Education
About Us
Working with TipRanks
Follow Us
Super Group (SGHC) (SGHC)
NYSE:SGHC
Top Page
Super Group (SGHC)
(NYSE:SGHC)
65Neutral
Positive Factors
Financial Performance
Super Group reported strong Q4 results with record performance across geographies and verticals, driven by favorable outcomes in Africa, Europe, Canada, and New Zealand.
Growth and Expansion
Super Group sees significant potential for growth in Africa with recent expansion into Botswana and plans for further market entries.
Guidance and Forecasts
SGHC introduced FY25 revenue guidance ahead of consensus, indicating strong expected growth and sustained operating momentum.
Negative Factors
Market Focus
The company has completed its exit from the US sports betting market and is focusing investments on those countries where it sees a clear path to sustainable growth.
Regulatory Risks
Exposure to regulating markets does present risk to equity value from potential post-regulation revenue/profit compression.
Super Group (SGHC) (SGHC) vs. S&P 500 (SPY)
Market Cap
$3.23B
Dividend Yield4.41%
Average Volume (3M)929.11K
Price to Earnings (P/E)663.9
Beta (1Y)1.49
Revenue Growth12.40%
EPS Growth-90.10%
CountryUS
Employees3,589
SectorConsumer Cyclical
Sector Strength54
IndustryGambling, Resorts & Casinos
Share Statistics
EPS (TTM)<0.01
Shares Outstanding501,431,430
10 Day Avg. Volume904,393
30 Day Avg. Volume929,109
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)8.66
Price to Cash Flow (P/CF)N/A
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$10.60Price Target Upside61.34% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering5
Super Group (SGHC) Business Overview & Revenue Model
Company DescriptionSuper Group (SGHC) Limited operates as an online sports betting and gaming operator. It offers Betway, an online sports betting brand; and Spin, a multi-brand online casino offering. The company is based in Saint Peter Port, Guernsey.
How the Company Makes MoneySuper Group (SGHC) generates revenue primarily through its online sports betting and gaming operations. The company earns money from Betway by accepting bets on a wide range of sports events and maintaining a margin on the odds offered, effectively profiting from the difference between the bets placed and the payouts made to winners. Spin, the online casino platform, generates income through casino games that include slots, table games, and live dealer experiences, where the house maintains an advantage over players. Both platforms benefit from user engagement, customer retention, and market expansion. Additionally, Super Group partners with sports organizations and media companies to enhance brand visibility and drive user acquisition, which is crucial for scaling its operations and increasing its revenue.
Super Group (SGHC) Financial Statement Overview
Summary
Super Group (SGHC) shows a mixed financial performance with strong cash flow management and a stable balance sheet countered by recent profitability issues. The company benefits from low leverage but must address its declining net margins to enhance shareholder value and sustain growth.Income Statement
The company experienced fluctuating revenue growth with a recent decline, as seen with a drop from 2022 to 2023. Despite a consistent revenue increase over years, net profit margin has turned negative recently, indicating profitability challenges. However, the gross profit margin remains strong, suggesting potential for recovery if cost controls improve.45
Neutral
Balance Sheet
The balance sheet shows a healthy equity position with a debt-to-equity ratio of 0.06 for 2023, indicating low reliance on debt financing. The equity ratio is solid, reflecting financial stability. However, the slight decline in stockholders' equity from previous years could be a risk factor if profitability does not improve.65
Positive
Cash Flow
Cash flow analysis indicates strong operational cash generation, with a positive free cash flow despite declining from the previous year. The operating cash flow to net income ratio is high, reflecting efficient cash flow management. However, the decrease in free cash flow growth raises concerns about sustaining future investments.70
Positive
| Breakdown | |||||
| TTM | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 | Dec 2019 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 1.51B | 1.44B | 1.29B | 1.32B | 908.02M | 476.04M | Gross Profit |
| 690.88M | 666.28M | 848.66M | 424.16M | 610.09M | 309.34M | EBIT |
| 104.37M | 74.98M | 122.36M | 198.79M | 125.39M | -49.01M | EBITDA |
| 103.95M | 101.69M | 189.09M | 315.84M | 178.78M | -18.39M | Net Income Common Stockholders |
| 5.66M | -10.55M | 181.44M | 235.88M | 149.22M | -17.95M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 289.19M | 241.92M | 254.78M | 293.80M | 138.54M | 74.36M | Total Assets |
| 960.74M | 960.87M | 877.00M | 844.07M | 551.15M | 342.94M | Total Debt |
| 27.94M | 29.23M | 18.46M | 20.02M | 219.79M | 184.74M | Net Debt |
| -261.24M | -212.69M | -236.32M | -273.78M | 81.25M | 110.38M | Total Liabilities |
| 371.15M | 422.08M | 342.35M | 330.02M | 480.28M | 417.11M | Stockholders Equity |
| 571.32M | 520.32M | 518.08M | 514.05M | 70.87M | -74.18M |
| Cash Flow | Free Cash Flow | ||||
| 0.00 | 79.30M | 139.30M | 183.10M | 139.21M | 192.00K | Operating Cash Flow |
| 0.00 | 132.85M | 166.84M | 209.85M | 151.32M | 3.59M | Investing Cash Flow |
| 0.00 | -5.01M | -96.52M | -18.16M | -5.84M | 49.64M | Financing Cash Flow |
| 0.00 | -131.16M | -103.18M | -39.76M | -81.09M | -7.89M |
Super Group (SGHC) Technical Analysis
Positive
6.57
Price Trends
7.44
Negative
6.73
Positive
5.09
Positive
Market Momentum
-0.19
Positive
40.59
Neutral
15.27
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SGHC, the sentiment is Positive. The current price of 6.57 is below the 20-day moving average (MA) of 6.77, below the 50-day MA of 7.44, and above the 200-day MA of 5.09, indicating a neutral trend. The MACD of -0.19 indicates Positive momentum. The RSI at 40.59 is Neutral, neither overbought nor oversold. The STOCH value of 15.27 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SGHC.
