Super Group (SGHC) Limited Ordinary Shares (SGHC)

FairStock Score: 60/100 — STEADY

Key Financials

Strengths

• Generates $110 million in annual free cash flow (1.8% yield on market cap)
• High return on equity of 31.6% demonstrating efficient capital deployment
• Conservative balance sheet with debt-to-equity of just 0.10, providing financial flexibility
• Altman Z-Score of 8.7 confirms minimal bankruptcy risk and strong solvency
• Revenue growth of 34.8% demonstrates strong top-line momentum

Concerns

• Trades significantly above Graham Number ($4) with negative 209% margin of safety—limited downside protection
• Weak Piotroski F-Score of 1/9 suggests deteriorating financial quality across multiple dimensions

AI Analysis

Super Group (SGHC) Limited Ordinary Shares is a small-cap consumer cyclical company valued at $6.2 billion. The business generates $2.2 billion in annual revenue with a 2.6% net margin and $110 million in free cash flow. From a quality standpoint, Super shows weak Piotroski F-Score of 1/9 signaling deteriorating fundamentals and Altman Z-Score of 8.7 confirms fortress-level solvency. On valuation, the stock is trading at a premium 28.5x earnings, with trades far above its Graham Number ($4) with no margin of safety. Growth dynamics show revenue growing at 34.8% and profit growth of 5.8%. The 1.4% dividend yield adds an income component for patient holders. Our composite FairStock Score of 60/100 reflects above-average fundamentals overall. Investors should weigh the business quality against the current price and their own margin of safety requirements.

Bull Case

Super's 35% revenue growth trajectory could accelerate as it captures additional market share in the consumer cyclical sector. With $110 million in annual free cash flow (1.8% yield), management has ample capital for buybacks, dividends, or accretive acquisitions.

Bear Case

Macro headwinds or sector-specific disruption could pressure margins, particularly if competitive intensity increases in the consumer cyclical space. Regulatory changes, input cost inflation, or demand normalization represent underappreciated risks that could materially impact forward estimates.

Data from SEC filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer