ASX:SUL

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Super Retail Group

Executive Summary

Super Retail Group Limited operates as a retailer of auto, sports, and outdoor leisure in Australia and New Zealand. More Details


Snowflake Analysis

Excellent balance sheet and slightly overvalued.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: SUL's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

6.4%

SUL

5.1%

AU Specialty Retail

0.5%

AU Market


1 Year Return

28.7%

SUL

19.5%

AU Specialty Retail

-5.6%

AU Market

Return vs Industry: SUL exceeded the Australian Specialty Retail industry which returned 19.6% over the past year.

Return vs Market: SUL exceeded the Australian Market which returned -5.7% over the past year.


Shareholder returns

SULIndustryMarket
7 Day6.4%5.1%0.5%
30 Day17.1%16.5%5.0%
90 Day52.0%36.7%2.9%
1 Year32.4%28.7%24.0%19.5%-2.3%-5.6%
3 Year75.8%52.2%93.7%69.1%12.4%-1.2%
5 Year61.4%26.9%105.3%63.0%41.5%12.9%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Super Retail Group undervalued compared to its fair value and its price relative to the market?

49.8%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: SUL (A$12.3) is trading below our estimate of fair value (A$24.48)

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


Price To Earnings Ratio

PE vs Industry: SUL is poor value based on its PE Ratio (22.1x) compared to the AU Specialty Retail industry average (21.3x).

PE vs Market: SUL is poor value based on its PE Ratio (22.1x) compared to the Australian market (21.1x).


Price to Earnings Growth Ratio

PEG Ratio: SUL is poor value based on its PEG Ratio (1.7x)


Price to Book Ratio

PB vs Industry: SUL's PB Ratio (2.7x) is in line with the AU Specialty Retail industry average.


Next Steps

Future Growth

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

13.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SUL's forecast earnings growth (13.1% per year) is above the savings rate (2.3%).

Earnings vs Market: SUL's earnings (13.1% per year) are forecast to grow slower than the Australian market (17.5% per year).

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

Revenue vs Market: SUL's revenue (3.4% per year) is forecast to grow slower than the Australian market (4.6% per year).

High Growth Revenue: SUL's revenue (3.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: SUL's Return on Equity is forecast to be low in 3 years time (14.7%).


Next Steps

Past Performance

How has Super Retail Group performed over the past 5 years?

10.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SUL has high quality earnings.

Growing Profit Margin: SUL's current net profit margins (3.9%) are lower than last year (5.1%).


Past Earnings Growth Analysis

Earnings Trend: SUL's earnings have grown by 10.2% per year over the past 5 years.

Accelerating Growth: SUL's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: SUL had negative earnings growth (-20.9%) over the past year, making it difficult to compare to the Specialty Retail industry average (-3.9%).


Return on Equity

High ROE: SUL's Return on Equity (11.1%) is considered low.


Next Steps

Financial Health

How is Super Retail Group's financial position?


Financial Position Analysis

Short Term Liabilities: SUL's short term assets (A$813.8M) exceed its short term liabilities (A$750.8M).

Long Term Liabilities: SUL's short term assets (A$813.8M) do not cover its long term liabilities (A$1.0B).


Debt to Equity History and Analysis

Debt Level: SUL's debt to equity ratio (25%) is considered satisfactory.

Reducing Debt: SUL's debt to equity ratio has reduced from 51.3% to 25% over the past 5 years.

Debt Coverage: SUL's debt is well covered by operating cash flow (246.4%).

Interest Coverage: SUL's interest payments on its debt are well covered by EBIT (3.8x coverage).


Balance Sheet


Next Steps

Dividend

What is Super Retail Group current dividend yield, its reliability and sustainability?

1.59%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: SUL's dividend (1.59%) isn’t notable compared to the bottom 25% of dividend payers in the Australian market (2.15%).

High Dividend: SUL's dividend (1.59%) is low compared to the top 25% of dividend payers in the Australian market (5.51%).


Stability and Growth of Payments

Stable Dividend: SUL's dividend payments have been volatile in the past 10 years.

