SU Group Holdings Ltd (SUGP) AI Stock Analysis

• Market Cap: $7.72M
• Dividend Yield: N/A
• Average Volume (3M): 95.45K
• Price to Earnings (P/E): ―
• Beta (1Y): 2.08
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: US
• Employees: 202
• Sector: Industrials
• Sector Strength: 72
• Industry: Security & Protection Services
• EPS (TTM): -1.22
• Shares Outstanding: 563,092
• 10 Day Avg. Volume: 83,619
• 30 Day Avg. Volume: 95,452
• PEG Ratio: <0.01
• Price to Book (P/B): 0.59
• Price to Sales (P/S): 0.27
• P/FCF Ratio: -3.00
• Enterprise Value/Market Cap: 71.73
• Enterprise Value/Revenue: 2.88
• Enterprise Value/Gross Profit: 18.03
• Enterprise Value/Ebitda: -36.53
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 46 Neutral
• Price Target: $5.00 ▼(-22.36% Downside)
• Action: Reiterated Date: 03/24/26
• Date: Action: Reiterated 03/24/26

The score is driven primarily by weakened financial performance in 2025 (losses, margin compression, and negative operating/free cash flow). Technicals also remain bearish with the stock below key moving averages and negative MACD, while valuation is only modestly supported given a negative P/E and no dividend data.

Positive Factors

Multi-year revenue growth

Consistent revenue expansion through 2024 demonstrates the company has built customer traction and market penetration prior to 2025. That multi-year topline growth suggests a durable underlying market need and revenue base that can support recovery if operational execution and cost control are restored.

Conservative balance sheet

Very low leverage provides financial flexibility during downturns and reduces refinancing risk. With a lean capital structure, the firm can fund working capital or strategic initiatives without immediate heavy debt service, enabling management to prioritize operational fixes rather than urgent financing.

Prior strong cash conversion (2024)

The company has recently shown it can convert earnings into free cash flow, evidenced by 2024 positive operating and free cash flow. That capability indicates the business model can generate internal funding when margins and operations normalize, supporting sustainable reinvestment or deleveraging.

Negative Factors

Margin compression and net loss

A sharp fall in gross margin and the swing to a significant net loss indicate structural pressure on profitability, reducing internally generated funds and limiting reinvestment. If margins remain depressed, the company may need sustained cost restructuring or pricing power gains to restore durable profitability.

Volatile cash generation

Inconsistent conversion of earnings to cash, including negative operating and free cash flow in 2025 (and earlier issues in 2023), raises funding and liquidity risk. Persistent cash burn would force reliance on external financing, constrain strategic choices, and increase vulnerability to market shocks.

Recent revenue setback

A reversal from prior growth to a revenue decline suggests execution gaps or demand headwinds. Loss of topline momentum can lengthen the recovery time for margins and cash flow, making operational fixes and customer retention critical for restoring sustainable growth.

SU Group Holdings Ltd Business Overview & Revenue Model

Company Description

SU Group Holdings Limited, through its subsidiaries, operates as an integrated security-related services company in Hong Kong and internationally. The company operates through two segments, Security-Related Engineering Services Business; and Security Guarding and Screening Services Business. It primarily provides security-related engineering, security guarding and screening, and related vocational training services. The company also engages in the design, supply, installation, maintenance, and testing and commissioning of various security systems. In addition, it offers threat detection systems, including X-ray machines, trace detection products, metal detectors, and mail screening machines; traffic and pedestrian control systems, such as traffic control system, automatic fare control systems, turnstiles, automatic door system, and people counting systems; and extra-low voltage systems comprising closed-circuit television, access control, public address, and building management systems to commercial properties, public facilities, and residential properties. Further, the company provides screening services, such as the detection of explosives, and incendiary devices in air cargo consignment and detection of dangerous goods through threat detection systems by screeners; and training courses for basic security services, mandatory basic safety, and training revalidation courses. Additionally, it offers equipment leasing services. The company was founded in 1998 and is headquartered in Kwun Tong, Hong Kong. SU Group Holdings Limited operates as a subsidiary of Exceptional Engineering Limited.

