ASX:SGR

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Star Entertainment Group

Executive Summary

The Star Entertainment Group Limited operates integrated resorts in Australia. More Details


Snowflake Analysis

Reasonable growth potential and fair value.

Share Price & News

How has Star Entertainment Group's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: SGR has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-0.6%

SGR

1.7%

AU Hospitality

-0.6%

AU Market


1 Year Return

-26.6%

SGR

-15.3%

AU Hospitality

-10.6%

AU Market

Return vs Industry: SGR underperformed the Australian Hospitality industry which returned -19.2% over the past year.

Return vs Market: SGR underperformed the Australian Market which returned -13.1% over the past year.


Shareholder returns

SGRIndustryMarket
7 Day-0.6%1.7%-0.6%
30 Day1.3%3.2%-2.9%
90 Day14.1%17.2%4.0%
1 Year-24.6%-26.6%-12.1%-15.3%-7.4%-10.6%
3 Year-32.2%-39.4%5.0%-5.6%18.3%3.1%
5 Year-23.1%-34.9%45.2%19.2%46.0%15.3%

Price Volatility Vs. Market

How volatile is Star Entertainment Group's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

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

31.5%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: SGR (A$3.15) is trading below our estimate of fair value (A$4.6)

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


Price To Earnings Ratio

PE vs Industry: SGR is unprofitable, so we can't compare its PE Ratio to the AU Hospitality industry average.

PE vs Market: SGR is unprofitable, so we can't compare its PE Ratio to the Australian market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate SGR's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: SGR is good value based on its PB Ratio (0.8x) compared to the AU Hospitality industry average (1.7x).


Next Steps

Future Growth

How is Star Entertainment Group forecast to perform in the next 1 to 3 years based on estimates from 11 analysts?

43.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SGR is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (2.3%).

Earnings vs Market: SGR is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: SGR's is expected to become profitable in the next 3 years.

Revenue vs Market: SGR's revenue (13.4% per year) is forecast to grow faster than the Australian market (4.3% per year).

High Growth Revenue: SGR's revenue (13.4% 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%).


Next Steps

Past Performance

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

-12.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SGR is currently unprofitable.

Growing Profit Margin: SGR is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: SGR is unprofitable, and losses have increased over the past 5 years at a rate of 12.7% per year.

Accelerating Growth: Unable to compare SGR's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: SGR is unprofitable, making it difficult to compare its past year earnings growth to the Hospitality industry (-2.1%).


Return on Equity

High ROE: SGR has a negative Return on Equity (-2.73%), as it is currently unprofitable.


Next Steps

Financial Health

How is Star Entertainment Group's financial position?


Financial Position Analysis

Short Term Liabilities: SGR's short term assets (A$352.4M) do not cover its short term liabilities (A$587.0M).

Long Term Liabilities: SGR's short term assets (A$352.4M) do not cover its long term liabilities (A$1.6B).


Debt to Equity History and Analysis

Debt Level: SGR's debt to equity ratio (45.7%) is considered high.

Reducing Debt: SGR's debt to equity ratio has increased from 27% to 45.7% over the past 5 years.

Debt Coverage: SGR's debt is not well covered by operating cash flow (8.7%).

Interest Coverage: SGR is unprofitable, therefore interest payments are not well covered by earnings.


Balance Sheet


Next Steps

Dividend

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

3.45%

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?

1.7yrs

Average management tenure


CEO

Matt Bekier

6.42yrs

Tenure

AU$3,609,871

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 ($USD2.56M) is above average for companies of similar size in the Australian market ($USD1.43M).

Compensation vs Earnings: Matt's compensation has increased whilst the company is unprofitable.


Leadership Team

NamePositionTenureCompensationOwnership
Matthias Bekier
MD, CEO & Executive Director6.42yrsAU$3.61m0.11%
A$ 3.2m
Harry Theodore
Chief Financial Officer0.83yrAU$833.36k0.0073%
A$ 219.2k
Geoff Hogg
Chief Casino Officer (QLD)0.17yrAU$843.36k0.027%
A$ 810.5k
Gregory Hawkins
Chief Casino Officer (NSW)6yrsAU$1.72m0.031%
A$ 918.5k
Danny Huang
General Manager of Strategy & Investor Relationsno datano datano data
Paula Martin
Chief Legal & Risk Officer and Company Secretaryno datano datano data
Peter Jenkins
General Manager of Media & Communicationsno datano datano data
George Hughes
Chief Marketing Officer2.58yrsno datano data
Kim Lee
Chief People & Performance Officerno datano datano data
John Chong
President of International Marketingno datano datano data
Jennie Yuen
Additional Company Secretary & Shareholder Relations Manager0.083yrno datano data

1.7yrs

Average Tenure

Experienced Management: SGR's management team is not considered experienced ( 1.7 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Matthias Bekier
MD, CEO & Executive Director6.42yrsAU$3.61m0.11%
A$ 3.2m
Katie Lahey
Independent Non-Executive Director7.5yrsAU$204.05k0.0060%
A$ 179.2k
Sally Anne Pitkin
Independent Non-Executive Director5.75yrsAU$204.05k0.0049%
A$ 144.6k
Gerard Bradley
Independent Non-Executive Director7.33yrsAU$204.05k0.0079%
A$ 236.2k
Benjamin Heap
Independent Non-Executive Director2.33yrsAU$188.74k0.0042%
A$ 126.1k
John O'Neill
Independent Chairman8.25yrsAU$423.94k0.014%
A$ 421.4k
Wallace Sheppard
Non-Executive Director7.5yrsAU$204.05k0.026%
A$ 787.6k

7.5yrs

Average Tenure

64.5yo

Average Age

Experienced Board: SGR's board of directors are considered experienced (7.5 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 been diluted in the past year, with total shares outstanding growing by 3.4%.


Top Shareholders

Company Information

The Star Entertainment Group Limited's company bio, 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$2.982b
  • Shares outstanding: 946.70m
  • 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

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SGRASX (Australian Securities Exchange)YesOrdinary SharesAUAUDJun 2011
EHGR.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJun 2011
EE9DB (Deutsche Boerse AG)YesOrdinary SharesDEEURJun 2011
SGRCHIA (Chi-X Australia)YesOrdinary SharesAUAUDJun 2011

Biography

The Star Entertainment Group Limited operates integrated resorts in Australia. The company operates through three segments: Sydney, Gold Coast, and Brisbane. It owns and operates The Star Sydney, The Star ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/09/23 19:30
End of Day Share Price2020/09/23 00:00
Earnings2020/06/30
Annual Earnings2020/06/30


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.