ASX:SGR

Stock Analysis Report

Star Entertainment Group

Executive Summary

The Star Entertainment Group Limited, an integrated resort company, provides gaming, entertainment, and hospitality services in Australia.

Snowflake

Fundamentals

Good value with proven track record.

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


Market Performance


7 Day Return

2.7%

ASX:SGR

-2.2%

AU Hospitality

-2.6%

AU Market


1 Year Return

-23.9%

ASX:SGR

-13.7%

AU Hospitality

-0.7%

AU Market

SGR underperformed the Hospitality industry which returned -13.7% over the past year.

SGR underperformed the Market in Australia which returned -0.7% over the past year.


Share holder returns

SGRIndustryMarket
7 Day2.7%-2.2%-2.6%
30 Day-7.3%-5.4%-4.1%
90 Day-13.3%-4.1%0.5%
1 Year-20.3%-23.9%-11.3%-13.7%5.1%-0.7%
3 Year-28.4%-35.5%12.4%0.9%30.1%13.0%
5 Year38.1%20.3%82.5%47.5%36.4%5.9%

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 based on future cash flows and its price relative to the stock market?

26%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Star Entertainment Group's share price is below the future cash flow value, and at a moderate discount (> 20%).

Star Entertainment Group's share price is below the future cash flow value, but not at a substantial discount (< 40%).


Price Based on Earnings

Star Entertainment Group is good value based on earnings compared to the AU Hospitality industry average.

Star Entertainment Group is good value based on earnings compared to the Australia market.


Price Based on Expected Growth

Star Entertainment Group is poor value based on expected growth next year.


Price Based on Value of Assets

Star Entertainment Group is good value based on assets compared to the AU Hospitality industry average.


Next Steps

Future Growth

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

0.002%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Star Entertainment Group's revenue is expected to grow by 0.7% yearly, however this is not considered high growth (20% yearly).

Star Entertainment Group's earnings are expected to decrease over the next 1-3 years, this is not considered high growth.

Star Entertainment Group's revenue growth is positive but not above the Australia market average.

Star Entertainment Group's earnings growth is positive but not above the Australia market average.

Star Entertainment Group's earnings are expected to decrease over the next 1-3 years, this is below the low risk savings rate of 2.3%.


Earnings per Share Growth Estimates


Future Return on Equity

Star Entertainment Group is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


Next Steps

Past Performance

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

14.4%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Star Entertainment Group's year on year earnings growth rate has been positive over the past 5 years.

Star Entertainment Group's 1-year earnings growth exceeds its 5-year average (69.6% vs 14.4%)

Star Entertainment Group's earnings growth has exceeded the AU Hospitality industry average in the past year (69.6% vs 25.9%).


Return on Equity

Star Entertainment Group has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Star Entertainment Group used its assets less efficiently than the AU Hospitality industry average last year based on Return on Assets.


Return on Capital Employed

Star Entertainment Group has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Star Entertainment Group's financial position?


Financial Position Analysis

Star Entertainment Group's short term (1 year) commitments are greater than its holdings of cash and other short term assets.

Star Entertainment Group's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

Star Entertainment Group's level of debt (25.9%) compared to net worth is satisfactory (less than 40%).

The level of debt compared to net worth has been reduced over the past 5 years (32.4% vs 25.9% today).

Debt is well covered by operating cash flow (45.8%, greater than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 10.6x coverage).


Balance Sheet

High level of physical assets or inventory.

Debt is not covered by short term assets, assets are 0.4x debt.


Next Steps

Dividend

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

5.77%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Star Entertainment Group's pays a higher dividend yield than the bottom 25% of dividend payers in Australia (2.66%).

Star Entertainment Group's dividend is below the markets top 25% of dividend payers in Australia (5.9%).

Star Entertainment Group has been paying a dividend for less than 10 years and during this time payments have been volatile (annual drop of over 20%).

Dividend payments have increased, but Star Entertainment Group only paid a dividend in the past 7 years.


Current Payout to Shareholders

Dividends paid are covered by earnings (1.3x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be covered by earnings (1.2x coverage).


Next Steps

Management

What is the CEO of Star Entertainment Group's salary, the management and board of directors tenure and is there insider trading?

4.9yrs

Average management tenure


CEO

Matt Bekier

5.3yrs

Tenure

AU$1,842,710

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

Matt's remuneration is about average for companies of similar size in Australia.

Matt's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

4.9yrs

Average Tenure

The tenure for the Star Entertainment Group management team is about average.


Board Age and Tenure

6.3yrs

Average Tenure

60yo

Average Age

The tenure for the Star Entertainment Group board of directors is about average.


Insider Trading

No 3 month open market individual insider trading information.


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Ownership Breakdown


Management Team

  • Harry Theodore

    Chief Commercial Officer

  • Matt Bekier

    MD, CEO & Executive Director

    • Tenure: 5.3yrs
    • Compensation: A$1.84m
  • Geoff Hogg

    Group Executive Operations

    • Tenure: 0.2yrs
    • Compensation: A$665.45k
  • John Chong

    President of International Marketing

  • George Hughes

    Chief Marketing Officer

    • Tenure: 1.5yrs
  • Chad Barton

    Group Chief Financial Officer

    • Tenure: 5.2yrs
    • Compensation: A$800.50k
  • Kim Lee

    Chief People & Performance Officer

  • Peter Jenkins

    Head of Media Communications

  • Greg Hawkins (56yo)

    Chief Casino Officer

    • Tenure: 4.9yrs
    • Compensation: A$1.27m
  • Paula Martin

    Group General Counsel & Company Secretary


Board Members

  • Katie Lahey (69yo)

    Non-Executive Director

    • Tenure: 6.4yrs
    • Compensation: A$233.20k
  • Sally Anne Pitkin (60yo)

    Non-Executive Director

    • Tenure: 4.7yrs
    • Compensation: A$233.20k
  • Gerard Bradley

    Non-Executive Director

    • Tenure: 6.3yrs
    • Compensation: A$233.20k
  • Matt Bekier

    MD, CEO & Executive Director

    • Tenure: 8.4yrs
    • Compensation: A$1.84m
  • Ben Heap (49yo)

    Non-Executive Director

    • Tenure: 1.3yrs
    • Compensation: A$215.70k
  • John O'Neill (67yo)

    Chairman

    • Tenure: 7.2yrs
    • Compensation: A$484.50k
  • Zlatko Todorcevski (51yo)

    Non-Executive Director

    • Tenure: 2.3yrs
    • Compensation: A$233.20k
  • Wallace Sheppard

    Non Executive Director

    • Tenure: 6.4yrs
    • Compensation: A$233.20k

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$3.477b
  • Shares outstanding: 917.32m
  • Website: Click here

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, an integrated resort company, provides gaming, entertainment, and hospitality services in Australia. The company operates through three segments: Sydney, Gold Coast, a ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/08/17 10:35
End of Day Share Price2019/08/16 00:00
Earnings2018/12/31
Annual Earnings2018/06/30


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.