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

Fair value with acceptable 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

0.7%

SGR

-0.2%

AU Hospitality

1.3%

AU Market


1 Year Return

-8.8%

SGR

-0.5%

AU Hospitality

9.9%

AU Market

Return vs Industry: SGR underperformed the Australian Hospitality industry which returned -0.5% over the past year.

Return vs Market: SGR underperformed the Australian Market which returned 9.9% over the past year.


Shareholder returns

SGRIndustryMarket
7 Day0.7%-0.2%1.3%
30 Day1.9%-0.01%-0.7%
90 Day7.4%3.6%-0.4%
1 Year-4.2%-8.8%3.2%-0.5%16.3%9.9%
3 Year-10.8%-20.7%26.1%12.4%35.8%17.6%
5 Year44.1%22.3%98.2%59.3%51.9%17.8%

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?

11.7%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: SGR (A$4.38) is trading below our estimate of fair value (A$4.96)

Significantly Undervalued: SGR is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: SGR is good value based on its PE Ratio (20.3x) compared to the Hospitality industry average (23.5x).

PE vs Market: SGR is poor value based on its PE Ratio (20.3x) compared to the Australian market (17.9x).


Price to Earnings Growth Ratio

Low PEG Ratio: SGR is poor value based on its PEG Ratio (3.7x)


Price to Book Ratio

PB vs Industry: SGR is good value based on its PB Ratio (1.1x) compared to the AU Hospitality industry average (1.6x).


Next Steps

Future Growth

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

5.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SGR's forecast earnings growth (5.6% per year) is above the savings rate (2.3%).

Earnings vs Market: SGR's earnings (5.6% per year) are forecast to grow slower than the Australian market (10.2% per year).

High Growth Earnings: SGR's earnings are forecast to grow, but not significantly.

Revenue vs Market: SGR's revenue (5.2% per year) is forecast to grow faster than the Australian market (3.6% per year).

High Growth Revenue: SGR's revenue (5.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High 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?

8.9%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: SGR's earnings have grown by 8.9% per year over the past 5 years.

Accelerating Growth: SGR's earnings growth over the past year (33.7%) exceeds its 5-year average (8.9% per year).

Earnings vs Industry: SGR earnings growth over the past year (33.7%) exceeded the Hospitality industry 12.4%.


Return on Equity

High ROE: SGR's Return on Equity (5.3%) is considered low.


Return on Assets

ROA vs Industry: SGR's Return on Assets is below or equal to the Hospitality industry average last year.


Return on Capital Employed

ROCE Improving: SGR's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Star Entertainment Group's financial position?


Financial Position Analysis

Short Term Liabilities: SGR's short term assets (A$427.2M) do not cover its short term liabilities (A$673.8M)

Long Term Liabilities: SGR's short term assets (427.2M) do not cover its long term liabilities (1.2B)


Debt to Equity History and Analysis

Debt Level: SGR's debt to equity ratio (31.5%) is considered satisfactory

Reducing Debt: SGR's debt to equity ratio has increased from 29.6% to 31.5% over the past 5 years.

Debt Coverage: SGR's debt is well covered by operating cash flow (34.9%).

Interest Coverage: SGR's interest payments on its debt are well covered by EBIT (8.3x coverage).


Balance Sheet

Inventory Level: SGR has a high level of physical assets or inventory.

Debt Coverage by Assets: SGR's 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?

4.68%

Current Dividend Yield


Dividend Yield vs Market

company4.7%marketbottom25%2.5%markettop25%5.6%industryaverage3.2%forecastin3Years4.9%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: SGR's dividend (4.68%) is higher than the bottom 25% of dividend payers in the Australian market (2.5%).

High Dividend: SGR's dividend (4.68%) is low compared to the top 25% of dividend payers in the Australian market (5.6%).

Stable Dividend: SGR has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: SGR's dividend payments have increased, but the company has only paid a dividend for 8 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (95%), SGR's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: SGR's dividends in 3 years are forecast to be covered by earnings (81.6% payout ratio).


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?

5.1yrs

Average management tenure


CEO

Matt Bekier 0

5.5yrs

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

Compensation vs. Market: Matt's total compensation ($USD1.25M) is about average for companies of similar size in the Australian market ($USD2.27M).

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


Management Age and Tenure

5.1yrs

Average Tenure

Experienced Management: SGR's management team is seasoned and experienced (5.1 years average tenure).


Board Age and Tenure

6.5yrs

Average Tenure

60yo

Average Age

Experienced Board: SGR's board of directors are considered experienced (6.5 years average tenure).


Insider Trading

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


Recent Insider Transactions

BuyAU$37,95228 Aug 19
Katie Lahey
EntityIndividual
Role
Member of the Board of Directors
Non-Executive Director
Shares10,000
Max PriceAU$3.80
BuyAU$6,726,76727 Aug 19
Perpetual Limited
EntityCompany
Shares1,825,394
Max PriceAU$3.69
SellAU$53,466,88227 Aug 19
Perpetual Limited
EntityCompany
Shares13,722,820
Max PriceAU$3.90
BuyAU$116,47220 Aug 19
Zlatko Todorcevski
EntityIndividual
Role
Member of the Board of Directors
Non-Executive Director
Shares30,000
Max PriceAU$3.88
BuyAU$195,50020 Aug 19
Wallace Sheppard
EntityIndividual
Role
Member of the Board of Directors
Non Executive Director
Shares50,000
Max PriceAU$3.91
BuyAU$117,60019 Aug 19
Gerard Bradley
EntityIndividual
Role
Member of the Board of Directors
Non-Executive Director
Shares30,000
Max PriceAU$3.92
SellAU$78,50019 Aug 19
Gerard Bradley
EntityIndividual
Role
Member of the Board of Directors
Non-Executive Director
Shares20,000
Max PriceAU$3.93
BuyAU$74,65419 Aug 19
John O'Neill
EntityIndividual
Role
Chairman of the Board
Chairman
Shares19,142
Max PriceAU$3.90
BuyAU$16,823,21713 Aug 19
Yarra Funds Management Limited
EntityCompany
Shares4,484,815
Max PriceAU$3.75
SellAU$41,731,03631 Jul 19
Perpetual Limited
EntityCompany
Shares10,026,241
Max PriceAU$4.16
BuyAU$1,499,13731 Jul 19
Perpetual Limited
EntityCompany
Shares373,290
Max PriceAU$4.02
SellAU$37,543,58527 Jun 19
Perpetual Limited
EntityCompany
Shares9,449,085
Max PriceAU$3.97
BuyAU$26,97317 Jun 19
Colonial First State Asset Management (Australia) Limited
EntityCompany
Shares7,006
Max PriceAU$3.85
SellAU$44,572,76314 Jun 19
Perpetual Limited
EntityCompany
Shares11,141,483
Max PriceAU$4.00
BuyAU$17,21914 Jun 19
Perpetual Limited
EntityCompany
Shares3,818
Max PriceAU$4.51
BuyAU$238,19114 Jun 19
ASB Group Investments Ltd.
EntityCompany
Shares55,203
Max PriceAU$4.31
BuyAU$3,248,00014 Jun 19
Realindex Investments Pty Limited
EntityCompany
Shares742,970
Max PriceAU$4.37
SellAU$93,308,69514 Jun 19
Colonial First State Asset Management (Australia) Limited
EntityCompany
Shares22,225,962
Max PriceAU$4.46
SellAU$235,20614 Jun 19
ASB Group Investments Ltd.
EntityCompany
Shares53,156
Max PriceAU$4.42
BuyAU$34,481,61714 Jun 19
Colonial First State Asset Management (Australia) Limited
EntityCompany
Shares7,794,690
Max PriceAU$4.47
SellAU$2,778,30414 Jun 19
Realindex Investments Pty Limited
EntityCompany
Shares584,327
Max PriceAU$4.75
BuyAU$33,927,93807 Jun 19
Perpetual Limited
EntityCompany
Shares7,750,530
Max PriceAU$4.38
SellAU$77,041,49307 Jun 19
Perpetual Limited
EntityCompany
Shares17,055,107
Max PriceAU$4.52
BuyAU$20,802,34929 May 19
MLC Investments Limited
EntityCompany
Shares4,661,529
Max PriceAU$4.46
BuyAU$4,461,29129 May 19
Antares Capital Partners Pty. Ltd.
EntityCompany
Shares1,013,896
Max PriceAU$4.40
BuyAU$241,30129 May 19
MLC Investment Management Limited
EntityCompany
Shares57,511
Max PriceAU$4.29
BuyAU$1,320,44529 May 19
JBWere Limited
EntityCompany
Shares299,216
Max PriceAU$4.41
BuyAU$78,43129 May 19
OneVue Limited
EntityCompany
Shares18,276
Max PriceAU$4.29
SellAU$913,60002 May 19
Matthias Bekier
EntityIndividual
Role
Chief Executive Officer
MD, CEO & Executive Director
Shares200,000
Max PriceAU$4.57
BuyAU$138,155,62416 Apr 19
Colonial First State Asset Management (Australia) Limited
EntityCompany
Shares27,450,293
Max PriceAU$5.11
BuyAU$2,932,95516 Apr 19
Realindex Investments Pty Limited
EntityCompany
Shares573,340
Max PriceAU$5.12
SellAU$94,549,68816 Apr 19
Colonial First State Asset Management (Australia) Limited
EntityCompany
Shares18,264,794
Max PriceAU$5.28
BuyAU$40,86828 Feb 19
MLC Investment Management Limited
EntityCompany
Shares8,982
Max PriceAU$4.55
SellAU$751,03428 Feb 19
JBWere Limited
EntityCompany
Shares170,700
Max PriceAU$4.40
SellAU$4,571,20028 Feb 19
MLC Investments Limited
EntityCompany
Shares1,032,658
Max PriceAU$4.43
SellAU$2,72728 Feb 19
OneVue Limited
EntityCompany
Shares592
Max PriceAU$4.61
BuyAU$1,669,91528 Feb 19
MLC Investments Limited
EntityCompany
Shares373,017
Max PriceAU$4.48
BuyAU$11,832,98428 Feb 19
Antares Capital Partners Pty. Ltd.
EntityCompany
Shares2,511,911
Max PriceAU$4.71
BuyAU$1,203,29728 Feb 19
JBWere Limited
EntityCompany
Shares257,145
Max PriceAU$4.68
SellAU$2,711,07428 Feb 19
Antares Capital Partners Pty. Ltd.
EntityCompany
Shares612,626
Max PriceAU$4.43
SellAU$23,59028 Feb 19
MLC Investment Management Limited
EntityCompany
Shares5,254
Max PriceAU$4.49
SellAU$40,142,71520 Feb 19
Paradice Investment Management Pty Ltd.
EntityCompany
Shares8,809,892
Max PriceAU$4.56
BuyAU$25,599,04920 Feb 19
Paradice Investment Management Pty Ltd.
EntityCompany
Shares5,927,262
Max PriceAU$4.32
BuyAU$2,828,35521 Jan 19
Antares Capital Partners Pty. Ltd.
EntityCompany
Shares625,726
Max PriceAU$4.52
BuyAU$490,36621 Jan 19
MLC Investment Management Limited
EntityCompany
Shares112,827
Max PriceAU$4.53
BuyAU$2,776,18421 Jan 19
MLC Investments Limited
EntityCompany
Shares610,809
Max PriceAU$4.55
SellAU$901,38718 Dec 18
Antares Capital Partners Pty. Ltd.
EntityCompany
Shares200,194
Max PriceAU$4.52
BuyAU$106,35717 Dec 18
MLC Investment Management Limited
EntityCompany
Shares23,747
Max PriceAU$4.52
BuyAU$16,695,62517 Dec 18
Antares Capital Partners Pty. Ltd.
EntityCompany
Shares3,667,531
Max PriceAU$4.55
BuyAU$211,44317 Dec 18
JBWere Limited
EntityCompany
Shares46,810
Max PriceAU$4.52
BuyAU$2,479,13417 Dec 18
MLC Investments Limited
EntityCompany
Shares558,958
Max PriceAU$4.44
BuyAU$4,84017 Dec 18
OneVue Limited
EntityCompany
Shares1,077
Max PriceAU$4.49
BuyAU$72,780,92607 Dec 18
Perpetual Limited
EntityCompany
Shares15,652,484
Max PriceAU$4.65
SellAU$29,779,14407 Dec 18
Perpetual Limited
EntityCompany
Shares5,614,501
Max PriceAU$5.30
BuyAU$87,66228 Nov 18
Zlatko Todorcevski
EntityIndividual
Role
Member of the Board of Directors
Non-Executive Director
Shares20,000
Max PriceAU$4.38
BuyAU$247,013,92415 Nov 18
Paradice Investment Management Pty Ltd.
EntityCompany
Shares47,887,836
Max PriceAU$5.16
SellAU$11,04615 Nov 18
Antares Capital Partners Pty. Ltd.
EntityCompany
Shares2,397
Max PriceAU$4.61
SellAU$602,75615 Nov 18
MLC Investments Limited
EntityCompany
Shares131,487
Max PriceAU$4.58
BuyAU$910,33015 Nov 18
Antares Capital Partners Pty. Ltd.
EntityCompany
Shares200,266
Max PriceAU$4.55
SellAU$475,05815 Nov 18
MLC Investment Management Limited
EntityCompany
Shares103,188
Max PriceAU$4.60
BuyAU$530,70608 Nov 18
MLC Investment Management Limited
EntityCompany
Shares108,649
Max PriceAU$4.89
BuyAU$5,829,39408 Nov 18
Antares Capital Partners Pty. Ltd.
EntityCompany
Shares1,209,971
Max PriceAU$4.82
BuyAU$4,44308 Nov 18
OneVue Limited
EntityCompany
Shares938
Max PriceAU$4.74
BuyAU$115,75006 Nov 18
Wallace Sheppard
EntityIndividual
Role
Member of the Board of Directors
Non Executive Director
Shares25,000
Max PriceAU$4.63
SellAU$3,861,19406 Nov 18
Realindex Investments Pty Limited
EntityCompany
Shares791,695
Max PriceAU$4.88
BuyAU$2,935,91206 Nov 18
Realindex Investments Pty Limited
EntityCompany
Shares573,340
Max PriceAU$5.12
BuyAU$83,320,78706 Nov 18
Colonial First State Asset Management (Australia) Limited
EntityCompany
Shares16,682,516
Max PriceAU$5.03
SellAU$42,338,49306 Nov 18
Colonial First State Asset Management (Australia) Limited
EntityCompany
Shares8,142,347
Max PriceAU$5.29
BuyAU$46,20005 Nov 18
Benjamin Heap
EntityIndividual
Role
Member of the Board of Directors
Non-Executive Director
Shares10,000
Max PriceAU$4.62

