The Star Entertainment Group Limited operates and manages integrated resorts in Australia.
Price History & Performance
|Historical stock prices|
|Current Share Price||AU$3.45|
|52 Week High||AU$3.14|
|52 Week Low||AU$4.66|
|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
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...
|SGR||AU Hospitality||AU Market|
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.
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
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
|SGR fundamental statistics|
Is SGR overvalued?See Fair Value and valuation analysis
Earnings & Revenue
|SGR income statement (TTM)|
|Cost of Revenue||AU$622.70m|
Last Reported Earnings
Jun 30, 2021
Next Earnings Date
Feb 17, 2022
|Earnings per share (EPS)||0.061|
|Net Profit Margin||3.75%|
How did SGR perform over the long term?See historical performance and comparison
Is Star Entertainment Group undervalued compared to its fair value and its price relative to the market?
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).
How is Star Entertainment Group forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?
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%).
How has Star Entertainment Group performed over the past 5 years?
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.
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$1.5B).
Debt to Equity History and Analysis
Debt Level: SGR's debt to equity ratio (34.5%) is considered satisfactory.
Reducing Debt: SGR's debt to equity ratio has increased from 28.3% to 34.5% over the past 5 years.
Debt Coverage: SGR's debt is well covered by operating cash flow (37.2%).
Interest Coverage: SGR's interest payments on its debt are well covered by EBIT (3.7x coverage).
What is Star Entertainment Group current dividend yield, its reliability and sustainability?
Forecast Dividend Yield
Dividend Yield vs Market
Notable Dividend: Unable to evaluate SGR's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.
High Dividend: Unable to evaluate SGR's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.
Stability and Growth of Payments
Stable Dividend: Insufficient data to determine if SGR's dividends per share have been stable in the past.
Growing Dividend: Insufficient data to determine if SGR's dividend payments have been increasing.
Current Payout to Shareholders
Dividend Coverage: SGR is not paying a notable dividend for the Australian market.
Future Payout to Shareholders
Future Dividend Coverage: No need to calculate the sustainability of SGR's dividend in 3 years as they are not forecast to pay a notable one for the Australian market.
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Mr. Matthias Michael Bekier, also known as Matt, has been the Chief Executive Officer and Managing Director of The Star Entertainment Group Limited (formerly, Echo Entertainment Group) since April 11, 2014...
CEO Compensation Analysis
Compensation vs Market: Matt's total compensation ($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.
Experienced Management: SGR's management team is not considered experienced ( 1.9 years average tenure), which suggests a new team.
Experienced Board: SGR's board of directors are considered experienced (8.6 years average tenure).
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
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
The Star Entertainment Group Limited's employee growth, exchange listings and data sources
- 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
- The Star Entertainment Group Limited
- 159 William Street
- Level 3
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2021/10/21 18:18|
|End of Day Share Price||2021/10/21 00:00|
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.