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Super Group (SGHC) (SGHC)
NYSE:SGHC
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Super Group (SGHC)
(NYSE:SGHC)
Rating:73Outperform
Price Target:
$12.00
▲(9.39% Upside)
Positive Factors
Earnings
Super Group reported strong Q2 results that were well ahead of already heightened expectations following a preannouncement last month.
Financial Performance
Shares of SGHC have more than doubled as the company’s exit from the US market has allowed investors to focus on the consistently strong performance of this global online gambling business.
Guidance
Super Group reiterated its FY25 revenue outlook and increased its profitability outlook given encouraging recent trends.
Negative Factors
Impairment and Costs
Super Group took a $64M non-cash impairment of its DGC iGaming assets and incurred $22.6M of costs related to the elimination of onerous contracts.
US Market Challenges
High customer acquisition costs and recent increases to the tax structure in the US pushed the path to profitability further out than the company would have liked.
Super Group (SGHC) (SGHC) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$5.50B
Dividend Yield1.99%
Average Volume (3M)1.53M
Price to Earnings (P/E)39.7
Beta (1Y)1.53
Revenue Growth22.80%
EPS Growth281.38%
CountryUS
Employees3,589
SectorConsumer Cyclical
Sector Strength71
IndustryGambling, Resorts & Casinos
Share Statistics
EPS (TTM)0.06
Shares Outstanding501,431,430
10 Day Avg. Volume1,650,172
30 Day Avg. Volume1,532,835
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market Cap0.00
Enterprise Value/Revenue0.00
Enterprise Value/Gross Profit0.00
Enterprise Value/Ebitda0.00
Forecast
1Y Price Target
$14.88Price Target Upside35.64% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering8
Super Group (SGHC) Business Overview & Revenue Model
Company DescriptionSuper Group (SGHC) is a global digital gaming company that operates in the online sports betting and gaming entertainment sectors. The company offers a wide range of products and services, including online casino games, sports betting, and other interactive gaming experiences. Super Group serves customers in various international markets, leveraging its technology platform to deliver engaging and secure gaming solutions.
How the Company Makes MoneySuper Group (SGHC) generates revenue primarily through its online sports betting and gaming entertainment operations. The company earns money by offering a variety of betting options and casino games to its customers, who place wagers on these platforms. Revenue is generated from the margins on bets, as well as from fees and commissions associated with gaming activities. Additionally, Super Group may form strategic partnerships or licensing agreements that contribute to its earnings by expanding its market reach and enhancing its service offerings.
Super Group (SGHC) Earnings Call Summary
Earnings Call Date:Aug 06, 2025
(Q2-2025)
| % Change Since: 1.67%|
Next Earnings Date:Nov 06, 2025
Earnings Call Sentiment Positive
The earnings call presented a largely positive picture with record revenues and significant growth in key markets. Despite challenges in APAC and the decision to exit the U.S. market, the overall performance and raised guidance for 2025 indicate a strong positive momentum.Q2-2025 Updates
Positive Updates
Record-Breaking Revenue and Growth
Super Group reported a record total revenue of $579 million, up 30% year-over-year, and an adjusted EBITDA of $157 million, representing 78% year-over-year growth.
Strong Performance in Key Markets
Europe's revenue surged 53% year-over-year, with the U.K. leading the charge at 83%. Africa grew 59% year-over-year, with Ghana up 63% and South Africa 31%. North America grew 23% year-over-year, with Canada (excluding Ontario) increasing by 22%.
Highest Quarterly EBITDA Margin
Super Group achieved a record quarterly EBITDA margin of 27%, demonstrating significant operating leverage.
U.S. Revenue Growth
Despite the decision to exit, the U.S. market showed a 112% year-over-year revenue growth.
Raised Full Year 2025 Guidance
Super Group raised its full year 2025 ex U.S. adjusted EBITDA guidance to between $500 million to $510 million from a previous expectation of greater than $480 million.
Negative Updates
Exit from U.S. iGaming Market
Super Group announced its intention to exit the U.S. iGaming market, citing changing dynamics and increased taxes in New Jersey as factors. This will result in a onetime restructuring cash cost of approximately $50 million.
Challenges in APAC Region
APAC faced a challenging quarter with revenue down 6% year-over-year, although this was an improvement from the previous quarter's 13% decline.
Nigeria Underperformance
Nigeria was noted as a market that underperformed compared to other African markets.
