Sports Entertainment Group Limited (SEG) AI Stock Analysis

• Market Cap: AU$74.91M
• Dividend Yield: 7.41%
• Average Volume (3M): 17.34K
• Price to Earnings (P/E): 18.4
• Beta (1Y): -0.82
• Revenue Growth: 0.33%
• EPS Growth: N/A
• Country: AU
• Employees: 55
• Sector: Communication Services
• Sector Strength: 75
• Industry: Broadcasting
• EPS (TTM): >-0.01
• Shares Outstanding: 277,455,900
• 10 Day Avg. Volume: 24,543
• 30 Day Avg. Volume: 17,342
• PEG Ratio: 0.02
• Price to Book (P/B): 6.02
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 15.31
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 66 Neutral
• Price Target: AU$0.50 ▲(85.19%Upside)

The overall score reflects the company's strong financial performance, particularly in revenue and profitability growth, and a solid dividend yield. However, technical indicators suggest caution, and the company's moderate leverage and declining cash flow are concerns.

Sports Entertainment Group Limited Business Overview & Revenue Model

Company Description

Sports Entertainment Group Limited (SEG) is a diversified media and entertainment company operating within the sports and radio broadcasting sectors. The company offers a wide array of sports content across various platforms, including radio, digital media, and events. SEG's core services involve live sports broadcasting, sports commentary, and news coverage, catering to a broad audience of sports enthusiasts.

How the Company Makes Money

Sports Entertainment Group Limited generates revenue primarily through advertising sales on its radio and digital platforms. The company monetizes its extensive audience base by offering advertising space to businesses looking to reach sports fans. In addition to advertising, SEG earns money through sponsorship deals and partnerships with sports organizations and events. These partnerships often involve exclusive content rights and promotional collaborations. Furthermore, the company may also derive revenue from organizing and hosting sports-related events, enhancing its brand presence and engaging with its audience directly.

Sports Entertainment Group Limited Financial Statement Overview

Summary

Sports Entertainment Group Limited shows positive revenue growth and profitability improvements, with enhanced margins and return on equity. However, moderate leverage and declining cash flow generation pose potential risks.

Income Statement

The income statement shows a positive trend in revenue growth, increasing from $117 million to $124.57 million, and a notable improvement in net income from a loss of $9.29 million to a profit of $3.12 million. Gross profit margin improved to 61%, and the net profit margin turned positive at 2.5%. EBIT margin also improved, highlighting operational efficiencies. However, historical volatility in EBIT and net income margins suggests some operational risks.

Balance Sheet

Sports Entertainment Group Limited has a debt-to-equity ratio of 0.78, indicating moderate leverage compared to equity. The equity ratio is 37.8%, which reflects a decent proportion of assets funded by shareholders. Return on equity improved to 5.6%, showcasing better profitability. However, the company has a significant amount of debt, which could be a risk if cash flows fluctuate.

Cash Flow

The cash flow statement indicates a decline in operating cash flow from $8.12 million to $4.26 million, suggesting a potential issue with cash generation. Free cash flow decreased from $3.46 million to $2.47 million, reflecting reduced cash available after investments. The operating cash flow to net income ratio is 1.37, suggesting reasonable cash generation relative to earnings, but the decline in free cash flow growth is concerning.

Breakdown	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement
Total Revenue	124.57M	117.03M	108.09M	70.03M	65.02M
Gross Profit	76.01M	66.43M	62.01M	36.97M	31.78M
EBITDA	8.97M	7.60M	14.78M	10.94M	847.00K
Net Income	3.12M	-9.29M	3.17M	2.04M	-5.21M
Balance Sheet
Total Assets	147.16M	148.83M	148.91M	121.51M	90.64M
Cash, Cash Equivalents and Short-Term Investments	10.74M	5.92M	12.63M	5.32M	7.65M
Total Debt	43.52M	51.28M	48.41M	37.18M	28.37M
Total Liabilities	90.95M	99.82M	90.03M	72.83M	48.41M
Stockholders Equity	55.70M	49.02M	58.88M	48.69M	42.23M
Cash Flow
Free Cash Flow	2.47M	3.46M	1.49M	-3.26M	3.99M
Operating Cash Flow	4.26M	8.12M	9.95M	6.58M	12.83M
Investing Cash Flow	3.98M	-15.22M	-11.42M	-10.46M	-16.61M
Financing Cash Flow	-3.43M	399.00K	8.95M	1.55M	7.26M

