Seven Group Continues Growth, Up 0.82%

Share growth has been consistently increasing for Seven Group [ASX:SVW] for almost a year now.

Early this month they hit a record high, and are showing no signs of slowing down.

With a market cap of $5.85 billion and an enterprise value $7.92 billion, Seven Group are able to maintain a healthy profit margin of 9.40% and an operating margin of 9.66%.

This morning was no exception to their growth. While only rising by 0.82% in share price at time of writing, they still manage to stay on track with their consistent growth pattern.

How do Seven Group keep growing?

Seven Group has made investments through Beach Energy Ltd and SGH Energy.

With a stroke of luck, the increase of oil and gas prices has allowed Seven Holdings to capitalise from their investment and make way for healthy share growth.

Mid last year, Seven Group bought the remaining 50% of Coates Hire, which has supported their growth.

In 2008 they bought the first half. Now, almost 10 years later, they’re staying true to their investment.

Miners purchasing Coates’ trucks have contributed to their growth.

Seven Group believes having full ownership of Coates will improve their portfolio, allowing them to expand the company’s industrial services.

Managing director of Seven Group Ryan Stokes stated:

We have had a long history with the Coates Hire business and believe with the visible market opportunity associated with east-coast infrastructure activity, along with the current performance of the business and management team, the company is extremely well positioned to create value for all shareholders.

Seven Group stated Coates Hire was almost four times as large as its closest competitor.

What are Seven Group’s plans for increasing growth?

Seven Group are confident that the Westconnex project in Sydney will prompt earnings growth for Seven Group’s investments Coates Hire and WesTrac.

They plan to peak infrastructure investment by the year 2020/2021, as they are keen to benefit for a number of years to come.

The constant need to replace ageing fleets and consistent utilisation of mining equipment has helped lead the mining industry into success and industry resurrection.


Ryan Dinse,
For Markets & Money

PS: The Mining industry is on fire right now, but finding the right stocks to invest in can be a real hassle! Luckily Markets & Money Resources Analyst Jason Stevenson has written a free report titled ‘Top 10 Mining Stocks For 2018. Which tells you exactly what needs to be done regarding investing in mining stocks‘.

Ryan Dinse is an analyst at Markets and Money. He has two decades of experience in financial planning, equity analysis and credit markets. Ryan combines fundamental, technical and economic analysis to identify and invest in good ideas at the appropriate stage of the economic cycle. He has a strong interest in technology, economic history and disruptive business models. His focus at the moment is as lead analyst on two of our most recent and innovative investor services, Crash Market Investor and Sam Volkering’s Secret Crypto Network. He will write about the exciting opportunities for investors to benefit from significant changes in world markets. He is a member of Fintech Australia, a former member of the Digital Currency Council, and is a fully accredited financial adviser.

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