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Smartgroup

ASX:SIQ
Snowflake Description

Flawless balance sheet with proven track record.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
SIQ
ASX
A$1B
Market Cap
  1. Home
  2. AU
  3. Commercial Services
Company description

Smartgroup Corporation Ltd provides specialist employee management services in Australia and internationally. The last earnings update was 94 days ago. More info.


Add to Portfolio Compare Print
  • Smartgroup has significant price volatility in the past 3 months.
SIQ Share Price and Events
7 Day Returns
-15.3%
ASX:SIQ
3.3%
AU Commercial Services
0.9%
AU Market
1 Year Returns
-6.1%
ASX:SIQ
15.9%
AU Commercial Services
16.3%
AU Market
SIQ Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Smartgroup (SIQ) -15.3% -15.6% -12.1% -6.1% 68.9% 587.7%
AU Commercial Services 3.3% 2.1% -2.7% 15.9% 15.4% 43.2%
AU Market 0.9% 1.9% 5.1% 16.3% 22.3% 22.5%
1 Year Return vs Industry and Market
  • SIQ underperformed the Commercial Services industry which returned 15.9% over the past year.
  • SIQ underperformed the Market in Australia which returned 16.3% over the past year.
Price Volatility
SIQ
Industry
5yr Volatility vs Market

Value

 Is Smartgroup undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Smartgroup to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Smartgroup.

ASX:SIQ Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 5 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 7.1%
Perpetual Growth Rate 10-Year AU Government Bond Rate 2.3%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for ASX:SIQ
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year AU Govt Bond Rate 2.3%
Equity Risk Premium S&P Global 6%
Commercial Services Unlevered Beta Simply Wall St/ S&P Global 0.66
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.66 (1 + (1- 30%) (5.48%))
0.789
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.8
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.31% + (0.8 * 5.96%)
7.08%

Discounted Cash Flow Calculation for ASX:SIQ using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Smartgroup is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

Note: Free cash flow to equity valuations ignore the company's cash or debt.

ASX:SIQ DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (AUD, Millions) Source Present Value
Discounted (@ 7.08%)
2020 99.00 Analyst x1 92.45
2021 94.70 Analyst x1 82.59
2022 92.65 Est @ -2.17% 75.46
2023 91.88 Est @ -0.82% 69.89
2024 91.99 Est @ 0.12% 65.34
2025 92.71 Est @ 0.78% 61.50
2026 93.85 Est @ 1.24% 58.14
2027 95.32 Est @ 1.56% 55.14
2028 97.02 Est @ 1.79% 52.42
2029 98.90 Est @ 1.94% 49.90
Present value of next 10 years cash flows A$662.00
ASX:SIQ DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= A$98.90 × (1 + 2.31%) ÷ (7.08% – 2.31%)
A$2,122.24
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= A$2,122.24 ÷ (1 + 7.08%)10
A$1,070.80
ASX:SIQ Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= A$662.00 + A$1,070.80
A$1,732.80
Equity Value per Share
(AUD)
= Total value / Shares Outstanding
= A$1,732.80 / 128.72
A$13.46
ASX:SIQ Discount to Share Price
Calculation Result
Value per share (AUD) From above. A$13.46
Current discount Discount to share price of A$9.49
= -1 x (A$9.49 - A$13.46) / A$13.46
29.5%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Smartgroup is available for.
Intrinsic value
30%
Share price is A$9.49 vs Future cash flow value of A$13.46
Current Discount Checks
For Smartgroup to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Smartgroup's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Smartgroup's share price is below the future cash flow value, but not at a substantial discount (< 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Smartgroup's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Smartgroup's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
ASX:SIQ PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-06-30) in AUD A$0.47
ASX:SIQ Share Price ** ASX (2019-11-18) in AUD A$9.49
Australia Commercial Services Industry PE Ratio Median Figure of 12 Publicly-Listed Commercial Services Companies 18.83x
Australia Market PE Ratio Median Figure of 519 Publicly-Listed Companies 18.63x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Smartgroup.