SU Group Holdings Ltd Financial Statement Overview

Summary

Multi-year revenue growth through 2024 is a positive, but 2025 showed a revenue dip, sharp margin compression, a swing to a net loss, and negative operating/free cash flow. Low leverage helps, but the latest profitability and cash burn materially weaken the financial profile.

Income Statement

Revenue grew strongly from 2021–2024 (with 2023 up ~20% and 2024 up ~11%), but 2025 saw a modest decline (~3%) and a sharp profitability reversal. Margins compressed materially: gross margin fell to ~16% in 2025 (from ~26% in 2024), and the company moved from a ~6% net profit margin in 2024 to about a ~10% net loss margin in 2025, with operating results turning negative as well. The multi-year growth history is a positive, but the latest year’s deterioration raises execution and cost-control concerns.

Balance Sheet

Leverage appears conservative, with debt-to-equity staying low across the period (roughly ~0.07–0.13 in 2021–2025), suggesting balance-sheet flexibility. However, profitability on equity weakened sharply in 2025 (negative return on equity) after positive returns in prior years, which implies the equity base is not currently producing adequate earnings. Overall, the capital structure looks healthy, but the latest loss puts pressure on returns and could slow reinvestment capacity if it persists.

Cash Flow

Cash generation is volatile and recently weak. Operating cash flow flipped from positive in 2024 to meaningfully negative in 2025, and free cash flow was also negative in 2025—following another negative year in 2023—showing inconsistent conversion of reported earnings into cash. While 2024 demonstrated solid positive operating and free cash flow, the back-to-negative pattern and the latest cash burn increase funding and liquidity risk if the downturn continues.

Breakdown	Sep 2025	Sep 2024	Sep 2023	Sep 2022	Sep 2021
Income Statement
Total Revenue	192.02M	182.16M	163.69M	136.45M	117.57M
Gross Profit	30.69M	47.60M	48.04M	5.01M	4.63M
EBITDA	-15.24M	15.39M	14.89M	10.94M	6.99M
Net Income	-18.45M	10.65M	9.70M	7.76M	5.80M
Balance Sheet
Total Assets	127.76M	157.08M	114.44M	11.92M	12.76M
Cash, Cash Equivalents and Short-Term Investments	25.35M	52.34M	16.40M	25.19M	31.08M
Total Debt	11.02M	7.30M	3.77M	3.51M	2.93M
Total Liabilities	41.60M	59.36M	58.02M	6.61M	7.44M
Stockholders Equity	86.15M	97.72M	56.42M	40.09M	40.32M
Cash Flow
Free Cash Flow	-17.07M	10.85M	-14.32M	275.61K	2.02M
Operating Cash Flow	-15.43M	14.10M	-13.54M	569.39K	2.39M
Investing Cash Flow	-1.64M	-3.25M	-112.16K	-2.25M	14.87M
Financing Cash Flow	90.00	25.18M	4.79M	-8.07M	-16.55M

SU Group Holdings Ltd Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 6.44
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SUGP, the sentiment is Neutral. The current price of 6.44 is above the 20-day moving average (MA) of 5.11, above the 50-day MA of 5.63, and above the 200-day MA of 6.39, indicating a neutral trend. The MACD of -0.16 indicates Negative momentum. The RSI at 49.98 is Neutral, neither overbought nor oversold. The STOCH value of 48.23 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for SUGP.

SU Group Holdings Ltd Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
VRME	58 Neutral	$10.93M	-0.84	-37.45%	―	-14.21%	-20.44%
UUU	55 Neutral	$15.57M	-1.30	26.86%	―	-23.22%	―
BKYI	48 Neutral	$6.70M	-1.23	-73.33%	―	-1.19%	86.72%
SUGP	46 Neutral	$7.72M	-2.77	-4.31%	―	―	―