Smartgroup Corporation Ltd (SIQ) AI Stock Analysis

• Market Cap: $1.08B
• Dividend Yield: 6.33%
• Average Volume (3M): 566.56K
• Price to Earnings (P/E): 13.0
• Beta (1Y): 0.80
• Revenue Growth: 11.64%
• EPS Growth: 18.08%
• Country: AU
• Employees: 870
• Sector: Industrials
• Sector Strength: 72
• Industry: Specialty Business Services
• EPS (TTM): 0.28
• Shares Outstanding: 135,605,550
• 10 Day Avg. Volume: 304,311
• 30 Day Avg. Volume: 566,562
• PEG Ratio: 0.64
• Price to Book (P/B): 3.90
• Price to Sales (P/S): 3.30
• P/FCF Ratio: 20.38
• Enterprise Value/Market Cap: 0.74
• Enterprise Value/Revenue: 2.53
• Enterprise Value/Gross Profit: 4.71
• Enterprise Value/Ebitda: 6.22
• 1Y Price Target: $9.22
• Price Target Upside: 15.51% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 6

• Rating: 74 Outperform
• Price Target: AU$9.00 ▲(12.78% Upside)

Smartgroup Corporation Ltd scores well due to its strong financial performance and attractive valuation. However, technical indicators suggest bearish momentum, which tempers the overall score. The absence of operating cash flow in 2024 is a concern that needs addressing to maintain financial health.

Smartgroup Corporation Ltd Business Overview & Revenue Model

Company Description

Smartgroup Corporation Ltd provides employee management services in Australia. It operates through Outsourced Administration (OA); Vehicle Services (VS); and Software, Distribution, and Group Services (SDGS) segments. The OA segment offers outsourced salary packaging services, novated leasing, and outsourced payroll services. The VS segment provides end-to-end fleet management services. The SDGS segment offers salary packaging software solutions; markets salary packaging debit cards; and distributes vehicle insurances and workforce management software to the healthcare industry. It serves community and charity workers in not-for-profit organizations; teachers, administrators, and support personnel in the education industry; nurses, clinicians, and auxiliary staff in the health industry; government sector; and corporate organizations. Smartgroup Corporation Ltd was founded in 1999 and is headquartered in Sydney, Australia.

How the Company Makes Money

Smartgroup generates revenue primarily through its salary packaging and novated leasing services. The company charges employers and employees a fee for managing these services, which includes administrative costs and service fees. Additionally, Smartgroup earns revenue from fleet management services, where it oversees the procurement and maintenance of vehicles for clients. The company also benefits from partnerships with various organizations, allowing them to expand their service offerings and client base. Significant factors contributing to its earnings include the growing demand for employee benefits programs, increased awareness of salary packaging advantages, and strategic collaborations with other businesses in the human resources sector.

Smartgroup Corporation Ltd Financial Statement Overview

Summary

Smartgroup Corporation Ltd demonstrates strong financial performance with impressive revenue growth and profitability. The balance sheet is stable with moderate leverage, but there are concerns about the drop in operating cash flow, which could impact future cash generation.

Income Statement

Smartgroup Corporation Ltd has demonstrated impressive revenue growth with a consistent upward trajectory from 2020 to 2024. The gross profit margin is robust, reflecting efficient cost management. However, the EBIT margin in 2024 was notably absent, which may indicate operational challenges. The net profit margin is healthy, indicating strong overall profitability.

Balance Sheet

The company maintains a reasonable debt-to-equity ratio, suggesting a balanced approach to leveraging. Stockholders' equity has been stable, although there was a slight decline over the years. The equity ratio remains strong, indicating a solid foundation of owned assets versus liabilities.

Cash Flow

Free cash flow has shown positive growth, especially notable in 2024 despite the decline in operating cash flow. The absence of operating cash flow in 2024 raises concerns about the sustainability of cash generation through operations. The company's ability to convert net income into free cash flow is commendable.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	316.48M	305.84M	251.61M	224.70M	221.80M	216.33M
Gross Profit	170.45M	291.90M	130.31M	122.07M	122.32M	106.00M
EBITDA	128.85M	123.69M	99.91M	93.58M	99.28M	89.07M
Net Income	79.42M	75.60M	61.92M	58.78M	58.81M	41.33M
Balance Sheet
Total Assets	640.26M	653.36M	417.53M	405.84M	408.26M	408.44M
Cash, Cash Equivalents and Short-Term Investments	54.90M	34.65M	32.79M	62.73M	32.45M	27.37M
Total Debt	108.23M	84.36M	72.30M	62.66M	36.54M	37.09M
Total Liabilities	381.99M	395.07M	173.71M	165.50M	142.03M	137.51M
Stockholders Equity	258.26M	258.28M	243.82M	240.34M	266.23M	270.94M
Cash Flow
Free Cash Flow	189.08M	49.48M	49.21M	52.04M	61.48M	56.40M
Operating Cash Flow	198.94M	77.54M	67.23M	66.97M	69.40M	58.16M
Investing Cash Flow	-14.71M	-22.84M	-8.69M	-14.93M	-7.75M	-1.76M
Financing Cash Flow	-50.65M	-52.85M	-50.43M	-62.96M	-63.48M	-85.96M