ASX:SIQ PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= ASX:SIQ Share Price ÷ EPS (both in AUD)

= 9.49 ÷ 0.47

20.02x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Smartgroup is overvalued based on earnings compared to the AU Commercial Services industry average.
  • Smartgroup is overvalued based on earnings compared to the Australia market.
Price based on expected Growth
Does Smartgroup's expected growth come at a high price?
Raw Data
ASX:SIQ PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 20.02x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 5 Analysts
9.8%per year
Australia Commercial Services Industry PEG Ratio Median Figure of 9 Publicly-Listed Commercial Services Companies 2.36x
Australia Market PEG Ratio Median Figure of 347 Publicly-Listed Companies 1.58x

*Line of best fit is calculated by linear regression .

ASX:SIQ PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 20.02x ÷ 9.8%

2.04x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Smartgroup is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Smartgroup's assets?
Raw Data
ASX:SIQ PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-06-30) in AUD A$2.11
ASX:SIQ Share Price * ASX (2019-11-18) in AUD A$9.49
Australia Commercial Services Industry PB Ratio Median Figure of 27 Publicly-Listed Commercial Services Companies 2.46x
Australia Market PB Ratio Median Figure of 1,584 Publicly-Listed Companies 1.75x
ASX:SIQ PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= ASX:SIQ Share Price ÷ Book Value per Share (both in AUD)

= 9.49 ÷ 2.11

4.49x

* Primary Listing of Smartgroup.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Smartgroup is overvalued based on assets compared to the AU Commercial Services industry average.
X
Value checks
We assess Smartgroup's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Commercial Services industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Commercial Services industry average (and greater than 0)? (1 check)
  5. Smartgroup has a total score of 1/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is Smartgroup expected to perform in the next 1 to 3 years based on estimates from 5 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
9.8%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Smartgroup expected to grow at an attractive rate?
  • Smartgroup's earnings growth is expected to exceed the low risk savings rate of 2.3%.
Growth vs Market Checks
  • Smartgroup's earnings growth is expected to exceed the Australia market average.
  • Smartgroup's revenue growth is expected to exceed the Australia market average.
Annual Growth Rates Comparison
Raw Data
ASX:SIQ Future Growth Rates Data Sources
Data Point Source Value (per year)
ASX:SIQ Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 5 Analysts 9.8%
ASX:SIQ Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 5 Analysts 5%
Australia Commercial Services Industry Earnings Growth Rate Market Cap Weighted Average 10.7%
Australia Commercial Services Industry Revenue Growth Rate Market Cap Weighted Average 5.4%
Australia Market Earnings Growth Rate Market Cap Weighted Average 9.7%
Australia Market Revenue Growth Rate Market Cap Weighted Average 3.7%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
ASX:SIQ Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (4 months ago) See Below
Future Estimates Average of up to 5 Analyst Estimates (S&P Global) See Below
All numbers in AUD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
ASX:SIQ Future Estimates Data
Date (Data in AUD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2021-12-31 279 99 81 5
2020-12-31 267 96 74 5
2019-12-31 254 84 68 5
2019-11-18
ASX:SIQ Past Financials Data
Date (Data in AUD Millions) Revenue Cash Flow Net Income *
2019-06-30 246 79 61
2019-03-31 244 67 60
2018-12-31 242 54 59
2018-09-30 236 57 56
2018-06-30 230 59 54
2018-03-31 218 64 47
2017-12-31 205 69 41
2017-09-30 195 62 39
2017-06-30 185 56 36
2017-03-31 167 50 34
2016-12-31 148 45 33
2016-09-30 128 39 29

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Smartgroup's earnings are expected to grow by 9.8% yearly, however this is not considered high growth (20% yearly).
  • Smartgroup's revenue is expected to grow by 5% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
ASX:SIQ Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (4 months ago) See Below
Future Estimates Average of up to 5 Analyst Estimates (S&P Global) See Below