Super Group (SGHC) Risk Analysis
Super Group (SGHC) disclosed 81 risk factors in its most recent earnings report. Super Group (SGHC) reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Super Group (SGHC) Peers Comparison
Overall Rating
UnderperformOutperform
Sector (59)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
66 Neutral | $8.46B | 12.52 | 21.76% | ― | 6.66% | -24.59% | |
65 Neutral | $3.23B | 663.92 | 0.83% | 4.41% | 12.40% | -90.10% | |
60 Neutral | $29.66B | ― | -54.81% | ― | 30.07% | 39.93% | |
59 Neutral | $12.17B | 11.04 | -1.10% | 3.77% | 1.26% | -19.70% | |
46 Neutral | $5.30B | ― | -6.38% | ― | -2.45% | -135.17% | |
44 Neutral | $2.49B | ― | -10.27% | ― | 3.38% | 38.18% |
* Consumer Cyclical Sector Average
Performance Comparison
SGHC
Super Group (SGHC)
6.74
3.64
117.42%
MGM
MGM Resorts
30.75
-16.00
-34.22%
PENN
Penn National Gaming
17.17
-0.72
-4.02%
CZR
Caesars Entertainment
26.27
-17.06
-39.37%
―
―
―
―
DKNG
DraftKings
34.43
-10.33
-23.08%
Super Group (SGHC) Earnings Call Summary
Earnings Call Date: Feb 25, 2025 | % Change Since: -19.09% | Next Earnings Date: May 21, 2025
Earnings Call Sentiment Positive
Super Group delivered strong financial results for 2024 with record-breaking revenue and EBITDA growth, particularly in the ex-US segment. The company also experienced significant customer engagement and positive momentum in its US iGaming strategy. Despite challenges in the German market and maintaining a high marketing spend, the overall performance and future outlook remain positive.Highlights
Record Revenue and EBITDA Growth
Total revenue ex the US reached an all-time high for 2024, growing 18% year-over-year to €1.66 billion. Adjusted EBITDA ex the US also set a full year record, growing 53% year-over-year to €391 million.
Strong Fourth Quarter Performance
For Q4, total revenue ex the US was another all-time high, growing 38% year-over-year to €487 million. Adjusted EBITDA ex the US grew 152% year-over-year to €129 million, with a margin of 26%.
Increase in Customer Engagement
Set new customer records with a new daily record of just under 2.2 million customers and a new high for average unique monthly active customers of 5.3 million.
Positive Developments in US iGaming Strategy
US revenue in Q4 grew by 64% year-over-year to €14 million, with the focus solely on iGaming.
Strong Balance Sheet and Increased Dividends
Finished the quarter with €356 million in unrestricted cash and no debt. Announced a special cash dividend of $0.15 per share, bringing the total dividend for the year to $0.25 per share.
Lowlights
Challenges in German Market
German market experienced growth issues due to regulatory challenges, which affected overall performance.
High Marketing Spend
Marketing spend accounted for 23% of revenue, which although planned, represents a significant expense.
Company Guidance
During the call, Super Group provided robust guidance for 2025, building on a strong performance in 2024. The company expects its ex-US total revenue to grow over 10% year-over-year, reaching at least €1.830 billion, with adjusted EBITDA anticipated to be greater than €435 million, maintaining a margin of 24%. For its US operations, the company forecasts total revenue of around €85 million, with total investment reducing significantly to between €30 million and €35 million. Combining ex-US and US figures, this translates to over €1.9 billion in total revenue and at least €400 million in adjusted EBITDA, achieving a 21% combined margin, an improvement from 2024’s 19.5%. The company's US strategy will focus solely on iGaming, and they aim for profitability by 2027. Additionally, they announced an increase in the quarterly dividend target to $0.04 per share, reflecting confidence in future growth.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
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.