Smartgroup Corporation Ltd Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 7.98
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:SIQ, the sentiment is Neutral. The current price of 7.98 is below the 20-day moving average (MA) of 8.01, below the 50-day MA of 8.18, and above the 200-day MA of 7.61, indicating a neutral trend. The MACD of -0.02 indicates Negative momentum. The RSI at 46.08 is Neutral, neither overbought nor oversold. The STOCH value of 71.84 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for AU:SIQ.

Smartgroup Corporation Ltd Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CUP	76 Outperform	AU$175.96M	19.66	8.06%	4.15%	27.05%	520.93%
SIQ	74 Outperform	$1.08B	13.04	31.30%	6.33%	11.64%	18.08%
MAD	68 Neutral	AU$1.70B	29.41	30.67%	0.91%	12.62%	12.46%
IPH	68 Neutral	AU$959.06M	14.24	10.32%	9.92%	16.61%	3.07%
KPG	64 Neutral	AU$461.80M	134.21	13.37%	0.09%	24.47%	21.28%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
STG	42 Neutral	AU$19.62M	―	-34.93%	―	-11.90%	-374.59%

Smartgroup Corporation Ltd Corporate Events

State Street Ceases Substantial Holding in Smartgroup

Smartgroup Corporation Ltd has announced that State Street Corporation and its subsidiaries have ceased to be substantial holders in the company as of October 17, 2025. This change in substantial holding may impact the company’s shareholder dynamics and could influence future voting outcomes and strategic decisions.

The most recent analyst rating on (AU:SIQ) stock is a Buy with a A$9.00 price target. To see the full list of analyst forecasts on Smartgroup Corporation Ltd stock, see the AU:SIQ Stock Forecast page.

State Street Ceases Substantial Holding in Smartgroup

Smartgroup Corporation Ltd has announced that State Street Corporation and its subsidiaries have ceased to be substantial holders in the company as of October 14, 2025. This change in substantial holding could impact the company’s shareholder structure and potentially influence its market positioning, as State Street’s divestment might affect investor perception and future investment strategies.

The most recent analyst rating on (AU:SIQ) stock is a Buy with a A$8.50 price target. To see the full list of analyst forecasts on Smartgroup Corporation Ltd stock, see the AU:SIQ Stock Forecast page.

Smartgroup Sees Change in Substantial Holder Status

Smartgroup Corporation Ltd has announced a change in the status of a substantial holder, with State Street Global Advisors and its subsidiaries ceasing to hold a significant interest in the company as of October 1, 2025. This development may impact the company’s shareholder structure and could have implications for its market positioning, as changes in substantial holdings can influence investor perceptions and strategic decisions.

The most recent analyst rating on (AU:SIQ) stock is a Buy with a A$9.00 price target. To see the full list of analyst forecasts on Smartgroup Corporation Ltd stock, see the AU:SIQ Stock Forecast page.

State Street Corporation Ceases Substantial Holding in Smartgroup

Smartgroup Corporation Ltd has announced that State Street Corporation and its subsidiaries have ceased to be substantial holders in the company as of September 19, 2025. This change in substantial holding may impact the company’s shareholder structure and influence its future strategic decisions, potentially affecting its market positioning and stakeholder interests.

The most recent analyst rating on (AU:SIQ) stock is a Hold with a A$9.10 price target. To see the full list of analyst forecasts on Smartgroup Corporation Ltd stock, see the AU:SIQ Stock Forecast page.

Smartgroup Issues New Performance Rights to Employees

Smartgroup Corporation Ltd has announced the issuance of 5,815 performance rights under its employee incentive scheme, which are not intended to be quoted on the ASX. This move is part of the company’s strategy to motivate and retain key employees, potentially impacting its operational efficiency and market competitiveness.

The most recent analyst rating on (AU:SIQ) stock is a Hold with a A$9.10 price target. To see the full list of analyst forecasts on Smartgroup Corporation Ltd stock, see the AU:SIQ Stock Forecast page.

Smartgroup Announces Quotation of New Securities on ASX

Smartgroup Corporation Ltd has announced the quotation of 57,698 ordinary fully paid securities on the Australian Securities Exchange (ASX) under the code SIQ. These securities are part of an employee incentive scheme, indicating the company’s ongoing commitment to employee engagement and retention strategies, which may enhance its competitive positioning in the market.

The most recent analyst rating on (AU:SIQ) stock is a Hold with a A$9.10 price target. To see the full list of analyst forecasts on Smartgroup Corporation Ltd stock, see the AU:SIQ Stock Forecast page.

