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Smartgroup Corporation Ltd (AU:SIQ)
ASX:SIQ

Smartgroup Corporation Ltd (SIQ) AI Stock Analysis

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AU

Smartgroup Corporation Ltd

(Sydney:SIQ)

Rating:76Outperform
Price Target:
AU$8.50
▲(15.02%Upside)
Smartgroup Corporation Ltd displays a strong financial foundation with healthy revenue growth and profitability, although there are concerns around operating cash flow. Technically, the stock is stable without strong momentum, and its valuation metrics suggest it could be undervalued with an attractive dividend yield. These factors combine to present a solid investment opportunity with a balanced risk-reward profile.

Smartgroup Corporation Ltd (SIQ) vs. iShares MSCI Australia ETF (EWA)

Smartgroup Corporation Ltd Business Overview & Revenue Model

Company DescriptionSmartgroup Corporation Ltd provides employee management services in Australia. It operates through Outsourced Administration (OA); Vehicle Services (VS); and Software, Distribution, and Group Services (SDGS) segments. The OA segment offers outsourced salary packaging services, novated leasing, and outsourced payroll services. The VS segment provides end-to-end fleet management services. The SDGS segment offers salary packaging software solutions; markets salary packaging debit cards; and distributes vehicle insurances and workforce management software to the healthcare industry. It serves community and charity workers in not-for-profit organizations; teachers, administrators, and support personnel in the education industry; nurses, clinicians, and auxiliary staff in the health industry; government sector; and corporate organizations. Smartgroup Corporation Ltd was founded in 1999 and is headquartered in Sydney, Australia.
How the Company Makes MoneySmartgroup Corporation Ltd generates revenue primarily through its salary packaging and fleet management services. The company earns fees for administering salary packaging arrangements for employees, which involves managing pre-tax and post-tax salary deductions. Additionally, Smartgroup provides novated leasing services, which include the procurement and financing of vehicles for employees under salary sacrifice arrangements. Fleet management services contribute to their revenue through fees for managing corporate vehicle fleets, including maintenance, fuel management, and vehicle disposal. The company's earnings are also supported by strategic partnerships with employers and financial institutions, which help expand its customer base and enhance service offerings.

Smartgroup Corporation Ltd Financial Statement Overview

Summary
Smartgroup Corporation Ltd showcases a strong financial position with impressive revenue growth and profitability. The balance sheet reflects stability with moderate leverage, while cash flow indicates potential areas of concern due to the drop in operating cash flow. Continued focus on operational efficiency and cash generation will be crucial for maintaining financial health.
Income Statement
85
Very Positive
Smartgroup Corporation Ltd has demonstrated impressive revenue growth with a consistent upward trajectory from 2020 to 2024. The gross profit margin is robust, reflecting efficient cost management. However, the EBIT margin in 2024 was notably absent, which may indicate operational challenges. The net profit margin is healthy, indicating strong overall profitability.
Balance Sheet
78
Positive
The company maintains a reasonable debt-to-equity ratio, suggesting a balanced approach to leveraging. Stockholders' equity has been stable, although there was a slight decline over the years. The equity ratio remains strong, indicating a solid foundation of owned assets versus liabilities.
Cash Flow
70
Positive
Free cash flow has shown positive growth, especially notable in 2024 despite the decline in operating cash flow. The absence of operating cash flow in 2024 raises concerns about the sustainability of cash generation through operations. The company's ability to convert net income into free cash flow is commendable.
Breakdown
Dec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
305.84M251.61M224.70M221.80M216.33M
Gross Profit
291.90M130.31M122.07M122.32M106.00M
EBIT
107.91M92.31M86.35M91.10M73.72M
EBITDA
123.69M99.91M93.58M99.28M89.07M
Net Income Common Stockholders
75.60M61.92M58.78M58.81M41.33M
Balance SheetCash, Cash Equivalents and Short-Term Investments
34.65M32.79M62.73M32.45M27.37M
Total Assets
653.36M417.53M405.84M408.26M408.44M
Total Debt
84.36M72.30M62.66M36.54M37.09M
Net Debt
49.71M39.50M-64.00K4.08M9.72M
Total Liabilities
395.07M173.71M165.50M142.03M137.51M
Stockholders Equity
258.28M243.82M240.34M266.23M270.94M
Cash FlowFree Cash Flow
49.48M57.80M52.04M61.48M56.40M
Operating Cash Flow
77.54M67.23M66.97M69.40M58.16M
Investing Cash Flow
-22.84M-8.69M-14.93M-7.75M-1.76M
Financing Cash Flow
-52.85M-50.43M-62.96M-63.48M-85.96M

