Smartgroup: Share Price Likely Assumes Unreasonable Margin and Volume Growth
Shares in novated leasing and salary packaging provider Smartgroup have risen 34% year to date. The S&P/ASX 200 index rose about 2% over the same period.
Smartgroup Corporation Ltd SIQ
Bulls Say, Bears Say
Bulls
As one of the largest salary packaging and novated lease providers in Australia, Smartgroup benefits from some scale advantages. A majority of Smartgroup’s clients are in defensive industries, and the firm has long-standing relationships with many of its clients.
Bears
Smartgroup’s business can be disrupted by many external factors beyond its control. Regulation is one example, which has disrupted its commissions and rebate income streams in recent periods. Its business relies on favorable FBT concessions, which may be removed by a future Australian government.
Trading Information
- Previous Close Price
- —
- Day Range
- —–—
- 52-Week Range
- —–—
- Bid/Ask
- — / —
- Shares Outstanding
- 137.68M
- Market Cap
- —
- Volume/Avg
- — / —
Key Statistics
- Price/Earnings (Normalized)
- 18.11
- Price/Sales
- 4.61
- Dividend Yield (Trailing)
- 3.48%
- Dividend Yield (Forward)
- 3.48%
- Dividend Payment Schedule
- Mar, Sep
- Total Yield
- 3.48%
Company Profile
Smartgroup Corporation is an Australia-based company that provides specialist employee management services. Its services include salary packaging, novated leasing, vehicle fleet management, payroll administration, employee share plan administration, and workforce optimization. The company operates in two segments: outsourced administration and vehicle services. Most of the group's revenue is generated from the OA segment, which provides outsourced salary packaging services, novated leasing, share plan administration, and outsourced payroll services. The VS segment provides end-to-end vehicle fleet management services.
- Sector
- Industrials
- Industry
- Specialty Business Services
- Stock Style Box
- Small Core
- Total Number of Employees
- 785
- Website
- https://www.smartgroup.com.au
Competitors
Valuation
|
Metric
|
SIQ
|
MMS
|
|---|---|---|
Price/Earnings (Normalized) | 18.11 | 12.74 |
Price/Book Value | 5.69 | 11.16 |
Price/Sales | 4.61 | 2.99 |
Price/Cash Flow | 16.75 | 174.02 |
Price/Earnings
SIQ
MMS
Financial Strength
|
Metric
|
SIQ
|
MMS
|
|---|---|---|
Quick Ratio | 1.02 | 0.21 |
Current Ratio | 1.08 | 1.17 |
Interest Coverage | 22.34 | 3.94 |
Quick Ratio
SIQ
MMS
Profitability
|
Metric
|
SIQ
|
MMS
|
|---|---|---|
Return on Assets (Normalized) | 12.77% | 6.98% |
Return on Equity (Normalized) | 31.91% | 91.98% |
Return on Invested Capital (Normalized) | 24.45% | 13.51% |
Return on Assets
SIQ
MMS
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United States