SUPER GROUP SGHC LTD (SGHC) Stock Fundamental Analysis
NYSE:SGHC - New York Stock Exchange, Inc. - GG00BMG42V42 - Common Stock - Currency: USD
Taking everything into account, SGHC scores 7 out of 10 in our fundamental rating. SGHC was compared to 134 industry peers in the Hotels, Restaurants & Leisure industry. While SGHC has a great health rating, its profitability is only average at the moment. SGHC is growing strongly while it also seems undervalued. This is an interesting combination These ratings could make SGHC a good candidate for value and growth investing.
1. Profitability
1.1 Basic Checks
In the past year SGHC was profitable.
SGHC had a positive operating cash flow in the past year.
Of the past 5 years SGHC 4 years were profitable.
Each year in the past 5 years SGHC had a positive operating cash flow.
1.2 Ratios
With an excellent Return On Assets value of 10.69%, SGHC belongs to the best of the industry, outperforming 87.31% of the companies in the same industry.
SGHC's Return On Equity of 20.17% is fine compared to the rest of the industry. SGHC outperforms 79.10% of its industry peers.
With an excellent Return On Invested Capital value of 24.56%, SGHC belongs to the best of the industry, outperforming 95.52% of the companies in the same industry.
SGHC had an Average Return On Invested Capital over the past 3 years of 15.56%. This is in line with the industry average of 13.88%.
The last Return On Invested Capital (24.56%) for SGHC is above the 3 year average (15.56%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.69% | ||
| ROE | 20.17% | ||
| ROIC | 24.56% |
ROA(3y)10.09%
ROA(5y)17.06%
ROE(3y)17.72%
ROE(5y)61.89%
ROIC(3y)15.56%
ROIC(5y)32.6%
1.3 Margins
SGHC has a better Profit Margin (6.63%) than 61.94% of its industry peers.
In the last couple of years the Profit Margin of SGHC has declined.
With a Operating Margin value of 11.43%, SGHC perfoms like the industry average, outperforming 58.21% of the companies in the same industry.
SGHC's Operating Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 11.43% | ||
| PM (TTM) | 6.63% | ||
| GM | N/A |
OM growth 3Y-8.82%
OM growth 5YN/A
PM growth 3Y-28.03%
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.
Compared to 1 year ago, SGHC has more shares outstanding
Compared to 5 years ago, SGHC has more shares outstanding
SGHC has a worse debt/assets ratio than last year.
2.2 Solvency
SGHC has an Altman-Z score of 7.44. This indicates that SGHC is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of SGHC (7.44) is better than 93.28% of its industry peers.
The Debt to FCF ratio of SGHC is 0.36, which is an excellent value as it means it would take SGHC, only 0.36 years of fcf income to pay off all of its debts.
SGHC has a better Debt to FCF ratio (0.36) than 91.79% of its industry peers.
A Debt/Equity ratio of 0.12 indicates that SGHC is not too dependend on debt financing.
SGHC has a better Debt to Equity ratio (0.12) than 82.09% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.12 | ||
| Debt/FCF | 0.36 | ||
| Altman-Z | 7.44 |
ROIC/WACC2.71
WACC9.05%
2.3 Liquidity
A Current Ratio of 1.26 indicates that SGHC should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.26, SGHC is in the better half of the industry, outperforming 66.42% of the companies in the same industry.
SGHC has a Quick Ratio of 1.26. This is a normal value and indicates that SGHC is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 1.26, SGHC is in the better half of the industry, outperforming 69.40% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.26 | ||
| Quick Ratio | 1.26 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 173.29% 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 -18.74% yearly.
The Revenue has grown by 18.17% in the past year. This is quite good.
SGHC shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 28.95% yearly.
EPS 1Y (TTM)173.29%
EPS 3Y-18.74%
EPS 5YN/A
EPS Q2Q%673.33%
Revenue 1Y (TTM)18.17%
Revenue growth 3Y8.72%
Revenue growth 5Y28.95%
Sales Q2Q%36.32%
3.2 Future
The Earnings Per Share is expected to grow by 36.73% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 10.63% on average over the next years. This is quite good.
EPS Next Y84.81%
EPS Next 2Y50.99%
EPS Next 3Y36.73%
EPS Next 5YN/A
Revenue Next Year17.7%
Revenue Next 2Y13.69%
Revenue Next 3Y10.63%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
Although the future Revenue growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 19.44, the valuation of SGHC can be described as rather expensive.
Based on the Price/Earnings ratio, SGHC is valued a bit cheaper than the industry average as 70.15% of the companies are valued more expensively.
SGHC is valuated rather cheaply when we compare the Price/Earnings ratio to 26.19, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 11.52, the valuation of SGHC can be described as very reasonable.
Compared to the rest of the industry, the Price/Forward Earnings ratio of SGHC indicates a rather cheap valuation: SGHC is cheaper than 82.09% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of SGHC to the average of the S&P500 Index (22.13), we can say SGHC is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.44 | ||
| Fwd PE | 11.52 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as SGHC.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of SGHC indicates a somewhat cheap valuation: SGHC is cheaper than 73.13% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.43 | ||
| EV/EBITDA | 14.68 |
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.
The decent profitability rating of SGHC may justify a higher PE ratio.
SGHC's earnings are expected to grow with 36.73% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.23
PEG (5Y)N/A
EPS Next 2Y50.99%
EPS Next 3Y36.73%
5. Dividend
5.1 Amount
SGHC has a Yearly Dividend Yield of 1.92%. Purely for dividend investing, there may be better candidates out there.
