Latest news with #Smartgroup
AU Financial Review
4 days ago
- Business
- AU Financial Review
From stopping thieves in the GFC to running a $1b company, via The Star
Scott Wharton remembers the chaos vividly. He had been working for Lehman Bros for five months in Hong Kong, reporting to the chief financial officer of the US investment bank's Asia-Pacific business. Wharton, who is the chief executive of ASX-listed car leasing and salary packaging company Smartgroup, was fulfilling a lifelong dream. He took the advice of mentors, such as Ilana Atlas, now an Origin Energy director and chair of Scentre Group, and sought overseas experience to build his corporate career after an unusual background studying genetics, biochemistry and law at university in Australia.
Yahoo
29-05-2025
- Business
- Yahoo
Smartgroup Corporation Ltd (ASX:SIQ) most popular amongst individual investors who own 47% of the shares, institutions hold 47%
The considerable ownership by individual investors in Smartgroup indicates that they collectively have a greater say in management and business strategy A total of 24 investors have a majority stake in the company with 50% ownership Insiders have bought recently AI is about to change healthcare. These 20 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10bn in marketcap - there is still time to get in early. If you want to know who really controls Smartgroup Corporation Ltd (ASX:SIQ), then you'll have to look at the makeup of its share registry. We can see that individual investors own the lion's share in the company with 47% ownership. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn). Meanwhile, institutions make up 47% of the company's shareholders. Generally speaking, as a company grows, institutions will increase their ownership. Conversely, insiders often decrease their ownership over time. In the chart below, we zoom in on the different ownership groups of Smartgroup. See our latest analysis for Smartgroup Institutions typically measure themselves against a benchmark when reporting to their own investors, so they often become more enthusiastic about a stock once it's included in a major index. We would expect most companies to have some institutions on the register, especially if they are growing. As you can see, institutional investors have a fair amount of stake in Smartgroup. This suggests some credibility amongst professional investors. But we can't rely on that fact alone since institutions make bad investments sometimes, just like everyone does. When multiple institutions own a stock, there's always a risk that they are in a 'crowded trade'. When such a trade goes wrong, multiple parties may compete to sell stock fast. This risk is higher in a company without a history of growth. You can see Smartgroup's historic earnings and revenue below, but keep in mind there's always more to the story. Hedge funds don't have many shares in Smartgroup. Looking at our data, we can see that the largest shareholder is State Street Global Advisors, Inc. with 5.6% of shares outstanding. The second and third largest shareholders are Challenger Limited and Australian Retirement Trust Pty Ltd, with an equal amount of shares to their name at 5.2%. Additionally, the company's CEO Scott Wharton directly holds 1.9% of the total shares outstanding. A closer look at our ownership figures suggests that the top 24 shareholders have a combined ownership of 50% implying that no single shareholder has a majority. Researching institutional ownership is a good way to gauge and filter a stock's expected performance. The same can be achieved by studying analyst sentiments. There are a reasonable number of analysts covering the stock, so it might be useful to find out their aggregate view on the future. The definition of an insider can differ slightly between different countries, but members of the board of directors always count. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it. Insider ownership is positive when it signals leadership are thinking like the true owners of the company. However, high insider ownership can also give immense power to a small group within the company. This can be negative in some circumstances. Our most recent data indicates that insiders own some shares in Smartgroup Corporation Ltd. As individuals, the insiders collectively own AU$49m worth of the AU$953m company. It is good to see some investment by insiders, but it might be worth checking if those insiders have been buying. With a 47% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Smartgroup. This size of ownership, while considerable, may not be enough to change company policy if the decision is not in sync with other large shareholders. I find it very interesting to look at who exactly owns a company. But to truly gain insight, we need to consider other information, too. Consider for instance, the ever-present spectre of investment risk. We've identified 1 warning sign with Smartgroup , and understanding them should be part of your investment process. If you would prefer discover what analysts are predicting in terms of future growth, do not miss this free report on analyst forecasts. NB: Figures in this article are calculated using data from the last twelve months, which refer to the 12-month period ending on the last date of the month the financial statement is dated. This may not be consistent with full year annual report figures. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Yahoo
02-05-2025
- Business
- Yahoo
Those who invested in Smartgroup (ASX:SIQ) five years ago are up 117%
