Smartgroup Corporation Ltd (SIQ) AI Stock Analysis

• Market Cap: $1.19B
• Dividend Yield: 5.57%
• Average Volume (3M): 402.27K
• Price to Earnings (P/E): 14.4
• Beta (1Y): 0.80
• Revenue Growth: 11.64%
• EPS Growth: 18.08%
• Country: AU
• Employees: 870
• Sector: Industrials
• Sector Strength: 72
• Industry: Specialty Business Services
• EPS (TTM): 0.28
• Shares Outstanding: 135,605,550
• 10 Day Avg. Volume: 475,402
• 30 Day Avg. Volume: 402,272
• PEG Ratio: 0.64
• Price to Book (P/B): 3.90
• Price to Sales (P/S): 3.30
• P/FCF Ratio: 20.38
• Enterprise Value/Market Cap: 0.67
• Enterprise Value/Revenue: 2.53
• Enterprise Value/Gross Profit: 4.71
• Enterprise Value/Ebitda: 6.22
• 1Y Price Target: $9.04
• Price Target Upside: -0.17% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 1
• EPS Forecast (FY): 0.6
• Revenue Forecast (FY): $324.10M

• Rating: 79 Outperform
• Price Target: AU$10.00 ▲(10.38% Upside)

Smartgroup Corporation Ltd exhibits a strong financial foundation with robust revenue growth and profitability. The technical indicators suggest a bullish trend, though caution is advised due to potential overbought conditions. The valuation is attractive with a reasonable P/E ratio and a high dividend yield, making it appealing for income-focused investors.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand and effective business strategies, supporting long-term business expansion and stability.

Profitability

Strong profitability margins suggest effective cost control and pricing strategies, enhancing the company's ability to reinvest in growth and withstand economic fluctuations.

Balance Sheet Stability

A stable balance sheet with a reasonable debt-to-equity ratio ensures financial flexibility and reduces risk, supporting sustainable growth and operational resilience.

Negative Factors

Operating Cash Flow Concerns

Lack of operating cash flow can strain liquidity and limit the company's ability to fund operations and growth initiatives, potentially impacting long-term financial health.

Equity Decline

A decline in equity over time may indicate challenges in maintaining asset value or reinvestment, potentially affecting the company's financial stability and growth prospects.

EBIT Margin Absence

An absent EBIT margin could signal operational inefficiencies or increased costs, potentially impacting profitability and requiring strategic adjustments to sustain margins.

Smartgroup Corporation Ltd Business Overview & Revenue Model

Company Description

Smartgroup 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 Money

Smartgroup generates revenue primarily through its salary packaging and novated leasing services. The company charges employers and employees a fee for managing these services, which includes administrative costs and service fees. Additionally, Smartgroup earns revenue from fleet management services, where it oversees the procurement and maintenance of vehicles for clients. The company also benefits from partnerships with various organizations, allowing them to expand their service offerings and client base. Significant factors contributing to its earnings include the growing demand for employee benefits programs, increased awareness of salary packaging advantages, and strategic collaborations with other businesses in the human resources sector.

Smartgroup Corporation Ltd Financial Statement Overview

Summary

Smartgroup Corporation Ltd demonstrates strong revenue growth and profitability, with a robust gross profit margin. The balance sheet is stable with moderate leverage, but concerns arise from the absence of operating cash flow in 2024, indicating potential cash generation issues.

Income Statement

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

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

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	316.48M	305.84M	251.61M	224.70M	221.80M	216.33M
Gross Profit	170.45M	291.90M	130.31M	122.07M	122.32M	106.00M
EBITDA	128.85M	123.69M	99.91M	93.58M	99.28M	89.07M
Net Income	79.42M	75.60M	61.92M	58.78M	58.81M	41.33M
Balance Sheet
Total Assets	640.26M	653.36M	417.53M	405.84M	408.26M	408.44M
Cash, Cash Equivalents and Short-Term Investments	54.90M	34.65M	32.79M	62.73M	32.45M	27.37M
Total Debt	110.91M	84.36M	72.30M	64.39M	38.09M	37.09M
Total Liabilities	381.99M	395.07M	173.71M	165.50M	142.03M	137.51M
Stockholders Equity	258.26M	258.28M	243.82M	240.34M	266.23M	270.94M
Cash Flow
Free Cash Flow	189.08M	49.48M	49.21M	52.04M	61.48M	56.40M
Operating Cash Flow	198.94M	77.54M	67.23M	66.97M	69.40M	58.16M
Investing Cash Flow	-14.71M	-22.84M	-8.69M	-14.93M	-7.75M	-1.76M
Financing Cash Flow	-50.65M	-52.85M	-50.43M	-62.96M	-63.48M	-85.96M

Smartgroup Corporation Ltd Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 9.06
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:SIQ, the sentiment is Positive. The current price of 9.06 is above the 20-day moving average (MA) of 8.71, above the 50-day MA of 8.34, and above the 200-day MA of 7.80, indicating a bullish trend. The MACD of 0.21 indicates Negative momentum. The RSI at 63.04 is Neutral, neither overbought nor oversold. The STOCH value of 62.80 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AU:SIQ.

