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SGR

Star Entertainment GroupASX:SGR Stock Report

Market Cap

AU$3.3b

7D

-6.5%

1Y

-4.4%

Updated

21 Oct, 2021

Data

Company Financials +
SGR fundamental analysis
Snowflake Score
Valuation3/6
Future Growth4/6
Past Performance1/6
Financial Health3/6
Dividends0/6

SGR Overview

The Star Entertainment Group Limited operates and manages integrated resorts in Australia.

Price History & Performance

Summary of all time highs, changes and price drops for Star Entertainment Group
Historical stock prices
Current Share PriceAU$3.45
52 Week HighAU$3.14
52 Week LowAU$4.66
Beta1.27
1 Month Change-18.63%
3 Month Change-2.27%
1 Year Change-4.43%
3 Year Change-25.32%
5 Year Change-31.00%
Change since IPO-20.87%

Recent News & Updates

Mar 22
Calculating The Intrinsic Value Of The Star Entertainment Group Limited (ASX:SGR)

Calculating The Intrinsic Value Of The Star Entertainment Group Limited (ASX:SGR)

Today we'll do a simple run through of a valuation method used to estimate the attractiveness of The Star Entertainment...

Shareholder Returns

SGRAU HospitalityAU Market
7D-6.5%0.1%1.5%
1Y-4.4%39.2%21.1%

Return vs Industry: SGR underperformed the Australian Hospitality industry which returned 39.2% over the past year.

Return vs Market: SGR underperformed the Australian Market which returned 21.1% over the past year.

Price Volatility

Is SGR's price volatile compared to industry and market?
SGR volatility
SGR Beta1.27
Industry Beta1.23
Market Beta1

Stable Share Price: SGR is not significantly more volatile than the rest of Australian stocks over the past 3 months, typically moving +/- 8% a week.

Volatility Over Time: SGR's weekly volatility (8%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
2011n/aMatt Bekierhttps://www.starentertainmentgroup.com.au

The Star Entertainment Group Limited operates and manages integrated resorts in Australia. It operates through three segments: Sydney, Gold Coast, and Brisbane. The company owns and operates The Star Sydney, The Star Gold Coast, and Treasury Brisbane casinos, which include hotels, restaurants, bars, theatres, and other entertainment facilities.

Star Entertainment Group Fundamentals Summary

How do Star Entertainment Group's earnings and revenue compare to its market cap?
SGR fundamental statistics
Market CapAU$3.27b
Earnings (TTM)AU$57.90m
Revenue (TTM)AU$1.55b

56.4x

P/E Ratio

2.1x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
SGR income statement (TTM)
RevenueAU$1.55b
Cost of RevenueAU$622.70m
Gross ProfitAU$922.70m
ExpensesAU$864.80m
EarningsAU$57.90m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

Feb 17, 2022

Earnings per share (EPS)0.061
Gross Margin59.71%
Net Profit Margin3.75%
Debt/Equity Ratio34.5%

How did SGR perform over the long term?

See historical performance and comparison

Valuation

Is Star Entertainment Group undervalued compared to its fair value and its price relative to the market?

29.5%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: SGR (A$3.45) is trading below our estimate of fair value (A$4.9)

Significantly Below Fair Value: SGR is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: SGR is poor value based on its PE Ratio (56.4x) compared to the Australian Hospitality industry average (36.8x).

PE vs Market: SGR is poor value based on its PE Ratio (56.4x) compared to the Australian market (19.7x).


Price to Earnings Growth Ratio

PEG Ratio: SGR is poor value based on its PEG Ratio (2x)


Price to Book Ratio

PB vs Industry: SGR is good value based on its PB Ratio (0.9x) compared to the AU Hospitality industry average (3.8x).


Future Growth

How is Star Entertainment Group forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?

28.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SGR's forecast earnings growth (28.8% per year) is above the savings rate (1.9%).

Earnings vs Market: SGR's earnings (28.8% per year) are forecast to grow faster than the Australian market (11.6% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: SGR's revenue (12.8% per year) is forecast to grow faster than the Australian market (5.4% per year).

High Growth Revenue: SGR's revenue (12.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: SGR's Return on Equity is forecast to be low in 3 years time (6.2%).


Past Performance

How has Star Entertainment Group performed over the past 5 years?

-39.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SGR has a large one-off loss of A$48.7M impacting its June 30 2021 financial results.

Growing Profit Margin: SGR became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: SGR's earnings have declined by 39.3% per year over the past 5 years.

Accelerating Growth: SGR has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: SGR has become profitable in the last year, making it difficult to compare its past year earnings growth to the Hospitality industry (4.2%).


Return on Equity

High ROE: SGR's Return on Equity (1.6%) is considered low.


Financial Health

How is Star Entertainment Group's financial position?


Financial Position Analysis

Short Term Liabilities: SGR's short term assets (A$163.7M) do not cover its short term liabilities (A$297.3M).

Long Term Liabilities: SGR's short term assets (A$163.7M) do not cover its long term liabilities (A$1.5B).


Debt to Equity History and Analysis

Debt Level: SGR's debt to equity ratio (34.5%) is considered satisfactory.

Reducing Debt: SGR's debt to equity ratio has increased from 28.3% to 34.5% over the past 5 years.

Debt Coverage: SGR's debt is well covered by operating cash flow (37.2%).

Interest Coverage: SGR's interest payments on its debt are well covered by EBIT (3.7x coverage).


Balance Sheet


Dividend

What is Star Entertainment Group current dividend yield, its reliability and sustainability?

4.04%

Forecast Dividend Yield


Dividend Yield vs Market

Notable Dividend: Unable to evaluate SGR's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate SGR's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if SGR's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if SGR's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: SGR is not paying a notable dividend for the Australian market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of SGR's dividend in 3 years as they are not forecast to pay a notable one for the Australian market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

1.9yrs

Average management tenure


CEO

Matt Bekier

7.5yrs

Tenure

AU$3,064,197

Compensation

Mr. Matthias Michael Bekier, also known as Matt, has been the Chief Executive Officer and Managing Director of The Star Entertainment Group Limited (formerly, Echo Entertainment Group) since April 11, 2014...


CEO Compensation Analysis

Compensation vs Market: Matt's total compensation ($USD2.29M) is about average for companies of similar size in the Australian market ($USD1.78M).

Compensation vs Earnings: Matt's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: SGR's management team is not considered experienced ( 1.9 years average tenure), which suggests a new team.


Board Members

Experienced Board: SGR's board of directors are considered experienced (8.6 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: SGR insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

The Star Entertainment Group Limited's employee growth, exchange listings and data sources


Key Information

  • Name: The Star Entertainment Group Limited
  • Ticker: SGR
  • Exchange: ASX
  • Founded: 2011
  • Industry: Casinos and Gaming
  • Sector: Consumer Services
  • Market Cap: AU$3.265b
  • Shares outstanding: 946.49m
  • Website: https://www.starentertainmentgroup.com.au

Number of Employees


Location

  • The Star Entertainment Group Limited
  • 159 William Street
  • Level 3
  • Brisbane
  • Queensland
  • 4000
  • Australia

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/10/21 18:18
End of Day Share Price2021/10/21 00:00
Earnings2021/06/30
Annual Earnings2021/06/30


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.