All data from Smartgroup Company Filings, last reported 4 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

ASX:SIQ Future Estimates Data
Date (Data in AUD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2021-12-31 0.62 0.68 0.57 4.00
2020-12-31 0.57 0.65 0.53 4.00
2019-12-31 0.52 0.61 0.48 4.00
2019-11-18
ASX:SIQ Past Financials Data
Date (Data in AUD Millions) EPS *
2019-06-30 0.47
2019-03-31 0.47
2018-12-31 0.47
2018-09-30 0.45
2018-06-30 0.44
2018-03-31 0.39
2017-12-31 0.34
2017-09-30 0.33
2017-06-30 0.31
2017-03-31 0.30
2016-12-31 0.30
2016-09-30 0.27

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Smartgroup is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).
X
Future performance checks
We assess Smartgroup's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Australia market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Australia market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Smartgroup has a total score of 4/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Smartgroup performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Smartgroup's growth in the last year to its industry (Commercial Services).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Smartgroup has delivered over 20% year on year earnings growth in the past 5 years.
  • Smartgroup's 1-year earnings growth is less than its 5-year average (13.8% vs 43%)
  • Smartgroup's earnings growth has not exceeded the AU Commercial Services industry average in the past year (13.8% vs 18.9%).
Earnings and Revenue History
Smartgroup's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Smartgroup Company Filings, last reported 4 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

ASX:SIQ Past Revenue, Cash Flow and Net Income Data
Date (Data in AUD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-06-30 245.53 61.09 33.95
2019-03-31 243.92 60.19 33.57
2018-12-31 242.31 59.29 33.19
2018-09-30 236.22 56.43 32.18
2018-06-30 230.14 53.70 32.85
2018-03-31 217.79 47.45 32.14
2017-12-31 205.44 41.21 31.42
2017-09-30 195.41 38.56 29.72
2017-06-30 185.38 35.92 28.03
2017-03-31 166.67 34.35 25.78
2016-12-31 147.96 32.79 23.54
2016-09-30 127.78 28.64 20.98
2016-06-30 107.59 24.49 18.42
2016-03-31 99.68 22.35 17.35
2015-12-31 91.76 20.20 16.29
2015-09-30 87.43 16.71 15.59
2015-06-30 83.10 13.21 14.90
2015-03-31 78.23 6.13 13.67
2014-12-31 73.35 -0.96 12.45
2014-09-30 69.85 -2.19 11.15
2014-06-30 66.34 -3.41 9.85
2014-03-31 64.38 -0.22 9.23
2013-12-31 62.42 2.97 8.60
2012-12-31 59.50 11.40 8.20

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Smartgroup has efficiently used shareholders’ funds last year (Return on Equity greater than 20%).
  • Smartgroup used its assets more efficiently than the AU Commercial Services industry average last year based on Return on Assets.
  • Smartgroup has improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Smartgroup's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Commercial Services industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Smartgroup has a total score of 4/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Smartgroup's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Smartgroup's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Smartgroup is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Smartgroup's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Smartgroup's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Debt is covered by short term assets, assets are 2.2x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Smartgroup Company Filings, last reported 4 months ago.

