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SGH (SGH) AI Stock Analysis

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AU:SGH

SGH

(ASX:SGH)

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Rating:56Neutral
Price Target:AUD 43.00â–²(5.50% Upside)
Action:reiterated
Date:08/19/26

The score is driven primarily by solid but volatile fundamentals (improving leverage and decent profitability offset by weak revenue momentum, gross-margin compression, and uneven cash conversion). Technical indicators add downside pressure with the stock below key moving averages and negative MACD. Valuation provides limited support given a higher P/E and modest dividend yield.

Positive Factors
Diversified operating portfolioExposure to WesTrac, Boral and Beach Energy diversifies earnings across equipment services, construction materials and energy. WesTrac’s parts, maintenance and service agreements can add recurring revenue tied to customer fleet utilization.
Negative Factors
Weak revenue momentumFlat-to-declining revenue indicates limited recent top-line expansion across SGH’s operating portfolio. Without stronger equipment, materials or energy volume growth, fixed-cost absorption and future earnings progression may remain constrained.

SGH (SGH) vs. iShares MSCI Australia ETF (EWA)

-30%-20%-10%0%10%20%AU:SGH-12.57%EWA+13.51%Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26
Market Cap
AUD 16.48B
Dividend Yield
1.57%
Average Volume (3M)
670.12K
Price to Earnings (P/E)
24.0
Beta (1Y)
1.32
Revenue Growth
-1.44%
EPS Growth
32.96%
Country
Australia
Employees
4,210
Sector
Industrials
Sector Strength
63
Industry
Industrial - Distribution

SGH Business Overview & Revenue Model

Company Description

SGH Ltd. functions as an investment firm, strategically concentrating its efforts on industrial services, media holdings, and various other investment ventures. Its diverse operations are structured across several key business segments: WesTrac, Coat...

How the Company Makes Money

SGH makes money primarily through earnings and cash distributions from its operating businesses and equity-accounted investments. Key revenue and earnings drivers include: (1) Industrial services and equipment: via WesTrac (its Caterpillar dealership...

SGH Financial Statement Overview

Summary

Financial profile is solid but uneven. Revenue has been flat-to-down recently, margins are volatile (notably sharp gross margin compression in 2026 despite improved EBIT and net margins), and cash conversion is weaker than ideal with free cash flow declining year over year and covering less than half of net income. Offsetting this, leverage has improved and ROE remains healthy, supporting overall resilience.

Income Statement

62Positive

Balance Sheet

66Positive

Cash Flow

58Neutral
Financial statement breakdown
BreakdownTTMJun 2026Jun 2025Jun 2024Jun 2023Jun 2022
Income Statement
Total Revenue10.59B10.59B10.74B10.62B9.63B9.63B
Gross Profit2.25B2.25B4.01B3.86B3.56B1.73B
EBITDA1.93B1.93B1.56B1.56B1.63B795.89M
Net Income689.20M689.20M522.90M464.40M596.60M558.40M
Balance Sheet
Total Assets12.90B12.90B12.93B13.60B13.63B13.59B
Cash, Cash Equivalents and Short-Term Investments231.80M231.80M176.60M654.30M876.50M15.63M
Total Debt5.06B5.06B5.37B5.98B5.88B5.88B
Total Liabilities7.66B7.66B8.12B9.49B9.01B9.01B
Stockholders Equity5.20B5.20B4.78B4.09B3.91B3.55B
Cash Flow
Free Cash Flow708.70M708.70M651.00M133.20M589.80M589.80M
Operating Cash Flow1.49B1.49B1.42B808.20M1.19B1.19B
Investing Cash Flow-714.90M-714.90M-677.70M-467.60M-528.90M-528.90M
Financing Cash Flow-716.00M-716.00M-1.22B-563.00M-1.08B-1.08B

SGH Peers Comparison

Overall Rating

UnderperformOutperform
Sector (63)

Financial Indicators

AU:SGH against its peers
NameOverall RatingMarket CapP/E RatioROEDividend YieldRevenue GrowthEPS Growth
AU:GNPAU:GNP79OutperformAUD 1.66B30.0416.92%0.69%70.52%35.44%
AU:MNDAU:MND72OutperformAUD 2.96B23.1622.77%3.67%29.43%50.05%
AU:SRGAU:SRG70OutperformAUD 2.17B29.6415.84%2.04%26.61%44.44%
AU:NWHAU:NWH70OutperformAUD 2.91B18.5323.03%3.65%31.39%451.49%
Sector *63Neutral$10.79B15.437.44%2.01%2.89%-14.66%
AU:SGHAU:SGH56NeutralAUD 16.48B23.9813.34%1.57%-1.44%32.96%
AU:DOWAU:DOW55NeutralAUD 4.65B21.6411.01%4.09%-7.37%59.81%

* Industrials Sector Average

Performance Comparison

-20%0%20%40%60%AU:SGHAU:DOWAU:MNDAU:NWHAU:SRGAU:GNPDec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26
AU:SGH and its peers over the selected period
Show on chartTickerCompany NamePriceChange% Change
AU:SGHSGH Limited40.76-6.56-13.86%
AU:DOWDowner EDI Limited7.14-0.27-3.58%
AU:MNDMonadelphous Group Limited29.417.2832.89%
AU:NWHNRW Holdings Limited6.301.6435.22%
AU:SRGSRG Global Limited3.430.6824.77%
AU:GNPGenusPlus Group Ltd.8.111.4321.50%

SGH Corporate Events

SGH Limited Updates Market on Progress of On-Market Share Buy-Back

Aug 18, 2026

SGH Limited has provided an updated notification to the ASX on its ongoing on-market share buy-back program, confirming that a total of 1,081,935 ordinary fully paid shares had been repurchased before the previous trading day. The company reports tha...

SGH Issues New Shares Following Conversion of Unquoted Securities

Aug 18, 2026

SGH Limited has notified the market of the issuance of additional ordinary fully paid shares following the exercise or conversion of unquoted options or other convertible securities. The company reported the creation of 265,866 new shares on 12 Augus...

SGH Continues On-Market Share Buy-Back With Daily Repurchase Update

Aug 17, 2026

SGH Limited, listed on the ASX under the code SGH, operates through ordinary fully paid shares that are subject to an ongoing on-market buy-back. The company’s program reflects a focus on managing its share capital through regular repurchases d...

SGH Limited Updates Market on Progress of Ongoing Share Buy-Back

Aug 16, 2026

SGH Limited has provided an updated notification to the ASX on its ongoing on-market share buy-back, covering ordinary fully paid shares under the SGH ticker. The program, first notified in late June 2026, continues to be reported through daily discl...

SGH Updates Market on Daily Progress of On‑Market Share Buy‑Back

Aug 13, 2026

SGH Limited has provided an updated notification to the ASX regarding its ongoing on‑market share buy‑back program for its ordinary fully paid shares. The company reported that a total of 424,794 shares had been repurchased before the pre...

SGH director Kate Farrar increases shareholding in on-market trade

Aug 13, 2026

SGH Ltd has disclosed a change in director Kate Farrar’s holdings, in line with ASX listing rule 3.19A.2 and the Corporations Act’s director interest provisions. The notice underscores the company’s adherence to mandatory transparen...

SGH Updates Market on Progress of On‑Market Share Buy‑Back

Aug 13, 2026

SGH Limited has provided an update to investors on its ongoing on-market share buy-back program for its ordinary fully paid shares. The latest notification to the ASX confirms that, as of the previous trading day, the company repurchased 424,794 shar...

SGH director Warwick Smith increases indirect shareholding via on‑market trade

Aug 12, 2026

SGH Ltd has disclosed a change in the shareholding interests of director The Hon. Warwick Smith AO, reported as an indirect interest held through Relbia Pty Ltd, the Warwick Smith Super Fund. The transaction underscores the company’s adherence...

SGH Director John Gillam Establishes New Indirect Shareholding

Aug 12, 2026

SGH Ltd, a publicly listed company on the Australian Securities Exchange, is governed by ASX listing rules that require prompt disclosure of changes in directors’ interests, reinforcing transparency for shareholders. The company’s ordinar...

SGH updates disclosure on on‑market share buy‑back

Aug 11, 2026

SGH Limited has updated investors on its ongoing on‑market share buy‑back of ordinary fully paid shares, lodged as an amendment to its prior notification. The company clarified that the update primarily reflects the addition of the broker...

