Savills plc (SVS.L) | Investment Case

1. Company Snapshot

1.a. Company Description

Savills plc, together with its subsidiaries, provides real estate services in the United Kingdom, Continental Europe, the Asia Pacific, Africa, North America, and the Middle East.The company advises on commercial, residential, rural, and leisure properties; and offers corporate finance advisory, investment management, and a range of property-related financial services.It operates through Transaction Advisory, Consultancy, Property and Facilities Management, and Investment Management segments.

The Transaction Advisory segment provides commercial, residential, leisure, and agricultural leasing services; and tenant representation, as well as investment advice on purchases and sales.The Consultancy segment offers various professional property services, such as valuation, project management and housing consultancy, environmental consultancy, landlord and tenant, rating, development, planning, strategic projects, research, and corporate services.The Property and Facilities Management segment manages commercial, residential, leisure, and agricultural properties for owners; and provides services to occupiers of property, including strategic advice and project management, as well as services relating to a property.

The Investment Management segment is involved in the investment management of commercial and residential property portfolios for institutional, corporate, or private investors on a pooled or segregated account basis.Savills plc was founded in 1855 and is based in London, the United Kingdom.

Show Full description

1.b. Last Insights on SVS

Savills' recent performance has been impacted by a slight trimming of its fair value estimate from £12.56 to £12.48, according to a recent analyst report. Despite this, some analysts have lifted ratings and set price targets as high as £14.00, reflecting growing confidence in the company's earnings power. However, the UK rental market has faced challenges, with nearly £50bn wiped from its value as landlords flee the sector. Additionally, the company's 800 staff in Gulf states are choosing to stay despite mounting conflict.

1.c. Company Highlights

Last Price	842
Change Percentage	1.20%
Open	832
Previous Close	832
Market Cap ( Millions)	1157
Volume	599752
Year High	1126
Year Low	791.46
M A 50	930.74
M A 200	970.63

FCF Yield	12.97%
Dividend Yield	4.01%
ROE	9.70%
Debt / Equity	80.81%
Net Debt / EBIDTA	50.90%
Price To Book	1.6
Price Earnings Ratio	17.34
Price To FCF	7.71
Price To sales	0.45
EV / EBITDA	7.22

2. Transcript Summary

Unfortunately this company is not part of our coverage yet. But as part of your subscription plan you can request it by clicking just below and we'll process.

Request Coverage

3. NewsRoom

How The Savills (LSE:SVS) Narrative Is Evolving As Analyst Views And Valuation Assumptions Shift

Apr -12

Source:

There's A Lot To Like About Savills' (LON:SVS) Upcoming UK£0.264 Dividend

Apr -04

Source:

The Beverly Hills Estates and Savills Announce Association

Apr -02

Source:

How The Savills (LSE:SVS) Investment Story Is Shifting With New Analyst Targets And Dividends

Mar -27

Source:

Niron Magnetics begins site selection for $1.8B magnetics plant

Mar -16

Source:

UK housing costs rise 41% over five years for renters and owners, study shows

Mar -16

Source:

Staff don’t want to leave Dubai, says Savills

Mar -12

Source:

Savills H2 Earnings Call Highlights

Mar -12

Source:

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (4.58%)

6. Segments

Property and Facilities Management

Expected Growth: 4.5%

Savills plc's Property and Facilities Management segment growth of 4.5% is driven by increasing demand for outsourced property services, expansion into new markets, and strategic acquisitions. Additionally, the segment benefits from a growing trend towards outsourcing non-core functions among corporate occupiers, and a rising need for energy-efficient and sustainable facilities management solutions.

Transaction Advisory

Expected Growth: 4.8%

Savills plc's 4.8% growth in Transaction Advisory is driven by increasing cross-border investments, rising demand for commercial real estate, and growing need for strategic advisory services. Additionally, the company's expansion into new markets, investments in technology, and strong brand reputation have contributed to this growth.

Consultancy

Expected Growth: 4.2%

Savills plc's 4.2% growth driven by increasing demand for commercial property consultancy services, expansion into new markets, and strategic acquisitions. Strong performance in Asia Pacific and UK markets, coupled with growth in transactional advisory services and cross-border investments, contribute to the company's growth momentum.

Investment Management

Expected Growth: 5.2%

Savills plc's 5.2% growth in Investment Management is driven by increasing demand for real estate investment products, expansion into new markets, and strategic acquisitions. Additionally, the company's expertise in property valuation and consultancy services has enabled it to capitalize on the growing trend of institutional investors seeking diversified real estate portfolios.

7. Detailed Products

Residential Sales

Savills plc provides residential sales services, helping clients buy and sell properties across the globe.

