STW COMMUNICATIONS GROUP LIMITED (SGN)



Welcome to InvestSMART

You are currently viewing our site as a guest, which gives you limited access to our site features. By signing up for a free membership, you will receive our Investment Opportunity newsletters and have access to additional features for finding and comparing managed funds and shares. Registration is fast and simple, so please:

Sign Up Today » it's FREE! Already a member? Login now!


General Information
Company Name: STW Communications Group Limited
Stock Code: SGN
Website: www.stwgroup.com.au
GICS Sub-Industry: Advertising
Market Cap ($M): 606
Equiv. Shares (M): 404

Current Price Data+
Current Price Open High Low Last Close Volume Price Movement
$ 1.500 $ 1.520 $ 1.520 $ 1.460 $ 1.500 453,798 0%

Current Broker Consensus Recommendation more
Recommendation: Buy
Recommendation Date: 20th May 2013
12 Month Target Price (average): $1.553
Brokers Surveyed: 4

Company Overview

Business Description:
STW Communications Group Limited (SGN) is an Australian marketing communications group. The Group is made up of over 70 operating companies that work across marketing communications, content and production disciplines: Advertising; Media; Insights and research; Branding; Public relations and government relations; Brand activation and specialist communications. The Group’s services are offered in Australia and New Zealand and have a recent expansion to South East Asia, UK, USA and Hong Kong.

Strategy Analysis:
SGN's strategy is to focus on organic growth and to extract the maximum value from their existing portfolio of companies. They aim to diversify their service offer and build scale in the core markets of Australia and New Zealand. The company aims to service total marketing budgets by delivering ideas beyond traditional advertising solutions. SGN purchase minority interests in add-on companies which allow independence and autonomy, yet provide access to the large clients of SGN. Further expansion through acquisitions is expected to capitalise on corporate trends in outsourcing marketing resources. SGN assists all group companies in administration, financial management, property, procurement, information technology, knowledge sharing, planning for growth and attracting and growing talent.. STW Communications Group reported NPAT up 7.53% to $43.97m for the year ended 31 December 2012. Revenues from ordinary activities were $348.56m, up 11.37% from last year. Diluted EPS was 12.03 cents compared to 11.42 cents last year. Net operating cash flow was $52.58m compared to $32.59m last year. The final dividend declared was 5 cents, taking the full year dividend to 8.3 cents compared with 8.0 cents last year. The company's market guidance for 2013 is positive despite prevailing market and economic trading conditions. The company is targeting circa 15% underlying NPAT growth, delivering mid-single digit underlying EPS growth for the full year ended 31 December 2013.


Financial Summary
Year to Dec NPAT EPS EPS chg (%) PER DPS Yield (%) Franking (%)
2012  A 44.0 12.0 5.3 8.2 8.3 8.4 100.0
2011  A 40.9 11.4 5.6 8.9 8.0 7.9 100.0
2010  A 38.7 10.8 30.1 8.3 6.5 7.2 100.0
Source: Morningstar analyst estimates.

Peer Comparison
EPS Growth (%) P/E (%) Dividend Yield (%)
Company Mkt Cap 2010 A 2011 F 2012 F 2010 A 2011 F 2012 F 2010 A 2011 F 2012 F
REA Group (REA) $4,185 M 0.2473 0.2460 0.2305 47.9764 38.5044 31.2912 0.0104 0.0130 0.0151
STW Communications (SGN) $602 M 0.0534 0.0790 0.0794 12.3857 11.4792 10.6353 0.0557 0.0597 0.0641

Market Comparison
Earnings P/E Ratio P/B Ratio P/E Growth P/S Ratio
SGN 0.92 12.1 1.41 1.53 1.56
Market 0.83 15.0 1.29 1.83 1.78
Sector 1.14 13.9 1.21 2.35 1.04

