SUPER GROUP SGHC LTD (SGHC) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:SGHC - GG00BMG42V42 - Common Stock
9.75 USD
+0.04 (+0.41%)
9.81 USD
+0.06 (+0.62%)
SGHC gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 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 growing strongly while it is still valued neutral. This is a good combination! These ratings could make SGHC a good candidate for growth investing.
1. Profitability
1.1 Basic Checks
- SGHC had positive earnings in the past year.
- SGHC had positive earnings in 4 of the past 5 years.
- In the past 5 years SGHC always reported a positive cash flow from operatings.
1.2 Ratios
- SGHC has a better Return On Assets (11.90%) than 87.12% of its industry peers.
- SGHC has a Return On Equity of 19.98%. This is in the better half of the industry: SGHC outperforms 78.03% of its industry peers.
- SGHC's Return On Invested Capital of 34.32% is amongst the best of the industry. SGHC outperforms 96.97% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for SGHC is significantly above the industry average of 10.36%.
- 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's Profit Margin of 6.41% is fine compared to the rest of the industry. SGHC outperforms 62.12% of its industry peers.
- In the last couple of years the Profit Margin of SGHC has declined.
- SGHC has a better Operating Margin (15.43%) than 69.70% of its industry peers.
- SGHC's Operating Margin has declined in the last couple of years.
| 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
2. Health
2.1 Basic Checks
- With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), SGHC is creating value.
- SGHC has more shares outstanding than it did 1 year ago.
- Compared to 5 years ago, SGHC has more shares outstanding
- The debt/assets ratio for SGHC is higher compared to a year ago.
2.2 Solvency
- An Altman-Z score of 9.97 indicates that SGHC is not in any danger for bankruptcy at the moment.
- SGHC has a better Altman-Z score (9.97) than 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.
- SGHC's Debt to Equity ratio of 0.11 is amongst the best of the industry. SGHC outperforms 80.30% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.11 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 9.97 |
ROIC/WACC3.89
WACC8.83%
2.3 Liquidity
- A Current Ratio of 1.58 indicates that SGHC should not have too much problems paying its short term obligations.
- The Current ratio of SGHC (1.58) is better than 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.
- Looking at the Quick ratio, with a value of 1.58, SGHC is in the better half of the industry, outperforming 77.27% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.58 | ||
| Quick Ratio | 1.58 |
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.
- The Revenue has grown by 29.47% in the past year. This is a very strong growth!
- 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.
- The Revenue is expected to grow by 15.29% on average over the next years. This is quite good.
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
- When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
- The estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
4. Valuation
4.1 Price/Earnings Ratio
- SGHC is valuated quite expensively with a Price/Earnings ratio of 32.50.
- The rest of the industry has a similar Price/Earnings ratio as SGHC.
- Compared to an average S&P500 Price/Earnings ratio of 27.25, SGHC is valued at the same level.
- SGHC is valuated correctly with a Price/Forward Earnings ratio of 12.21.
- Based on the Price/Forward Earnings ratio, SGHC is valued cheaply inside the industry as 82.58% of the companies are valued more expensively.
- SGHC is valuated cheaply when we compare the Price/Forward Earnings ratio to 25.98, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.5 | ||
| Fwd PE | 12.21 |
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 | 11.42 |
4.3 Compensation for Growth
- The 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.
- A more expensive valuation may be justified as SGHC's earnings are expected to grow with 47.34% in the coming years.
PEG (NY)0.44
PEG (5Y)N/A
EPS Next 2Y64.48%
EPS Next 3Y47.34%
5. Dividend
5.1 Amount
- SGHC has a Yearly Dividend Yield of 1.60%. Purely for dividend investing, there may be better candidates out there.
- Compared to an average industry Dividend Yield of 1.21, SGHC pays a bit more dividend than its industry peers.
- SGHC's Dividend Yield is comparable with the S&P500 average which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.6% |
5.2 History
- SGHC does not have a reliable dividend history as it only pays dividend since a couple or years.
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%
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 32.5 and the Price/Book (PB) ratio is 7.41.