SGHC's Dividend Yield is a higher than the industry average which is at 3.87.
SGHC's Dividend Yield is comparable with the S&P500 average which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.92% |
5.2 History
SGHC is new to the dividend game and has less than 3 years of track record.
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
40.86% of the earnings are spent on dividend by SGHC. This is a bit on the high side, but may be sustainable.
DP40.86%
EPS Next 2Y50.99%
EPS Next 3Y36.73%
8.75
+0.04 (+0.46%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners8.76%
Inst Owner Change6.88%
Ins Owners5.11%
Ins Owner ChangeN/A
Market Cap4.42B
Analysts85.45
Price Target10.81 (23.54%)
Short Float %1.53%
Short Ratio2.73
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.92% |
Yearly Dividend0.1
Dividend Growth(5Y)N/A
DP40.86%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-1.36%
Min EPS beat(2)-23.38%
Max EPS beat(2)20.66%
EPS beat(4)1
Avg EPS beat(4)-17.07%
Min EPS beat(4)-41.18%
Max EPS beat(4)20.66%
EPS beat(8)3
Avg EPS beat(8)38.49%
EPS beat(12)4
Avg EPS beat(12)24.76%
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)1
Avg Revenue beat(2)1.33%
Min Revenue beat(2)-1.09%
Max Revenue beat(2)3.75%
Revenue beat(4)2
Avg Revenue beat(4)0.8%
Min Revenue beat(4)-1.09%
Max Revenue beat(4)3.75%
Revenue beat(8)6
Avg Revenue beat(8)3.87%
Revenue beat(12)8
Avg Revenue beat(12)2.82%
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)0%
PT rev (3m)6%
EPS NQ rev (1m)8.33%
EPS NQ rev (3m)21.88%
EPS NY rev (1m)-0.47%
EPS NY rev (3m)10.69%
Revenue NQ rev (1m)2.46%
Revenue NQ rev (3m)7.23%
Revenue NY rev (1m)3.63%
Revenue NY rev (3m)9.62%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.44 | ||
| Fwd PE | 11.52 | ||
| P/S | 2.31 | ||
| P/FCF | 20.43 | ||
| P/OCF | 13.81 | ||
| P/B | 7.03 | ||
| P/tB | 13.21 | ||
| EV/EBITDA | 14.68 |
EPS(TTM)0.45
EY5.14%
EPS(NY)0.76
Fwd EY8.68%
FCF(TTM)0.43
FCFY4.9%
OCF(TTM)0.63
OCFY7.24%
SpS3.79
BVpS1.24
TBVpS0.66
PEG (NY)0.23
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.69% | ||
| ROE | 20.17% | ||
| ROCE | 31.09% | ||
| ROIC | 24.56% | ||
| ROICexc | 24.56% | ||
| ROICexgc | 42.22% | ||
| OM | 11.43% | ||
| PM (TTM) | 6.63% | ||
| GM | N/A | ||
| FCFM | 11.31% |
ROA(3y)10.09%
ROA(5y)17.06%
ROE(3y)17.72%
ROE(5y)61.89%
ROIC(3y)15.56%
ROIC(5y)32.6%
ROICexc(3y)21.3%
ROICexc(5y)N/A
ROICexgc(3y)88.76%
ROICexgc(5y)N/A
ROCE(3y)19.69%
ROCE(5y)41.27%
ROICexcg growth 3Y-51.24%
ROICexcg growth 5YN/A
ROICexc growth 3Y-27.79%
ROICexc growth 5YN/A
OM growth 3Y-8.82%
OM growth 5YN/A
PM growth 3Y-28.03%
PM growth 5YN/A
GM growth 3YN/A
GM growth 5YN/A
F-Score6
Asset Turnover1.61
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.12 | ||
| Debt/FCF | 0.36 | ||
| Debt/EBITDA | 0.24 | ||
| Cap/Depr | 117.95% | ||
| Cap/Sales | 5.42% | ||
| Interest Coverage | 75.78 | ||
| Cash Conversion | 104.41% | ||
| Profit Quality | 170.56% | ||
| Current Ratio | 1.26 | ||
| Quick Ratio | 1.26 | ||
| Altman-Z | 7.44 |
F-Score6
WACC9.05%
ROIC/WACC2.71
Cap/Depr(3y)75.06%
Cap/Depr(5y)56.36%
Cap/Sales(3y)3.77%
Cap/Sales(5y)2.96%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)173.29%
EPS 3Y-18.74%
EPS 5YN/A
EPS Q2Q%673.33%
EPS Next Y84.81%
EPS Next 2Y50.99%
EPS Next 3Y36.73%
EPS Next 5YN/A
Revenue 1Y (TTM)18.17%
Revenue growth 3Y8.72%
Revenue growth 5Y28.95%
Sales Q2Q%36.32%
Revenue Next Year17.7%
Revenue Next 2Y13.69%
Revenue Next 3Y10.63%
Revenue Next 5YN/A
EBIT growth 1Y158.15%
EBIT growth 3Y-0.87%
EBIT growth 5YN/A
EBIT Next Year91.04%
EBIT Next 3Y32.21%
EBIT Next 5YN/A
FCF growth 1Y143.04%
FCF growth 3Y1.89%
FCF growth 5Y294.87%
OCF growth 1Y113.53%
OCF growth 3Y10.6%
OCF growth 5Y139.55%