Company Guidance
In the second quarter of 2025, Super Group reported remarkable financial results, exceeding expectations with a total revenue of $579 million, marking a 30% year-over-year increase, and an adjusted EBITDA of $157 million, representing a 78% growth year-over-year with a 27% margin. The company's strong performance was driven by a 15% increase in sports betting wagers and a 24% rise in casino wagers, supported by favorable sports outcomes, enhanced pricing strategies, and the success of the Bet Builder product. Europe's revenue surged by 53% year-over-year, led by an 83% growth in the U.K. Africa experienced a 59% revenue increase, notably with Ghana growing 63%, while North America's revenue rose by 23%. Despite a 6% revenue decline in APAC, overall, Super Group achieved record levels in quarterly EBITDA. The company also announced plans to exit the U.S. iGaming market, expecting a onetime restructuring cost of approximately $50 million, and raised its full-year 2025 ex-U.S. adjusted EBITDA guidance to between $500 million and $510 million. Super Group continues to focus on strategic market expansion, product innovation, and leveraging technology for long-term growth and profitability.Super Group (SGHC) Financial Statement Overview
Summary
Super Group (SGHC) demonstrates strong financial health with consistent revenue growth and solid cash flow generation. The company maintains a balanced capital structure with low leverage and increasing equity. Despite some fluctuations in net profit margins and rising liabilities, the overall financial position remains stable, supported by effective operational performance and robust cash flow management.Income Statement
The company's revenue has shown consistent growth over the years, with a strong increase in 2024 compared to 2023. The gross profit margin has remained healthy, indicating effective cost management. However, the net profit margin fluctuated, with a significant improvement in 2024 after a negative margin in 2023. The EBIT margin was zero in 2024, while the EBITDA margin improved, reflecting stronger operational performance before depreciation and amortization.78
Positive
Balance Sheet
The balance sheet shows a strong equity position with an increasing stockholders' equity over the years. The company has maintained a low debt-to-equity ratio, indicating conservative leverage. The equity ratio has improved, showing a solid capital structure. However, the total liabilities have increased, which could pose a potential risk if not managed properly.72
Positive
Cash Flow
The company's cash flow statements reflect robust operating cash flow growth, with free cash flow also showing a healthy upward trend. The operating cash flow to net income ratio is strong, indicating efficient cash generation from operations. The free cash flow to net income ratio is solid, highlighting effective cash management strategies.80
Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.81B | 1.77B | 1.44B | 1.29B | 1.32B | 908.02M |
| Gross Profit | 925.68M | 875.56M | 666.28M | 848.66M | 424.16M | 610.09M |
| EBITDA | 304.44M | 272.59M | 101.69M | 189.09M | 315.84M | 178.78M |
| Net Income | 131.02M | 117.69M | -10.55M | 181.44M | 235.88M | 149.22M |
Balance Sheet | ||||||
| Total Assets | 1.09B | 1.10B | 960.87M | 877.00M | 844.07M | 551.15M |
| Cash, Cash Equivalents and Short-Term Investments | 365.00M | 401.73M | 241.92M | 254.78M | 293.80M | 138.54M |
| Total Debt | 74.00M | 70.40M | 29.23M | 18.46M | 20.02M | 219.79M |
| Total Liabilities | 444.00M | 517.21M | 422.08M | 342.35M | 330.02M | 480.28M |
| Stockholders Equity | 645.00M | 580.15M | 520.32M | 518.08M | 514.05M | 70.87M |
Cash Flow | ||||||
| Free Cash Flow | 0.00 | 199.62M | 79.30M | 139.30M | 183.10M | 139.21M |
| Operating Cash Flow | 0.00 | 295.09M | 132.85M | 166.84M | 209.85M | 151.32M |
| Investing Cash Flow | 0.00 | -110.08M | -5.01M | -96.52M | -18.16M | -5.84M |
| Financing Cash Flow | 0.00 | -56.35M | -131.16M | -103.18M | -39.76M | -81.09M |
Super Group (SGHC) Technical Analysis
Positive
10.97
Price Trends
10.60
Positive
9.17
Positive
7.81
Positive
Market Momentum
0.06
Positive
63.03
Neutral
90.45
Negative
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 10.97 is below the 20-day moving average (MA) of 11.01, above the 50-day MA of 10.60, and above the 200-day MA of 7.81, indicating a bullish trend. The MACD of 0.06 indicates Positive momentum. The RSI at 63.03 is Neutral, neither overbought nor oversold. The STOCH value of 90.45 is Negative, 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 (64)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | $5.50B | 39.67 | 21.19% | 1.99% | 22.80% | 281.38% | |
73 Outperform | $4.42B | 95.19 | 27.07% | ― | 26.99% | ― | |
72 Outperform | $6.39B | 22.93 | 97.52% | 3.28% | 7.47% | 2.58% | |
69 Neutral | $3.06B | 15.93 | -7.71% | 21.74% | -43.11% | -8.68% | |
64 Neutral | €7.28B | 16.38 | 11.67% | 3.51% | 0.79% | -60.56% | |
57 Neutral | $2.50B | ― | -2.50% | ― | 7.34% | 93.83% | |
57 Neutral | $38.34B | ― | -26.38% | ― | 25.80% | 27.64% |
* Consumer Cyclical Sector Average
Performance Comparison
SGHC
Super Group (SGHC)
11.56
8.44
270.51%
BRSL
Brightstar Lottery
15.64
-1.71
-9.86%
PENN
PENN Entertainment
17.80
-1.46
-7.58%
RRR
Red Rock Resorts
60.92
7.47
13.98%
DKNG
DraftKings
43.16
9.02
26.42%
RSI
Rush Street Interactive
19.19
9.89
106.34%
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.