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Relative to Communication Services Sector Median (N=134)
Metric
SGHC
Benchmark
P/E Ratio
3.6x
-86%
EV/EBITDA
2.4x
-51%
Price / Book
9.6x
Implied Value Audit
FAIR VALUE
Implied Fair Value (vs Sector)
+8.0%
$11.05Spot: $10.23
Spot
Implied
-50% Delta+50% Delta
Relative valuation derived from Communication Services sector median benchmarks. Model weights: EV/EBITDA (40%), P/B (35%), P/S (25%). Multiples adjusted for extreme outliers and non-recurring volatility.
Auditing capital efficiency...
Quality Profile Audit
Score: 37.3GRADE D
Composite assessment of profitability, capital efficiency, and financial strength. Top-tier entities demonstrate sustainable cash flow generation.
Return on Equity
Profit generated per dollar of shareholder equity
263.3%
Sector: 1.0%
Dividend Analysis audit
No Dividend
This company does not currently pay a dividend.
Analyst Projections
Analyst Consensus
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Based on our 6-factor quantitative model, Super Group (SGHC) Ltd (SGHC) receives a "Hold" rating with a composite score of 50.0/100, ranked #828 out of 4446 stocks. Key factor scores: Quality 37/100, Value 84/100, Momentum 63/100. This is quantitative analysis only — not investment advice.
Super Group (SGHC) Ltd (SGHC) Stock Analysis — April 2026 Rating, Price, and Forecast
Company Overview — What Does Super Group (SGHC) Ltd Do?
Super Group (SGHC) Limited operates as an online sports betting and gaming operator. It offers Betway, an online sports betting brand; and Spin, a multi-brand online casino offering. The company is based in Saint Peter Port, Guernsey. Super Group (SGHC) Ltd (SGHC) is classified as a mid-cap stock in the Communication Services sector, specifically within the Entertainment industry. The company is led by CEO Neal Menashe and employs approximately 4,000 people. With a market capitalization of $5.5B, SGHC is one of the notable companies in the Communication Services sector.
Super Group (SGHC) Ltd (SGHC) Stock Rating — Hold (April 2026)
As of April 2026, Super Group (SGHC) Ltd receives a Hold rating with a composite score of 50.0/100 and 3 out of 5 stars from the Blank Capital Research quantitative model.SGHC ranks #828 out of 4,446 stocks in our coverage universe. Within the Communication Services sector, Super Group (SGHC) Ltd ranks #18 of 134 stocks, placing it in the top quartile of its Communication Services peers. The rating is generated by a multi-factor model that weighs quality (30%), momentum (25%), value (15%), investment (10%), stability (10%), and short interest (10%).
SGHC Stock Price and 52-Week Range
Super Group (SGHC) Ltd (SGHC) currently trades at $10.23. The stock lost $0.35 (3.3%) in the most recent trading session. The 52-week high for SGHC is $14.38, which means the stock is currently trading -28.9% from its annual peak. The 52-week low is $5.59, putting the stock 83.0% above its annual trough. Recent trading volume was 2.7M shares, reflecting moderate market activity.
Is SGHC Overvalued or Undervalued? — Valuation Analysis
Super Group (SGHC) Ltd (SGHC) carries a value factor score of 84/100 in the Blank Capital model, suggesting the stock trades at a meaningful discount to its fundamental earning power. The price-to-book ratio stands at 9.58x, versus the sector average of 1.87x. The price-to-sales ratio is 0.73x, compared to 0.55x for the average Communication Services stock. On an enterprise value basis, SGHC trades at 2.42x EV/EBITDA, versus 4.98x for the sector. The EV/EBIT multiple is 11.04x.
Based on these multiples, Super Group (SGHC) Ltd appears attractively valued relative to both its sector peers and the broader market. Value-oriented investors may find the current entry point compelling, particularly if the company's fundamental quality metrics also score well.
