1000) invested one year ago is $1,289 [vs $1,202 for the All Ordinaries Index], including a capital gain of $267 and dividend reinvested of $22. The total return to shareholders for 1 year is 28.9%.
PV$1000 | 1-week | 1-month | 1-year |
SVW.ASX | $1,076 | $1,237 | $1,289 |
Overbought/Bearish/Resistance Signals
- The price has risen above the upper Bollinger band of $10.64, indicating a downside risk for it to fall back within the band.
