Taking everything into account, SGHC scores 6 out of 10 in our fundamental rating. SGHC was compared to 132 industry peers in the Hotels, Restaurants & Leisure industry. Both the profitability and the financial health of SGHC get a neutral evaluation. Nothing too spectacular is happening here. SGHC is not overvalued while it is showing excellent growth. This is an interesting combination. These ratings could make SGHC a good candidate for growth investing.

Quickly go to:

1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

1. Profitability

1.1 Basic Checks

In the past year SGHC was profitable.
Of the past 5 years SGHC 4 years were profitable.
SGHC had a positive operating cash flow in each of the past 5 years.

1.2 Ratios

The Return On Assets of SGHC (11.90%) is better than 87.12% of its industry peers.
Looking at the Return On Equity, with a value of 19.98%, SGHC is in the better half of the industry, outperforming 78.03% of the companies in the same industry.
SGHC has a Return On Invested Capital of 34.32%. This is amongst the best in the industry. SGHC outperforms 96.97% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for SGHC is significantly above the industry average of 10.38%.
The last Return On Invested Capital (34.32%) for SGHC is above the 3 year average (15.79%), which is a sign of increasing profitability.

		Industry Rank	Sector Rank
ROA	11.9%
ROE	19.98%
ROIC	34.32%

ROA(3y)10.16%

ROA(5y)16.96%

ROE(3y)17.87%

ROE(5y)59.56%

ROIC(3y)15.79%

ROIC(5y)31.82%

1.3 Margins

SGHC has a better Profit Margin (6.41%) than 62.12% of its industry peers.
SGHC's Profit Margin has declined in the last couple of years.
With a decent Operating Margin value of 15.43%, SGHC is doing good in the industry, outperforming 69.70% of the companies in the same industry.
In the last couple of years the Operating Margin of SGHC has declined.

		Industry Rank	Sector Rank
OM	15.43%
PM (TTM)	6.41%
GM	N/A

OM growth 3Y-8.81%

OM growth 5YN/A

PM growth 3Y-28%

PM growth 5YN/A

GM growth 3YN/A

GM growth 5YN/A

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ROA

ROE

ROIC

Operating and Profit Margin

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2. Health

2.1 Basic Checks

SGHC has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
The number of shares outstanding for SGHC has been increased compared to 1 year ago.
Compared to 5 years ago, SGHC has more shares outstanding
SGHC has a worse debt/assets ratio than last year.

2.2 Solvency

An Altman-Z score of 9.78 indicates that SGHC is not in any danger for bankruptcy at the moment.
SGHC has a Altman-Z score of 9.78. This is amongst the best in the industry. SGHC outperforms 97.73% of its industry peers.
SGHC has a Debt/Equity ratio of 0.11. This is a healthy value indicating a solid balance between debt and equity.
With an excellent Debt to Equity ratio value of 0.11, SGHC belongs to the best of the industry, outperforming 80.30% of the companies in the same industry.

		Industry Rank	Sector Rank
Debt/Equity	0.11
Debt/FCF	N/A
Altman-Z	9.78

ROIC/WACC3.88

WACC8.85%

2.3 Liquidity

A Current Ratio of 1.58 indicates that SGHC should not have too much problems paying its short term obligations.
SGHC has a Current ratio of 1.58. This is in the better half of the industry: SGHC outperforms 72.73% of its industry peers.
A Quick Ratio of 1.58 indicates that SGHC should not have too much problems paying its short term obligations.
SGHC's Quick ratio of 1.58 is fine compared to the rest of the industry. SGHC outperforms 77.27% of its industry peers.

		Industry Rank	Sector Rank
Current Ratio	1.58
Quick Ratio	1.58

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WACC

Debt/Equity

How to determine the health of a company

Altman-Z score

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3. Growth

3.1 Past

The Earnings Per Share has grown by an impressive 127.13% over the past year.
SGHC shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -21.17% yearly.
Looking at the last year, SGHC shows a very strong growth in Revenue. The Revenue has grown by 29.47%.
Measured over the past years, SGHC shows a very strong growth in Revenue. The Revenue has been growing by 28.06% on average per year.

EPS 1Y (TTM)127.13%

EPS 3Y-21.17%

EPS 5YN/A

EPS Q2Q%102.5%

Revenue 1Y (TTM)29.47%

Revenue growth 3Y5.54%

Revenue growth 5Y28.06%

Sales Q2Q%18.34%

3.2 Future

Based on estimates for the next years, SGHC will show a very strong growth in Earnings Per Share. The EPS will grow by 47.34% on average per year.
SGHC is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 15.29% yearly.

EPS Next Y74.22%

EPS Next 2Y64.48%

EPS Next 3Y47.34%

EPS Next 5YN/A

Revenue Next Year30.93%

Revenue Next 2Y20.48%

Revenue Next 3Y17.76%

Revenue Next 5Y15.29%

3.3 Evolution

The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past years.

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4. Valuation

4.1 Price/Earnings Ratio

Based on the Price/Earnings ratio of 31.57, the valuation of SGHC can be described as expensive.
SGHC's Price/Earnings is on the same level as the industry average.
SGHC's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 28.32.
Based on the Price/Forward Earnings ratio of 11.85, the valuation of SGHC can be described as reasonable.
Compared to the rest of the industry, the Price/Forward Earnings ratio of SGHC indicates a rather cheap valuation: SGHC is cheaper than 84.09% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 25.57, SGHC is valued rather cheaply.

		Industry Rank	Sector Rank
PE	31.57
Fwd PE	11.85

4.2 Price Multiples

The rest of the industry has a similar Enterprise Value to EBITDA ratio as SGHC.

		Industry Rank	Sector Rank
P/FCF	N/A
EV/EBITDA	11.07

4.3 Compensation for Growth

SGHC's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
SGHC has a very decent profitability rating, which may justify a higher PE ratio.
SGHC's earnings are expected to grow with 47.34% in the coming years. This may justify a more expensive valuation.

PEG (NY)0.43

PEG (5Y)N/A

EPS Next 2Y64.48%

EPS Next 3Y47.34%

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5. Dividend

5.1 Amount

With a Yearly Dividend Yield of 1.59%, SGHC has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 1.25, SGHC pays a bit more dividend than its industry peers.
SGHC's Dividend Yield is comparable with the S&P500 average which is at 1.83.

		Industry Rank	Sector Rank
Dividend Yield	1.59%

5.2 History

SGHC has been paying a dividend for less than 5 years, so it still needs to build a track record.

Dividend Growth(5Y)N/A

Div Incr Years0

Div Non Decr Years0

5.3 Sustainability

DPN/A

EPS Next 2Y64.48%

EPS Next 3Y47.34%

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SUPER GROUP SGHC LTD / SGHC FAQ

What is the ChartMill fundamental rating of SUPER GROUP SGHC LTD (SGHC) stock?

ChartMill assigns a fundamental rating of 6 / 10 to SGHC.

Can you provide the valuation status for SUPER GROUP SGHC LTD?

ChartMill assigns a valuation rating of 5 / 10 to SUPER GROUP SGHC LTD (SGHC). This can be considered as Fairly Valued.

What is the profitability of SGHC stock?

SUPER GROUP SGHC LTD (SGHC) has a profitability rating of 6 / 10.

What is the valuation of SUPER GROUP SGHC LTD based on its PE and PB ratios?

The Price/Earnings (PE) ratio for SUPER GROUP SGHC LTD (SGHC) is 31.57 and the Price/Book (PB) ratio is 7.2.