Super Group (SGHC) Ltd Profitability — ROE, Margins, and Quality Score
Super Group (SGHC) Ltd (SGHC) earns a quality factor score of 37/100, signaling below-average profitability metrics relative to the broader market. The return on equity (ROE) is 263.3%, compared to the Communication Services sector average of 1.0%, which demonstrates strong shareholder value creation. Return on assets (ROA) comes in at 139.5% versus the sector average of -0.0%.
On a margin basis, Super Group (SGHC) Ltd reports gross margins of 107.2%, compared to 56.4% for the sector. The operating margin is 24.6% (sector: 0.4%). Net profit margin stands at 20.2%, versus -0.9% for the average Communication Services stock. Revenue growth is running at 18.6% on a trailing basis, compared to 3.0% for the sector. Profitability is below benchmark levels, which may reflect industry headwinds, elevated reinvestment, or structural challenges.
SGHC Debt, Balance Sheet, and Financial Health
Super Group (SGHC) Ltd has a debt-to-equity ratio of 12.0%, compared to the Communication Services sector average of 82.0%. The low leverage indicates a conservative balance sheet with significant financial flexibility. Total debt on the balance sheet is $67M. Cash and equivalents stand at $386M.
SGHC has a beta of 1.30, meaning it is more volatile than the broader market — a $10,000 investment in SGHC would be expected to move 30.3% more than the S&P 500 on any given day. The stability factor score for Super Group (SGHC) Ltd is 55/100, reflecting average volatility within the normal range for its sector.
Super Group (SGHC) Ltd Revenue and Earnings History — Quarterly Trend
In TTM 2026, Super Group (SGHC) Ltd reported revenue of $1.88B. Net income for the quarter was $380M. Gross margin was 107.2%. Operating income came in at $464M.
In FY 2024, Super Group (SGHC) Ltd reported revenue of $1.88B. Net income for the quarter was $380M. Gross margin was 107.2%. Revenue grew 19.3% year-over-year compared to FY 2023. Operating income came in at $464M.
In FY 2023, Super Group (SGHC) Ltd reported revenue of $1.58B. Net income for the quarter was $-10M. Gross margin was 99.2%. Revenue grew 14.1% year-over-year compared to FY 2022. Operating income came in at $27M.
In FY 2022, Super Group (SGHC) Ltd reported revenue of $1.38B. Net income for the quarter was $195M. Gross margin was 112.2%. Revenue grew -21.1% year-over-year compared to FY 2021. Operating income came in at $183M.
Over the past 6 quarters, Super Group (SGHC) Ltd has demonstrated a growth trajectory, with revenue expanding from $1.29B to $1.88B. Investors analyzing SGHC stock should weigh these quarterly trends alongside the valuation and quality metrics discussed above.
SGHC Dividend Yield and Income Analysis
Super Group (SGHC) Ltd (SGHC) does not currently pay a dividend. This is common among smaller companies in the Entertainment industry that prefer to reinvest cash flows into business expansion rather than returning capital to shareholders. Income-focused investors looking for Communication Services dividend stocks may want to explore other Communication Services stocks or use the stock screener to filter by dividend yield.
SGHC Momentum and Technical Analysis Profile
Super Group (SGHC) Ltd (SGHC) has a momentum factor score of 63/100, reflecting neutral trend characteristics. The stock is neither significantly outperforming nor underperforming the broader market on a momentum basis. The investment factor score is 42/100, which measures capital allocation efficiency and asset growth patterns. The short interest score of 8/100 signals elevated short interest, which can indicate bearish sentiment among institutional investors.
SGHC vs Competitors — Communication Services Sector Ranking and Peer Comparison
Comparing SGHC against the S&P 500 benchmark is also instructive for understanding relative performance. Investors can view the full SGHC vs S&P 500 (SPY) comparison to assess how Super Group (SGHC) Ltd stacks up against the broader market across all factor dimensions.
SGHC Next Earnings Date
No upcoming earnings date has been announced for Super Group (SGHC) Ltd (SGHC) at this time. Check the earnings calendar for the latest scheduling updates across all stocks in our coverage universe.