ASX:SIQ Past Debt and Equity Data
Date (Data in AUD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-06-30 272.70 60.34 28.28
2019-03-31 272.70 60.34 28.28
2018-12-31 292.31 53.01 39.39
2018-09-30 292.31 53.01 39.39
2018-06-30 288.89 71.92 44.81
2018-03-31 288.89 71.92 44.81
2017-12-31 204.75 140.85 30.86
2017-09-30 204.75 140.85 30.86
2017-06-30 195.33 123.63 50.65
2017-03-31 195.33 123.63 50.65
2016-12-31 194.26 150.12 79.99
2016-09-30 194.26 150.12 79.99
2016-06-30 88.46 49.57 18.93
2016-03-31 88.46 49.57 18.93
2015-12-31 82.51 52.90 19.41
2015-09-30 82.51 52.90 19.41
2015-06-30 69.11 0.00 9.07
2015-03-31 69.11 0.00 9.07
2014-12-31 65.92 21.90 27.82
2014-09-30 65.92 21.90 27.82
2014-06-30 25.84 53.46 18.02
2014-03-31 25.84 53.46 18.02
2013-12-31 29.97 56.00 16.85
2012-12-31
  • Smartgroup's level of debt (18.7%) compared to net worth is satisfactory (less than 40%).
  • The level of debt compared to net worth has been reduced over the past 5 years (202.1% vs 18.7% today).
  • Debt is well covered by operating cash flow (155.5%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 22.3x coverage).
X
Financial health checks
We assess Smartgroup's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Smartgroup has a total score of 6/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

 What is Smartgroup's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
4.53%
Current annual income from Smartgroup dividends. Estimated to be 5.04% next year.
If you bought A$2,000 of Smartgroup shares you are expected to receive A$91 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Smartgroup's pays a higher dividend yield than the bottom 25% of dividend payers in Australia (2.37%).
  • Smartgroup's dividend is below the markets top 25% of dividend payers in Australia (5.56%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
ASX:SIQ Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 5 Analyst Estimates (S&P Global) See Below
Australia Commercial Services Industry Average Dividend Yield Market Cap Weighted Average of 12 Stocks 2.6%
Australia Market Average Dividend Yield Market Cap Weighted Average of 390 Stocks 4%
Australia Minimum Threshold Dividend Yield 10th Percentile 1.5%
Australia Bottom 25% Dividend Yield 25th Percentile 2.4%
Australia Top 25% Dividend Yield 75th Percentile 5.6%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

ASX:SIQ Future Dividends Estimate Data
Date (Data in A$) Dividend per Share (annual) Avg. No. Analysts
2021-12-31 0.49 5.00
2020-12-31 0.46 5.00
2019-12-31 0.48 4.00
2019-11-18
ASX:SIQ Past Annualized Dividends Data
Date (Data in A$) Dividend per share (annual) Avg. Yield (%)
2019-08-16 0.430 3.721
2019-02-18 0.420 4.865
2018-08-22 0.410 3.947
2018-02-21 0.370 3.259
2017-08-22 0.330 3.281
2017-02-22 0.248 3.586
2016-08-24 0.196 3.080
2016-02-24 0.174 3.150
2015-08-26 0.158 4.233
2015-02-25 0.061 3.184

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Whilst dividend payments have been stable, Smartgroup has been paying a dividend for less than 10 years.
  • Dividend payments have increased, but Smartgroup only paid a dividend in the past 5 years.
Current Payout to shareholders
What portion of Smartgroup's earnings are paid to the shareholders as a dividend.
  • Dividends paid are covered by earnings (1.1x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be covered by earnings (1.5x coverage).
X
Income/ dividend checks
We assess Smartgroup's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.5%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Smartgroup afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Smartgroup has a total score of 3/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of Smartgroup's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Deven Billimoria
COMPENSATION A$1,154,627
AGE 49
TENURE AS CEO 17.8 years
CEO Bio

Mr. Deven Billimoria has been the Chief Executive Officer of Smartgroup Corporation Ltd since 2002 and has been its Managing Director since March 2014. Mr. Billimoria has been the Managing Director and Chief Executive Officer of Smartsalary Pty Ltd. since 2002. He joined SmartSalary in 2000. His previous experience includes work with management consulting firms Deloitte & Touche and Booz Allen Hamilton. He has been a Director of Smartgroup Corporation Ltd since March 3, 2014. He serves as a Director of PAXYS Inc., SmartFleet Management Pty Ltd. and SmartSalary Pty Ltd. In December 2013, he was awarded the Australian Human Resources Institute's Lynda Gratton CEO of the Year 2013 Award. Mr. Billimoria has an MBA from Northwestern University’s Kellogg School and a Bachelor of Science in Mechanical Engineering from UCLA.

