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SGH
(Sydney:SGH)
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Rating:56Neutral
Price Target:
AU$43.00
▲(1.13% Upside)
Action:Reiterated
Date:08/19/26
The score is driven primarily by solid but volatile fundamentals (improving leverage and decent profitability offset by weak revenue momentum, gross-margin compression, and uneven cash conversion). Technical indicators add downside pressure with the stock below key moving averages and negative MACD. Valuation provides limited support given a higher P/E and modest dividend yield.
Positive Factors
Diversified operating portfolio
Exposure to WesTrac, Boral and Beach Energy diversifies earnings across equipment services, construction materials and energy. WesTrac’s parts, maintenance and service agreements can add recurring revenue tied to customer fleet utilization.
Negative Factors
Weak revenue momentum
Flat-to-declining revenue indicates limited recent top-line expansion across SGH’s operating portfolio. Without stronger equipment, materials or energy volume growth, fixed-cost absorption and future earnings progression may remain constrained.
Read all positive and negative factors
Positive Factors
Negative Factors
Diversified operating portfolio
Exposure to WesTrac, Boral and Beach Energy diversifies earnings across equipment services, construction materials and energy. WesTrac’s parts, maintenance and service agreements can add recurring revenue tied to customer fleet utilization.
Read all positive factors
SGH (SGH) vs. iShares MSCI Australia ETF (EWA)
Market Cap
AU$16.86B
Dividend Yield1.58%
Average Volume (3M)525.43K
Price to Earnings (P/E)23.6
Beta (1Y)1.35
Revenue Growth-1.44%
EPS Growth32.96%
CountryAU
Employees4,210
SectorIndustrials
Sector Strength72
IndustryIndustrial - Distribution
Share Statistics
EPS (TTM)1.70
Shares Outstanding406,998,170
10 Day Avg. Volume481,844
30 Day Avg. Volume525,432
Financial Highlights & Ratios
PEG Ratio0.89
Price to Book (P/B)3.65
Price to Sales (P/S)1.79
P/FCF Ratio26.77
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
AU$48.34Price Target Upside13.69% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering10
EPS Forecast (FY)2.33
Revenue Forecast (FY)AU$10.72B
SGH Business Overview & Revenue Model
Company Description
SGH Ltd. functions as an investment firm, strategically concentrating its efforts on industrial services, media holdings, and various other investment ventures. Its diverse operations are structured across several key business segments: WesTrac, C...
How the Company Makes Money
SGH makes money primarily through earnings and cash distributions from its operating businesses and equity-accounted investments. Key revenue and earnings drivers include: (1) Industrial services and equipment: via WesTrac (its Caterpillar dealers...
SGH Financial Statement Overview
Summary
Income Statement
62
Positive
Balance Sheet
66
Positive
Cash Flow
58
Neutral
| Breakdown | Jun 2026 | Jun 2025 | Jun 2024 | Jun 2023 | Jun 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 10.59B | 10.74B | 10.62B | 9.63B | 8.01B |
| Gross Profit | 2.25B | 4.01B | 3.86B | 3.56B | 8.04B |
| EBITDA | 1.93B | 1.56B | 1.55B | 1.62B | 795.89M |
| Net Income | 689.20M | 522.90M | 464.40M | 596.60M | 558.40M |
Balance Sheet | |||||
| Total Assets | 12.90B | 12.93B | 13.60B | 13.63B | 13.59B |
| Cash, Cash Equivalents and Short-Term Investments | 231.80M | 176.60M | 654.30M | 876.50M | 15.63M |
| Total Debt | 5.06B | 5.37B | 5.98B | 5.88B | 6.63B |
| Total Liabilities | 7.66B | 8.12B | 9.49B | 9.01B | 9.31B |
| Stockholders Equity | 5.20B | 4.78B | 4.09B | 3.91B | 3.55B |
Cash Flow | |||||
| Free Cash Flow | 708.70M | 651.00M | 133.20M | 589.80M | -130.30M |
| Operating Cash Flow | 1.49B | 1.42B | 808.20M | 1.19B | 9.75M |
| Investing Cash Flow | -714.90M | -677.70M | -467.60M | -528.90M | 2.84B |