Should You Buy SGHC? — Investment Thesis Summary
Super Group (SGHC) Ltd presents a balanced picture with arguments on both sides. The quality score of 37/100 flags below-average profitability. The value score of 84/100 suggests attractive pricing relative to fundamentals. Price momentum is positive at 63/100, suggesting the trend favors buyers.
In summary, Super Group (SGHC) Ltd (SGHC) earns a Hold rating with a composite score of 50.0/100 as of April 2026. The rating is derived from the Blank Capital Research methodology, which combines six factor dimensions into a single quantitative ranking. Investors should consider these quantitative signals alongside their own fundamental research, risk tolerance, and investment time horizon before making buy or sell decisions on SGHC stock.
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Institutional Research Dossier
Super Group (SGHC) Ltd (SGHC) Deep Dive Analysis
Published on March 24, 2026
Action RatingHold
Sections
Executive Summary
Super Group (SGHC) currently holds a BCR Action Rating of Hold, a position supported by a composite score of 49.1/100. This rating reflects a balanced view of the company's strengths and weaknesses. While SGHC exhibits compelling value metrics and robust profitability compared to its sector, concerns regarding its capital allocation efficiency and moderate stability temper a more bullish outlook. The company's impressive revenue growth and high margins are counterbalanced by potential risks associated with the highly regulated and competitive online gaming industry.
The primary driver behind the Hold rating is the need for further evidence of sustained operational excellence and strategic capital deployment. While the current valuation appears attractive, the inherent volatility and regulatory uncertainties within the online gaming sector necessitate a cautious approach. Investors should closely monitor SGHC's ability to maintain its growth trajectory, navigate evolving regulatory landscapes, and effectively allocate capital to maximize shareholder value before considering a more aggressive investment stance.
Business Strategy & Overview
Super Group (SGHC) operates primarily through its two core brands: Betway and Spin. Betway focuses on online sports betting, offering a wide range of wagering options across various sports globally. Spin, on the other hand, is a multi-brand online casino platform providing a diverse portfolio of casino games, including slots, table games, and live dealer experiences. The company's strategy centers around expanding its global footprint, leveraging its established brands, and enhancing its technology platform to improve user experience and operational efficiency.
SGHC's revenue generation is primarily driven by customer wagers placed on its platforms. The company benefits from a scalable business model, where incremental revenue can be generated with relatively lower incremental costs, particularly in established markets. A key aspect of their strategy involves securing licenses and operating permits in regulated jurisdictions, which allows them to offer their services legally and build trust with customers. This regulatory compliance, while costly, is a significant barrier to entry for smaller competitors.
The company invests heavily in marketing and advertising to attract and retain customers. This includes sponsorships, partnerships with sports teams and leagues, and targeted online advertising campaigns. SGHC also focuses on developing and integrating innovative technologies to enhance its platform, including features like personalized betting recommendations, improved mobile applications, and enhanced security measures. These technological advancements are crucial for maintaining a competitive edge in the rapidly evolving online gaming market.
Super Group's strategic positioning involves targeting both developed and emerging markets. In developed markets, the focus is on increasing market share and optimizing operational efficiency. In emerging markets, the strategy involves securing licenses, building brand awareness, and adapting its offerings to local preferences. This dual approach allows SGHC to diversify its revenue streams and capitalize on growth opportunities across different regions. The company's success hinges on its ability to effectively manage regulatory complexities, adapt to changing consumer preferences, and maintain a strong brand reputation in a highly competitive environment.
Execution Benchmarks audit
Revenue Growth
YOY expansion rate
18.6%
Sector: 3.0%
+527% VS SCTR
Economic Moat Analysis
Super Group's economic moat is best characterized as Narrow. While the company possesses certain advantages, they are not insurmountable and are subject to erosion over time. The primary sources of SGHC's moat stem from brand recognition, regulatory licenses, and potentially some network effects, although the latter is less pronounced than in other industries.
