SGH Limited
SGH Limited Fundamental Analysis
SGH Limited (SGH.AX) shows weak financial fundamentals with a PE ratio of 35.16, profit margin of 4.42%, and ROE of 9.50%. The company generates $10.7B in annual revenue with weak year-over-year growth of 1.19%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 32.0/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze SGH.AX's fundamental strength across five key dimensions:
Efficiency Score
WeakSGH.AX struggles to generate sufficient returns from assets.
Valuation Score
ModerateSGH.AX shows balanced valuation metrics.
Growth Score
WeakSGH.AX faces weak or negative growth trends.
Financial Health Score
ModerateSGH.AX shows balanced financial health with some risks.
Profitability Score
WeakSGH.AX struggles to sustain strong margins.
Key Financial Metrics
Is SGH.AX Expensive or Cheap?
P/E Ratio
SGH.AX trades at 35.16 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, SGH.AX's PEG of 0.00 indicates potential undervaluation.
Price to Book
The market values SGH Limited at 3.23 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 5.53 times EBITDA. This is generally considered low.
How Well Does SGH.AX Make Money?
Net Profit Margin
For every $100 in sales, SGH Limited keeps $4.42 as profit after all expenses.
Operating Margin
Core operations generate 12.79 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $9.50 in profit for every $100 of shareholder equity.
ROA
SGH Limited generates $3.63 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
SGH Limited produces operating cash flow of $1.65B, showing steady but balanced cash generation.
Free Cash Flow
SGH Limited produces free cash flow of $796.88M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $1.96 in free cash annually.
FCF Yield
SGH.AX converts 4.81% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
35.16
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.00
vs 25 benchmark
P/B Ratio
Price to book value ratio
3.23
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.55
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.25
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.51
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.09
vs 25 benchmark
ROA
Return on assets percentage
0.04
vs 25 benchmark
ROCE
Return on capital employed
0.13
vs 25 benchmark
How SGH.AX Stacks Against Its Sector Peers
| Metric | SGH.AX Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 35.16 | 25.96 | Worse (Expensive) |
| ROE | 9.50% | 1263.00% | Weak |
| Net Margin | 4.42% | -41827.00% (disorted) | Weak |
| Debt/Equity | 1.25 | 0.79 | Weak (High Leverage) |
| Current Ratio | 1.51 | 10.05 | Neutral |
| ROA | 3.63% | -1497918.00% (disorted) | Weak |
SGH.AX outperforms its industry in 0 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews SGH Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
1943.17%
Industry Style: Cyclical, Value, Infrastructure
High GrowthEPS CAGR
9769.24%
Industry Style: Cyclical, Value, Infrastructure
High GrowthFCF CAGR
-19.38%
Industry Style: Cyclical, Value, Infrastructure
Declining