Stealth Global Holdings Ltd. (SGI) AI Stock Analysis

• Market Cap: AU$177.23M
• Dividend Yield: 0.74%
• Average Volume (3M): 85.09K
• Price to Earnings (P/E): 47.8
• Beta (1Y): -0.39
• Revenue Growth: 24.67%
• EPS Growth: 96.27%
• Country: AU
• Employees: 250
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Distribution
• EPS (TTM): 0.01
• Shares Outstanding: 149,557,080
• 10 Day Avg. Volume: 98,797
• 30 Day Avg. Volume: 85,090
• PEG Ratio: 0.23
• Price to Book (P/B): 2.86
• Price to Sales (P/S): 0.61
• P/FCF Ratio: 22.51
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 0.04
• Revenue Forecast (FY): AU$205.00M

• Rating: 63 Neutral
• Price Target: AU$1.50 ▲(13.64% Upside)
• Action: Downgraded Date: 01/29/26
• Date: Action: Downgraded 01/29/26

The score is driven by solid operating performance indicators (revenue growth and gross margin) and bullish technical trend signals, but is held back by thin net profitability, weaker cash flow trends, and an expensive valuation (high P/E with a low dividend yield).

Positive Factors

Revenue Growth

A sustained ~10% top-line expansion indicates durable demand for the company’s distribution offerings and supports economies of scale. Over 2–6 months this trend underpins capacity to reinvest in inventory, expand channels and fund margin-improvement initiatives without relying on one-off gains.

Healthy Gross Margin

A near-29% gross margin signals structural pricing power or efficient sourcing in an industrial distribution model. This margin buffer provides long-term capacity to absorb input cost swings and to fund SG&A, supporting sustained operating profitability even if revenue growth moderates.

Improved Leverage and ROE

Lower leverage alongside a double-digit ROE reflects improving capital discipline and returns on shareholder equity. This combination enhances financial flexibility to pursue organic growth or targeted investments while keeping solvency risk contained over the medium term.

Negative Factors

Low Net Margin

A 2.2% net margin leaves limited headroom for absorbing cost inflation, cyclical downturns or unexpected expenses. Structurally thin bottom-line conversion constrains free cash available for debt reduction, capex or shareholder returns and increases sensitivity to margin pressure.

Declining Free Cash Flow

An almost 20% decline in FCF growth signals weakening cash generation capacity. Over several months this reduces internal funding for growth initiatives, heightens reliance on external financing, and limits resilience to operational shocks or investment opportunities.

Weak Cash Conversion

A 0.09 OCF-to-net-income ratio indicates earnings are not translating into cash, pointing to working capital strain or non-cash accounting items. Poor cash conversion undermines liquidity stability and raises the risk that reported profits overstate the firm’s near-term cash-generating ability.

Stealth Global Holdings Ltd. Business Overview & Revenue Model

Company Description

Stealth Global Holdings Limited operates as an industrial distribution company in Australia and internationally. The company offers industrial maintenance, repairs, and operations supplies; safety and PPE products; truck and automotive parts and accessories; and workplace supplies, and other related products and services. It serves customers from a range of industries, including commercial, mining, resources, industrial, government, transport, automotive, agriculture, building, construction, manufacturing, engineering, trade, and retail sectors through 74 branches and stores across Australia. Stealth Global Holdings Limited was founded in 2014 and is headquartered in Stirling, Australia.

How the Company Makes Money

SGI generates revenue through multiple streams, primarily by selling industrial and commercial products to businesses in various sectors. The company's revenue model is based on direct sales, procurement services, and logistics support. Key revenue streams include the sale of tools, safety equipment, and other industrial supplies. Additionally, SGI may engage in strategic partnerships with manufacturers and suppliers, allowing it to enhance its product offerings and improve supply chain efficiencies. These relationships are crucial for driving sales and increasing the company's market presence.

Stealth Global Holdings Ltd. Financial Statement Overview

Summary

Strong revenue growth (10.16%) and a healthy gross margin (28.69%) support the business outlook, but low net margin (2.20%) and weakening cash generation (FCF growth -18.35%, low OCF-to-net income of 0.09) temper the overall quality of earnings despite improved leverage (debt-to-equity 1.02) and decent ROE (10.32%).

Income Statement

Stealth Global Holdings Ltd. has shown a strong revenue growth rate of 10.16% in the latest year, indicating robust expansion. The gross profit margin of 28.69% is healthy, reflecting efficient cost management. However, the net profit margin is relatively low at 2.20%, suggesting room for improvement in profitability. The EBIT and EBITDA margins are moderate, at 4.68% and 5.59% respectively, indicating stable operational performance.

