SRG Global Limited (SRG) AI Stock Analysis

• Market Cap: AU$924.06M
• Dividend Yield: 3.27%
• Average Volume (3M): 1.50M
• Price to Earnings (P/E): 22.0
• Beta (1Y): 0.89
• Revenue Growth: 25.40%
• EPS Growth: 41.18%
• Country: AU
• Employees: 198
• Sector: Industrials
• Sector Strength: 93
• Industry: Engineering & Construction
• EPS (TTM): 0.05
• Shares Outstanding: 603,958,500
• 10 Day Avg. Volume: 1,459,754
• 30 Day Avg. Volume: 1,497,556
• PEG Ratio: 4.75
• Price to Book (P/B): 1.97
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 11.14
• 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: AU$1.75
• Price Target Upside: 15.13% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 68 Neutral
• Price Target: AU$1.50 ▼(-1.32%Downside)

SRG Global Limited's overall stock score is driven by strong financial performance, highlighted by robust revenue and profit growth and effective cost management. Technical indicators point to positive momentum, though caution is advised due to overbought signals. The stock's valuation is a concern with a relatively high P/E ratio, partially offset by a decent dividend yield.

SRG Global Limited Business Overview & Revenue Model

Company Description

SRG Global Limited provides engineering-led specialist asset maintenance, mining services, and engineering and construction services in Australia and internationally. The company operates through Asset Maintenance; Mining Services; and Engineering and Construction segments. The Asset Maintenance segment supplies integrated services to customers in various sectors, including oil and gas, energy, infrastructure, offshore, mining, power generation, water treatment plants, commissioning, decommissioning, shutdowns, and civil works. The Mining Services segment offers ground solutions, including production drilling, ground and slope stabilization, and design engineering and monitoring services. The Engineering and Construction segment supplies integrated products and services to customers involved in the construction of infrastructure, which includes bridges, dams, office towers, high rise apartments, shopping centers, hotels, car parks, recreational buildings, and hospitals. The company was formerly known as Structural Systems Limited and changed its name to SRG Global Limited in November 2014. SRG Global Limited was founded in 1961 and is headquartered in Subiaco, Australia.

How the Company Makes Money

SRG Global Limited generates revenue primarily through its service offerings in asset services, mining services, and construction. The company provides specialized engineering solutions that include design, construction, and ongoing maintenance services for infrastructure and industrial assets. Key revenue streams include contracts for infrastructure maintenance, construction projects, and mining operations support. Significant partnerships with government bodies, large construction firms, and resource companies enhance SRG's market position and contribute to its earnings. Their business model leverages long-term contracts and recurring service agreements to maintain a steady revenue flow.

SRG Global Limited Financial Statement Overview

Summary

SRG Global Limited demonstrates robust financial health with consistent revenue and profit growth, supported by effective cost management and cash flow generation. The balance sheet is solid though there is a slight uptick in liabilities. Continued focus on operational efficiencies and prudent debt management will be key to sustaining its growth trajectory.

Income Statement

SRG Global Limited has shown a strong revenue growth trend over the years, with a significant increase from 2019 to 2024. The gross profit margin has improved substantially, indicating effective cost management. The net profit margin has also strengthened, showing improved profitability. However, the EBIT and EBITDA margins, though improved, suggest room for enhancement in operating efficiency.

Balance Sheet

The company's balance sheet reflects a solid equity base with a moderate debt-to-equity ratio, indicating a stable financial position. The return on equity has improved over the years, showcasing effective utilization of equity. However, the equity ratio has declined slightly due to increased liabilities, which could pose a risk if not managed carefully.

Cash Flow

SRG Global Limited exhibits strong cash flow generation capabilities with a significant increase in free cash flow over the years. The operating cash flow to net income ratio indicates healthy cash generation relative to profitability. Free cash flow to net income has improved, adding to the firm's financial flexibility. However, the variability in capital expenditures should be monitored.