Commercial Property Services

Savills plc offers commercial property services, including office, retail, and industrial property sales and leasing.

Property Management

Savills plc provides property management services, overseeing the day-to-day operations of commercial and residential properties.

Valuation and Advisory

Savills plc offers valuation and advisory services, providing expert opinions on property values and market trends.

Research and Consultancy

Savills plc provides research and consultancy services, offering insights and advice on property market trends and strategies.

Investment and Development

Savills plc offers investment and development services, helping clients acquire, develop, and dispose of properties.

8. Savills plc's Porter Forces

Forces Ranking

Threat Of Substitutes

Savills plc operates in a highly competitive industry, but the threat of substitutes is mitigated by the company's strong brand reputation and diversified service offerings.

Bargaining Power Of Customers

Savills plc's customers are largely institutional investors and corporate occupiers, who have limited bargaining power due to the company's expertise and market dominance.

Bargaining Power Of Suppliers

Savills plc has a diverse supplier base, and the company's scale and reputation enable it to negotiate favorable terms with its suppliers.

Threat Of New Entrants

The real estate services industry has high barriers to entry, including regulatory hurdles and the need for significant capital investment, which limits the threat of new entrants.

Intensity Of Rivalry

The real estate services industry is highly competitive, with several established players competing for market share, which increases the intensity of rivalry.

9. SWOT Analysis

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

	Value
Debt Weight	35.92%
Debt Cost	9.84%
Equity Weight	64.08%
Equity Cost	10.16%
WACC	10.04%
Leverage	56.05%

11. Quality Control: Savills plc passed 1 out of 9 key points

Strong Liquidity

Low Deb

Strong Interest Coverage

Healthy Cash Flow

Operating Inefficiency

Strong Return On Equity

Consistent Revenue Growth

Consistent Operating Cash Flow Growth

Margin Improvement

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Warteck Invest

A-Score: 6.1/10

Value: 2.8

Growth: 2.6

Quality: 6.7

Yield: 6.2

Momentum: 8.0

Volatility: 10.0

1-Year Total Return ->

Eastnine

A-Score: 5.9/10

Value: 6.4

Growth: 6.8

Quality: 5.5

Yield: 4.4

Momentum: 4.0

Volatility: 8.3

1-Year Total Return ->

NP3 Fastigheter

A-Score: 5.0/10

Value: 3.8

Growth: 6.8

Quality: 6.6

Yield: 3.1

Momentum: 4.0

Volatility: 5.7

1-Year Total Return ->

Savills

A-Score: 4.8/10

Value: 5.3

Growth: 3.8

Quality: 4.6

Yield: 4.4

Momentum: 3.0

Volatility: 8.0

1-Year Total Return ->

Stenhus Fastigheter i Norden

A-Score: 4.5/10

Value: 5.7

Growth: 3.9

Quality: 5.8

Yield: 1.2

Momentum: 3.5

Volatility: 7.0

1-Year Total Return ->

VIB Vermögen

A-Score: 4.3/10

Value: 7.9

Growth: 3.1

Quality: 3.6

Yield: 1.9

Momentum: 5.5

Volatility: 4.0

1-Year Total Return ->

Peers Metrics

12.e Scoring ^Insights

12.f DCF ^BETA

Parameters

Short Term Growth

-4.04%

Short term Time

10.0

Long-Term Growth

2.00%

WACC

10.04%

Savills plc - GB00B135BJ46

1. Company Snapshot

1.a. Company Description

1.b. Last Insights on SVS

1.c. Company Highlights

Lower Yield

Lower Quality

Fairly Valued

Revenues Miss

Expensive

Stable Momentum

Average Quality

Average Yield

Higher Growth

Strong Momentum

Average Growth

Weak Momentum

Cheaper

2. Transcript Summary

3. NewsRoom

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (4.58%)

6. Segments

Property and Facilities Management

Expected Growth: 4.5%

Transaction Advisory

Expected Growth: 4.8%

Consultancy

Expected Growth: 4.2%

Investment Management

Expected Growth: 5.2%

7. Detailed Products

Residential Sales

Commercial Property Services

Property Management

Valuation and Advisory

Research and Consultancy

Investment and Development

8. Savills plc's Porter Forces

Forces Ranking

Threat Of Substitutes

Bargaining Power Of Customers

Bargaining Power Of Suppliers

Threat Of New Entrants

Intensity Of Rivalry

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

11. Quality Control: Savills plc passed 1 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

8.42$

Current Price

8.42$

Potential

-0.00%

Expected Cash-Flows

12.e Scoring ^Insights

12.f DCF ^BETA