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Seven Group Holdings Limited (AU:SGH)
ASX:SGH

Seven Group Holdings Limited (SGH) AI Stock Analysis

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AU:SGH

Seven Group Holdings Limited

(Sydney:SGH)

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Neutral 55 (OpenAI - 5.2)
Rating:55Neutral
Price Target:
AU$49.00
▲(5.60% Upside)
Action:ReiteratedDate:11/19/25
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
Diversified portfolio and controlling positions
SGH's ownership across equipment sales/services (WesTrac), hire (Coates), energy (Beach) and media provides durable revenue diversification. This multi‑vertical exposure smooths cash flows across cycles, supplies strategic optionality and reduces single‑market concentration risk over months.
High-margin aftermarket and service revenue
Aftermarket parts, maintenance and long‑term service agreements produce recurring, higher‑margin cash flows that are less cyclical than new equipment sales. A large installed base creates sustained demand for parts and service, supporting margin durability and predictable cash generation over time.
Improving operating and free cash flow
Rising operating and free cash flow strengthens financial flexibility, enabling debt reduction, capital expenditure funding and shareholder distributions without relying on external financing. Improved cash conversion enhances resilience through industry cycles and supports strategic investment.
Negative Factors
Elevated leverage despite improvement
Although leverage has decreased, a still‑elevated debt load constrains financial flexibility and increases interest expense sensitivity. High debt magnifies downside in cyclical end markets (equipment, energy, advertising) and reduces room to invest or smooth payouts during downturns.
Significant revenue and EPS decline reported
Material negative revenue and EPS growth metrics indicate meaningful operational or cyclical strain that has reduced earnings power. Persistent declines impair reinvestment capacity and make cash flows more vulnerable to market swings, challenging medium‑term financial stability.
Low net profit margin despite strong gross margin
A healthy gross margin but low net margin suggests elevated operating, financing or non‑operating costs eroding returns. Low net profitability reduces retained earnings for growth, limits buffer against shocks and constrains ability to scale distributions or deleverage sustainably.

Seven Group Holdings Limited (SGH) vs. iShares MSCI Australia ETF (EWA)

Seven Group Holdings Limited Business Overview & Revenue Model

Company DescriptionSGH 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 MoneySGH 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
75
Positive
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
68
Positive
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
70
Positive
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.
BreakdownTTMJun 2025Jun 2024Jun 2023Jun 2022Jun 2021
Income Statement
Total Revenue10.65B10.74B10.62B9.63B8.01B154.25M
Gross Profit2.30B4.01B3.86B3.56B8.04B202.34M
EBITDA1.88B1.56B1.55B1.62B795.89M39.49M
Net Income470.40M522.90M464.40M596.60M558.40M14.47M
Balance Sheet
Total Assets12.97B12.93B13.60B13.63B13.59B418.60M
Cash, Cash Equivalents and Short-Term Investments261.20M176.60M654.30M876.50M15.63M20.70M
Total Debt6.40B5.37B5.98B5.88B6.63B112.38M
Total Liabilities7.81B8.12B9.49B9.01B9.31B238.15M
Stockholders Equity5.13B4.78B4.09B3.91B3.55B180.46M
Cash Flow
Free Cash Flow796.30M651.00M133.20M589.80M-130.30M420.30M
Operating Cash Flow1.65B1.42B808.20M1.19B9.75M622.40M
Investing Cash Flow-822.50M-677.70M-467.60M-528.90M2.84B-591.20M
Financing Cash Flow-752.70M-1.22B-563.00M-1.08B8.17M12.20M

Seven Group Holdings Limited Technical Analysis

Technical Analysis Sentiment
Negative
Last Price46.40
Price Trends
50DMA
47.27
Negative
100DMA
47.10
Negative
200DMA
48.92
Negative
Market Momentum
MACD
-0.15
Positive
RSI
44.61
Neutral
STOCH
20.43
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 46.4 is below the 20-day moving average (MA) of 47.55, below the 50-day MA of 47.27, and below the 200-day MA of 48.92, indicating a bearish trend. The MACD of -0.15 indicates Positive momentum. The RSI at 44.61 is Neutral, neither overbought nor oversold. The STOCH value of 20.43 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