CEO Compensation
  • Deven's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Deven's remuneration is about average for companies of similar size in Australia.
Management Team Tenure

Average tenure of the Smartgroup management team in years:

1.7
Average Tenure
  • The average tenure for the Smartgroup management team is less than 2 years, this suggests a new team.
Management Team

Deven Billimoria

TITLE
MD, CEO & Director
COMPENSATION
A$1M
AGE
49
TENURE
17.8 yrs

Tim Looi

TITLE
Chief Financial Officer
COMPENSATION
A$745K

Sophie MacIntosh

TITLE
Chief Legal Officer & Joint Company Secretary
COMPENSATION
A$384K
TENURE
3 yrs

Sarah Haas

TITLE
Chief Executive of Salary Packaging
COMPENSATION
A$387K
TENURE
1.7 yrs

Justine Carmichael

TITLE
Chief Human Resources Officer
TENURE
1.3 yrs

Richard Jackson

TITLE
Chief of Staff
TENURE
1.7 yrs

Bijal Desai

TITLE
Chief Risk Officer
TENURE
1.4 yrs

Jonathan Swain

TITLE
Joint Company Secretary
TENURE
0.3 yrs

Amanda Morgan

TITLE
General Counsel
Board of Directors Tenure

Average tenure of the Smartgroup board of directors in years:

