Breaking Down Super Group (SGHC) Limited (SGHC) Financial Health: Key Insights for Investors

Are you keeping a close watch on Super Group (SGHC) Limited's financial performance? In 2024, the company reported a revenue of €1.70 billion, marking an impressive 18% increase from 2023! But how did this revenue growth translate to the bottom line, and what does it mean for investors like you? Did Super Group's earnings per share meet expectations, and what are the future revenue forecasts for the company?

Super Group (SGHC) Limited (SGHC) Revenue Analysis

Understanding Super Group's financial health involves a detailed look at its revenue streams. For the fiscal year 2024, Super Group (SGHC) Limited reported a revenue of approximately €1.7 billion. This figure represents an 18% increase compared to the €1.4 billion revenue in 2023.

Here's a breakdown of what drives Super Group's revenue:

• Online Casino: This segment is a significant contributor, with revenue reaching €1,335.504 million in 2024.
• Sports Betting: Another key revenue source, generating €335.988 million in 2024.
• Brand Licensing: This brings in additional revenue, accounting for €18.598 million in 2024.
• Other: This category includes usage fees and other income, totaling €6.764 million in 2024.

The year-over-year revenue growth rate showcases Super Group's strong performance:

• 2024: 18.16% increase
• Q4 2024: 39% increase to €500.0 million from €359.9 million in 2023

A more detailed look at the revenue streams reveals the following:

Significant changes in revenue streams can be attributed to strategic focuses such as key growth markets and localized product offerings. Africa has emerged as Super Group’s largest region for the second quarter running. The company's ability to maintain a lean cost base and strategically allocate a significant marketing budget has also supported revenue growth.

For more in-depth insights into Super Group's financial health, you can explore Breaking Down Super Group (SGHC) Limited (SGHC) Financial Health: Key Insights for Investors.

Super Group (SGHC) Limited (SGHC) Profitability Metrics

Assessing Super Group's (SGHC) Limited (SGHC) financial health requires a detailed look into its profitability metrics, which reveal how efficiently the company converts revenue into profit. Key indicators include gross profit, operating profit, and net profit margins, which provide insights into the company's cost management and overall financial performance.

To evaluate SGHC's profitability, consider these essential metrics:

• Gross Profit Margin: This ratio indicates the percentage of revenue remaining after deducting the cost of goods sold (COGS). It reflects the company's efficiency in managing production costs.
• Operating Profit Margin: This margin shows the percentage of revenue remaining after deducting both COGS and operating expenses. It provides insight into the company's profitability from its core business operations.
• Net Profit Margin: Representing the percentage of revenue that translates into net income, this margin is a comprehensive measure of overall profitability, taking into account all expenses, including taxes and interest.

Analyzing these profitability metrics over time helps identify trends and potential areas of concern or improvement. Comparing SGHC's profitability ratios with industry averages offers a benchmark to gauge its competitive positioning and performance relative to its peers.

Operational efficiency is critical to profitability. Effective cost management and favorable gross margin trends directly impact the bottom line. Investors should scrutinize SGHC's strategies for controlling costs and optimizing operational processes to sustain and improve profitability.

While specific 2024 fiscal year data for Super Group (SGHC) Limited (SGHC) is not available, examining historical data and trends can provide valuable insights into the company's profitability. Accessing the latest financial reports and earnings calls will offer the most up-to-date information.

Super Group (SGHC) Limited (SGHC) Debt vs. Equity Structure

Understanding how Super Group (SGHC) Limited (SGHC) finances its operations and growth is crucial for investors. This involves analyzing the company's debt levels, debt-to-equity ratio, and recent financing activities.

As of the fiscal year 2024, Super Group (SGHC) Limited (SGHC) exhibits the following debt profile:

• Long-term debt: Analysis of the most recent financial data is required to determine the exact figures for 2024.
• Short-term debt: Specific figures need to be extracted from the latest financial reports for 2024.

The debt-to-equity ratio is a key metric to assess the balance between debt and equity financing. To provide an accurate ratio, the latest financial data from 2024 is necessary.

A comparison to industry standards would provide context to Super Group (SGHC) Limited (SGHC)’s financial leverage. This involves benchmarking against competitors and the average debt-to-equity ratios within the gaming and entertainment sectors.

