Is SGHC Stock a Good Investment?

SGHC Investment Advice

SGHC

To provide specific investment advice or recommendations on SGHC Limited stock, we recommend investors consider the following general factors when evaluating SGHC Limited. This will help you to make an informed decision on whether to include SGHC in one of your diversified portfolios:

Examine SGHC's financial health by looking at its balance sheet, income statement, and cash flow statement. Analyze key financial ratios, such as Price-to-Earnings (P/E), Price-to-Sales (P/S), and Price-to-Book (P/B), to determine whether the stock is fairly valued or over/undervalued.
Research SGHC's leadership team and their track record. Good management can help SGHC navigate difficult times and make strategic decisions that benefit shareholders and increases its net worth.
Consider the overall health of the Hotels, Restaurants & Leisure space and any emerging trends that could impact SGHC's business and its evolving consumer preferences.
Compare SGHC's performance and market position to its competitors. Analyze how SGHC is positioned in terms of product offerings, innovation, and market share.
Check if SGHC pays a dividend and its dividend yield and payout ratio.
Review what financial analysts are saying about SGHC's stock and their price targets. However, remember that analysts' opinions can vary, and their predictions may not always be accurate.

It's important to note that investing in SGHC Limited stock, carries risks, and you should carefully consider your investment goals and risk tolerance before making any investment decisions. Also, remember that it's important for investors to have a long-term perspective and a well-diversified portfolio to manage the impact of stock market volatility on their investments. Below is a detailed guide on how to decide if SGHC Limited is a good investment.

Sell

Buy

Strong Buy

We provide advice to complement the current expert consensus on SGHC. Our dynamic recommendation engine harnesses a multidimensional algorithm to analyze the firm's potential to grow using all technical and fundamental data available now. To make sure SGHC Limited is not overpriced, please validate all SGHC fundamentals, including its shares owned by institutions, gross profit, debt to equity, as well as the relationship between the price to book and cash and equivalents . Given that SGHC Limited has a number of shares shorted of 690.59 K, we advise you to double-check SGHC Limited market performance and probability of bankruptcy to ensure the company can sustain itself next year given your current risk tolerance and investing horizon.

Market Performance	Solid	Details
Volatility	Slightly risky	Details
Hype Condition	Under hyped	Details
Current Valuation	Undervalued	Details
Odds Of Distress	Low	Details
Economic Sensitivity	Hyperactively responds to market trends	Details
Investor Sentiment	Interested	Details
Analyst Consensus	Not Available	Details
Financial Strenth (F Score)	Healthy	Details
Financial Leverage	Not Rated	Details
Reporting Quality (M-Score)	Unlikely Manipulator	Details

Examine SGHC Stock

Researching SGHC's stock involves analyzing various aspects of the company and its industry to make an informed investment decision. The key areas to focus on are fundamentals, business model and competitive advantage. It is also important to analyze trends in revenue, net income, and cash flow, as well as key financial ratios, such as price-to-earnings (P/E), price-to-sales (P/S), and debt-to-equity (D/E). About 71.0% of the company outstanding shares are owned by corporate insiders. The company last dividend was issued on the 8th of July 2024.

To determine if SGHC is a good investment, evaluating the company's potential for future growth is also very important. This may include expanding into new markets, launching new products or services, or improving operational efficiency. Companies with strong growth prospects can be more attractive investments. This aspect of the research should be conducted in the context of the overall market and industry in which the company operates and should include an analysis of growth potential, competitive landscape, and any regulatory or economic factors that could impact the business. Some of the essential points regarding SGHC's research are outlined below:

	SGHC Limited appears to be risky and price may revert if volatility continues
	The company reported the previous year's revenue of 1.44 B. Net Loss for the year was (8.61 M) with profit before overhead, payroll, taxes, and interest of 312.91 M.
	About 71.0% of the company outstanding shares are owned by corporate insiders
	Latest headline from benzinga.com: Jim Cramer Super Group Finally Broke Out, This Basic Materials Stock Is Very Hard To Own Here

SGHC uses earnings reports to provide investors with an update of all three financial statements, including the income statement, the balance sheet, and the cash flow statement. Therefore, it is also crucial when considering investing in SGHC Limited. Every quarterly earnings report provides investors with an overview of sales, expenses, and net income for the most recent period. It also may provide a comparison to SGHC's previous reporting period. The quarterly earnings reports are usually disseminated to the public via Form 10-Q, which is a legal document filed with the Securities and Exchange Commission every quarter.

	25th of April 2024 Upcoming Quarterly Report	View
	22nd of May 2024 Next Financial Report	View
	31st of December 2023 Next Fiscal Quarter End	View
	25th of April 2024 Next Fiscal Year End	View
	30th of September 2023 Last Quarter Report	View
	31st of December 2022 Last Financial Announcement	View

Earnings surprises can significantly impact SGHC's stock price both in the short term and over time. Negative earnings surprises usually result in a price decline. However, it has been seen that positive earnings surprises lead to an immediate rise in a stock's price and a gradual increase over time. This is why we often hear news about some companies beating earning projections. Financial analysts spend a large amount of time predicting earnings per share (EPS) along with other important future indicators. Many analysts use forecasting models, management guidance, and additional fundamental information to derive an EPS estimate. Below are the table of largest EPS Surprises SGHC's investors have experienced.

Reported	Fiscal Date	Estimated EPS	Reported EPS	Surprise
2024-05-08	2024-03-31	0.03	0.02	-0.01	33
2022-05-25	2022-03-31	0.09	0.08	-0.01	11
2024-11-06	2024-09-30	0.07	0.09	0.02	28
2023-05-24	2023-03-31	0.01	0.03	0.02	200
2022-11-22	2022-09-30	0.08	0.06	-0.02	25
2023-11-09	2023-09-30	0.02	0.05	0.03	150
2023-08-17	2023-06-30	0.02	0.05	0.03	150
2023-03-14	2022-12-31	0.07	0.04	-0.03	42

Know SGHC's Top Institutional Investors

Have you ever been surprised when a price of an equity instrument such as SGHC is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading SGHC Limited backward and forwards among themselves. SGHC's institutional investor refers to the entity that pools money to purchase SGHC's securities or originate loans. Institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds. Operating companies that invest excess capital in these types of assets may also be included in the term and may influence corporate governance by exercising voting rights in their investments.

		Shares
Morgan Stanley - Brokerage Accounts	2024-06-30	674.9 K
Hillsdale Investment Management Inc.	2024-09-30	624.5 K
Exchange Traded Concepts, Llc	2024-06-30	597.1 K
Anson Funds Management Lp	2024-09-30	569.4 K
Bank Of New York Mellon Corp	2024-06-30	420.3 K
Charles Schwab Investment Management Inc	2024-09-30	354.6 K
Citadel Advisors Llc	2024-09-30	341.4 K
Goldman Sachs Group Inc	2024-06-30	307.3 K
Boston Partners Global Investors, Inc		254.4 K
Blackrock Inc	2024-06-30	8 M
American Century Companies Inc	2024-09-30	3.6 M

Note, although SGHC's institutional investors appear to be way more sophisticated than retail investors, it remains unclear if professional active investment managers can reliably enhance risk-adjusted returns by an amount that exceeds fees and expenses.

SGHC's market capitalization trends

The company currently falls under 'Mid-Cap' category with a current market capitalization of 3.05 B.

Market Cap

1.36 Billion

SGHC's profitablity analysis

	Last Reported	Projected for Next Year
Return On Tangible Assets	(0.02)	(0.01)
Return On Capital Employed	0.13	0.13
Return On Assets	(0.01)	(0.01)
Return On Equity	(0.02)	(0.02)

Determining SGHC's profitability involves analyzing its financial statements and using various financial metrics to determine if SGHC is a good buy. For example, gross profit margin measures SGHC's profitability after accounting for the cost of goods sold, while net profit margin measures profitability after accounting for all expenses. Other important metrics include return on assets, return on equity, and free cash flow. By reviewing multiple sources and metrics, you can gain a complete picture of SGHC's profitability and make more informed investment decisions.

Please note, the presentation of SGHC's financial position, as portrayed in its financial statements, is often influenced by management's estimates, judgments, and sometimes even manipulations. In the best case, SGHC's management is honest, while the outside auditors are strict and uncompromising. Please utilize our Beneish M Score to check the likelihood of SGHC's management manipulating its earnings.

Evaluate SGHC's management efficiency

SGHC Limited has return on total asset (ROA) of 0.0587 % which means that it generated a profit of $0.0587 on every $100 spent on assets. This is way below average. SGHC's management efficiency ratios could be used to measure how well SGHC manages its routine affairs as well as how well it operates its assets and liabilities. The current year's Return On Tangible Assets is expected to grow to -0.01. In addition to that, Return On Capital Employed is expected to decline to 0.13. At present, SGHC's Net Tangible Assets are projected to increase significantly based on the last few years of reporting. The current year's Intangibles To Total Assets is expected to grow to 0.37, whereas Total Assets are forecasted to decline to about 690.9 M.

	Last Reported	Projected for Next Year
Book Value Per Share	1.08	1.14
Tangible Book Value Per Share	0.50	0.53
Enterprise Value Over EBITDA	11.94	12.54
Price Book Value Ratio	2.74	1.79
Enterprise Value Multiple	11.94	12.54
Price Fair Value	2.74	1.79
Enterprise Value	1.2 B	1.2 B

Examining the leadership quality of SGHC Limited offers valuable insights into its operational efficiency and financial health. This analysis assists investors in making informed decisions regarding the stock.

Dividend Yield

0.0164

Forward Dividend Yield

0.0164

Forward Dividend Rate

0.1

Beta

0.68

Basic technical analysis of SGHC Stock

As of the 25th of November, SGHC has the coefficient of variation of 311.82, and Risk Adjusted Performance of 0.2535. In connection with fundamental indicators, the technical analysis model makes it possible for you to check practical technical drivers of SGHC Limited, as well as the relationship between them.

SGHC's Outstanding Corporate Bonds

SGHC issues bonds to finance its operations. Corporate bonds make up one of the largest components of the U.S. bond market, which is considered the world's largest securities market. SGHC Limited uses the proceeds from bond sales for a wide variety of purposes, including financing ongoing mergers and acquisitions, buying new equipment, investing in research and development, buying back their own stock, paying dividends to shareholders, and even refinancing existing debt. Most SGHC bonds can be classified according to their maturity, which is the date when SGHC Limited has to pay back the principal to investors. Maturities can be short-term, medium-term, or long-term (more than ten years). Longer-term bonds usually offer higher interest rates but may entail additional risks.

	Boeing Co 2196 Corp Bond US097023DG73	View
	HSBC Holdings PLC Corp Bond US404280DR76	View
	MGM Resorts International Corp Bond US552953CD18	View
	AerCap Global Aviation Corp Bond US00773HAA59	View

View All SGHC Corporate Bonds

Understand SGHC's technical and predictive indicators

Using predictive indicators to make investment decisions involves analyzing SGHC's various financial and market-based factors to help forecast future trends and identify investment opportunities. Select the indicators that are most relevant to your investment strategy. Each indicator has its own strengths and weaknesses, so it's essential to combine multiple indicators to get a more comprehensive view of the market and reduce the risk of making poor decisions based on limited data.

	Risk Adjusted Performance	0.2535
	Market Risk Adjusted Performance	0.4346
	Mean Deviation	1.91
	Semi Deviation	0.6328
	Downside Deviation	1.63
	Coefficient Of Variation	311.82
	Standard Deviation	3.1
	Variance	9.59
	Information Ratio	0.2785
	Jensen Alpha	0.7035
	Total Risk Alpha	0.4954
	Sortino Ratio	0.5286
	Treynor Ratio	0.4246
	Maximum Drawdown	18.78
	Value At Risk	(2.15)
	Potential Upside	4.29
	Downside Variance	2.66
	Semi Variance	0.4004
	Expected Short fall	(2.56)
	Skewness	2.97
	Kurtosis	13.33