Smartgroup Corporation Ltd Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SIQ	79 Outperform	$1.19B	14.38	31.30%	5.57%	11.64%	18.08%
CUP	76 Outperform	AU$180.99M	20.22	8.06%	4.07%	27.05%	520.93%
MAD	73 Outperform	AU$1.58B	27.40	30.67%	1.15%	12.62%	12.46%
IPH	68 Neutral	AU$904.33M	13.42	10.32%	10.67%	16.61%	3.07%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
KPG	63 Neutral	AU$430.11M	125.00	13.37%	0.11%	24.47%	21.28%
STG	42 Neutral	AU$30.88M	-3.34	-23.42%	―	-13.52%	7.82%

Smartgroup Corporation Ltd Corporate Events

Lennox Capital Partners Ceases Substantial Holding in Smartgroup

Lennox Capital Partners Pty Limited has announced that it has ceased to be a substantial holder in Smartgroup Corporation Ltd. This change in holding could impact Smartgroup’s shareholder composition and potentially influence its market positioning, as substantial holders often have significant voting power and influence over company decisions.

Smartgroup Announces Change in Substantial Holdings

Smartgroup Corporation Ltd has announced a change in substantial holdings, indicating that State Street Corporation and its subsidiaries have ceased to be substantial holders as of November 3, 2025. This change may impact the voting securities and influence within the company, potentially affecting its market position and stakeholder interests.

Smartgroup Corporation Announces Change in Substantial Holding Status

Smartgroup Corporation Ltd has announced a change in its substantial holding status, indicating that State Street Corporation and its subsidiaries, including State Street Global Advisors, have ceased to be substantial holders as of October 24, 2025. This change could potentially impact the company’s market dynamics and stakeholder interests, as it involves a shift in the control or influence over voting securities, which may affect decision-making processes within the corporation.

State Street Ceases Substantial Holding in Smartgroup

Smartgroup Corporation Ltd has announced that State Street Corporation and its subsidiaries have ceased to be substantial holders in the company as of October 17, 2025. This change in substantial holding may impact the company’s shareholder dynamics and could influence future voting outcomes and strategic decisions.

State Street Ceases Substantial Holding in Smartgroup

Smartgroup Corporation Ltd has announced that State Street Corporation and its subsidiaries have ceased to be substantial holders in the company as of October 14, 2025. This change in substantial holding could impact the company’s shareholder structure and potentially influence its market positioning, as State Street’s divestment might affect investor perception and future investment strategies.

Smartgroup Sees Change in Substantial Holder Status

Smartgroup Corporation Ltd has announced a change in the status of a substantial holder, with State Street Global Advisors and its subsidiaries ceasing to hold a significant interest in the company as of October 1, 2025. This development may impact the company’s shareholder structure and could have implications for its market positioning, as changes in substantial holdings can influence investor perceptions and strategic decisions.

State Street Corporation Ceases Substantial Holding in Smartgroup

Smartgroup Corporation Ltd has announced that State Street Corporation and its subsidiaries have ceased to be substantial holders in the company as of September 19, 2025. This change in substantial holding may impact the company’s shareholder structure and influence its future strategic decisions, potentially affecting its market positioning and stakeholder interests.

Smartgroup Issues New Performance Rights to Employees

Smartgroup Corporation Ltd has announced the issuance of 5,815 performance rights under its employee incentive scheme, which are not intended to be quoted on the ASX. This move is part of the company’s strategy to motivate and retain key employees, potentially impacting its operational efficiency and market competitiveness.

Smartgroup Announces Quotation of New Securities on ASX

Smartgroup Corporation Ltd has announced the quotation of 57,698 ordinary fully paid securities on the Australian Securities Exchange (ASX) under the code SIQ. These securities are part of an employee incentive scheme, indicating the company’s ongoing commitment to employee engagement and retention strategies, which may enhance its competitive positioning in the market.