| Financing Cash Flow | -716.00M | -1.22B | -563.00M | -1.08B | 8.17M |
SGH Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
70 Outperform | AU$2.48B | 34.14 | 13.26% | 1.73% | 26.61% | 44.44% | |
69 Neutral | AU$1.92B | 36.08 | 27.29% | 0.61% | 50.42% | 92.71% | |
66 Neutral | AU$3.14B | 29.13 | 20.27% | 2.98% | 26.80% | 40.18% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
60 Neutral | AU$4.90B | 27.79 | 7.97% | 3.39% | -4.99% | 120.98% | |
57 Neutral | AU$3.26B | 65.07 | 7.79% | 3.20% | 14.40% | -57.82% | |
56 Neutral | AU$16.86B | 23.60 | 13.34% | 1.49% | -1.44% | 32.96% |
* Industrials Sector Average
AU:SGH
SGH
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SGH Corporate Events
SGH Limited Updates Market on Progress of On-Market Share Buy-Back
Aug 18, 2026
SGH Limited has provided an updated notification to the ASX on its ongoing on-market share buy-back program, confirming that a total of 1,081,935 ordinary fully paid shares had been repurchased before the previous trading day. The company reports ...
SGH Issues New Shares Following Conversion of Unquoted Securities
Aug 18, 2026
SGH Limited has notified the market of the issuance of additional ordinary fully paid shares following the exercise or conversion of unquoted options or other convertible securities. The company reported the creation of 265,866 new shares on 12 Au...
SGH Continues On-Market Share Buy-Back With Daily Repurchase Update
Aug 17, 2026
SGH Limited, listed on the ASX under the code SGH, operates through ordinary fully paid shares that are subject to an ongoing on-market buy-back. The company’s program reflects a focus on managing its share capital through regular repurchase...
SGH Limited Updates Market on Progress of Ongoing Share Buy-Back
Aug 16, 2026
SGH Limited has provided an updated notification to the ASX on its ongoing on-market share buy-back, covering ordinary fully paid shares under the SGH ticker. The program, first notified in late June 2026, continues to be reported through daily di...
SGH Updates Market on Daily Progress of On‑Market Share Buy‑Back
Aug 13, 2026
SGH Limited has provided an updated notification to the ASX regarding its ongoing on‑market share buy‑back program for its ordinary fully paid shares. The company reported that a total of 424,794 shares had been repurchased before the ...
SGH director Kate Farrar increases shareholding in on-market trade
Aug 13, 2026
SGH Ltd has disclosed a change in director Kate Farrar’s holdings, in line with ASX listing rule 3.19A.2 and the Corporations Act’s director interest provisions. The notice underscores the company’s adherence to mandatory transpa...
SGH Updates Market on Progress of On‑Market Share Buy‑Back
Aug 13, 2026
SGH Limited has provided an update to investors on its ongoing on-market share buy-back program for its ordinary fully paid shares. The latest notification to the ASX confirms that, as of the previous trading day, the company repurchased 424,794 s...
SGH director Warwick Smith increases indirect shareholding via on‑market trade
Aug 12, 2026
SGH Ltd has disclosed a change in the shareholding interests of director The Hon. Warwick Smith AO, reported as an indirect interest held through Relbia Pty Ltd, the Warwick Smith Super Fund. The transaction underscores the company’s adheren...
SGH Director John Gillam Establishes New Indirect Shareholding
Aug 12, 2026
SGH Ltd, a publicly listed company on the Australian Securities Exchange, is governed by ASX listing rules that require prompt disclosure of changes in directors’ interests, reinforcing transparency for shareholders. The company’s ordi...
SGH updates disclosure on on‑market share buy‑back
Aug 11, 2026
SGH Limited has updated investors on its ongoing on‑market share buy‑back of ordinary fully paid shares, lodged as an amendment to its prior notification. The company clarified that the update primarily reflects the addition of the bro...