Directors
Name Position Start Date
Mr Mike Connaghan Chief Executive Officer,Executive Director (other) 01 July 2008
Mr Rob Mactier Non-Executive Chairman 11 December 2007
Ms Kim Anderson Non-Executive Director 10 November 2010
Mr Paul Richardson Non-Executive Director (other) 28 October 1999
Mr Graham Allan Cubbin Non-Executive Director (other) 19 May 2008
Mr Ian Tsicalas Non-Executive Director (other) 01 November 2007
Peter Cullinane Non-Executive Director (other) 03 June 2010

Management
Name Position
Lukas Aviani Chief Financial Officer
Chris Savage Chief Operating Officer
Chirs Rollinson Company Secretary

Substantial Shareholders
Holding Name
75,000,000 (18.57%) Cavendish Square Holding BV (CSH)
45,549,731 (11.28%) Perpetual Limited

Calendar of Events
Date Event
27 March 2014 Report (Annual)
12 February 2014 Report (Prelim)
08 August 2013 Report (Interim)
© 2011 Morningstar, Inc. All rights reserved. The data and content contained herein are not guaranteed to be accurate, complete or timely. Neither Morningstar, nor its affiliates nor their content providers will have any liability for use or distribution of any of this information. To the extent that any of the content above constitutes advice, it is general advice that has been prepared by Morningstar Australasia Pty Ltd ABN: 95 090 665 544, AFSL: 240892 (a subsidiary of Morningstar, Inc.), without reference to your objectives, financial situation or needs. Before acting on any advice, you should consider the appropriateness of the advice and we recommend you obtain financial, legal and taxation advice before making any financial investment decision. If applicable investors should obtain the relevant product disclosure statement and consider it before making any decision to invest. Some material is copyright and published under licence from ASX Operations Pty Limited ACN 004 523 782 ("ASXO"). DISCLOSURE: Employees may have an interest in the securities discussed in this report. Please refer to our Financial Services Guide (FSG) for more information at www.morningstar.com.au/fsg.asp.

Advertisement

Trade Shares Online from $19.95^
Free Guides

The SMH Guide to Investing in Shares via SMSFs

An educational booklet that outlines how to get the most from your share investments for retirement thorugh your self managed super fund.

More details...

News

Optus 4G vow

The Age 21/05/2013 | Optus says its 4G mobile network will reach 70 per cent of the Australian population by mid-2014. The carrier revealed it has upgraded 4000 3G sites to 4G in five capital cities and in Coffs Harbour, the Gold Coast and Byron Bay. It also plans to make its 4G network suitable for customers with dual-band 4G mobile devices.

Quantum stakes Intrepid claim

The Age 21/05/2013 | Hong Kong private equity firm Quantum Pacific Capital says it is best placed to resolve a dispute over the ownership of a troubled $5 billion copper and gold project in Java and is negotiating to grab back as much as 80 per cent of the project on behalf of former owner Intrepid Mines.

Transfield 'sensitive' to slowdown

The Age 21/05/2013 | Shareholders in Transfield Services were bracing themselves on Monday for an earnings downgrade following downgrades by other mine services operators such as UGL, WorleyParsons and the smaller Coffey International last week.

Target's troubles lead to pain for all

The Age 21/05/2013 | The whole retail recovery story has wandered perilously off script over the past quarter. The start of the year held the promise of green shoots at the discretionary spending end. But as we near the close of the financial year, the fragile recovery appears to have been nipped in the bud.

War is over, Leighton's boss declares

The Age 21/05/2013 | New Leighton Holdings chairman Bob Humphris has moved to dispel fears that its directors remain at war with its German parent Hochtief, insisting the relationship was "collegiate" despite the abrupt resignation of three fellow directors two months ago.

Super funds on track for best returns in 15 years

The Age 21/05/2013 | Australian shares flirted with five-year highs on Monday, returning to levels not seen since the onset of the global financial crisis, as investors were spurred on by signs of strength in the US economy.

More...


Sponsored Links

Feedback Form