5.7
Average Tenure
  • The tenure for the Smartgroup board of directors is about average.
Board of Directors

Michael Carapiet

TITLE
Chairman
COMPENSATION
A$252K
AGE
61
TENURE
5.8 yrs

Deven Billimoria

TITLE
MD, CEO & Director
COMPENSATION
A$1M
AGE
49
TENURE
5.7 yrs

Gavin Bell

TITLE
Independent Non-Executive Director
COMPENSATION
A$145K
TENURE
5.8 yrs

John Prendiville

TITLE
Non-Executive Director
COMPENSATION
A$148K
TENURE
5.8 yrs

Andrew Bolam

TITLE
Non-Executive Director
COMPENSATION
A$145K
TENURE
7.8 yrs

Ian Watt

TITLE
Independent Non-Executive Director
COMPENSATION
A$134K
TENURE
4.3 yrs

Deborah Homewood

TITLE
Non-Executive Director
COMPENSATION
A$131K
TENURE
3.5 yrs

Carolyn Colley

TITLE
Independent Non-Executive Director
TENURE
0.7 yrs
Who owns this company?
Recent Insider Trading
  • Smartgroup individual insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (A$) Value (A$)
28. Oct 19 Sell Morgan Stanley, Investment Banking and Brokerage Investments Company 24. Oct 19 24. Oct 19 -69,248 A$11.15 A$-772,142
28. Oct 19 Buy Morgan Stanley, Investment Banking and Brokerage Investments Company 24. Oct 19 24. Oct 19 355,873 A$11.24 A$3,995,518
27. Oct 19 Sell Morgan Stanley, Investment Banking and Brokerage Investments Company 21. Oct 19 23. Oct 19 -672,836 A$11.35 A$-7,633,790
27. Oct 19 Buy Morgan Stanley, Investment Banking and Brokerage Investments Company 21. Oct 19 23. Oct 19 714,986 A$11.25 A$8,031,499
24. Oct 19 Sell Macquarie Group, Ltd., Banking & Securities Investments Company 18. Oct 19 22. Oct 19 -135,162 A$11.35 A$0
24. Oct 19 Buy Macquarie Group, Ltd., Banking & Securities Investments Company 18. Oct 19 22. Oct 19 169,086 A$11.33 A$0
24. Oct 19 Buy Macquarie Capital Investment Management LLC Company 18. Oct 19 18. Oct 19 48,706 A$11.30 A$550,378
24. Oct 19 Buy Macquarie Investment Management Limited Company 18. Oct 19 18. Oct 19 11,028 A$11.30 A$124,616
22. Oct 19 Buy Morgan Stanley, Investment Banking and Brokerage Investments Company 23. Sep 19 18. Oct 19 5,039,539 A$12.03 A$58,046,200
22. Oct 19 Sell Challenger Limited Company 30. May 19 06. Sep 19 -72,883 A$10.58 A$-771,026
22. Oct 19 Buy Challenger Limited Company 23. May 19 18. Oct 19 1,604,822 A$10.61 A$17,028,353
21. Oct 19 Sell Macquarie Group, Ltd., Banking & Securities Investments Company 21. Jun 19 17. Oct 19 -353,090 A$12.43 A$-4,388,909
21. Oct 19 Buy Macquarie Group, Ltd., Banking & Securities Investments Company 17. Jun 19 17. Oct 19 335,402 A$12.43 A$4,165,698
21. Oct 19 Sell Macquarie Capital Investment Management LLC Company 02. Jul 19 19. Sep 19 -3,190 A$11.91 A$-37,983
21. Oct 19 Buy Macquarie Capital Investment Management LLC Company 21. Jun 19 01. Oct 19 51,307 A$12.66 A$649,671
21. Oct 19 Sell Macquarie Investment Management Limited Company 17. Jun 19 17. Oct 19 -26,554 A$12.55 A$-331,064
21. Oct 19 Buy Macquarie Investment Management Limited Company 17. Jun 19 10. Oct 19 12,157 A$12.11 A$146,212
22. Aug 19 Sell Point Capital Pty Ltd Company 21. Aug 19 21. Aug 19 -64,469 A$11.15 A$-718,829
22. Aug 19 Sell John Prendiville Individual 20. Aug 19 20. Aug 19 -163,433 A$10.94 A$-1,787,957
24. May 19 Sell Challenger Limited Company 08. Mar 19 12. Apr 19 -14,142 A$7.84 A$-110,880
24. May 19 Buy Challenger Limited Company 01. Mar 19 22. May 19 2,600,589 A$8.12 A$21,112,414
09. Apr 19 Buy Ian Watt Individual 03. Apr 19 03. Apr 19 5,000 A$7.39 A$36,950
08. Apr 19 Buy Deborah Homewood Individual 05. Apr 19 05. Apr 19 1,300 A$7.80 A$10,140
03. Apr 19 Buy Carolyn Colley Individual 03. Apr 19 03. Apr 19 3,000 A$7.44 A$22,320
03. Apr 19 Buy Andrew Bolam Individual 03. Apr 19 03. Apr 19 55,000 A$7.43 A$408,650
03. Apr 19 Buy John Prendiville Individual 03. Apr 19 03. Apr 19 30,000 A$7.43 A$222,900
03. Apr 19 Buy Gavin Bell Individual 03. Apr 19 03. Apr 19 2,800 A$7.37 A$20,636
03. Apr 19 Buy Michael Carapiet Individual 03. Apr 19 03. Apr 19 150,000 A$7.48 A$1,122,000
03. Apr 19 Sell Deven Billimoria Individual 02. Apr 19 02. Apr 19 -1,100,000 A$7.60 A$-8,359,999
18. Mar 19 Sell Pengana Capital Ltd. Company 01. Feb 19 14. Mar 19 -608,646 A$8.83 A$-5,375,353
18. Mar 19 Buy Pengana Capital Ltd. Company 10. Dec 18 19. Feb 19 519,515 A$8.80 A$4,572,376
X
Management checks
We assess Smartgroup's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Smartgroup has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Is Smartgroup Corporation Ltd's (ASX:SIQ) ROE Of 22% Impressive?

