Seven Group Holdings Limited (SGH) AI Stock Analysis

• Market Cap: €19.25B
• Dividend Yield: 1.35%
• Average Volume (3M): 525.43K
• Price to Earnings (P/E): 36.8
• Beta (1Y): 1.53
• Revenue Growth: 1.19%
• EPS Growth: 1.09%
• Country: AU
• Employees: 4,210
• Sector: Industrials
• Sector Strength: 72
• Industry: Engineering & Construction
• EPS (TTM): 1.03
• Shares Outstanding: 406,998,170
• 10 Day Avg. Volume: 481,844
• 30 Day Avg. Volume: 525,432
• PEG Ratio: 17.66
• Price to Book (P/B): 4.60
• Price to Sales (P/S): 2.05
• P/FCF Ratio: 33.77
• 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: €52.80
• Price Target Upside: 14.88% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 55 Neutral
• Price Target: AU$44.00 ▼(-4.26% Downside)

The overall stock score for Seven Group Holdings Limited is primarily influenced by its solid financial performance, despite concerns over high leverage. Technical analysis indicates bearish momentum, with the stock trading below key moving averages and showing oversold conditions. The valuation suggests potential overvaluation with a high P/E ratio and modest dividend yield.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand and effective business strategies, supporting long-term financial health.

Cash Flow Generation

Improved cash flow generation enhances financial flexibility and supports sustainable growth initiatives and debt management.

Operational Efficiency

Strong operational efficiency through cost management supports profitability and competitive positioning in the market.

Negative Factors

High Debt Levels

High debt levels can limit financial flexibility, increase risk, and impact the company's ability to invest in growth opportunities.

Low Net Profit Margin

A low net profit margin indicates challenges in translating revenue into profit, potentially affecting long-term financial performance.

Decreased Return on Equity

A decline in return on equity can signal reduced efficiency in generating returns from shareholders' equity, impacting investor appeal.

Seven Group Holdings Limited Business Overview & Revenue Model

Company Description

SGH Ltd. is an investment company, which focuses on industrial services, media, and investments. It operates through the following business segments: WesTrac, Coates, Boral, Energy, Media Investments, and Other Investments. The WesTrac segment provides heavy equipment sales and support to customers. The Coates segment offers a range of general and specialist equipment to a variety of markets including engineering, building construction and maintenance, mining and resources, manufacturing, government, and events. The Boral segment is a construction materials group. The Media Investments segment relates to investments in listed and unlisted media organizations. The Other Investments segment covers other investments and incorporates listed investments and property. The company was founded in 1956 and is headquartered in Sydney, Australia.

How the Company Makes Money

SGH generates revenue through multiple streams, primarily from its investments in industrial services and media. The company earns a significant portion of its income from the rental and sale of construction and mining equipment provided by its subsidiary, Coates Hire. Additionally, SGH receives advertising revenue through its media arm, Seven West Media, which operates television channels and digital platforms. Strategic partnerships with leading companies and investments in high-demand sectors further enhance its profitability. The company also benefits from dividends and capital gains from its investment portfolio, which includes stakes in various companies across different industries.

Seven Group Holdings Limited Financial Statement Overview

Summary

Seven Group Holdings Limited demonstrates solid revenue growth and operational efficiency, with stable margins. While the company has improved its leverage position, the high debt-to-equity ratio remains a concern. Cash flow generation is strong, but further improvements in profitability and cash efficiency could enhance financial stability.

Income Statement

Seven Group Holdings Limited has shown consistent revenue growth over the years, with a slight increase in revenue from 2024 to 2025. The gross profit margin remains strong, indicating efficient cost management. However, the net profit margin is relatively low, suggesting room for improvement in profitability. The EBIT and EBITDA margins are stable, reflecting operational efficiency.

Balance Sheet

The company's debt-to-equity ratio has improved from 2024 to 2025, indicating better leverage management, but it remains relatively high, posing a potential risk. The return on equity has decreased slightly, which may affect investor confidence. The equity ratio is stable, showing a balanced asset structure.

Cash Flow

Operating cash flow has increased significantly, enhancing the company's ability to cover its net income. Free cash flow has also grown, indicating improved cash generation capabilities. However, the free cash flow to net income ratio suggests that there is still room for enhancing cash efficiency.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	113.89M	10.74B	10.62B	9.63B	8.01B	154.25M
Gross Profit	158.03M	4.01B	3.86B	3.56B	8.04B	202.34M
EBITDA	34.49M	1.56B	1.55B	1.62B	795.89M	39.49M
Net Income	14.77M	522.90M	464.40M	596.60M	558.40M	14.47M
Balance Sheet
Total Assets	418.60M	12.93B	13.60B	13.63B	13.59B	418.60M
Cash, Cash Equivalents and Short-Term Investments	20.70M	176.60M	654.30M	876.50M	15.63M	20.70M
Total Debt	112.38M	5.37B	5.98B	5.88B	6.63B	112.38M
Total Liabilities	238.15M	8.12B	9.49B	9.01B	9.31B	238.15M
Stockholders Equity	180.46M	4.78B	4.09B	3.91B	3.55B	180.46M
Cash Flow
Free Cash Flow	420.39M	651.00M	133.20M	589.80M	-130.30M	420.30M
Operating Cash Flow	622.40M	1.42B	808.20M	1.19B	9.75M	622.40M
Investing Cash Flow	-596.39M	-677.70M	-467.60M	-528.90M	2.84B	-591.20M
Financing Cash Flow	7.01M	-1.22B	-563.00M	-1.08B	8.17M	12.20M

Seven Group Holdings Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 45.96
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:SGH, the sentiment is Negative. The current price of 45.96 is above the 20-day moving average (MA) of 45.38, below the 50-day MA of 47.58, and below the 200-day MA of 49.56, indicating a neutral trend. The MACD of -0.30 indicates Negative momentum. The RSI at 47.33 is Neutral, neither overbought nor oversold. The STOCH value of 38.61 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AU:SGH.