The simplest way to invest in stocks is to buy exchange traded funds. But you can do a lot better than that by buying good quality businesses for attractive prices. For example, the Smartgroup Corporation Ltd (ASX:SIQ) share price is 54% higher than it was five years ago, which is more than the market average. In comparison, the share price is down 11% in a year. So let's investigate and see if the longer term performance of the company has been in line with the underlying business' progress. Our free stock report includes 1 warning sign investors should be aware of before investing in Smartgroup. Read for free now. While the efficient markets hypothesis continues to be taught by some, it has been proven that markets are over-reactive dynamic systems, and investors are not always rational. One imperfect but simple way to consider how the market perception of a company has shifted is to compare the change in the earnings per share (EPS) with the share price movement. During five years of share price growth, Smartgroup achieved compound earnings per share (EPS) growth of 3.9% per year. This EPS growth is lower than the 9% average annual increase in the share price. This suggests that market participants hold the company in higher regard, these days. And that's hardly shocking given the track record of growth. You can see how EPS has changed over time in the image below (click on the chart to see the exact values). It's good to see that there was some significant insider buying in the last three months. That's a positive. That said, we think earnings and revenue growth trends are even more important factors to consider. This free interactive report on Smartgroup's earnings, revenue and cash flow is a great place to start, if you want to investigate the stock further. It is important to consider the total shareholder return, as well as the share price return, for any given stock. The TSR is a return calculation that accounts for the value of cash dividends (assuming that any dividend received was reinvested) and the calculated value of any discounted capital raisings and spin-offs. So for companies that pay a generous dividend, the TSR is often a lot higher than the share price return. In the case of Smartgroup, it has a TSR of 117% for the last 5 years. That exceeds its share price return that we previously mentioned. And there's no prize for guessing that the dividend payments largely explain the divergence! Investors in Smartgroup had a tough year, with a total loss of 6.1% (including dividends), against a market gain of about 10%. Even the share prices of good stocks drop sometimes, but we want to see improvements in the fundamental metrics of a business, before getting too interested. On the bright side, long term shareholders have made money, with a gain of 17% per year over half a decade. If the fundamental data continues to indicate long term sustainable growth, the current sell-off could be an opportunity worth considering. I find it very interesting to look at share price over the long term as a proxy for business performance. But to truly gain insight, we need to consider other information, too. Case in point: We've spotted 1 warning sign for Smartgroup you should be aware of. Smartgroup is not the only stock insiders are buying. So take a peek at this free list of small cap companies at attractive valuations which insiders have been buying. Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on Australian exchanges. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Sign in to access your portfolio
Yahoo
15-04-2025
- Business
- Yahoo
Top ASX Dividend Stocks To Consider In April 2025
As the Australian market navigates a relatively stable period without significant volatility, the ASX200 closed at 7,760 points with Health Care leading the sectors. In such conditions, dividend stocks can offer investors a reliable income stream and potential stability amidst broader market fluctuations. Name Dividend Yield Dividend Rating IPH (ASX:IPH) 7.59% ★★★★★☆ Sugar Terminals (NSX:SUG) 8.12% ★★★★★☆ Accent Group (ASX:AX1) 6.84% ★★★★★☆ Super Retail Group (ASX:SUL) 9.36% ★★★★★☆ Lindsay Australia (ASX:LAU) 7.54% ★★★★★☆ MFF Capital Investments (ASX:MFF) 3.76% ★★★★★☆ Nick Scali (ASX:NCK) 3.57% ★★★★★☆ Lycopodium (ASX:LYL) 7.18% ★★★★★☆ Fiducian Group (ASX:FID) 4.81% ★★★★★☆ IVE Group (ASX:IGL) 7.63% ★★★★☆☆ Click here to see the full list of 31 stocks from our Top ASX Dividend Stocks screener. We'll examine a selection from our screener results. Simply Wall St Dividend Rating: ★★★★☆☆ Overview: Smartgroup Corporation Ltd, with a market cap of A$991.03 million, provides employee management services in Australia. Operations: Smartgroup Corporation Ltd generates revenue through its Vehicle Services segment, which contributes A$21.87 million, and its Outsourced Administration segment, which brings in A$287.87 million. Dividend Yield: 6.7% Smartgroup's dividend yield of 6.73% places it in the top 25% of Australian dividend payers, yet its dividends have been volatile over the past decade. Recent announcements include a fully franked special dividend and an increase in regular dividends, reflecting strong earnings growth with net income rising to A$75.6 million for 2024. However, the high cash payout ratio (134.8%) suggests dividends are not well covered by free cash flows, raising sustainability concerns despite analyst optimism on stock price potential. Click here and access our complete dividend analysis report to understand the dynamics of Smartgroup. The valuation report we've compiled suggests that Smartgroup's current price could be quite moderate. Simply Wall St Dividend Rating: ★★★★★☆ Overview: Super Retail Group Limited operates as a retailer of auto, sports, and outdoor leisure products in Australia and New Zealand, with a market cap of A$2.87 billion. Operations: Super Retail Group Limited generates revenue through its segments: Rebel at A$1.32 billion, Macpac at A$215.80 million, Super Cheap Auto (SCA) at A$1.51 billion, and Boating, Camping and Fishing (BCF) excluding Macpac at A$912.60 million. Dividend Yield: 9.4% Super Retail Group's dividend yield of 9.36% ranks it among the top 25% in Australia, although its dividend history has been volatile over the past decade. The company's dividends are covered by earnings and cash flows with a payout ratio of 68.8%. Recent earnings reports show mixed results, with net income declining to A$129.8 million despite increased sales and revenue. The company declared a fully franked interim dividend of A$0.32 per share, payable on April 15, 2025. Unlock comprehensive insights into our analysis of Super Retail Group stock in this dividend report. Our valuation report here indicates Super Retail Group may be undervalued. Simply Wall St Dividend Rating: ★★★★☆☆ Overview: Southern Cross Electrical Engineering Limited offers electrical, instrumentation, communications, security, and maintenance services to the resources, commercial, and infrastructure sectors in Australia with a market cap of A$458.51 million. Operations: Southern Cross Electrical Engineering Limited generates revenue of A$693.73 million from providing electrical services to the resources, commercial, and infrastructure sectors in Australia. Dividend Yield: 3.5% Southern Cross Electrical Engineering's dividend yield of 3.46% is modest compared to the top Australian payers, with a history of volatility over the past decade. However, dividends are well covered by earnings and cash flows, with payout ratios of 69.4% and 21.5%, respectively. Recent half-year results showed strong growth in sales to A$397.41 million and net income to A$16.18 million, supporting its fully franked interim dividend of A$0.025 per share paid on April 9, 2025. Delve into the full analysis dividend report here for a deeper understanding of Southern Cross Electrical Engineering. Upon reviewing our latest valuation report, Southern Cross Electrical Engineering's share price might be too pessimistic. Navigate through the entire inventory of 31 Top ASX Dividend Stocks here. Hold shares in these firms? Setup your portfolio in Simply Wall St to seamlessly track your investments and receive personalized updates on your portfolio's performance. Unlock the power of informed investing with Simply Wall St, your free guide to navigating stock markets worldwide. Explore high-performing small cap companies that haven't yet garnered significant analyst attention. Fuel your portfolio with companies showing strong growth potential, backed by optimistic outlooks both from analysts and management. Find companies with promising cash flow potential yet trading below their fair value. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include ASX:SIQ ASX:SUL and ASX:SXE. Have feedback on this article? Concerned about the content? with us directly. Alternatively, email editorial-team@ Sign in to access your portfolio
Yahoo
23-03-2025
- Business
- Yahoo
Independent Non-Executive Chairman of Smartgroup Picks Up 21% More Stock
Investors who take an interest in Smartgroup Corporation Ltd (ASX:SIQ) should definitely note that the Independent Non-Executive Chairman, John Prendiville, recently paid AU$6.95 per share to buy AU$174k worth of the stock. That's a very decent purchase to our minds and it grew their holding by a solid 21%. We've found 21 US stocks that are forecast to pay a dividend yield of over 6% next year. See the full list for free. Notably, that recent purchase by Independent Non-Executive Chairman John Prendiville was not the only time they bought Smartgroup shares this year. Earlier in the year, they paid AU$8.34 per share in a AU$584k purchase. That means that an insider was happy to buy shares at above the current price of AU$7.09. It's very possible they regret the purchase, but it's more likely they are bullish about the company. We always take careful note of the price insiders pay when purchasing shares. Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price. Smartgroup insiders may have bought shares in the last year, but they didn't sell any. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below! Check out our latest analysis for Smartgroup Smartgroup is not the only stock that insiders are buying. For those who like to find small cap companies at attractive valuations, this free list of growing companies with recent insider purchasing, could be just the ticket. I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Smartgroup insiders own about AU$38m worth of shares. That equates to 4.2% of the company. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment. It is good to see the recent insider purchase. And an analysis of the transactions over the last year also gives us confidence. Given that insiders also own a fair bit of Smartgroup we think they are probably pretty confident of a bright future. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. For example - Smartgroup has 1 warning sign we think you should be aware of. Of course Smartgroup may not be the best stock to buy. So you may wish to see this free collection of high quality companies. For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions of direct interests only, but not derivative transactions or indirect interests. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