The formula for return on equity is: Return on Equity = Net Profit ÷ Shareholders' Equity Or for Smartgroup: 22% = AU$61m ÷ AU$273m (Based on the trailing twelve months to June 2019.) Most readers would understand what net profit is, but it’s worth explaining the concept of shareholders’ equity. … Smartgroup's Debt And Its 22% ROE Although Smartgroup does use debt, its debt to equity ratio of 0.19 is still low. … In my book the highest quality companies have high return on equity, despite low debt.

Simply Wall St -

Smartgroup Corporation Ltd (ASX:SIQ) Goes Ex-Dividend In 4 Days

It paid out 90% of its earnings as dividends last year, which is not unreasonable, but limits reinvestment in the business and leaves the dividend vulnerable to a business downturn. … Companies with consistently growing earnings per share generally make the best dividend stocks, as they usually find it easier to grow dividends per share. … It's good to see earnings are growing, since all of the best dividend stocks grow their earnings meaningfully over the long run.

Simply Wall St -

Trade Alert: The Non-Executive Director Of Smartgroup Corporation Ltd (ASX:SIQ), John Prendiville, Has Sold Some Shares Recently

We wouldn't blame Smartgroup Corporation Ltd (ASX:SIQ) shareholders if they were a little worried about the fact that John Prendiville, the Non-Executive Director recently netted about AU$1.8m selling shares at an average price of AU$10.94. … View our latest analysis for Smartgroup Smartgroup Insider Transactions Over The Last Year In the last twelve months, the biggest single sale by an insider was when the MD, CEO &amp; Director, Deven Billimoria, sold AU$8.4m worth of shares at a price of AU$7.60 per share. … Over the last year we saw more insider selling of Smartgroup shares, than buying.

Simply Wall St -

What Percentage Of Smartgroup Corporation Ltd (ASX:SIQ) Shares Do Insiders Own?

View our latest analysis for Smartgroup ASX:SIQ Ownership Summary, August 20th 2019 What Does The Institutional Ownership Tell Us About Smartgroup? … We can see that Smartgroup does have institutional investors; and they hold 26% of the stock. … Private Company Ownership It seems that Private Companies own 27%, of the SIQ stock.

Simply Wall St -

Do You Like Smartgroup Corporation Ltd (ASX:SIQ) At This P/E Ratio?

The formula for P/E is: Price to Earnings Ratio = Price per Share ÷ Earnings per Share (EPS) Or for Smartgroup: P/E of 19.66 = A$9.17 ÷ A$0.47 (Based on the trailing twelve months to December 2018.) Is A High Price-to-Earnings Ratio Good? … Does Smartgroup Have A Relatively High Or Low P/E For Its Industry? … ASX:SIQ Price Estimation Relative to Market, August 11th 2019 Its relatively low P/E ratio indicates that Smartgroup shareholders think it will struggle to do as well as other companies in its industry classification.

Simply Wall St -

Smartgroup Corporation Ltd (ASX:SIQ) Earns A Nice Return On Capital Employed

The formula for calculating the return on capital employed is: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) Or for Smartgroup: 0.25 = AU$90m ÷ (AU$464m - AU$102m) (Based on the trailing twelve months to December 2018.) So, Smartgroup has an ROCE of 25%. … Smartgroup's Current Liabilities And Their Impact On Its ROCE Current liabilities include invoices, such as supplier payments, short-term debt, or a tax bill, that need to be paid within 12 months. … Our Take On Smartgroup's ROCE Low current liabilities and high ROCE is a good combination, making Smartgroup look quite interesting.

Simply Wall St -

A Holistic Look At Smartgroup Corporation Ltd (ASX:SIQ)

In the case of Smartgroup Corporation Ltd (ASX:SIQ), it is a financially-robust company with an impressive track record and an optimistic future outlook. … Flawless balance sheet with solid track record Investors seeking high cash growth potential should consider SIQ, with forecasted operating cash flow growth of 73%. … ASX:SIQ Past and Future Earnings, July 26th 2019 SIQ's strong financial health means that all of its upcoming liability payments are able to be met by its current cash and short-term investment holdings.