Growing Dividend: SUL's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (35%), SUL's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: SUL's dividends in 3 years are forecast to be covered by earnings (65.5% payout ratio).


Next Steps

Management

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

1.7yrs

Average management tenure


CEO

Anthony Heraghty (46 yo)

1.67yrs

Tenure

AU$1,993,455

Compensation

Mr. Anthony Michael Heraghty, BBus has been Group Managing Director, Chief Executive Officer and Director at Super Retail Group Limited since February 2019. Mr. Heraghty served as Managing Director of Outd ...


CEO Compensation Analysis

Compensation vs Market: Anthony's total compensation ($USD1.41M) is about average for companies of similar size in the Australian market ($USD1.30M).

Compensation vs Earnings: Anthony's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Anthony Heraghty
Group MD1.67yrsAU$1.99m0.029%
A$ 837.8k
David Burns
Chief Financial Officer7.83yrsAU$1.35m0.015%
A$ 425.6k
Gary Williams
Managing Director of Rebel1.5yrsAU$1.31mno data
Alex Brandon
Chief Executive Officer of Macpac8.25yrsAU$555.16kno data
Benjamin Ward
Managing Director of Supercheap Auto1.25yrsAU$1.38mno data
Paul Bradshaw
Managing Director of BCF0.92yrAU$848.57kno data
Paul Hayes
Chief Information Officer4.83yrsno datano data
Robert Wruck
Head of Investor Relationsno datano datano data
Rebecca Farrell
Chief Legal Officer0.67yrno datano data
Jane Kelly
Chief Human Resources Officer4.25yrsno datano data
Darren Wedding
Chief Supply Chain Officer1.75yrsno datano data
Katie McNamara
Chief Strategy & Customer Officer1.5yrsno datano data

1.7yrs

Average Tenure

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


Board Members

NamePositionTenureCompensationOwnership
Anthony Heraghty
Group MD1.67yrsAU$1.99m0.029%
A$ 837.8k
Howard Mowlem
Independent Non-Executive Director3.33yrsAU$166.14k0.015%
A$ 433.6k
Reginald Rowe
Non Executive Director16.5yrsAU$141.14k30.23%
A$ 863.6m
Sally Anne Pitkin
Independent Non-Executive Chair3yrsAU$313.65k0.026%
A$ 754.1k
Peter Everingham
Independent Non-Executive Director2.83yrsAU$161.14kno data
Sally Chaplain
Independent Non-Executive Director0.58yrAU$35.83kno data
Gary Dunne
Independent Non-Executive Director0.58yrAU$35.83kno data

2.8yrs

Average Tenure

61yo

Average Age

Experienced Board: SUL's board of directors are not considered experienced ( 2.8 years average tenure), which suggests a new board.


Ownership

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


Insider Trading Volume

Insider Buying: SUL insiders have only sold shares 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 14.4%.


Top Shareholders

Company Information

Super Retail Group Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Super Retail Group Limited
  • Ticker: SUL
  • Exchange: ASX
  • Founded: 1972
  • Industry: Specialty Stores
  • Sector: Retail
  • Market Cap: AU$2.856b
  • Shares outstanding: 225.81m
  • Website: https://www.superretailgroup.com

Number of Employees


Location

  • Super Retail Group Limited
  • 6 Coulthards Avenue
  • Strathpine
  • Queensland
  • 4500
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SULASX (Australian Securities Exchange)YesOrdinary SharesAUAUDJul 2004
RSUDB (Deutsche Boerse AG)YesOrdinary SharesDEEURJul 2004
SULCHIA (Chi-X Australia)YesOrdinary SharesAUAUDJul 2004

Biography

Super Retail Group Limited operates as a retailer of auto, sports, and outdoor leisure in Australia and New Zealand. The company offers automotive parts and accessories, handyman items, and tools and equip ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/19 10:35
End of Day Share Price2020/10/19 00:00
Earnings2020/06/27
Annual Earnings2020/06/27


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.