Recent activities, such as debt issuances, credit ratings, or refinancing, can significantly impact the company's financial health. Any such activities in 2024 should be noted.

The company's approach to balancing debt and equity is vital. More details about the strategies employed by Super Group (SGHC) Limited (SGHC) in 2024 are needed to evaluate their effectiveness.

For more insights into the company's direction, check out: Mission Statement, Vision, & Core Values of Super Group (SGHC) Limited (SGHC).

Super Group (SGHC) Limited (SGHC) Liquidity and Solvency

Analyzing Super Group (SGHC) Limited (SGHC)'s financial health involves a close examination of its liquidity and solvency, which reveals its ability to meet short-term obligations and long-term financial stability. Liquidity measures the company's capacity to cover its immediate liabilities, while solvency assesses its ability to meet long-term debts.

Here's an overview:

• Current and Quick Ratios: These ratios provide insights into Super Group (SGHC) Limited (SGHC)'s ability to cover its short-term liabilities with its current assets. The current ratio, calculated as current assets divided by current liabilities, indicates the company's ability to pay off its short-term debts using its current assets. A higher current ratio generally indicates better liquidity. The quick ratio, also known as the acid-test ratio, excludes inventories from current assets to provide a more conservative measure of liquidity, reflecting the company's ability to meet its short-term obligations with its most liquid assets.
• Working Capital Trends: Monitoring the trends in Super Group (SGHC) Limited (SGHC)'s working capital, which is the difference between its current assets and current liabilities, offers valuable insights into its operational efficiency and short-term financial health.
• Cash Flow Statements Overview: A thorough examination of Super Group (SGHC) Limited (SGHC)'s cash flow statements is essential for understanding its liquidity position. The cash flow statement is divided into three main sections:

• Operating Activities: This section reflects the cash generated or used from the company's core business operations. Positive cash flow from operating activities indicates that the company is generating sufficient cash from its business to cover its operating expenses.
• Investing Activities: This section includes cash flows related to the purchase and sale of long-term assets, such as property, plant, and equipment (PP&E), as well as investments in securities.
• Financing Activities: This section involves cash flows related to debt, equity, and dividends. It provides insights into how the company is funding its operations and returning value to shareholders.

Any potential liquidity concerns or strengths will be based on the ratios and the cash flow.

More information about Super Group (SGHC) Limited (SGHC) can be found here: Mission Statement, Vision, & Core Values of Super Group (SGHC) Limited (SGHC).

Super Group (SGHC) Limited (SGHC) Valuation Analysis

Determining whether Super Group (SGHC) Limited (SGHC) is overvalued or undervalued requires a multifaceted approach, incorporating various financial ratios, stock performance analysis, and analyst sentiment.

Valuation Ratios

Several key ratios offer insights into SGHC's valuation:

• Price-to-Earnings (P/E) Ratio: As of April 2025, SGHC's P/E ratio stands at 29.50. The forward P/E ratio is 8.94 as of December 31, 2024. A comparison with the industry average forward P/E of 15.57 suggests that SGHC may be undervalued relative to its peers.
• Price-to-Book (P/B) Ratio: The P/B ratio for SGHC is 3.12 as of December 31, 2024.
• Enterprise Value-to-EBITDA (EV/EBITDA) Ratio The EV/EBITDA ratio is 10.02 as of April 9, 2025. Specifically, the EV/EBITDA was 11.08 as of December 31, 2024. This ratio is better than 51.04% of companies in the Travel & Leisure industry.

Stock Price Trends

Analyzing stock price movements provides context on market perception:

• Over the past year, SGHC stock has delivered an impressive return of 147%.
• In the past month, shares of the company have appreciated by 7.82%.
• The stock's 52-week high is $8.51, while the 52-week low is $2.90 as of December 31, 2024.

Dividend Analysis

For investors seeking income, dividends are an important consideration:

• Dividend Yield: Super Group (SGHC) has a dividend yield of 3.80%.
• Annual Dividend: The company pays an annual dividend of $0.29 per share.
• Payout Ratio: SGHC's payout ratio is 124.77%.
• Ex-Dividend Date: The last ex-dividend date was March 10, 2025.

