Seven Group Holdings Limited (SGH) AI Stock Analysis

• Market Cap: €20.62B
• Dividend Yield: 0.59%
• Average Volume (3M): 389.19K
• Price to Earnings (P/E): 25.1
• Beta (1Y): 1.47
• Revenue Growth: 3.10%
• EPS Growth: 57.22%
• Country: AU
• Employees: 4,210
• Sector: Industrials
• Sector Strength: 90
• Industry: Engineering & Construction
• EPS (TTM): 1.24
• Shares Outstanding: 406,998,170
• 10 Day Avg. Volume: 378,711
• 30 Day Avg. Volume: 389,194
• PEG Ratio: <0.01
• Price to Book (P/B): 4.10
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 27.17
• 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: €57.72
• Price Target Upside: 15.23% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 5

• Rating: 57 Neutral
• Price Target: AU$53.00 ▲(5.81%Upside)

The overall stock score reflects strong revenue growth and a healthy gross profit margin, but is tempered by declining profitability and a high debt-to-equity ratio. Technical indicators suggest oversold conditions, while the valuation indicates potential overvaluation with a low dividend yield. The absence of recent earnings call insights or corporate events leaves the financial and technical analysis as primary influences.

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 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 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

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

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

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.

Breakdown	TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement
Total Revenue	40.35M	10.62B	9.63B	8.01B	154.25M	161.41M
Gross Profit	44.31M	3.86B	3.56B	8.04B	202.34M	177.25M
EBITDA	5.00M	1.55B	1.62B	22.21M	39.49M	19.52M
Net Income	-296.25K	464.40M	596.60M	558.40M	14.47M	-1.66M
Balance Sheet
Total Assets	388.56M	13.60B	13.63B	13.59B	418.60M	388.56M
Cash, Cash Equivalents and Short-Term Investments	26.46M	654.30M	876.50M	15.63M	20.70M	26.46M
Total Debt	124.14M	5.98B	5.88B	6.63B	112.38M	124.14M
Total Liabilities	226.23M	9.49B	9.01B	9.31B	238.15M	226.23M
Stockholders Equity	162.33M	4.09B	3.91B	3.55B	180.46M	162.33M
Cash Flow
Free Cash Flow	-87.25K	133.20M	589.80M	-130.30M	420.30M	246.90M
Operating Cash Flow	0.00	808.20M	1.19B	9.75M	622.40M	539.60M
Investing Cash Flow	5.19M	-467.60M	-528.90M	2.84B	-591.20M	-679.60M
Financing Cash Flow	5.19M	-563.00M	-1.08B	8.17M	12.20M	177.60M

Seven Group Holdings Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 50.09
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 50.09 is below the 20-day moving average (MA) of 52.46, below the 50-day MA of 52.27, and above the 200-day MA of 48.46, indicating a neutral trend. The MACD of -0.63 indicates Positive momentum. The RSI at 38.20 is Neutral, neither overbought nor oversold. The STOCH value of 16.18 is Positive, 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
Sector *	65 Neutral	$10.86B	15.57	5.28%	1.92%	3.13%	-27.76%
SGH	57 Neutral	€20.62B	25.14	18.25%	0.59%	3.10%	57.22%
DNE	―	€2.55B	56.02	3.35%	3.18%	―	―
8MP	―	€1.00B	21.93	15.97%	3.65%	―	―
3NR	―	€807.57M	11.05	18.01%	4.43%	―	―
SRG	69 Neutral	AU$1.02B	24.21	11.36%	2.97%	25.40%	41.18%
MGH	67 Neutral	AU$1.48B	19.12	9.50%	1.72%	-1.30%	-7.78%

Seven Group Holdings Limited Corporate Events

SGH Issues Unquoted Equity Securities for Employee Incentive

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

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

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

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

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.