Simply Wall St -

Smartgroup (ASX:SIQ) Seems To Use Debt Rather Sparingly

Debt assists a business until the business has trouble paying it off, either with new capital or with free cash flow. … ASX:SIQ Historical Debt, July 19th 2019 A Look At Smartgroup's Liabilities We can see from the most recent balance sheet that Smartgroup had liabilities of AU$101.8m falling due within a year, and liabilities of AU$69.9m due beyond that. … Because it carries more debt than cash, we think it's worth watching Smartgroup's balance sheet over time.

Simply Wall St -

Would Smartgroup Corporation Ltd (ASX:SIQ) Be Valuable To Income Investors?

Today we'll take a closer look at Smartgroup Corporation Ltd (ASX:SIQ) from a dividend investor's perspective. Owning a strong business and reinvesting the dividends is widely seen as an attractive way of growing your wealth. Yet sometimes, investors buy a popular dividend stock because of its yield, and then lose money if the company's dividend doesn't live up to expectations. With a four-year payment history and a 4.6% yield, many investors probably find Smartgroup intriguing. It sure looks interesting on these metrics - but there's always more to the story . Before you buy any stock for its dividend however, you should always remember Warren Buffett's two rules: 1) Don't lose money, and 2) Remember rule #1. … Conclusion To summarise, shareholders should always check that Smartgroup's dividends are affordable, that its dividend payments are relatively stable, and that it has decent prospects for growing its earnings and dividend. … Smartgroup gets a pass on its dividend payout ratio, but it paid out virtually all of its cash flow as dividends.

Simply Wall St -

Smartgroup Corporation Ltd (ASX:SIQ): What Can We Expect From This High Growth Stock?

Below is a brief commentary on my key takeaways on how market analysts predict Smartgroup's earnings growth outlook over the next few years and whether the future looks even brighter than the past. … View our latest analysis for Smartgroup Market analysts' consensus outlook for this coming year seems buoyant, with earnings climbing by a robust 19%. … ASX:SIQ Past and Future Earnings, July 4th 2019 Although it’s useful to be aware of the growth year by year relative to today’s figure, it may be more insightful to evaluate the rate at which the earnings are rising or falling on average every year.

Simply Wall St -

Company Info

Description

Smartgroup Corporation Ltd provides specialist employee management services in Australia and internationally. It operates through Outsourced Administration (OA); Vehicle Services (VS); and Software, Distribution, and Group Services (SDGS) segments. The OA segment offers outsourced salary packaging services, novated leasing, share plan administration, and outsourced payroll services. The VS segment provides end-to-end fleet management services. The SDGS segment engages in the provision of salary packaging software solutions; the marketing of salary packaging debit cards; and the distribution of vehicle insurances and workforce management software to the healthcare industry. The company serves community and charity workers in not-for-profit organizations; teachers, administrators, and support personnel in the education industry; nurses, clinicians, and auxiliary staff in the health industry; the employees of the government sector; and professionals in private and corporate organizations. Smartgroup Corporation Ltd was founded in 1999 and is headquartered in Sydney, Australia.

Details
Name: Smartgroup Corporation Ltd
SIQ
Exchange: ASX
Founded: 1999
A$1,414,680,133
128,724,307
Website: http://www.smartgroup.com.au
Address: Smartgroup Corporation Ltd
133 Castlereagh Street,
Level 8,
Sydney,
New South Wales, 2000,
Australia
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
ASX SIQ Ordinary Shares Australian Securities Exchange AU AUD 02. Jul 2014
CHIA SIQ Ordinary Shares Chi-X Australia AU AUD 02. Jul 2014
Number of employees
Current staff
Staff numbers
703
Smartgroup employees.
Industry
Diversified Support Services
Commercial Services
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/11/18 10:43
End of day share price update: 2019/11/18 00:00
Last estimates confirmation: 2019/11/17
Last earnings filing: 2019/08/16
Last earnings reported: 2019/06/30
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.