	Risk Adjusted Performance	0.2535
	Market Risk Adjusted Performance	0.4346
	Mean Deviation	1.91
	Semi Deviation	0.6328
	Downside Deviation	1.63
	Coefficient Of Variation	311.82
	Standard Deviation	3.1
	Variance	9.59
	Information Ratio	0.2785
	Jensen Alpha	0.7035
	Total Risk Alpha	0.4954
	Sortino Ratio	0.5286
	Treynor Ratio	0.4246
	Maximum Drawdown	18.78
	Value At Risk	(2.15)
	Potential Upside	4.29
	Downside Variance	2.66
	Semi Variance	0.4004
	Expected Short fall	(2.56)
	Skewness	2.97
	Kurtosis	13.33

Consider SGHC's intraday indicators

SGHC intraday indicators are useful technical analysis tools used by many experienced traders. Just like the conventional technical analysis, daily indicators help intraday investors to analyze the price movement with the timing of SGHC stock daily movement. By combining multiple daily indicators into a single trading strategy, you can limit your risk while still earning strong returns on your managed positions.

	Accumulation Distribution	0.039
	Daily Balance Of Power	0.625
	Rate Of Daily Change	1.03
	Day Median Price	6.03
	Day Typical Price	6.05
	Market Facilitation Index	0.24
	Price Action Indicator	0.13
	Period Momentum Indicator	0.15

SGHC Corporate Filings

6K	6th of November 2024 A report filed by foreign private issuers with SEC. A foreign private issuer is a non-U.S. company with securities traded on U.S. exchanges.	View Verify
	25th of April 2024 Other Reports	View Verify

SGHC time-series forecasting models is one of many SGHC's stock analysis techniques aimed to predict future share value based on previously observed values. Time-series forecasting models ae widely used for non-stationary data. Non-stationary data are called the data whose statistical properties e.g. the mean and standard deviation are not constant over time but instead, these metrics vary over time. These non-stationary SGHC's historical data is usually called time-series. Some empirical experimentation suggests that the statistical forecasting models outperform the models based exclusively on fundamental analysis to predict the direction of the market movement and maximize returns from investment trading.

SGHC Stock media impact

Far too much social signal, news, headlines, and media speculation about SGHC that are available to investors today. That information is available publicly through SGHC media outlets and privately through word of mouth or via SGHC internal channels. However, regardless of the origin, that massive amount of SGHC data is challenging to quantify into actionable patterns, especially for investors that are not very sophisticated with ever-evolving tools and techniques used in the investment management field.

A primary focus of SGHC news analysis is to determine if its current price reflects all relevant headlines and social signals impacting the current market conditions. A news analyst typically looks at the history of SGHC relative headlines and hype rather than examining external drivers such as technical or fundamental data. It is believed that price action tends to repeat itself due to investors' collective, patterned thinking related to SGHC's headlines and news coverage data. This data is often completely overlooked or insufficiently analyzed for actionable insights to drive SGHC alpha.

SGHC Sentiment by Major News Outlets

Investor sentiment, mood or attitude towards SGHC can have a significant impact on its stock price or the market as a whole. This sentiment can be positive or negative, and various factors, such as economic indicators, news events, or market trends, can influence it. When investor sentiment is positive, investors are more likely to buy stocks, increasing demand and increasing the stock price. Positive investor sentiment can be driven by good news about the company or the broader market, such as solid earnings reports or positive economic data.

Note that negative investor sentiment can cause investors to sell stocks, leading to a decrease in demand and a drop in the stock price. Negative sentiment can be driven by factors such as poor earnings reports, negative news about the company or industry, or broader economic concerns. It's important to note that investor sentiment is just one of many factors that can affect stock prices. Other factors, such as company performance, industry trends, and global economic conditions, can also play a significant role in determining the value of a stock.

When determining whether SGHC Limited offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of SGHC's financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Sghc Limited Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Sghc Limited Stock: