Education
About Us
Working with TipRanks
Follow Us
Super Group (SGHC) (SGHC)
NYSE:SGHC
Top Page
Super Group (SGHC)
(NYSE:SGHC)
Rating:77Outperform
Price Target:
$14.00
▲(20.38% Upside)
Positive Factors
Earnings
Super Group reported strong Q2 results that were well ahead of already heightened expectations following a preannouncement.
Financial Performance
Super Group raised its FY25 outlook following strong Q2 results, expecting ex-US revenue of at least $2.0B.
Strategic Focus
The decision to exit the US iGaming market will allow for an even greater focus on its consistently strong performance around the world.
Negative Factors
Impairments
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.
Revenue Guidance
The revenue guide is -1% below consensus.
Tax Structure
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
$5.83B
Dividend Yield2.09%
Average Volume (3M)1.78M
Price to Earnings (P/E)43.0
Beta (1Y)1.62
Revenue Growth21.11%
EPS Growth272.97%
CountryUS
Employees3,589
SectorConsumer Cyclical
Sector Strength80
IndustryGambling, Resorts & Casinos
Share Statistics
EPS (TTM)0.06
Shares Outstanding501,431,430
10 Day Avg. Volume2,179,799
30 Day Avg. Volume1,781,307
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
$15.29Price Target Upside31.47% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering7
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: |
Next Earnings Date:Nov 06, 2025
Earnings Call Sentiment Positive
Super Group reported strong financial results for Q2 2025, with record revenue and EBITDA driven by significant growth in key regions such as Europe and Africa. However, the decision to exit the U.S. iGaming market and challenges in the APAC region, particularly Nigeria, present headwinds. Despite these challenges, the company's raised guidance and shareholder returns indicate positive momentum.Q2-2025 Updates
Positive Updates
Record Revenue and EBITDA
Super Group reported a record total revenue of $579 million for Q2 2025, up 30% year-over-year. Adjusted EBITDA also reached an all-time high of $157 million, representing 78% year-over-year growth with a robust margin of approximately 27%.
Strong Regional Performance
Europe's revenue surged 53% year-over-year, driven by an 83% increase in the U.K. Africa saw a growth of 59% year-over-year, with Ghana growing 63% and South Africa 31%. North America grew 23% year-over-year, with Canada increasing 22%.
Record Quarterly EBITDA Margin
Super Group achieved the highest quarterly EBITDA in its history, with a record margin of 27%, driven by effective cost management and operating leverage.
U.S. Revenue Growth
Despite plans to exit the U.S. iGaming market, Super Group reported a 112% year-over-year increase in U.S. revenue for Q2 2025.
Shareholder Returns
The company returned $166 million to shareholders over the past 12 months and declared a regular cash dividend of $0.04 per share in June.
Negative Updates
APAC Revenue Decline
APAC faced a challenging quarter with revenue down 6% year-over-year, including a 13% decline in New Zealand due to currency and macroeconomic headwinds.
Challenges in Nigeria
Nigeria underperformed compared to other African markets, highlighting ongoing challenges in this region.
Exit from U.S. iGaming Market
Super Group announced its intention to exit the U.S. iGaming market, citing changing market dynamics and high costs. This exit will incur a one-time restructuring cash cost of approximately $50 million.
Non-Cash Impairment Adjustments
The company recorded a non-cash impairment adjustment of $63.9 million related to its U.S. operations, along with provisions on onerous contracts of $22.6 million.
Company Guidance
During Super Group's Second Quarter 2025 earnings call, the company announced a record total revenue of $579 million, up 30% year-over-year, and an all-time high group adjusted EBITDA of $157 million, representing a 78% year-over-year growth with a robust margin of approximately 27%. This outstanding performance was driven by strong sports outcomes, smarter pricing, and continued traction of their innovative parlay product, Bet Builder. The company experienced significant growth in key regions, with Europe's revenue surging 53% year-over-year, led by an 83% increase in the U.K., and Africa seeing growth of 59% year-over-year. Canada, excluding Ontario, increased 22%, and the U.S. revenue was up 112% year-over-year. Despite this growth, Super Group announced an exit from the U.S. iGaming market to focus on more profitable markets, anticipating a one-time restructuring cash cost of approximately $50 million. Looking ahead, the company raised its full-year 2025 ex U.S. adjusted EBITDA guidance to between $500 million and $510 million, reflecting focused cultivation of its markets.Super Group (SGHC) Financial Statement Overview
Summary
Super Group 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 | 73.25M | 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
Neutral
11.63
Price Trends
11.22
Negative
9.83
Positive
8.29
Positive
Market Momentum
0.21
Positive
44.38
Neutral
37.93
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SGHC, the sentiment is Neutral. The current price of 11.63 is above the 20-day moving average (MA) of 11.40, above the 50-day MA of 11.22, and above the 200-day MA of 8.29, indicating a neutral trend. The MACD of 0.21 indicates Positive momentum. The RSI at 44.38 is Neutral, neither overbought nor oversold. The STOCH value of 37.93 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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 (61)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $5.83B | 43.01 | 21.57% | 2.09% | 21.11% | 272.97% | |
75 Outperform | $5.10B | 110.62 | 27.07% | ― | 26.99% | ― | |
74 Outperform | $3.15B | 17.58 | -7.71% | 22.84% | -43.11% | -8.68% | |
72 Outperform | $6.53B | 23.56 | 97.52% | 3.20% | 7.47% | 2.58% | |
61 Neutral | $17.87B | 13.25 | -4.88% | 3.05% | 1.25% | -14.67% | |
61 Neutral | $42.68B | ― | -26.38% | ― | 25.80% | 27.64% | |
57 Neutral | $2.95B | ― | -2.50% | ― | 7.34% | 93.83% |
* Consumer Cyclical Sector Average
Performance Comparison
SGHC
Super Group (SGHC)
11.03
7.65
226.33%
BRSL
Brightstar Lottery
16.41
-0.93
-5.36%
PENN
PENN Entertainment
19.97
0.81
4.23%
RRR
Red Rock Resorts
62.43
7.17
12.98%
DKNG
DraftKings
47.91
13.63
39.76%
RSI
Rush Street Interactive
21.39
12.21
133.01%
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.