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Super Group (SGHC) (SGHC)
NYSE:SGHC
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Super Group (SGHC)
(NYSE:SGHC)
Rating:72Outperform
Price Target:
$13.50
▲(20.75%Upside)
Positive Factors
Balance Sheet
SGHC last reported $351M in cash and no debt, indicating a strong balance sheet.
Financial Performance
Super Group experienced broad-based strength across its sports betting and iGaming platforms, resulting in record revenue and adj. EBITDA.
Guidance and Outlook
The company raised its full-year 2025 guidance, with ex-U.S. revenue now expected to exceed $2.0B and AEBITDA forecast above $480M.
Negative Factors
Market Exit
Super Group announced it will be exiting the US iGaming market due to a lack of scale and recent tax increases in New Jersey.
Profitability Concerns
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
$5.61B
Dividend Yield0.3%
Average Volume (3M)1.53M
Price to Earnings (P/E)40.4
Beta (1Y)1.56
Revenue Growth22.80%
EPS Growth281.38%
CountryUS
Employees3,589
SectorConsumer Cyclical
Sector Strength68
IndustryGambling, Resorts & Casinos
Share Statistics
EPS (TTM)0.12
Shares Outstanding501,431,430
10 Day Avg. Volume1,714,820
30 Day Avg. Volume1,531,079
Financial Highlights & Ratios
PEG Ratio2.21
Price to Book (P/B)7.81
Price to Sales (P/S)0.00
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
$14.17Price Target Upside26.74% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering7
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 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:May 08, 2025
(Q1-2025)
| % Change Since: 27.77%|
Next Earnings Date:Aug 06, 2025
Earnings Call Sentiment Positive
Super Group reported a strong first quarter with record-breaking revenue and significant growth in adjusted EBITDA. Positive performances in Africa and Europe, coupled with improvements in the U.S. iGaming business, were key drivers. However, challenges such as the decline in the APAC region, regulatory issues in New Zealand, and potential tax hikes in New Jersey temper the outlook.Q1-2025 Updates
Positive Updates
Record-Breaking First Quarter Revenue
Super Group achieved an all-time high first quarter total revenue of $517 million, representing a 25% year-over-year increase.
Significant Growth in Adjusted EBITDA
The company reported a 120% increase in adjusted EBITDA year-over-year to $111 million, with a combined margin of approximately 22%.
Strong Performance in Africa and Europe
Africa grew 54% year-over-year, driven by steady development in countries like South Africa, Ghana, and Malawi. Europe also showed a 53% increase year-over-year, with the UK up 87%.
Successful U.S. Business Transition
The U.S. iGaming business is progressing according to plan, with EBITDA improving from an $11 million loss in Q4 2024 to a $10 million loss in Q1 2025.
High Customer Engagement
The company set a new record for unique monthly active customers, averaging 5.4 million for the quarter.
Strong Cash Position
Super Group ended the quarter with unrestricted cash of $351 million and no debt, highlighting a strong free cash flow profile.
Negative Updates
APAC Region Decline
The APAC region was significantly affected by currency weakness and the closure of non-performing markets, resulting in a 13% year-over-year decrease.
Regulatory Challenges in New Zealand
Growth in New Zealand was constrained by regulatory limits on marketing, causing a decline of 7% year-over-year in dollar terms.
Potential Tax Hike in New Jersey
There is ongoing monitoring of a proposed tax hike in New Jersey, which could impact profitability in the U.S. market.