Smartgroup Reports Strong Growth in Revenue and Profit

Smartgroup Corporation Ltd is an Australian company specializing in outsourced employee benefits and administration services, primarily focusing on salary packaging, novated leasing, and fleet management. In its latest earnings report for the half-year ending June 2025, Smartgroup reported a 7% increase in revenue to $159.1 million, driven by higher novated leasing volumes and new client acquisitions. The company’s net profit after tax rose by 11% to $38.1 million, reflecting strong operational performance and strategic investments in growth initiatives.

Smartgroup’s 2025 Half-Year Results Highlight Cultural Commitment

Smartgroup Corporation Ltd has released its half-year results for 2025, presented by Managing Director and CEO Scott Wharton, along with CFO Jason King. The company acknowledges the traditional custodians of the land in Australia, emphasizing the importance of respecting Aboriginal and Torres Strait Islander cultures. The announcement reflects Smartgroup’s commitment to integrating cultural respect into its operations, which may enhance its industry positioning and stakeholder relationships.

The most recent analyst rating on (AU:SIQ) stock is a Buy with a A$8.50 price target. To see the full list of analyst forecasts on Smartgroup Corporation Ltd stock, see the AU:SIQ Stock Forecast page.

Smartgroup Reports Strong H1 2025 Financial Results with 12% NPATA Growth

Smartgroup Corporation Ltd reported a strong financial performance for the first half of 2025, with a 12% increase in NPATA to $38.1 million and a 7% rise in revenue to $159.1 million. The company achieved significant growth in novated leasing settlements and saw a substantial increase in electric vehicle lease orders, reflecting its strategic focus on digital marketing and customer service enhancement. The company’s robust cash flow and low net debt position allowed for an 11% increase in interim dividends, highlighting its solid financial health and commitment to shareholder returns.

The most recent analyst rating on (AU:SIQ) stock is a Buy with a A$8.50 price target. To see the full list of analyst forecasts on Smartgroup Corporation Ltd stock, see the AU:SIQ Stock Forecast page.

Smartgroup Corporation Announces Dividend Distribution

Smartgroup Corporation Ltd has announced a dividend distribution of AUD 0.195 per share for the period ending June 30, 2025. The ex-dividend date is set for September 8, 2025, with the record date on September 9, 2025, and payment scheduled for September 23, 2025. This announcement reflects the company’s ongoing commitment to returning value to its shareholders and may positively impact investor sentiment.

The most recent analyst rating on (AU:SIQ) stock is a Buy with a A$8.50 price target. To see the full list of analyst forecasts on Smartgroup Corporation Ltd stock, see the AU:SIQ Stock Forecast page.

Smartgroup Completes Employee Share Buy-Back

Smartgroup Corporation Ltd has announced the final notification of its employee share scheme buy-back, purchasing a total of 146,598 ordinary fully paid securities for approximately AUD 1.2 million. This buy-back is part of the company’s strategy to manage its capital structure and could potentially impact its share value and stakeholder interests.

The most recent analyst rating on (AU:SIQ) stock is a Hold with a A$9.50 price target. To see the full list of analyst forecasts on Smartgroup Corporation Ltd stock, see the AU:SIQ Stock Forecast page.

Mitsubishi UFJ Financial Group Ceases Substantial Holding in Smartgroup

Smartgroup Corporation Ltd has announced that Mitsubishi UFJ Financial Group, Inc. has ceased to be a substantial holder in the company. This change is due to the purchase of securities by entities controlled by First Sentier Group Limited and Morgan Stanley, impacting the voting securities and potentially altering the company’s shareholder structure.

The most recent analyst rating on (AU:SIQ) stock is a Hold with a A$9.50 price target. To see the full list of analyst forecasts on Smartgroup Corporation Ltd stock, see the AU:SIQ Stock Forecast page.

First Sentier Investors Cease Substantial Holding in Smartgroup Corporation

Smartgroup Corporation Ltd has announced that First Sentier Investors and its related entities have ceased to be substantial holders in the company as of August 1, 2025. This change in substantial holding may impact the company’s shareholder structure and could influence its stock market performance, as substantial holders often play a significant role in corporate governance and strategic decisions.

The most recent analyst rating on (AU:SIQ) stock is a Hold with a A$9.50 price target. To see the full list of analyst forecasts on Smartgroup Corporation Ltd stock, see the AU:SIQ Stock Forecast page.

Smartgroup Announces Employee Share Buy-Back

Smartgroup Corporation Ltd has announced a new buy-back of its ordinary fully paid shares under an employee share scheme. This move is likely aimed at enhancing shareholder value and optimizing the company’s capital structure, potentially strengthening its market position and benefiting stakeholders.

The most recent analyst rating on (AU:SIQ) stock is a Hold with a A$9.50 price target. To see the full list of analyst forecasts on Smartgroup Corporation Ltd stock, see the AU:SIQ Stock Forecast page.