Ownership Breakdown


Management Team

  • Matt Bekier

    MD, CEO & Executive Director

    • Tenure: 5.5yrs
    • Compensation: AU$1.84m
  • Greg Hawkins (56yo)

    Chief Casino Officer

    • Tenure: 5.1yrs
    • Compensation: AU$1.27m
  • Geoff Hogg

    Group Executive Operations

    • Tenure: 0.3yrs
    • Compensation: AU$665.45k
  • Chad Barton

    Group Chief Financial Officer

    • Tenure: 5.3yrs
    • Compensation: AU$800.50k
  • Paula Martin

    Chief Legal & Risk Officer and Company Secretary

    • Tenure: 0yrs
  • Harry Theodore

    Chief Commercial Officer

    • Tenure: 0yrs
  • Peter Jenkins

    Head of Media Communications

    • Tenure: 0yrs
  • Kim Lee

    Chief People & Performance Officer

    • Tenure: 0yrs
  • John Chong

    President of International Marketing

    • Tenure: 0yrs
  • George Hughes

    Chief Marketing Officer

    • Tenure: 1.7yrs

Board Members

  • Katie Lahey (69yo)

    Non-Executive Director

    • Tenure: 6.6yrs
    • Compensation: AU$233.20k
  • Sally Anne Pitkin (60yo)

    Non-Executive Director

    • Tenure: 4.8yrs
    • Compensation: AU$233.20k
  • Gerard Bradley

    Non-Executive Director

    • Tenure: 6.4yrs
    • Compensation: AU$233.20k
  • Matt Bekier

    MD, CEO & Executive Director

    • Tenure: 5.5yrs
    • Compensation: AU$1.84m
  • Ben Heap (49yo)

    Non-Executive Director

    • Tenure: 1.4yrs
    • Compensation: AU$215.70k
  • John O'Neill (67yo)

    Chairman

    • Tenure: 7.3yrs
    • Compensation: AU$484.50k
  • Zlatko Todorcevski (51yo)

    Non-Executive Director

    • Tenure: 2.4yrs
    • Compensation: AU$233.20k
  • Wallace Sheppard

    Non Executive Director

    • Tenure: 6.6yrs
    • Compensation: AU$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$3.966b
  • Shares outstanding: 915.86m
  • Website: https://www.starentertainmentgroup.com.au

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 Analysis2019/10/14 10:35
End of Day Share Price2019/10/14 00:00
Earnings2019/06/30
Annual Earnings2019/06/30


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.