Smartgroup Corporation Ltd Technical Analysis

Technical Analysis Sentiment
Negative
Last Price7.39
Price Trends
50DMA
7.56
Negative
100DMA
7.53
Negative
200DMA
7.64
Negative
Market Momentum
MACD
-0.12
Positive
RSI
41.95
Neutral
STOCH
31.57
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:SIQ, the sentiment is Negative. The current price of 7.39 is below the 20-day moving average (MA) of 7.45, below the 50-day MA of 7.56, and below the 200-day MA of 7.64, indicating a bearish trend. The MACD of -0.12 indicates Positive momentum. The RSI at 41.95 is Neutral, neither overbought nor oversold. The STOCH value of 31.57 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AU:SIQ.

Smartgroup Corporation Ltd Peers Comparison

Overall Rating
UnderperformOutperform
Sector (66)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
AUSIQ
76
Outperform
$989.21M12.6830.57%4.80%21.55%22.04%
AUIPH
73
Outperform
AU$1.24B15.7711.01%7.11%26.54%23.20%
AUCUP
70
Outperform
AU$148.36M33.334.83%3.93%46.62%-49.62%
AUMAD
69
Neutral
AU$1.21B23.0731.70%1.33%15.46%15.14%
66
Neutral
$4.51B12.225.40%3.63%4.14%-12.01%
AUKPG
60
Neutral
AU$489.86M46.4747.43%0.08%26.03%220.33%
AUSTG
55
Neutral
AU$28.31M-34.93%-8.96%-18.83%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AU:SIQ
Smartgroup Corporation Ltd
7.29
-0.53
-6.74%
AU:MAD
Mader Group Ltd
6.00
-0.08
-1.32%
AU:CUP
Countplus Limited
0.88
0.38
76.00%
AU:KPG
Kelly Partners Group Holdings Ltd.
10.55
2.66
33.71%
AU:STG
Straker Translations Ltd.
0.40
-0.04
-9.09%
AU:IPH
IPH Ltd.
4.69
-1.19
-20.24%

Smartgroup Corporation Ltd Corporate Events

Mitsubishi UFJ Financial Group Gains Substantial Holding in Smartgroup
Jun 11, 2025

Mitsubishi UFJ Financial Group, Inc. has become a substantial holder in Smartgroup Corporation Ltd, gaining significant voting power through its interests in Morgan Stanley and First Sentier Investors Holdings Pty Limited. This development indicates a strategic move by Mitsubishi UFJ Financial Group to strengthen its influence in Smartgroup, potentially impacting the company’s governance and strategic direction.

The most recent analyst rating on (AU:SIQ) stock is a Hold with a A$9.50 price target. To see the full list of analyst forecasts on Smartgroup Corporation Ltd stock, see the AU:SIQ Stock Forecast page.

Smartgroup Corporation Ltd Experiences Shift in Shareholder Structure
Jun 10, 2025

Smartgroup Corporation Ltd has announced a significant change in its shareholder structure, with First Sentier Investors Holdings Pty Limited and its related entities now holding a substantial interest in the company. This development indicates a shift in the voting power dynamics within Smartgroup, potentially impacting its strategic decisions and governance. The involvement of Mitsubishi UFJ Financial Group, as the ultimate parent of First Sentier, further emphasizes the global financial influence now associated with Smartgroup, which could have implications for its market positioning and future operations.

The most recent analyst rating on (AU:SIQ) stock is a Hold with a A$9.50 price target. To see the full list of analyst forecasts on Smartgroup Corporation Ltd stock, see the AU:SIQ Stock Forecast page.

Challenger Limited Increases Stake in Smartgroup Corporation
Jun 5, 2025

Challenger Limited has announced a change in its substantial holding in Smartgroup Corporation Ltd, increasing its voting power from 5.04% to 6.07%. This change in interest, involving various entities associated with Challenger Limited, reflects a strategic adjustment in its investment portfolio, potentially impacting Smartgroup’s shareholder dynamics and market perception.

The most recent analyst rating on (AU:SIQ) stock is a Hold with a A$9.50 price target. To see the full list of analyst forecasts on Smartgroup Corporation Ltd stock, see the AU:SIQ Stock Forecast page.

Mitsubishi UFJ Financial Group Ceases Substantial Holding in Smartgroup
Jun 5, 2025

Mitsubishi UFJ Financial Group, Inc. has ceased to be a substantial holder in Smartgroup Corporation Ltd, a company involved in the management of employee benefits and services. This change in substantial holding was due to the purchase of securities by an entity controlled by Morgan Stanley, affecting the voting securities of Smartgroup Corporation Ltd.

The most recent analyst rating on (AU:SIQ) stock is a Buy with a A$9.75 price target. To see the full list of analyst forecasts on Smartgroup Corporation Ltd stock, see the AU:SIQ Stock Forecast page.

First Sentier Investors Ceases to Be Substantial Holder in Smartgroup Corporation
Jun 4, 2025

Smartgroup Corporation Ltd has announced that First Sentier Investors has ceased to be a substantial holder in the company as of June 2, 2025. This change in substantial holding may impact the company’s shareholder structure and could have implications for its market positioning and stakeholder interests.

The most recent analyst rating on (AU:SIQ) stock is a Hold with a A$9.50 price target. To see the full list of analyst forecasts on Smartgroup Corporation Ltd stock, see the AU:SIQ Stock Forecast page.

Smartgroup to Announce Half-Year 2025 Financial Results
Jun 4, 2025

Smartgroup Corporation Ltd announced that it will release its half-year financial results for the period ending 30 June 2025 on 28 August 2025. The results will be discussed in an audio briefing led by CEO Scott Wharton and CFO Jason King, which will be streamed live online, providing stakeholders with insights into the company’s performance and strategic direction.

The most recent analyst rating on (AU:SIQ) stock is a Hold with a A$9.50 price target. To see the full list of analyst forecasts on Smartgroup Corporation Ltd stock, see the AU:SIQ Stock Forecast page.

Mitsubishi UFJ Financial Group Increases Stake in Smartgroup
May 28, 2025

Mitsubishi UFJ Financial Group, Inc. has increased its stake in Smartgroup Corporation Limited by acquiring a substantial number of fully paid ordinary shares. This move enhances Mitsubishi UFJ Financial Group’s influence within Smartgroup, potentially impacting the company’s strategic decisions and market positioning.

The most recent analyst rating on (AU:SIQ) stock is a Hold with a A$9.50 price target. To see the full list of analyst forecasts on Smartgroup Corporation Ltd stock, see the AU:SIQ Stock Forecast page.

Smartgroup Corporation Ltd Sees Shift in Shareholder Structure
May 27, 2025

Smartgroup Corporation Ltd has announced a significant change in its shareholder structure, with Mitsubishi UFJ Financial Group, Inc. (MUFG) now holding a substantial interest through its subsidiary, First Sentier Investors Holdings Pty Limited. This development indicates a shift in voting power and control over a significant number of shares, potentially impacting the company’s strategic direction and stakeholder interests.

The most recent analyst rating on (AU:SIQ) stock is a Hold with a A$9.50 price target. To see the full list of analyst forecasts on Smartgroup Corporation Ltd stock, see the AU:SIQ Stock Forecast page.

Mitsubishi UFJ Financial Group Ceases Substantial Holding in Smartgroup
May 26, 2025

Mitsubishi UFJ Financial Group, Inc. has ceased to be a substantial holder in Smartgroup Corporation Limited. This change in substantial holding is due to the purchase of securities by an entity controlled by Morgan Stanley, affecting the voting securities of Smartgroup Corporation. The announcement indicates a shift in the ownership structure of Smartgroup, which could impact its market positioning and influence within the industry.

The most recent analyst rating on (AU:SIQ) stock is a Hold with a A$9.50 price target. To see the full list of analyst forecasts on Smartgroup Corporation Ltd stock, see the AU:SIQ Stock Forecast page.