SGH grows earnings and margins as industrial services drive FY26 results

Aug 11, 2026

SGH reported that revenue for the year to 30 June 2026 was broadly flat at $10.6 billion, but EBITDA rose 2% to $2.1 billion and EBIT increased 1% to $1.6 billion, driven mainly by its industrial services division. Earnings growth was strongest at Bo...

SGH Limited files new ASX notice for upcoming shareholder distribution

Aug 10, 2026

SGH Limited has lodged a new dividend or distribution notification with the ASX for its ordinary fully paid shares under Appendix 3A.1. The announcement, dated 11 August 2026, confirms this is a fresh corporate action rather than an update or cancell...

SGH Files Updated Corporate Governance Statement with ASX

Aug 10, 2026

SGH Limited has lodged its annual corporate governance statement for the year ended 30 June 2026, confirming compliance with ASX Listing Rules and the Corporate Governance Council’s Principles and Recommendations. The statement, current as of 1...

SGH Ltd Publishes 2026 Annual Report for Diversified Australian Operations

Aug 10, 2026

SGH Ltd has released its annual report for the year ended 30 June 2026, providing shareholders with a comprehensive view of the performance of its industrial services, energy and media operations. The report, authorised by the board, will inform inve...

SGH unveils FY26 investor presentation, highlighting diversified portfolio strength

Aug 10, 2026

SGH Ltd has released its investor presentation and financial results for the year ended 30 June 2026, authorised by its board and led by Managing Director and CEO Ryan Stokes. The presentation underscores the performance and strategic positioning of...

SGH posts FY26 margin gains, strengthens balance sheet for growth

Aug 10, 2026

SGH Ltd reported full‑year FY26 results showing modest earnings growth and margin expansion in line with guidance, with underlying EBIT up 1% to $1.55 billion and the group EBIT margin improving to 14.7%. Revenue was broadly flat at $10.6 billi...

SGH Ltd lodges 2026 full-year Appendix 4E

Aug 10, 2026

SGH Ltd has released its Appendix 4E for the full year ended 30 June 2026, detailing its 2026 financial results to the market. The filing, authorised by the board, marks the formal disclosure of annual performance for the diversified group’s in...

SGH sets August date for FY26 results and webcast

Jul 9, 2026

SGH Ltd will release its FY26 financial results and Annual Report on 11 August 2026 at 10:00am AEST, accompanied by a teleconference and webcast hosted by Managing Director and CEO Ryan Stokes and CFO Richard Richards. The webcast will be accessible...

SGH Limited Reports Lapse and Cessation of Share Rights

Jul 3, 2026

SGH Limited has reported the cessation of a total of 75,739 share rights, as disclosed in a recent Appendix 3H filing with the ASX. The company indicated that 45,667 of these share rights lapsed because performance or vesting conditions were not sati...

SGH Director Vik Bansal Sees Portion of Equity Retention Award Lapse

Jul 3, 2026

SGH Limited has disclosed a change in the equity interests of director Vik Bansal, who holds both ordinary shares and SGH Share Rights through a controlled entity. Following the latest adjustment, Bansal’s holding remains at 165,369 ordinary sh...

SGH Limited Launches On-Market Share Buy-Back of Ordinary Shares

Jun 21, 2026

SGH Limited has announced a new on-market share buy-back of its ordinary fully paid shares listed on the Australian Securities Exchange. The company has formally notified the market of this capital management initiative, which is expected to affect t...

SGH launches up to $500m on-market share buy-back after de-leveraging

Jun 21, 2026

SGH Ltd has approved an on-market share buy-back of up to $500 million of its ordinary shares over the next 12 months, signalling confidence in its balance sheet strength after a period of strong cash generation and de-leveraging that has pushed leve...

SGH Discloses Final Director Interest Notice for Terry Davis

Jun 1, 2026

SGH Limited has announced that director Terry Davis has ceased to be a director of the company as of 1 June 2026, in line with ASX listing rule disclosure obligations. The filing details Davis’s final interests, including 50,000 securities held...

SGH showcases diversified portfolio at FY26 Investor Day

May 21, 2026

SGH Ltd has released an investor presentation to be delivered at its FY26 Investor Day by chief executive Ryan Stokes and senior executives. The event is intended to brief investors on the performance and strategy of its diversified operations spanni...

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Date of analysis: Aug 19, 2026