tiprankstipranks
Trending News
More News >
Seven Group Holdings Limited (AU:SGH)
ASX:SGH
Advertisement

Seven Group Holdings Limited (SGH) AI Stock Analysis

Compare
25 Followers

Top Page

AU:SGH

Seven Group Holdings Limited

(Sydney:SGH)

Rating:63Neutral
Price Target:
AU$53.00
▲(5.85% Upside)
The overall stock score of 63 reflects solid financial performance with strong revenue growth and cash flow generation. However, the high debt-to-equity ratio and relatively high P/E ratio suggest potential risks. Technical indicators show a neutral to slightly bearish trend, and the low dividend yield limits income potential.
Positive Factors
Earnings Forecast
Forecasts predict a 3% upgrade to Boral's FY25 EBIT due to expected margin expansion.
Industrial Services Growth
Industrial Services EBIT grew 28% compared to guidance of 20-25%, indicating strong performance.
Margin Expansion
Boral realized significant margin expansion, reflecting both SG&A efficiencies and gross margin growth.
Negative Factors
Market Competition
Exploration of more M&A opportunities suggests potential challenges in fleet and market-share growth.
Revenue Performance
Group revenue from continuing operations was slightly below estimates, at A$10,605 million, missing expectations by 1-2%.

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 primarily generates revenue through its industrial services segment, which includes the sale and support of Caterpillar machinery and engines through WesTrac. This segment is a major contributor to the company's earnings, driven by demand from the mining and construction industries. In the media sector, SGH earns money through its investment in Seven West Media, which generates revenue from television broadcasting, digital platforms, and publishing. The company's energy segment also contributes to its revenue through oil and gas production and exploration activities. SGH's diversified portfolio and strategic investments in key sectors are significant factors that contribute to its overall financial performance.

Seven Group Holdings Limited Financial Statement Overview

Summary
Seven Group Holdings Limited shows robust revenue growth and a strong Gross Profit Margin. However, declining Net Profit Margin and ROE, along with high leverage and weak cash flow metrics, indicate areas needing improvement.
Income Statement
75
Positive
Seven Group Holdings Limited demonstrated strong revenue growth with a Revenue Growth Rate of 10.34% from 2023 to 2024. The Gross Profit Margin is healthy at 36.31% for 2024, reflecting efficient cost management. However, the Net Profit Margin decreased to 4.37% in 2024, down from 6.20% in the previous year, indicating a decline in profitability. EBIT is reported as zero, which requires attention. The EBITDA Margin remains strong at 14.62%.
Balance Sheet
65
Positive
The company maintains a solid Equity Ratio of 30.06%, suggesting a stable capital structure, although there is a slight decrease in Stockholders' Equity. The Debt-to-Equity Ratio is high at 1.46, indicating significant leverage, which poses a financial risk. Return on Equity has decreased to 11.36% from 15.26% in 2023, reflecting reduced efficiency in generating returns.
Cash Flow
60
Neutral
Free Cash Flow showed a negative growth rate from 2023 to 2024, with a substantial decline from 589.8 million to 133.2 million. The Free Cash Flow to Net Income Ratio is 0.29, suggesting a weaker cash conversion. Operating Cash Flow is not available, limiting further analysis in this area.
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue40.35M10.74B10.62B9.63B8.01B154.25M
Gross Profit44.31M4.01B3.86B3.56B8.04B202.34M
EBITDA5.00M1.56B1.55B1.62B22.21M39.49M
Net Income-296.25K522.90M464.40M596.60M558.40M14.47M
Balance Sheet
Total Assets388.56M12.93B13.60B13.63B13.59B418.60M
Cash, Cash Equivalents and Short-Term Investments26.46M176.60M654.30M876.50M15.63M20.70M
Total Debt124.14M5.37B5.98B5.88B6.63B112.38M
Total Liabilities226.23M8.12B9.49B9.01B9.31B238.15M
Stockholders Equity162.33M4.78B4.09B3.91B3.55B180.46M
Cash Flow
Free Cash Flow-87.25K651.00M133.20M589.80M-130.30M420.30M
Operating Cash Flow0.001.42B808.20M1.19B9.75M622.40M
Investing Cash Flow5.19M-677.70M-467.60M-528.90M2.84B-591.20M
Financing Cash Flow5.19M-1.22B-563.00M-1.08B8.17M12.20M

Seven Group Holdings Limited Technical Analysis

Technical Analysis Sentiment
Positive
Last Price50.07
Price Trends
50DMA
51.10
Negative
100DMA
50.87
Negative
200DMA
49.61
Positive
Market Momentum
MACD
-0.51
Negative
RSI
51.56
Neutral
STOCH
87.63
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:SGH, the sentiment is Positive. The current price of 50.07 is above the 20-day moving average (MA) of 49.43, below the 50-day MA of 51.10, and above the 200-day MA of 49.61, indicating a neutral trend. The MACD of -0.51 indicates Negative momentum. The RSI at 51.56 is Neutral, neither overbought nor oversold. The STOCH value of 87.63 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AU:SGH.