Sports Entertainment Group Limited Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 0.27
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:SEG, the sentiment is Neutral. The current price of 0.27 is below the 20-day moving average (MA) of 0.29, above the 50-day MA of 0.26, and above the 200-day MA of 0.24, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 41.37 is Neutral, neither overbought nor oversold. The STOCH value of 33.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for AU:SEG.

Sports Entertainment Group Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GTN	72 Outperform	AU$108.68M	18.33	2.80%	44.68%	2.57%	55.50%
SEG	66 Neutral	AU$74.91M	18.37	-1.83%	7.41%	0.33%	―
PPL	64 Neutral	AU$52.61M	32.14	27.08%	―	23.76%	―
BBL	59 Neutral	AU$102.94M	18.01	12.53%	1.90%	10.42%	1.57%
Sector *	56 Neutral	AU$3.67B	19.73	2.84%	3.77%	4.07%	-16.40%
MXO	55 Neutral	AU$16.71M	―	-18.57%	―	33.99%	64.89%
ST1	55 Neutral	AU$96.04M	―	-9.56%	―	2.00%	52.47%

Sports Entertainment Group Limited Corporate Events

SEG Acquires RSN, Becomes Sole Racing Broadcaster in Victoria

Sports Entertainment Group Limited (SEG) has announced its acquisition of the brand and broadcasting assets of 3UZ Pty Ltd (RSN), positioning itself as the sole dedicated broadcaster of racing in Victoria across all three codes. This strategic move, funded by SEG’s cash reserves, is expected to be earnings accretive by FY26 and aligns with the company’s growth strategy, enhancing its audio and digital ecosystem while preserving RSN’s legacy. The acquisition, which is subject to customary conditions, will also see SEG providing RSN programming on simulcast to racing.com, further expanding its reach and impact in the racing industry.

Sports Entertainment Group Projects Strong Financial Growth and Strategic Expansion

Sports Entertainment Group Limited has upgraded its FY25 financial guidance, forecasting EBITDA growth of at least 40% compared to FY24, driven by strong cost governance and growth in its ‘Complementary Services’ units. The company has also undertaken strategic initiatives, such as producing Channel 7’s football shows and securing TV production rights for Harness Racing Victoria, positioning itself for continued growth in FY26.

Sports Entertainment Group Announces Director’s Interest Change

Sports Entertainment Group Limited announced a change in the director’s interest, with Jodie Simm acquiring 931,193 performance rights under the company’s Performance Rights Share Plan. This change reflects an estimated valuation of $223,486 and indicates a strategic move to align the director’s interests with the company’s performance, potentially impacting the company’s governance and stakeholder confidence.

Sports Entertainment Group Announces Director’s Interest Change

Sports Entertainment Group Limited announced a change in the director’s interest, specifically involving Craig Hutchison. The change includes the acquisition of 2,363,668 performance rights by Craig Hutchison Media Pty Ltd, valued at approximately $567,280. This move underlines the company’s commitment to aligning its leadership’s interests with its performance goals, potentially impacting its strategic direction and shareholder value.

Sports Entertainment Group Updates Director’s Interest with Performance Rights

Sports Entertainment Group Limited announced a change in the director’s interest notice, involving Chris Giannopoulos. He has been granted 1,007,658 performance rights under the company’s Performance Rights Share Plan, with an estimated valuation of $241,838. This change reflects the company’s strategy to incentivize and retain key personnel, potentially impacting its operational dynamics and stakeholder interests.