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
66
Neutral
AU$1.74B17.2813.62%1.85%23.76%21.18%
65
Neutral
AU$3.23B10.1717.57%2.65%7.20%32.60%
64
Neutral
AU$5.51B14.226.66%3.11%-4.53%97.67%
64
Neutral
AU$3.00B8.104.71%3.20%12.18%-73.81%
63
Neutral
$10.79B15.437.44%2.01%2.89%-14.66%
59
Neutral
AU$1.74B12.979.26%1.30%15.14%-7.23%
55
Neutral
€18.87B10.0311.42%1.31%1.19%1.09%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AU:SGH
Seven Group Holdings Limited
45.06
-5.25
-10.44%
AU:DOW
Downer EDI Limited
8.19
2.99
57.41%
AU:MND
Monadelphous Group Limited
31.68
16.45
107.97%
AU:NWH
NRW Holdings Limited
6.30
3.57
130.60%
AU:SRG
SRG Global Limited
2.70
1.52
128.81%
AU:MGH
MAAS Group Holdings Ltd.
4.81
1.14
31.06%

Seven Group Holdings Limited Corporate Events

Seven Group lifts profit and margins on stronger cash generation
Feb 11, 2026

Seven Group Holdings reported a strong first half for the period to 31 December 2025, with EBITDA rising 1 per cent to $1.1 billion and net profit after tax up 2 per cent to $518 million. Revenue was broadly flat at $5.4 billion as previously elevated WesTrac capital sales normalised, but operating cash flow surged 32 per cent to $1.1 billion, underpinned by robust cash conversion.

The group’s EBIT margin widened to 15.6 per cent, driven by profitability gains at Boral and WesTrac and disciplined cost control across the portfolio. Management framed the result as validation of its Australian‑focused strategy and ‘owner’s mindset’ approach, emphasising market‑leading positions in long‑duration, industrial and energy demand thematics as key to sustaining long‑term value creation for shareholders.

The most recent analyst rating on (AU:SGH) stock is a Hold with a A$49.00 price target. To see the full list of analyst forecasts on Seven Group Holdings Limited stock, see the AU:SGH Stock Forecast page.

Seven Group Holdings Declares A$0.32 Interim Dividend for Half-Year to December 2025
Feb 10, 2026

Seven Group Holdings Limited has declared an interim dividend of A$0.32 per ordinary fully paid share, relating to the six-month period ended 31 December 2025. The dividend will trade ex-dividend on 4 March 2026, with a record date of 5 March 2026 and payment scheduled for 9 April 2026.

The announcement confirms that the distribution follows the company’s standard timetable for half-year returns to shareholders, signalling ongoing cash returns from the group’s diversified portfolio. Income-focused investors will note the set payout and key dates as part of their planning, reflecting SGH’s continued practice of regular shareholder distributions.

The most recent analyst rating on (AU:SGH) stock is a Hold with a A$51.80 price target. To see the full list of analyst forecasts on Seven Group Holdings Limited stock, see the AU:SGH Stock Forecast page.

SGH Releases Half‑Year Results Presentation for Diversified Portfolio
Feb 10, 2026

SGH Ltd has released a presentation of its half‑year results for the six months ended 31 December 2025, providing investors with an update on the performance of its diversified portfolio. The disclosure underscores the board’s focus on transparency around operating trends across its core assets in industrial services, energy and media.

The results presentation is expected to inform the market’s assessment of earnings momentum at key subsidiaries WesTrac, Boral and Coates, as well as the contribution from its energy and media investments. Stakeholders will be watching for indications on how these segments are tracking in the current operating environment and any implications for the group’s strategic positioning and capital allocation priorities.

The most recent analyst rating on (AU:SGH) stock is a Hold with a A$51.80 price target. To see the full list of analyst forecasts on Seven Group Holdings Limited stock, see the AU:SGH Stock Forecast page.

Seven Group files half‑year report for December 2025
Feb 10, 2026

Seven Group Holdings has released its Appendix 4D and half‑year financial report for the six months to 31 December 2025, providing investors with updated financial performance details across its diversified portfolio. The lodgement underscores the group’s continued disclosure to the market as it manages major assets in industrial services, energy and media, information that will help stakeholders assess the company’s current trading conditions and capital allocation across its key businesses.

The most recent analyst rating on (AU:SGH) stock is a Hold with a A$51.80 price target. To see the full list of analyst forecasts on Seven Group Holdings Limited stock, see the AU:SGH Stock Forecast page.

Seven Group Names John Gillam as Incoming Chairman
Feb 1, 2026

Seven Group Holdings has confirmed the appointment of John Gillam as a non‑executive director effective 1 February 2026, with a planned transition to the role of board chairman on 1 June 2026. The move signals an upcoming change in board leadership at the diversified industrial, energy and media conglomerate, underscoring a continued focus on experienced governance as the group oversees major holdings in WesTrac, Boral, Coates and its key energy and media investments.

The most recent analyst rating on (AU:SGH) stock is a Hold with a A$49.00 price target. To see the full list of analyst forecasts on Seven Group Holdings Limited stock, see the AU:SGH Stock Forecast page.