First Sentier Investors Ceases Substantial Holding in Smartgroup
May 23, 2025

Smartgroup Corporation Ltd has announced that First Sentier Investors Holdings Pty Limited and its related entities have ceased to be substantial holders in the company as of May 21, 2025. This change in substantial holding could impact the company’s shareholder structure and influence voting dynamics, potentially affecting strategic decisions and stakeholder interests.

The most recent analyst rating on (AU:SIQ) stock is a Hold with a A$9.50 price target. To see the full list of analyst forecasts on Smartgroup Corporation Ltd stock, see the AU:SIQ Stock Forecast page.

Smartgroup Director Increases Stake with New Share Acquisition
May 23, 2025

Smartgroup Corporation Ltd announced a significant change in the director’s interest, with Scott Wharton acquiring 834,189 ordinary shares and 48,338 performance rights under the company’s incentive plans. This acquisition, approved by shareholders, reflects a strategic move to align the director’s interests with the company’s growth objectives, potentially impacting stakeholder confidence and market perception.

The most recent analyst rating on (AU:SIQ) stock is a Hold with a A$9.50 price target. To see the full list of analyst forecasts on Smartgroup Corporation Ltd stock, see the AU:SIQ Stock Forecast page.

Smartgroup Announces Quotation of New Securities on ASX
May 23, 2025

Smartgroup Corporation Ltd has announced the quotation of 834,189 ordinary fully paid securities on the Australian Securities Exchange (ASX) as of May 16, 2025. This move is part of an employee incentive scheme, reflecting the company’s commitment to rewarding its workforce and potentially enhancing its market position by aligning employee interests with shareholder value.

The most recent analyst rating on (AU:SIQ) stock is a Hold with a A$9.50 price target. To see the full list of analyst forecasts on Smartgroup Corporation Ltd stock, see the AU:SIQ Stock Forecast page.

Mitsubishi UFJ Financial Group Acquires Substantial Stake in Smartgroup Corporation
May 20, 2025

Mitsubishi UFJ Financial Group, Inc. has become a substantial holder in Smartgroup Corporation Ltd, acquiring a significant voting power of 5.30% through its relevant interests in securities held by Morgan Stanley and First Sentier Investors Holdings Pty Limited. This development indicates a strategic move by Mitsubishi UFJ Financial Group to strengthen its influence in Smartgroup Corporation, potentially impacting the company’s governance and future decisions, while also reflecting Mitsubishi UFJ’s broader investment strategy.

The most recent analyst rating on (AU:SIQ) stock is a Hold with a A$9.50 price target. To see the full list of analyst forecasts on Smartgroup Corporation Ltd stock, see the AU:SIQ Stock Forecast page.

Mitsubishi UFJ Financial Group Ceases Substantial Holding in Smartgroup
May 19, 2025

Mitsubishi UFJ Financial Group, Inc. has ceased to be a substantial holder in Smartgroup Corporation Limited. This change in substantial holding is due to the purchase of securities by an entity controlled by Morgan Stanley, affecting the voting securities of the company. This development may impact the company’s shareholder structure and influence its market dynamics.

The most recent analyst rating on (AU:SIQ) stock is a Hold with a A$9.50 price target. To see the full list of analyst forecasts on Smartgroup Corporation Ltd stock, see the AU:SIQ Stock Forecast page.

MUFG Acquires Substantial Holding in Smartgroup
May 19, 2025

Smartgroup Corporation Ltd has announced that Mitsubishi UFJ Financial Group Inc. (MUFG) has become a substantial holder in the company through its subsidiary, First Sentier Investors Holdings Pty Limited. This development indicates MUFG’s strategic interest in Smartgroup, potentially influencing its market positioning and future operations, given MUFG’s significant voting power in the company.

The most recent analyst rating on (AU:SIQ) stock is a Hold with a A$9.50 price target. To see the full list of analyst forecasts on Smartgroup Corporation Ltd stock, see the AU:SIQ Stock Forecast page.

Smartgroup Announces Change in Substantial Holding
May 16, 2025

Smartgroup Corporation Ltd has announced that First Sentier Investors Holdings Pty Limited and its related bodies have ceased to be substantial holders in the company as of May 14, 2025. This change in substantial holding may impact the company’s shareholder structure and could have implications for its market positioning and stakeholder interests.

The most recent analyst rating on (AU:SIQ) stock is a Hold with a A$9.50 price target. To see the full list of analyst forecasts on Smartgroup Corporation Ltd stock, see the AU:SIQ Stock Forecast page.

Smartgroup Corporation’s 2025 AGM Resolutions Successfully Passed
May 14, 2025

Smartgroup Corporation Ltd announced the results of its 2025 Annual General Meeting, where all resolutions were carried, including the adoption of the remuneration report and the re-election of directors. The approval of future securities issues and share plans indicates strong shareholder support, which could positively impact the company’s strategic initiatives and stakeholder confidence.

The most recent analyst rating on (AU:SIQ) stock is a Hold with a A$9.50 price target. To see the full list of analyst forecasts on Smartgroup Corporation Ltd stock, see the AU:SIQ Stock Forecast page.

Smartgroup Corporation Ltd Reports Strong Financial Growth at 2025 AGM
May 13, 2025

Smartgroup Corporation Ltd held its 2025 Annual General Meeting, where the Chair highlighted the company’s strong financial performance over the past year, emphasizing revenue and profit growth. The company is implementing strategic priorities aimed at long-term growth, supported by a skilled board and management team, positioning Smartgroup for a promising future.

The most recent analyst rating on (AU:SIQ) stock is a Hold with a A$9.50 price target. To see the full list of analyst forecasts on Smartgroup Corporation Ltd stock, see the AU:SIQ Stock Forecast page.

Smartgroup Announces Change of Share Registry Address
Apr 10, 2025

Smartgroup Corporation Ltd has announced a change in the address of its share registry office, effective from 14 April 2025. The new location will be at MUFG Corporate Markets (AU) Limited, Liberty Place, Level 41, 161 Castlereagh Street, Sydney NSW 2000. This change is part of the company’s adherence to ASX Listing Rule 3.15.1 and is not expected to impact other contact details or operations, ensuring continuity for stakeholders.

Smartgroup Announces 2025 AGM Details
Apr 9, 2025

Smartgroup Corporation Ltd has announced that its 2025 Annual General Meeting will be held on May 14, 2025, as a physical event in Sydney, with a webcast available for remote viewing. However, shareholders will not have the ability to vote or ask questions via the webcast, which may impact stakeholder engagement during the meeting.

Smartgroup Director Increases Stake Through Employee Share Plan
Apr 7, 2025

Smartgroup Corporation Ltd announced a change in the director’s interest, with Scott Wharton acquiring 137 additional ordinary shares through the Smartgroup Employee Share Plan. This acquisition reflects ongoing engagement with the company’s equity plans, potentially aligning director interests with shareholder value and reinforcing confidence in the company’s strategic direction.

Smartgroup Director Increases Shareholding
Mar 20, 2025

Smartgroup Corporation Ltd announced a change in the director’s interest, specifically involving John Prendiville. The change includes the acquisition of 25,000 shares by HSBC Custody Nominees (Australia) Limited, acting as custodian for JPGP Holdings Pty Ltd, increasing the total shares held to 770,000. This acquisition, valued at $173,750, was conducted through an on-market purchase, reflecting a strategic move to enhance the director’s stake in the company.

Smartgroup Issues New Performance Rights for Employee Incentives
Mar 19, 2025

Smartgroup Corporation Ltd announced the issuance of 132,455 performance rights as part of an employee incentive scheme, which are not intended to be quoted on the ASX. This move is part of the company’s strategy to incentivize employees and align their interests with the company’s long-term goals, potentially impacting its operational efficiency and market positioning.

Smartgroup Announces Quotation of New Securities
Mar 19, 2025

Smartgroup Corporation Ltd has announced the application for the quotation of 1,500,870 ordinary fully paid securities on the Australian Securities Exchange. This move, involving securities issued under an employee incentive scheme, could enhance the company’s market presence and provide additional liquidity, potentially benefiting stakeholders by aligning employee interests with company performance.

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.