The Betway brand, in particular, enjoys significant recognition in several key markets. This brand equity provides a degree of customer loyalty and reduces customer acquisition costs. However, the online gaming industry is characterized by intense competition and aggressive marketing, meaning that brand loyalty can be fleeting. Competitors can quickly erode SGHC's brand advantage through promotional offers and innovative product offerings.
Regulatory licenses represent a more substantial barrier to entry. Obtaining and maintaining licenses in regulated jurisdictions requires significant investment and expertise. This creates a hurdle for new entrants and provides SGHC with a competitive advantage in those markets. However, the regulatory landscape is constantly evolving, and SGHC must continuously adapt to new rules and regulations. Furthermore, the cost of compliance can be substantial, potentially impacting profitability.
Network effects, while present to some extent, are not a dominant factor in SGHC's moat. While a larger user base can attract more betting liquidity and potentially improve odds, the primary drivers of customer choice are brand reputation, promotional offers, and the quality of the platform. These factors are more easily replicated by competitors than true network effects. Therefore, while SGHC benefits from its scale, this advantage is not as durable as a true network effect.
In conclusion, Super Group possesses a narrow economic moat based on brand recognition and regulatory licenses. However, the intense competition and evolving regulatory landscape pose significant challenges to maintaining this moat over the long term. The company must continuously innovate and invest in its platform to defend its market position and prevent erosion of its competitive advantages.
Financial Health & Profitability
Super Group's financial health presents a mixed picture. The company exhibits strong revenue growth, with FY2024 revenue reaching $1.88 billion, representing an 18.6% increase compared to FY2023's $1.58 billion. This growth significantly outpaces the sector average of 3.1%, indicating a strong market position and effective execution of its growth strategy. However, it's crucial to note the volatility in net income, which swung from a substantial profit of $799.98 million in FY2021 to a loss of $9.52 million in FY2023 before rebounding to $379.87 million in FY2024. This volatility warrants further investigation into the underlying drivers, such as changes in marketing spend, regulatory costs, or market conditions.
The company's profitability metrics are generally impressive. The gross margin of 107.2% and operating margin of 24.6% in FY2024 are significantly higher than the sector averages of 56.8% and 0.5%, respectively. This suggests that SGHC has a strong pricing power and efficient cost management. The ROE of 263.3% is exceptionally high, far exceeding the sector average of 0.9%. However, such a high ROE should be scrutinized for sustainability and potential distortions due to leverage or accounting practices.
SGHC's balance sheet appears relatively healthy. With total cash of $385.97 million and total debt of $66.83 million, the company has a strong net cash position. The debt-to-equity ratio of 12.00 is significantly lower than the sector average of 80.00, indicating a conservative capital structure. The current ratio is not available, which limits a full assessment of short-term liquidity. However, the strong cash position suggests that the company is well-positioned to meet its short-term obligations.
Free cash flow generation has been volatile. While FY2024 saw a robust FCF of $371.92 million, FY2023 experienced a significantly lower FCF of $17.64 million. This variability in FCF raises concerns about the consistency of the company's cash-generating ability. Investors should closely monitor FCF trends to assess the long-term sustainability of the business model.
Overall, Super Group's financial health is characterized by strong revenue growth, high profitability, and a healthy balance sheet. However, the volatility in net income and free cash flow warrants caution. Investors should carefully analyze the underlying drivers of these fluctuations to assess the long-term sustainability of the company's financial performance.
Valuation Assessment
Super Group's valuation presents a compelling case for value investors, but requires careful consideration of the inherent risks within the online gaming sector. The company's P/E ratio is not available, but given the net income of $379.87 million and a market cap of $5.29 billion, a rough calculation would suggest a P/E in the low teens, significantly below the sector average of 26.0x. This indicates that the market may be undervaluing SGHC's earnings potential.
The EV/EBITDA multiple of 2.3x is strikingly low compared to the sector average of 5.0x. This suggests that SGHC is significantly undervalued relative to its earnings before interest, taxes, depreciation, and amortization. This low multiple could be attributed to concerns about the sustainability of its growth, regulatory risks, or the competitive landscape. However, it also presents an opportunity for investors who believe that SGHC can maintain its current performance.
