SU Group Holdings Ltd (SUGP) AI Stock Analysis

• Market Cap: $9.43M
• Dividend Yield: N/A
• Average Volume (3M): 95.45K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.91
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: US
• Employees: 202
• Sector: Industrials
• Sector Strength: 72
• Industry: Security & Protection Services
• EPS (TTM): -0.78
• Shares Outstanding: 563,092
• 10 Day Avg. Volume: 83,619
• 30 Day Avg. Volume: 95,452
• PEG Ratio: 103.94
• Price to Book (P/B): 13.99
• Price to Sales (P/S): 7.50
• P/FCF Ratio: 125.97
• Enterprise Value/Market Cap: 5.68
• Enterprise Value/Revenue: 0.27
• Enterprise Value/Gross Profit: 1.25
• Enterprise Value/Ebitda: -98.52
• 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: 66 Neutral
• Price Target: $7.50 ▲(16.46% Upside)

SU Group Holdings Ltd shows strong financial performance with solid revenue growth and a stable balance sheet, which are the most significant factors contributing to its score. However, the technical analysis presents mixed signals, and the negative P/E ratio significantly impacts the valuation negatively. The absence of earnings call data and corporate events means these factors do not influence the score.

Positive Factors

Revenue Growth

Consistent revenue growth indicates expanding market reach and successful product adoption, supporting long-term business expansion.

Balance Sheet Health

Low leverage enhances financial stability, providing the company with flexibility to invest in growth opportunities and weather economic downturns.

Cash Flow Improvement

Improved cash flow management enhances the company's ability to fund operations, reduce debt, and invest in strategic initiatives.

Negative Factors

Nasdaq Compliance Issues

Compliance challenges with Nasdaq listing requirements could impact market presence and investor confidence, posing a risk to liquidity and stock stability.

Leadership Control

Concentrated control by a single leader may limit strategic flexibility and pose governance risks, affecting stakeholder confidence and decision-making.

Valuation Concerns

A negative P/E ratio suggests profitability challenges, potentially affecting investor perception and limiting access to capital for growth initiatives.

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.

How the Company Makes Money

SU Group Holdings Ltd generates revenue through multiple streams, primarily by offering technology solutions and services that cater to both B2B and B2C markets. The company capitalizes on its expertise in developing proprietary software and hardware products, which are sold directly to consumers and businesses. Additionally, SUGP earns revenue through long-term contracts and consulting services in the healthcare sector, providing specialized solutions to healthcare providers. The renewable energy segment contributes to its earnings by engaging in projects that involve the development and maintenance of sustainable energy sources, often in partnership with governmental and private entities. Key partnerships with industry leaders and ongoing investment in research and development further enhance SUGP's revenue potential, allowing the company to innovate and expand its market reach.

SU Group Holdings Ltd Financial Statement Overview

Summary

SU Group Holdings Ltd demonstrates strong financial health with consistent revenue growth and profitability. The balance sheet is solid with low leverage, and cash flow management is improving. While there are some fluctuations in cash flow, the overall financial position is stable and promising for future growth.

Income Statement

SU Group Holdings Ltd has shown strong revenue growth, with a 11.3% increase from the previous year. The gross profit margin is healthy at 26.1%, and the net profit margin is solid at 5.8%. EBIT and EBITDA margins are also robust, indicating efficient operations. Overall, the income statement reflects a positive growth trajectory and profitability.

Balance Sheet

The company's balance sheet is stable with a low debt-to-equity ratio of 0.07, indicating low leverage. The equity ratio is strong at 62.2%, suggesting a solid financial foundation. Return on equity is commendable at 10.9%, reflecting effective use of equity. The balance sheet shows financial stability and low risk.

Cash Flow

Cash flow analysis reveals a significant improvement in free cash flow, turning positive from a negative position last year. The operating cash flow to net income ratio is strong, demonstrating effective cash generation from operations. However, the previous year's negative operating cash flow highlights potential volatility. Overall, cash flow management appears to be improving.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2019
Income Statement
Total Revenue	198.23M	182.16M	163.69M	136.45M	117.57M	11.45M
Gross Profit	42.94M	47.60M	48.04M	5.01M	4.63M	3.42M
EBITDA	-543.72K	15.39M	14.89M	10.94M	6.99M	2.37M
Net Income	-4.00M	10.65M	9.70M	7.76M	5.80M	1.59M
Balance Sheet
Total Assets	134.78M	157.08M	114.44M	11.92M	12.76M	9.84M
Cash, Cash Equivalents and Short-Term Investments	40.92M	52.34M	16.40M	25.19M	31.08M	804.55K
Total Debt	3.96M	7.30M	3.77M	3.51M	2.93M	1.37M
Total Liabilities	39.16M	59.36M	58.02M	6.61M	7.44M	6.10M
Stockholders Equity	95.62M	97.72M	56.42M	40.09M	40.32M	3.75M
Cash Flow
Free Cash Flow	-11.64M	10.85M	-14.32M	275.61K	2.02M	-1.02M
Operating Cash Flow	-10.63M	14.10M	-13.54M	569.39K	2.39M	2.43M
Investing Cash Flow	-758.10K	-3.25M	-112.16K	-2.25M	14.87M	-3.89M
Financing Cash Flow	90.00	25.18M	4.79M	-8.07M	-16.55M	69.34K

SU Group Holdings Ltd Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 6.44
• 50DMA: Positive
• 100DMA: Positive
• 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 Positive. The current price of 6.44 is above the 20-day moving average (MA) of 6.14, above the 50-day MA of 6.12, and below the 200-day MA of 6.85, indicating a neutral trend. The MACD of -0.02 indicates Negative momentum. The RSI at 53.08 is Neutral, neither overbought nor oversold. The STOCH value of 58.04 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SUGP.

SU Group Holdings Ltd Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SUGP	66 Neutral	$9.43M	-9.35	-4.31%	―	―	―
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
UUU	56 Neutral	$11.22M	9.53	26.86%	―	-23.22%	―
VRME	51 Neutral	$12.82M	-2.70	-44.14%	―	-14.21%	-20.44%
BKYI	47 Neutral	$6.55M	-0.59	-143.60%	―	-1.19%	86.72%
DGLY	42 Neutral	$2.07M	>-0.01	-233.66%	―	-9.62%	95.79%