Seven Group Holdings Ltd
SVW: XASX (AUS)
| Morningstar Rating for Stocks | Fair Value | Economic Moat | Capital Allocation |
|---|---|---|---|
| A$95.00 | Fkkmcq | Sykmgxk |
Moat Rating Upgraded to Narrow as Industrial Services Segments Increasingly Dominate
Business Strategy and Outlook
Seven Group Holdings' industrial equipment businesses, WesTrac Australia and Coates Hire, provide solid revenue and cash flow via exposure to the local government, civil construction, and mining sectors. A more recent 73% stake acquired in building products and construction materials business Boral adds to the infrastructure thematic. Demand for mining services equipment is a major determinant of earnings. This is an advantage given government predilection for stimulus via infrastructure investment.