Seven Group to Unveil Half-Year 2026 Results on 11 February
Jan 28, 2026

Seven Group Holdings Ltd will announce its half-year 2026 financial results on 11 February 2026 at 9:30am AEDT, with Managing Director and CEO Ryan Stokes and CFO Richard Richards set to present the numbers via a teleconference and webcast accessible through the company’s website. The scheduled release will offer investors and analysts fresh insight into the performance of SGH’s portfolio of industrial, energy and media assets, including WesTrac, Boral and Coates, and is likely to be closely watched for signals on trading conditions and capital allocation across its key markets.

The most recent analyst rating on (AU:SGH) stock is a Hold with a A$49.00 price target. To see the full list of analyst forecasts on Seven Group Holdings Limited stock, see the AU:SGH Stock Forecast page.

SGH Limited Issues 4,761 New Ordinary Shares on Conversion of Unquoted Securities
Jan 6, 2026

SGH Limited has notified the ASX of the issue of 4,761 new ordinary fully paid shares following the conversion or exercise of previously unquoted options or other unquoted convertible securities, with an effective issue date of 22 December 2025. The modest issuance slightly increases the company’s share capital and reflects the ongoing transition of unquoted instruments into listed equity, marginally diluting existing holders while aligning holders of the converted securities more closely with ordinary shareholders.

The most recent analyst rating on (AU:SGH) stock is a Hold with a A$44.00 price target. To see the full list of analyst forecasts on Seven Group Holdings Limited stock, see the AU:SGH Stock Forecast page.

SGH Limited Reports Lapse of 5,876 Conditional Share Rights
Jan 6, 2026

SGH Limited has notified the ASX that a total of 5,876 share rights have lapsed after performance or vesting conditions were not met or became incapable of being satisfied in December 2025. The cessation of these conditional rights, disclosed as an update to the company’s issued capital, indicates that certain equity-based incentive hurdles were not achieved, resulting in no new shares being issued to holders of these rights.

The most recent analyst rating on (AU:SGH) stock is a Hold with a A$44.00 price target. To see the full list of analyst forecasts on Seven Group Holdings Limited stock, see the AU:SGH Stock Forecast page.

Seven Group and Steel Dynamics Launch A$13.2bn Bid to Break Up BlueScope Steel
Jan 5, 2026

Seven Group Holdings and US-based Steel Dynamics have lodged a non-binding indicative offer to acquire 100% of BlueScope Steel via a scheme of arrangement in a deal valuing the Australian steelmaker’s equity at about A$13.2 billion. Under the proposal, SGH would retain BlueScope’s Australian and Rest of World operations while on-selling the North American assets, including the North Star mill and building and coated products businesses, to Steel Dynamics, effectively splitting the group along geographic lines. The proposed all-cash offer of A$30 per share represents premiums of 27% to the last close and 33% to both the three-month and 52-week VWAPs, and SGH and SDI say they expect no material regulatory hurdles and do not plan to raise equity, relying instead on existing cash and debt capacity. The bidders argue the two BlueScope businesses are strategically misaligned and would create greater value as standalone entities under new ownership, with both parties signalling their intention to retain key management and offer board representation to ensure continuity, while emphasising potential benefits for shareholders, employees and local communities if the transaction proceeds.

The most recent analyst rating on (AU:SGH) stock is a Hold with a A$44.00 price target. To see the full list of analyst forecasts on Seven Group Holdings Limited stock, see the AU:SGH Stock Forecast page.

SGH Ltd Announces Leadership Transition with John Gillam as Chair-elect
Dec 16, 2025

SGH Ltd has announced the appointment of John Gillam as the Non-Executive Director and Chair-elect, succeeding Terry Davis in June 2026. Gillam, known for his strategic transformation and operational excellence, is expected to continue SGH’s growth trajectory and enhance shareholder value, leveraging his extensive experience in industrial sectors.

The most recent analyst rating on (AU:SGH) stock is a Hold with a A$44.00 price target. To see the full list of analyst forecasts on Seven Group Holdings Limited stock, see the AU:SGH Stock Forecast page.

Seven Group Holdings Updates Director’s Interest Notice
Dec 3, 2025

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.

The most recent analyst rating on (AU:SGH) stock is a Hold with a A$44.00 price target. To see the full list of analyst forecasts on Seven Group Holdings Limited stock, see the AU:SGH Stock Forecast page.

SGH Issues Unquoted Share Rights to Employees
Dec 3, 2025

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.

The most recent analyst rating on (AU:SGH) stock is a Hold with a A$44.00 price target. To see the full list of analyst forecasts on Seven Group Holdings Limited stock, see the AU:SGH Stock Forecast page.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Nov 19, 2025