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Star Entertainment Group Limited (AU:SGR)
ASX:SGR
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Star Entertainment Group Limited (SGR) AI Stock Analysis

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AU:SGR

Star Entertainment Group Limited

(Sydney:SGR)

Rating:41Neutral
Price Target:
AU$0.00
▼(-100.00%Downside)
Star Entertainment Group's overall score is primarily driven by significant financial challenges, bearish technical indicators, and a negative valuation. The lack of earnings call and corporate event data means these areas do not provide any mitigating factors in the evaluation. The stock is under considerable pressure from multiple fronts.

Star Entertainment Group Limited (SGR) vs. iShares MSCI Australia ETF (EWA)

Star Entertainment Group Limited Business Overview & Revenue Model

Company DescriptionThe Star Entertainment Group Limited operates and manages integrated resorts in Australia. It operates through three segments: Sydney, Gold Coast, and Brisbane. The company owns and operates The Star Sydney, The Star Gold Coast, and Treasury Brisbane casinos, which include hotels, restaurants, bars, theatres, and other entertainment facilities. It also manages the Gold Coast Convention and Exhibition Centre. The company was formerly known as Echo Entertainment Group Limited and changed its name to The Star Entertainment Group Limited in November 2015. The Star Entertainment Group Limited was incorporated in 2011 and is based in Brisbane, Australia.
How the Company Makes MoneyStar Entertainment Group Limited generates revenue primarily through its casino and gaming operations, which include electronic gaming machines, table games, and VIP gaming services. Additionally, the company earns income from its hotels, food and beverage services, and entertainment offerings. Revenue is further supplemented by non-gaming activities such as accommodation and dining experiences. Strategic partnerships and alliances, such as joint ventures with property developers and local businesses, also contribute to its financial performance by enhancing its integrated resort offerings and expanding its customer base.

Star Entertainment Group Limited Financial Statement Overview

Summary
Star Entertainment Group is facing considerable financial difficulties, marked by declining revenues, persistent losses, and negative cash flows. The balance sheet shows reduced equity and high debt levels, raising concerns over financial stability and operational viability. While some metrics show marginal improvement, the overall financial health remains precarious, necessitating strategic interventions to restore profitability and liquidity.
Income Statement
45
Neutral
Star Entertainment Group's income statement shows significant challenges, with declining revenue from $2.16 billion in 2019 to $1.68 billion in 2024. The gross profit margin declined from 61% in 2019 to 47% in 2024, indicating reduced efficiency in generating gross profit from revenue. The net income has been negative for several years, with a net loss of $1.68 billion in 2024, reflecting ongoing profitability issues. The negative EBITDA in recent years further underscores operational difficulties.
Balance Sheet
50
Neutral
The company's balance sheet reflects a weakened financial position, with total assets decreasing significantly from $5.58 billion in 2019 to $1.90 billion in 2024. The debt-to-equity ratio improved slightly over the years, but the overall equity has reduced from $3.74 billion in 2019 to $0.83 billion in 2024. The equity ratio stands at approximately 44% in 2024, indicating a moderate level of equity financing, but overall financial stability is a concern due to declining equity.
Cash Flow
40
Negative
The cash flow situation is challenging, with negative free cash flow reported in most years, including -$30.3 million in 2024. Operating cash flow improved to $46 million in 2024 but remains insufficient to cover capital expenditures. The free cash flow to net income ratio indicates a reliance on financing rather than operational cash generation. The cash flow trajectory suggests ongoing liquidity pressures.
BreakdownJun 2024Jun 2023Jun 2022Jun 2021Jun 2020
Income Statement
Total Revenue1.67B1.86B1.53B1.55B1.49B
Gross Profit1.58B828.40M643.00M680.20M677.50M
EBITDA-1.39B-2.52B43.30M354.00M136.60M
Net Income-1.68B-2.44B-202.50M57.90M-94.80M
Balance Sheet
Total Assets1.90B3.26B5.37B5.46B5.81B
Cash, Cash Equivalents and Short-Term Investments299.60M88.70M82.00M67.90M66.10M
Total Debt301.80M757.20M1.33B1.29B1.63B
Total Liabilities1.06B1.49B1.94B1.85B2.36B
Stockholders Equity833.30M1.77B3.43B3.61B3.46B
Cash Flow
Free Cash Flow-30.30M-147.90M-15.50M301.10M-163.50M
Operating Cash Flow46.00M-12.60M127.30M403.20M73.70M
Investing Cash Flow-94.80M-160.60M-123.70M-187.30M-390.60M
Financing Cash Flow259.70M179.90M10.50M-214.10M268.70M

Star Entertainment Group Limited Technical Analysis

Technical Analysis Sentiment
Negative
Last Price0.08
Price Trends
50DMA
0.12
Negative
100DMA
0.12
Negative
200DMA
0.15
Negative
Market Momentum
MACD
>-0.01
Positive
RSI
18.52
Positive
STOCH
11.02
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:SGR, the sentiment is Negative. The current price of 0.08 is below the 20-day moving average (MA) of 0.12, below the 50-day MA of 0.12, and below the 200-day MA of 0.15, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 18.52 is Positive, neither overbought nor oversold. The STOCH value of 11.02 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AU:SGR.