Analyst Consensus

Professional analysts' opinions can offer valuable insights:

• The average analyst rating for SGHC stock is 'Strong Buy'.
• The average price target from analysts is $10.60.
• Benchmark analysts maintain a Buy rating with a $12.00 price target.

Here is a table summarizing recent analyst ratings for Super Group (SGHC) Limited:

Considering these factors, investors can better assess whether Super Group (SGHC) Limited is fairly valued, overvalued, or presents a potential investment opportunity. For more insights into Super Group (SGHC) Limited (SGHC), consider exploring their investor profile: Exploring Super Group (SGHC) Limited (SGHC) Investor Profile: Who’s Buying and Why?

Super Group (SGHC) Limited (SGHC) Risk Factors

Super Group (SGHC) Limited (SGHC) faces a variety of risks that could impact its financial health. These risks span internal operational challenges, external market pressures, and regulatory uncertainties.

Here's a look at some key risk areas:

• Industry Competition: The online gaming and sports betting market is intensely competitive. New entrants and established companies are constantly vying for market share, which could pressure Super Group's profitability and growth.
• Regulatory Changes: The gambling industry is heavily regulated, and changes in laws or regulations could significantly impact Super Group's operations. This includes potential restrictions on advertising, stricter licensing requirements, and increased taxes.
• Market Conditions: Economic downturns and changes in consumer spending habits can affect the demand for online gaming and sports betting. Unfavorable market conditions could lead to decreased revenue and earnings.

Operational, financial, and strategic risks can be gleaned from Super Group's filings and reports. While specific details fluctuate, these areas generally remain consistent concerns.

Mitigation strategies often involve diversifying product offerings, expanding into new markets, and maintaining strong relationships with regulators. Super Group also focuses on technological innovation to enhance its platform and customer experience.

For more insights into Super Group (SGHC) Limited (SGHC), check out: Exploring Super Group (SGHC) Limited (SGHC) Investor Profile: Who’s Buying and Why?

Super Group (SGHC) Limited (SGHC) Growth Opportunities

For Super Group (SGHC) Limited (SGHC), several factors could drive future growth. Analyzing these key drivers is essential for investors to understand the potential trajectory of the company.

Key growth drivers for Super Group (SGHC) Limited (SGHC) may include:

• Product Innovations: Continuously introducing new and engaging gaming and betting products can attract and retain customers.
• Market Expansions: Entering new geographic markets can significantly increase the company's user base and revenue streams.
• Acquisitions: Strategic acquisitions of complementary businesses can expand the company's offerings and market reach.

Predicting future revenue growth and earnings requires a thorough understanding of the company's strategic initiatives and market conditions. While specific projections vary, analysts often consider factors such as:

• Historical growth rates
• Market trends
• Competitive landscape
• Planned investments in technology and marketing

Strategic initiatives and partnerships can play a crucial role in driving future growth for Super Group (SGHC) Limited (SGHC). These may include:

• Technology Partnerships: Collaborating with leading technology providers to enhance the user experience and platform capabilities.
• Marketing Partnerships: Partnering with sports teams, leagues, or influencers to increase brand awareness and customer acquisition.
• Geographic Expansion Partnerships: Teaming up with local operators to navigate regulatory hurdles and market entry in new regions.

Super Group (SGHC) Limited (SGHC) possesses several competitive advantages that could position it for sustained growth:

• Established Brand: A well-recognized and trusted brand can attract and retain customers in a competitive market.
• Proprietary Technology: Unique and innovative technology can provide a competitive edge in terms of user experience and product offerings.
• Global Presence: A diversified geographic footprint can mitigate risks and capitalize on growth opportunities in different regions.

Here's a look at potential future growth prospects based on various strategic initiatives:

Understanding who is investing in Super Group (SGHC) Limited (SGHC) can provide additional insights into market sentiment and future growth expectations. For more information, explore Exploring Super Group (SGHC) Limited (SGHC) Investor Profile: Who’s Buying and Why?.

By carefully analyzing these factors, investors can gain a better understanding of Super Group (SGHC) Limited (SGHC)'s growth opportunities and potential for future success.