Company Guidance
In the first quarter of 2025, Super Group reported a record total revenue of $517 million, marking a 25% year-over-year increase, and an adjusted EBITDA of $111 million, up 120% year-over-year, with a 22% margin. The company saw significant growth in its ex-U.S. markets, with revenue reaching $502 million, a 24% increase, and adjusted EBITDA growing 62% to $121 million, with a 24% margin. Africa was a standout performer, growing 54% year-over-year, driven by markets like South Africa, Ghana, and the recent launch in Botswana. Europe grew 53%, with the UK up 87%, while Canada increased by 13%. APAC faced challenges, ending down 13% due to currency impacts and market closures. In the U.S., the iGaming sector showed improvement, with the EBITDA loss reducing from $11 million in Q4 2024 to $10 million in Q1 2025. Super Group is maintaining its fiscal year guidance of over $2 billion in revenue and $421 million in adjusted EBITDA, with ongoing opportunities for growth. The company ended the quarter with $351 million in unrestricted cash and no debt, and continues to focus on strategic investments and efficient marketing spend.Super Group (SGHC) Financial Statement Overview
Summary
Super Group shows strong financial health with consistent revenue growth and robust cash flow management. While net profit margins have fluctuated, the company's low leverage and increasing equity position offset the rise in liabilities, maintaining a stable financial position.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 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 1.70B | 1.44B | 1.29B | 1.32B | 908.02M |
| Gross Profit | 841.42M | 666.28M | 848.66M | 424.16M | 610.09M |
| EBITDA | 272.59M | 101.69M | 189.09M | 315.84M | 178.78M |
| Net Income | 117.69M | -10.55M | 181.44M | 235.88M | 149.22M |
Balance Sheet | |||||
| Total Assets | 1.05B | 960.87M | 877.00M | 844.07M | 551.15M |
| Cash, Cash Equivalents and Short-Term Investments | 401.73M | 241.92M | 254.78M | 293.80M | 138.54M |
| Total Debt | 70.40M | 29.23M | 18.46M | 20.02M | 219.79M |
| Total Liabilities | 517.21M | 422.08M | 342.35M | 330.02M | 480.28M |
| Stockholders Equity | 557.53M | 520.32M | 518.08M | 514.05M | 70.87M |
Cash Flow | |||||
| Free Cash Flow | 191.84M | 79.30M | 139.30M | 183.10M | 139.21M |
| Operating Cash Flow | 295.09M | 132.85M | 166.84M | 209.85M | 151.32M |
| Investing Cash Flow | -105.79M | -5.01M | -96.52M | -18.16M | -5.84M |
| Financing Cash Flow | -54.15M | -131.16M | -103.18M | -39.76M | -81.09M |
Super Group (SGHC) Technical Analysis
Positive
11.18
Price Trends
9.84
Positive
8.53
Positive
7.25
Positive
Market Momentum
0.51
Positive
55.97
Neutral
30.23
Neutral
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 11.18 is below the 20-day moving average (MA) of 11.26, above the 50-day MA of 9.84, and above the 200-day MA of 7.25, indicating a neutral trend. The MACD of 0.51 indicates Positive momentum. The RSI at 55.97 is Neutral, neither overbought nor oversold. The STOCH value of 30.23 is Neutral, 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 (63)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
72 Outperform | $3.35B | 189.15 | 11.87% | ― | 29.86% | ― | |
72 Outperform | $5.61B | 40.43 | 21.19% | 0.30% | 22.80% | 281.38% | |
70 Outperform | $2.93B | 10.04 | 1.33% | 5.54% | -33.50% | 35.81% | |
66 Neutral | $5.76B | 23.87 | 81.59% | 3.69% | 9.48% | -11.92% | |
63 Neutral | $17.14B | 11.11 | -7.24% | 3.14% | 1.68% | -25.43% | |
61 Neutral | $39.63B | ― | -46.78% | ― | 22.86% | 30.40% | |
58 Neutral | $2.77B | ― | -2.81% | ― | 5.51% | 92.46% |
* Consumer Cyclical Sector Average
Performance Comparison
SGHC
Super Group (SGHC)
11.18
7.63
214.93%
BRSL
Brightstar Lottery
14.45
-1.63
-10.14%
PENN
Penn National Gaming
18.40
0.24
1.32%
RRR
Red Rock Resorts
54.26
0.23
0.43%
DKNG
DraftKings
44.56
8.70
24.26%
RSI
Rush Street Interactive
14.64
4.60
45.82%
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.