Balance Sheet

The company's debt-to-equity ratio is 1.02, which is a significant improvement from previous years, indicating better leverage management. Return on equity stands at 10.32%, showing decent profitability relative to shareholder investments. However, the equity ratio is not explicitly provided, which limits a full assessment of asset financing.

Cash Flow

The free cash flow growth rate is negative at -18.35%, indicating a decline in cash generation. The operating cash flow to net income ratio is low at 0.09, suggesting limited cash conversion efficiency. However, the free cash flow to net income ratio is relatively strong at 0.78, showing that a significant portion of net income is converted into free cash flow.

Breakdown	TTM	Jun 2025	Jun 2024	Jun 2023	Jun 2022	Jun 2021
Income Statement
Total Revenue	142.23M	141.73M	113.68M	110.99M	99.60M	66.72M
Gross Profit	26.71M	40.67M	33.66M	9.94M	8.55M	4.51M
EBITDA	8.72M	7.93M	6.09M	5.27M	3.99M	2.91M
Net Income	3.15M	3.12M	1.36M	902.39K	595.88K	557.68K
Balance Sheet
Total Assets	140.59M	92.39M	85.19M	63.43M	61.54M	43.76M
Cash, Cash Equivalents and Short-Term Investments	32.52M	14.44M	10.15M	7.73M	4.75M	3.11M
Total Debt	65.69M	30.73M	35.33M	22.93M	23.79M	12.42M
Total Liabilities	91.05M	62.14M	64.82M	47.37M	46.48M	29.94M
Stockholders Equity	49.53M	30.25M	20.37M	16.06M	15.06M	14.37M
Cash Flow
Free Cash Flow	3.01M	3.85M	4.64M	5.44M	-422.59K	448.59K
Operating Cash Flow	3.92M	4.92M	6.25M	6.86M	882.26K	2.02M
Investing Cash Flow	-22.37M	-4.84M	-1.56M	-1.82M	-4.29M	-3.51M
Financing Cash Flow	40.54M	4.21M	-2.27M	-2.06M	5.65M	3.53M

Stealth Global Holdings Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.32
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:SGI, the sentiment is Negative. The current price of 1.32 is below the 20-day moving average (MA) of 1.33, below the 50-day MA of 1.34, and above the 200-day MA of 0.94, indicating a neutral trend. The MACD of -0.04 indicates Positive momentum. The RSI at 36.38 is Neutral, neither overbought nor oversold. The STOCH value of 42.84 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AU:SGI.

Stealth Global Holdings Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CLX	71 Outperform	AU$181.62M	8.84	11.37%	4.59%	1.33%	-11.07%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
SGI	63 Neutral	AU$177.23M	47.78	12.33%	0.74%	24.67%	96.27%
ECL	56 Neutral	AU$127.29M	-43.77	0.87%	1.84%	―	-98.01%
SND	56 Neutral	AU$116.17M	-15.03	4.01%	2.78%	-0.72%	-78.03%
CYG	46 Neutral	AU$66.75M	-1.54	-23.25%	―	-1.58%	-3756.06%

Stealth Global Holdings Ltd. Corporate Events

Stealth Group Posts Record 1H FY2026 Result and Shares Outlook in Investor Webinar

Stealth Group Holdings has released a recording of its latest investor webinar, in which Group Managing Director and CEO Mike Arnold and CFO Matthew Green presented the company’s record financial performance for the first half of FY2026. The session also outlined management’s outlook for the rest of FY2026 and beyond, signalling continued momentum in its multi-channel distribution operations and providing additional transparency for investors tracking the company’s growth trajectory.

The most recent analyst rating on (AU:SGI) stock is a Hold with a A$1.50 price target. To see the full list of analyst forecasts on Stealth Global Holdings Ltd. stock, see the AU:SGI Stock Forecast page.

Stealth Group Outlines 1H26 Results Under Strict Disclosure Caveats

Stealth Group Holdings has released its half-year 2026 investor presentation, outlining its interim results and providing an overview of business performance for the period. The document is framed as informational only, with extensive disclaimers on its non-prospectus status, the limitations of the data provided and the absence of any guarantees regarding accuracy or completeness.

The release emphasises that investors must undertake their own due diligence and seek professional advice, underscoring the company’s effort to manage legal and regulatory risk around disclosure. It also highlights the presence of forward-looking statements, stressing that actual outcomes may differ materially and that past performance should not be taken as an indicator of future results, which tempers expectations for shareholders and potential investors.