Breakdown
TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement		Total Revenue
1.18B	1.07B	808.99M	644.24M	569.54M	551.17M
	Gross Profit
651.30M	604.25M	66.22M	50.48M	39.30M	25.78M
	EBIT
155.40M	56.21M	39.71M	27.34M	20.00M	-9.57M
	EBITDA
91.14M	97.00M	73.64M	56.23M	47.06M	-7.71M
	Net Income Common Stockholders
38.11M	34.44M	22.56M	20.13M	12.05M	-29.69M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
4.68M	73.36M	47.85M	59.43M	46.36M	28.25M
	Total Assets
141.60M	640.48M	620.35M	497.29M	450.91M	429.30M
	Total Debt
0.00	87.69M	91.86M	57.29M	55.34M	63.31M
	Net Debt
-4.68M	14.34M	44.15M	-2.01M	9.10M	35.20M
	Total Liabilities
64.47M	335.43M	329.87M	262.73M	224.11M	207.87M
	Stockholders Equity
77.14M	305.05M	290.48M	234.57M	226.80M	221.43M
Cash Flow		Free Cash Flow
67.78M	66.30M	11.50M	40.24M	35.67M	-14.78M
	Operating Cash Flow
96.17M	93.75M	43.13M	61.12M	55.17M	5.78M
	Investing Cash Flow
-119.99M	-25.27M	-102.48M	-33.56M	-17.32M	-16.53M
	Financing Cash Flow
60.41M	-42.94M	47.86M	-14.54M	-19.68M	-19.46M

SRG Global Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1.52
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Negative
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:SRG, the sentiment is Positive. The current price of 1.52 is above the 20-day moving average (MA) of 1.47, above the 50-day MA of 1.33, and above the 200-day MA of 1.23, indicating a bullish trend. The MACD of 0.05 indicates Positive momentum. The RSI at 71.82 is Negative, neither overbought nor oversold. The STOCH value of 61.17 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AU:SRG.

SRG Global Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SRG	68 Neutral	AU$924.06M	21.98	11.36%	3.27%	25.40%	41.18%
Sector *	66 Neutral	$4.49B	12.28	5.32%	248.53%	4.08%	-12.00%
DNE		€2.32B	50.00	3.35%	3.98%	―	―
LYOPF		$275.35M	9.30	36.14%	4.55%	―	―
NMN		€629.90M	10.83	74.00%	10.38%	―	―
3NR		€726.33M	10.59	18.01%	5.98%	―	―

SRG Global Limited Corporate Events

SRG Global Strengthens Board with New Non-Executive Director Appointment

SRG Global Limited has appointed Linda O’Farrell as a Non-Executive Director, effective from July 1, 2025. Linda brings extensive experience in organisational culture, workforce strategy, and governance, having held senior roles at Fortescue, Newcrest, BHP, and Mount Gibson Iron. Her appointment is expected to enhance SRG Global’s board capabilities, particularly in human capital, organisational resilience, ESG, and stakeholder engagement, aligning with the company’s growth ambitions in the infrastructure services sector.

The most recent analyst rating on (AU:SRG) stock is a Buy with a A$1.20 price target. To see the full list of analyst forecasts on SRG Global Limited stock, see the AU:SRG Stock Forecast page.

Citigroup Ceases Substantial Holding in SRG Global

SRG Global Limited has announced that Citigroup Global Markets Australia Pty Limited and its related entities have ceased to be substantial holders of SRG’s ordinary fully paid shares as of March 24, 2025. This change reflects a decrease in Citigroup’s relevant interest in SRG shares due to securities lending agreements and standard business transactions on the stock exchange, impacting the company’s shareholder structure.

Citigroup Becomes Substantial Shareholder in SRG Global Limited

SRG Global Limited has announced that Citigroup Global Markets Australia Pty Limited, along with its related corporate bodies, has become a substantial shareholder in the company as of March 21, 2025. Citigroup now holds a 6.1376% voting power in SRG Global Limited, with a total of 37,068,546 ordinary fully paid shares. This development signifies a notable increase in Citigroup’s influence within SRG Global Limited, potentially impacting the company’s strategic decisions and market positioning.