Seven Group Holdings Limited Peers Comparison

Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
64
Neutral
$10.95B16.378.81%1.96%2.68%-15.33%
63
Neutral
€20.10B38.5811.42%0.60%1.19%1.09%
€2.73B32.456.66%
€1.17B22.7117.57%
€983.41M57.624.71%
69
Neutral
AU$1.18B23.8813.62%2.51%23.76%21.18%
67
Neutral
AU$1.61B21.349.26%1.57%15.14%-7.23%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AU:SGH
Seven Group Holdings Limited
50.07
9.78
24.28%
DE:DNE
Downer EDI Limited
3.94
1.23
45.39%
DE:8MP
Monadelphous Group Limited
11.70
4.31
58.32%
DE:3NR
NRW Holdings Limited
2.14
0.11
5.42%
AU:SRG
SRG Global Limited
2.00
0.98
96.08%
AU:MGH
MAAS Group Holdings Ltd.
4.45
<0.01
0.23%

Seven Group Holdings Limited Corporate Events

SGH Ltd to Announce FY25 Financial Results on August 12
Jul 29, 2025

SGH Ltd has announced that it will release its FY25 financial results on August 12, 2025. The announcement will be presented by the Managing Director and CEO, Ryan Stokes AO, and CFO, Richard Richards, via a teleconference and webcast. This release is significant for stakeholders as it provides insights into the company’s financial performance and strategic direction, impacting its operations and positioning within the industry.

The most recent analyst rating on (AU:SGH) stock is a Hold with a A$41.30 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 Equity Securities for Employee Incentive
Jul 4, 2025

Seven Group Holdings Limited (SGH) has announced the issuance of 2,110 unquoted equity securities in the form of share rights under an employee incentive scheme. This move is part of SGH’s strategy to incentivize and retain employees, potentially impacting its operational dynamics by aligning employee interests with company performance.

The most recent analyst rating on (AU:SGH) stock is a Hold with a A$41.30 price target. To see the full list of analyst forecasts on Seven Group Holdings Limited stock, see the AU:SGH Stock Forecast page.

SGH Announces Boral CEO Succession Plan
Jun 30, 2025

SGH Ltd announced the planned succession of Boral’s CEO, Vik Bansal, who will step down in early 2026 and join the SGH Board as a Non-Executive Director. Matt McKenzie, currently Executive General Manager, will become Chief Operating Officer to ensure leadership continuity. Under Bansal’s leadership, Boral has undergone a significant transformation with the ‘Good to Great’ strategy, improving operational and financial performance. This transition aims to maintain Boral’s growth trajectory and performance momentum in Australia’s infrastructure and residential markets.

The most recent analyst rating on (AU:SGH) stock is a Hold with a A$41.30 price target. To see the full list of analyst forecasts on Seven Group Holdings Limited stock, see the AU:SGH Stock Forecast page.

SGH Announces Change in Substantial Holding in Agrimin
Jun 23, 2025

Seven Group Holdings Limited (SGH) has announced a change in its substantial holding interests in Agrimin Limited due to the activities of its associates, specifically Australian Capital Equity Pty Ltd and its subsidiary Wroxby Pty Limited. The notice highlights a reduction in voting power from 11.35% to 9.79% as a result of dilution from share issues by BCI Minerals Limited. This change reflects SGH’s indirect involvement through its associates and may impact its influence within Agrimin Limited.

The most recent analyst rating on (AU:SGH) stock is a Hold with a A$41.30 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 Investor Presentation Detailing Strategic Insights
May 20, 2025

SGH Ltd has announced an investor presentation to be delivered by its MD&CEO, Ryan Stokes AO, along with senior executives, as part of an Investor Day. This presentation is expected to provide insights into the company’s strategic direction and operational updates, potentially impacting its market positioning and stakeholder interests.

The most recent analyst rating on (AU:SGH) stock is a Hold with a A$41.30 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 CEO to Present at Macquarie Australia Conference
May 5, 2025

SGH Ltd announced that its CEO and Managing Director, Ryan Stokes, will present a reference slide pack at the Macquarie Australia Conference. This engagement underscores SGH’s active participation in industry events and highlights its strategic focus on maintaining its leadership across its diversified sectors, potentially impacting its market presence and stakeholder relations.

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: Aug 28, 2025