The most recent analyst rating on (AU:SGI) stock is a Hold with a A$1.50 price target. To see the full list of analyst forecasts on Stealth Global Holdings Ltd. stock, see the AU:SGI Stock Forecast page.

Stealth Global Posts Record Half-Year as HBT Deal Supercharges Growth Ambitions

Stealth Global Holdings reported record first-half FY26 results, with gross sales rising 11.8% to $82.2 million, EBITDA up 18.8% to $5.3 million and NPAT jumping 51.4% to $1.6 million, while maintaining gross margins and materially strengthening its balance sheet after a $19.5 million capital raise. The company cut net debt, lifted cash to $32.5 million and benefited from resilient demand in resources, infrastructure, construction and consumer electronics despite broader macroeconomic headwinds.

The completion of the Hardware & Building Traders acquisition in November 2025 has transformed Stealth’s scale, adding around 1,165 independent stores and creating a national platform representing more than $800 million in consolidated annual purchases. The deal positions Stealth as the leading independent alternative to major players Wesfarmers and Metcash, supports a higher FY28 sales target of more than $500 million, and is expected to deliver substantial profit synergies as the company drives procurement, private-label growth and network efficiencies.

The most recent analyst rating on (AU:SGI) stock is a Hold with a A$1.50 price target. To see the full list of analyst forecasts on Stealth Global Holdings Ltd. stock, see the AU:SGI Stock Forecast page.

Stealth Group Delivers Record Half-Year Profit as Cash Reserves Surge

Stealth Group Holdings Ltd reported record half-year results to 31 December 2025, with sales from continuing operations rising 11.8% to $82.2 million and revenue edging up to $72.0 million, while gross profit held steady at $21.2 million and margins were maintained. Underlying EBITDA climbed 17.5% to $5.4 million and NPAT increased 1.56% to $1.6 million, as lower operating costs and stable margins underpinned stronger profitability despite only modest revenue growth.

The company’s balance sheet strengthened significantly, with net assets reaching $49.5 million, cash more than tripling year-on-year to $32.5 million and net debt falling $3.7 million over 12 months, enhancing funding capacity for growth. During the period Stealth acquired 100% of Hardware & Building Traders Pty Limited and IT Hub Solutions Pty Ltd and increased its fully franked final dividend to 1.00 cent per share, signalling confidence in its financial position and ongoing expansion strategy in hardware, building and IT-related markets.

The most recent analyst rating on (AU:SGI) stock is a Hold with a A$1.50 price target. To see the full list of analyst forecasts on Stealth Global Holdings Ltd. stock, see the AU:SGI Stock Forecast page.

Stealth Global Holdings Announces Director’s Interest Change

Stealth Global Holdings Ltd. has announced a change in the director’s interest, specifically involving Michael Alan Arnold. The change includes an acquisition and disposal of shares through off-market trades, resulting in a shift in the number of shares held by Arnold across various trusts and funds. This update reflects the company’s compliance with ASX listing rules and provides transparency to stakeholders regarding changes in director interests.

The most recent analyst rating on (AU:SGI) stock is a Hold with a A$1.00 price target. To see the full list of analyst forecasts on Stealth Global Holdings Ltd. stock, see the AU:SGI Stock Forecast page.

Stealth Global Holdings Announces Changes in Substantial Holdings

Stealth Global Holdings Ltd. has announced a change in its substantial holdings due to a dilution from the placement of shares. This change affects Doumin Holding Pty Ltd ATF Doust Family Trust and Michael Reginald Doust, with a reduction in their voting securities. The announcement highlights a significant shift in the company’s shareholder structure, which may impact its market positioning and influence stakeholders’ interests.

The most recent analyst rating on (AU:SGI) stock is a Hold with a A$1.00 price target. To see the full list of analyst forecasts on Stealth Global Holdings Ltd. stock, see the AU:SGI Stock Forecast page.

Stealth Global Holdings Completes $19.5 Million Capital Raising

Stealth Global Holdings Ltd announced the successful completion of a $19.5 million capital raising through the issuance of 19.5 million fully paid ordinary shares to institutional and sophisticated investors. This move, which allows the company to issue shares without disclosure under specific provisions of the Corporations Act, is expected to enhance its financial position and support its growth strategy. The shares have commenced trading, marking a significant step in Stealth Global’s efforts to strengthen its market presence and operational capabilities.

The most recent analyst rating on (AU:SGI) stock is a Hold with a A$1.00 price target. To see the full list of analyst forecasts on Stealth Global Holdings Ltd. stock, see the AU:SGI Stock Forecast page.