Star Entertainment Group Limited Peers Comparison

Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
62
Neutral
C$4.62B8.0712.66%3.89%2.20%-2.55%
41
Neutral
$263.69M-127.99%-16.00%3.57%
$218.31M10.579.12%
$265.28M-30.20%57.04%
$116.53M14.3345.08%6.08%
$1.10B-42.74%1.73%
79
Outperform
AU$54.30M1.3926.04%23.66%589.13%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AU:SGR
Star Entertainment Group Limited
0.08
-0.43
-84.08%
AINSF
Ainsworth Game Technology
0.63
0.04
6.78%
PBTHF
PointsBet Holdings
0.47
0.16
51.61%
RCTUF
Reef Casino
1.93
0.00
0.00%
TABCF
Tabcorp Holdings Limited
0.48
0.11
29.73%
AU:DNA
Donaco International Ltd.
0.04
0.01
33.33%

Star Entertainment Group Limited Corporate Events

The Star Entertainment Group Ends Heads of Agreement with Joint Venture Partners
Aug 1, 2025

The Star Entertainment Group Limited announced the termination of its Heads of Agreement with joint venture partners, Chow Tai Fook Enterprises Limited and Far East Consortium International Limited. This termination results in The Star retaining its equity interests in the Destination Brisbane Consortium and Destination Gold Coast Consortium, as well as other assets. The company faces financial obligations, including repaying $10 million and reimbursing approximately $31 million to the joint venture partners. The termination also affects The Star’s operational responsibilities and financial commitments, such as maintaining its share of the DBC debt facility and considering alternative options for its assets.

The most recent analyst rating on (AU:SGR) stock is a Sell with a A$0.26 price target. To see the full list of analyst forecasts on Star Entertainment Group Limited stock, see the AU:SGR Stock Forecast page.

The Star Entertainment Group Faces Regulatory Challenges and Secures Strategic Investments
Jul 30, 2025

The Star Entertainment Group reported a revenue of $270 million for Q4 FY25, maintaining the same level as Q3, but faced an EBITDA loss of $27 million due to ongoing regulatory challenges and mandatory carded play and cash limits in NSW. The company secured strategic investments from Bally’s Corporation and Investment Holdings, totaling $300 million, and completed the sale of the Sydney Event Centre for $60 million. Additionally, The Star is negotiating its exit from the Destination Brisbane Consortium, with ongoing discussions to finalize agreements, while its ability to continue as a going concern depends on several key financial matters.

The most recent analyst rating on (AU:SGR) stock is a Sell with a A$0.26 price target. To see the full list of analyst forecasts on Star Entertainment Group Limited stock, see the AU:SGR Stock Forecast page.

The Star Entertainment Group Extends Agreement with Joint Venture Partners
Jul 7, 2025

The Star Entertainment Group Limited has announced an update regarding its Heads of Agreement (HoA) with joint venture partners Chow Tai Fook Enterprises Limited and Far East Consortium International Limited. The agreement, which involves The Star’s stakes in the Destination Brisbane Consortium and Destination Gold Coast Consortium, has been extended to 31 July 2025. This extension allows for continued negotiations, with specific financial obligations outlined if the long form documents are not finalized by the new termination date. The outcome of these negotiations could significantly impact The Star’s financial commitments and strategic partnerships.

The most recent analyst rating on (AU:SGR) stock is a Sell with a A$0.26 price target. To see the full list of analyst forecasts on Star Entertainment Group Limited stock, see the AU:SGR Stock Forecast page.

Star Entertainment Issues Unquoted Convertible Notes
Jun 30, 2025

The Star Entertainment Group Limited has announced the issuance of 284,133,821 unquoted convertible notes, which are part of a previously announced transaction. This move is likely to impact the company’s financial structure and could influence its market positioning by potentially increasing its capital base, though the securities are not intended to be quoted on the ASX.

The most recent analyst rating on (AU:SGR) stock is a Sell with a A$0.26 price target. To see the full list of analyst forecasts on Star Entertainment Group Limited stock, see the AU:SGR Stock Forecast page.

The Star Entertainment Group Faces Potential Termination of DBC Agreement Amid Ongoing Negotiations
Jun 30, 2025

The Star Entertainment Group Limited announced an update regarding its negotiations with joint venture partners Chow Tai Fook Enterprises Limited and Far East Consortium International Limited concerning the Destination Brisbane Consortium (DBC) transaction. The company received a notice to terminate the Heads of Agreement (HoA) due to unresolved commercial issues, with the termination set to take effect unless withdrawn. Despite this, The Star remains open to continue negotiations. Additionally, The Star has secured $58 million from the Event Centre sale and $133 million in funding from Bally’s Corporation and Investment Holdings, which may impact its financial positioning.