SGH grows earnings and margins as industrial services drive FY26 results
Aug 11, 2026
SGH reported that revenue for the year to 30 June 2026 was broadly flat at $10.6 billion, but EBITDA rose 2% to $2.1 billion and EBIT increased 1% to $1.6 billion, driven mainly by its industrial services division. Earnings growth was strongest at...
SGH Limited files new ASX notice for upcoming shareholder distribution
Aug 10, 2026
SGH Limited has lodged a new dividend or distribution notification with the ASX for its ordinary fully paid shares under Appendix 3A.1. The announcement, dated 11 August 2026, confirms this is a fresh corporate action rather than an update or canc...
SGH Files Updated Corporate Governance Statement with ASX
Aug 10, 2026
SGH Limited has lodged its annual corporate governance statement for the year ended 30 June 2026, confirming compliance with ASX Listing Rules and the Corporate Governance Council’s Principles and Recommendations. The statement, current as o...
SGH Ltd Publishes 2026 Annual Report for Diversified Australian Operations
Aug 10, 2026
SGH Ltd has released its annual report for the year ended 30 June 2026, providing shareholders with a comprehensive view of the performance of its industrial services, energy and media operations. The report, authorised by the board, will inform i...
SGH unveils FY26 investor presentation, highlighting diversified portfolio strength
Aug 10, 2026
SGH Ltd has released its investor presentation and financial results for the year ended 30 June 2026, authorised by its board and led by Managing Director and CEO Ryan Stokes. The presentation underscores the performance and strategic positioning ...
SGH posts FY26 margin gains, strengthens balance sheet for growth
Aug 10, 2026
SGH Ltd reported full‑year FY26 results showing modest earnings growth and margin expansion in line with guidance, with underlying EBIT up 1% to $1.55 billion and the group EBIT margin improving to 14.7%. Revenue was broadly flat at $10.6 bi...
SGH Ltd lodges 2026 full-year Appendix 4E
Aug 10, 2026
SGH Ltd has released its Appendix 4E for the full year ended 30 June 2026, detailing its 2026 financial results to the market. The filing, authorised by the board, marks the formal disclosure of annual performance for the diversified group’s...
SGH sets August date for FY26 results and webcast
Jul 9, 2026
SGH Ltd will release its FY26 financial results and Annual Report on 11 August 2026 at 10:00am AEST, accompanied by a teleconference and webcast hosted by Managing Director and CEO Ryan Stokes and CFO Richard Richards. The webcast will be accessib...
SGH Limited Reports Lapse and Cessation of Share Rights
Jul 3, 2026
SGH Limited has reported the cessation of a total of 75,739 share rights, as disclosed in a recent Appendix 3H filing with the ASX. The company indicated that 45,667 of these share rights lapsed because performance or vesting conditions were not s...
SGH Director Vik Bansal Sees Portion of Equity Retention Award Lapse
Jul 3, 2026
SGH Limited has disclosed a change in the equity interests of director Vik Bansal, who holds both ordinary shares and SGH Share Rights through a controlled entity. Following the latest adjustment, Bansal’s holding remains at 165,369 ordinary...
SGH Limited Launches On-Market Share Buy-Back of Ordinary Shares
Jun 21, 2026
SGH Limited has announced a new on-market share buy-back of its ordinary fully paid shares listed on the Australian Securities Exchange. The company has formally notified the market of this capital management initiative, which is expected to affec...
SGH launches up to $500m on-market share buy-back after de-leveraging
Jun 21, 2026
SGH Ltd has approved an on-market share buy-back of up to $500 million of its ordinary shares over the next 12 months, signalling confidence in its balance sheet strength after a period of strong cash generation and de-leveraging that has pushed l...
SGH Discloses Final Director Interest Notice for Terry Davis
Jun 1, 2026
SGH Limited has announced that director Terry Davis has ceased to be a director of the company as of 1 June 2026, in line with ASX listing rule disclosure obligations. The filing details Davis’s final interests, including 50,000 securities h...
SGH showcases diversified portfolio at FY26 Investor Day
May 21, 2026
SGH Ltd has released an investor presentation to be delivered at its FY26 Investor Day by chief executive Ryan Stokes and senior executives. The event is intended to brief investors on the performance and strategy of its diversified operations spa...
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.