Why Savills plc (LON:SVS) Is An Attractive Investment

In This Article:

Building up an investment case requires looking at a stock holistically. Today I’ve chosen to put the spotlight on Savills plc (LON:SVS) due to its excellent fundamentals in more than one area. SVS is a highly-regarded dividend-paying company that has been able to sustain great financial health over the past. Below, I’ve touched on some key aspects you should know on a high level. If you’re interested in understanding beyond my high-level commentary, take a look at the report on Savills here.

Adequate balance sheet average dividend payer

SVS is financially robust, with ample cash on hand and short-term investments to meet upcoming liabilities. This indicates that SVS has sufficient cash flows and proper cash management in place, which is an important determinant of the company’s health. SVS appears to have made good use of debt, producing operating cash levels of 0.26x total debt in the prior year. This is a strong indication that debt is reasonably met with cash generated.

LSE:SVS Historical Debt September 26th 18
LSE:SVS Historical Debt September 26th 18

Income investors would also be happy to know that SVS is a great dividend company, with a current yield standing at 3.9%. SVS has also been regularly increasing its dividend payments to shareholders over the past decade.

LSE:SVS Historical Dividend Yield September 26th 18
LSE:SVS Historical Dividend Yield September 26th 18

Next Steps:

For Savills, I’ve put together three key aspects you should further research:

  1. Future Outlook: What are well-informed industry analysts predicting for SVS’s future growth? Take a look at our free research report of analyst consensus for SVS’s outlook.

  2. Historical Performance: What has SVS’s returns been like over the past? Go into more detail in the past track record analysis and take a look at the free visual representations of our analysis for more clarity.

  3. Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of SVS? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!

To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.

The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.