The most recent analyst rating on (AU:SGR) stock is a Hold with a A$0.29 price target. To see the full list of analyst forecasts on Star Entertainment Group Limited stock, see the AU:SGR Stock Forecast page.

The Star Entertainment Group Secures Shareholder Approval for Key Resolutions
Jun 25, 2025

The Star Entertainment Group Limited held a General Meeting on 25 June 2025, where all proposed resolutions were passed with overwhelming support. Key resolutions included the approval of the acquisition of relevant interests in the company’s shares by Bally’s and Investment Holdings, as well as the ratification of prior allotments and issues of convertible notes. These decisions are likely to impact the company’s strategic positioning and shareholder value positively, reinforcing its market presence and financial stability.

The most recent analyst rating on (AU:SGR) stock is a Sell with a A$0.26 price target. To see the full list of analyst forecasts on Star Entertainment Group Limited stock, see the AU:SGR Stock Forecast page.

The Star Entertainment Secures Strategic Investments Amid Financial Uncertainty
Jun 25, 2025

The Star Entertainment Group Limited announced a strategic investment involving a $300 million multi-tranche convertible note and subordinated debt instrument with Bally’s, alongside a $100 million commitment from its largest shareholder, Investment Holdings. This move aims to address financial uncertainties and ensure the company’s continued operation amid challenging conditions, including pending legal judgments. The investments require shareholder approval due to potential changes in shareholding structure, with the board and an independent expert recommending approval as beneficial for non-associated shareholders.

The most recent analyst rating on (AU:SGR) stock is a Hold with a A$0.47 price target. To see the full list of analyst forecasts on Star Entertainment Group Limited stock, see the AU:SGR Stock Forecast page.

The Star Entertainment Group Strengthens Leadership with Key Appointments
Jun 24, 2025

The Star Entertainment Group Limited has announced several key executive and director appointments as part of its ongoing decentralization strategy and governance framework enhancement. These appointments include Jennifer Cronin as Interim CEO of The Star Gold Coast, Rowena Craze as Group Chief Risk Officer, Patrick McGlinchey as Group Chief Legal Officer, Sarah Derry as Chief People Officer, and Peter Meliniotis as Group Chief Information Officer. Additionally, Helen Galloway has been appointed as the independent Chair of The Star Sydney. These strategic appointments are aimed at strengthening the company’s leadership and ensuring compliance with regulatory standards, thereby enhancing its operational and governance capabilities.

The most recent analyst rating on (AU:SGR) stock is a Sell with a A$0.26 price target. To see the full list of analyst forecasts on Star Entertainment Group Limited stock, see the AU:SGR Stock Forecast page.

JPMorgan Chase Ceases to be Substantial Shareholder in Star Entertainment
Jun 16, 2025

The Star Entertainment Group Limited announced that JPMorgan Chase & Co. and its affiliates are no longer substantial shareholders as of June 11, 2025. This change aligns with the company’s constitutional and regulatory restrictions, which prevent any individual from holding more than 10% voting power, ensuring compliance with agreements with Liquor and Gaming New South Wales and the Queensland Office of Liquor and Gaming Regulation.

The most recent analyst rating on (AU:SGR) stock is a Sell with a A$0.26 price target. To see the full list of analyst forecasts on Star Entertainment Group Limited stock, see the AU:SGR Stock Forecast page.

JPMorgan Chase & Co. Ceases Substantial Holding in Star Entertainment Group
Jun 15, 2025

JPMorgan Chase & Co. and its affiliates have ceased to be substantial holders in Star Entertainment Group Limited, a company involved in the entertainment industry. This change in holding status involves various subsidiaries of JPMorgan, including J.P. Morgan Securities Australia Limited and J.P. Morgan Securities LLC, and affects a significant number of ordinary securities, indicating a shift in the company’s shareholder structure.

The most recent analyst rating on (AU:SGR) stock is a Sell with a A$0.26 price target. To see the full list of analyst forecasts on Star Entertainment Group Limited stock, see the AU:SGR Stock Forecast page.

The Star Entertainment Group Announces Strategic Investment Meeting
May 26, 2025

The Star Entertainment Group Limited has announced a general meeting scheduled for June 25, 2025, where shareholders will vote on strategic investments totaling $300 million from Bally’s Corporation and Investment Holdings Pty Ltd. The meeting will also address the approval and ratification of previously issued convertible notes to these entities. The board recommends shareholders approve these resolutions, which are expected to enhance the company’s financial capacity and strategic positioning.

The most recent analyst rating on (AU:SGR) stock is a Sell with a A$0.26 price target. To see the full list of analyst forecasts on Star Entertainment Group Limited stock, see the AU:SGR 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: Aug 02, 2025