Seven Group Holdings Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SRG	66 Neutral	AU$1.81B	35.95	13.62%	1.90%	23.76%	21.18%
MND	65 Neutral	€2.26B	26.81	17.57%	2.77%	7.20%	32.60%
DOW	64 Neutral	AU$5.23B	38.67	6.66%	3.16%	-4.53%	97.67%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
NWH	56 Neutral	€2.17B	77.89	4.71%	3.05%	12.18%	-73.81%
MGH	56 Neutral	AU$1.66B	21.91	9.26%	1.55%	15.14%	-7.23%
SGH	55 Neutral	€19.25B	36.81	11.42%	1.35%	1.19%	1.09%

Seven Group Holdings Limited Corporate Events

Seven Group Holdings Updates Director’s Interest Notice

Seven Group Holdings Limited (SGH) has announced a change in the director’s interest notice, specifically regarding Ryan Stokes AO. The change involves the acquisition of 18,922 share rights as part of the FY25 Short Term Incentive Plan. These share rights are part of Mr. Stokes’ deferred equity component of his STI award, which will vest following SGH’s results release for FY26. This move reflects SGH’s ongoing commitment to aligning executive compensation with company performance, potentially impacting stakeholder confidence positively.

SGH Issues Unquoted Share Rights to Employees

Seven Group Holdings Limited (SGH) has announced the issuance of 18,922 unquoted share rights under an employee incentive scheme. This move is part of the company’s strategy to incentivize and retain employees, potentially impacting its operational dynamics and aligning employee interests with company performance.

Director’s Shareholding Update at Seven Group Holdings

Seven Group Holdings Limited has announced a change in the indirect interest of its director, The Hon. Warwick Smith AO, in the company’s ordinary shares. On November 18, 2025, Smith acquired 2,308 ordinary shares through an on-market trade, increasing his indirect interest to a total of 57,417 shares. This change reflects a strategic adjustment in the director’s holdings, potentially signaling confidence in the company’s future performance and stability.

SGH Ltd Secures Shareholder Approval for AGM Resolutions

SGH Ltd announced that all resolutions at its 2025 Annual General Meeting were approved by poll. This outcome reflects strong shareholder support and may positively impact the company’s strategic initiatives and governance, reinforcing its position in the industrial services, energy, and media sectors.

SGH Ltd Highlights Strategic Growth and Strong Governance at 2025 AGM

At the 2025 Annual General Meeting, SGH Ltd highlighted its strategic positioning in key sectors such as mining, infrastructure, and transitional energy, which are expected to drive growth. The company emphasized its disciplined operating and capital allocation models, which have supported strong financial performance, including top decile total shareholder return and a 10-year EBIT CAGR of 20%. The meeting also underscored the strength of SGH’s Board, with a focus on maintaining a balance of expertise and independence, as well as upcoming changes with the retirement of Annabelle Chaplain.

SGH Ltd Highlights Market Position at UBS Conference

SGH Ltd has released reference material for the 2025 UBS Australasia Conference, highlighting its diversified operations across industrial services, energy, and media. This announcement underscores SGH’s strategic positioning in the market and its influence through major shareholdings, potentially impacting stakeholders by reinforcing its leadership in these sectors.

SGH Ltd Announces 2025 Annual General Meeting Details

SGH Ltd has announced its 2025 Annual General Meeting, set to be held on November 13, 2025, at The Kimpton Margot Hotel in Sydney. The meeting will be webcast live, and any changes to the arrangements will be communicated via their website and the ASX platform. This announcement is part of SGH’s ongoing commitment to transparency and engagement with its stakeholders, reflecting its strategic positioning across its diversified portfolio in industrial services, energy, and media.

SGH Issues Unquoted Share Rights to Boost Employee Engagement

Seven Group Holdings Limited (SGH) has announced the issuance of 505,471 unquoted share rights as part of an employee incentive scheme. This move is aimed at enhancing employee engagement and aligning their interests with the company’s long-term goals, potentially impacting the company’s operational dynamics and stakeholder relations positively.

SGH Announces Board Succession Amidst Growth Milestones

Seven Group Holdings Limited (SGH) has announced a significant board succession plan, with Chair Terry Davis set to retire in 2026 and Annabelle Chaplain AM, Chair of the Audit and Risk Committee, also stepping down. This transition follows a period of substantial growth under Davis’s leadership, including SGH’s inclusion in the ASX100 and MSCI World Index, as well as the acquisition of Boral. Mark Johnson, who joined the board in 2024, will take over as Chair of the Audit and Risk Committee, bringing extensive industry and financial expertise.