The free cash flow yield, calculated by dividing free cash flow by market cap, is approximately 7.03% ($371.92 million / $5.29 billion). This is a relatively attractive yield, suggesting that the company is generating a significant amount of cash relative to its market value. This cash can be used for reinvestment, acquisitions, or shareholder returns, providing flexibility for management to create value.
Compared to its historical performance, SGHC's current valuation appears reasonable. While historical P/E ratios are not provided, the company's strong revenue growth and profitability suggest that it is trading at a discount to its potential. However, it's important to note that the online gaming industry is subject to rapid changes and regulatory uncertainties, which can impact future performance.
Overall, Super Group's valuation appears attractive based on its EV/EBITDA multiple and free cash flow yield. However, investors should carefully consider the risks associated with the online gaming industry before making an investment decision. The Hold rating reflects a balanced view of the company's valuation and its inherent risks. A more bullish rating would require greater confidence in the sustainability of its growth and profitability.
Risk & Uncertainty
Super Group faces several key risks that could significantly impact its business and financial performance. The most prominent risk is regulatory uncertainty. The online gaming industry is heavily regulated, and changes in regulations can have a material impact on SGHC's operations. This includes potential restrictions on advertising, increased taxes, and limitations on the types of games or bets that can be offered. The company must continuously monitor and adapt to evolving regulatory landscapes in each of its operating jurisdictions.
Competition is another significant risk. The online gaming market is highly competitive, with numerous established players and new entrants vying for market share. This intense competition can lead to price wars, increased marketing expenses, and reduced profitability. SGHC must continuously innovate and differentiate its offerings to maintain its competitive edge.
Customer acquisition and retention costs are also a concern. The online gaming industry is characterized by high customer churn rates, meaning that companies must constantly invest in marketing and promotions to attract and retain customers. This can put pressure on profitability, particularly in highly competitive markets. SGHC must effectively manage its customer acquisition costs and improve customer loyalty to maintain its financial performance.
Furthermore, SGHC is exposed to operational risks, including cybersecurity threats and platform outages. A successful cyberattack could compromise customer data, disrupt operations, and damage the company's reputation. Platform outages can also lead to lost revenue and customer dissatisfaction. SGHC must invest in robust security measures and ensure the reliability of its platform to mitigate these risks.
Bulls Say / Bears Say
The Bull Case
BULL VIEWSuper Group's low EV/EBITDA multiple and strong free cash flow generation make it an undervalued play in the rapidly growing online gaming market.
BULL VIEWThe company's established Betway brand and expanding global footprint position it to capitalize on the increasing legalization and acceptance of online sports betting and gaming.
The Bear Case
BEAR VIEWIntense competition and evolving regulations in the online gaming industry pose significant threats to Super Group's long-term profitability and growth.
BEAR VIEWThe volatility in Super Group's net income and free cash flow raises concerns about the sustainability of its financial performance and its ability to generate consistent returns.
About the Author
Marques Blank
Founder & Chief Investment Officer, Blank Capital
Marques brings 15 years of institutional finance and investing experience, having overseen financial planning for a $1.6B defense business unit. He developed the proprietary 6-factor quantitative model used to score SGHC and 4,400+ other equities.
Super Group (SGHC) Ltd exhibits a 77% valuation premium relative to institutional benchmarks. This represents a potential valuation overextension based on current multiples.
Return on Assets
Efficiency of asset utilization
139.5%
Sector: -0.0%
Gross Margin
Pricing power and cost efficiency
107.2%
Sector: 56.4%
Operating Margin
Core business profitability
24.6%
Sector: 0.4%
Net Margin
Bottom-line profitability
20.2%
Sector: -0.9%
Factor Methodology
The Quality factor evaluates the persistence and magnitude of cash flows. Companies with scores >70 exhibit superior competitive moats and financial resilience through economic cycles.
