Latest news with #SuperRetailGroupLimited
Business Insider
09-05-2025
- Business
- Business Insider
Morgans Keeps Their Buy Rating on Super Retail Group Limited (SUL)
In a report released today, Jared Gelsomino from Morgans maintained a Buy rating on Super Retail Group Limited (SUL – Research Report), with a price target of A$16.15. Protect Your Portfolio Against Market Uncertainty Discover companies with rock-solid fundamentals in TipRanks' Smart Value Newsletter. Receive undervalued stocks, resilient to market uncertainty, delivered straight to your inbox. According to TipRanks, Gelsomino is ranked #7194 out of 9472 analysts. In addition to Morgans, Super Retail Group Limited also received a Buy from Citi's Adrian Lemme in a report issued yesterday. However, today, UBS maintained a Hold rating on Super Retail Group Limited (ASX: SUL). Based on Super Retail Group Limited's latest earnings release for the quarter ending December 28, the company reported a quarterly revenue of A$2.11 billion and a net profit of A$129.8 million. In comparison, last year the company earned a revenue of A$2.02 billion and had a net profit of A$143.4 million Based on the recent corporate insider activity of 17 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of SUL in relation to earlier this year.
Business Insider
08-05-2025
- Business
- Business Insider
Citi Sticks to Its Buy Rating for Super Retail Group Limited (SUL)
In a report released today, Adrian Lemme from Citi maintained a Buy rating on Super Retail Group Limited (SUL – Research Report), with a price target of A$18.00. Protect Your Portfolio Against Market Uncertainty Discover companies with rock-solid fundamentals in TipRanks' Smart Value Newsletter. Receive undervalued stocks, resilient to market uncertainty, delivered straight to your inbox. According to TipRanks, Lemme is ranked #1373 out of 9472 analysts. Currently, the analyst consensus on Super Retail Group Limited is a Moderate Buy with an average price target of A$15.36. The company has a one-year high of A$18.40 and a one-year low of A$12.06. Currently, Super Retail Group Limited has an average volume of 764K. Based on the recent corporate insider activity of 17 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of SUL in relation to earlier this year.
Business Insider
07-05-2025
- Business
- Business Insider
Super Retail Group Limited (SUL) Receives a Sell from Morgan Stanley
In a report released today, Melinda Baxter from Morgan Stanley maintained a Sell rating on Super Retail Group Limited (SUL – Research Report), with a price target of A$12.20. The company's shares opened today at A$13.18. Protect Your Portfolio Against Market Uncertainty Discover companies with rock-solid fundamentals in TipRanks' Smart Value Newsletter. Receive undervalued stocks, resilient to market uncertainty, delivered straight to your inbox. According to TipRanks, Baxter is an analyst with an average return of -7.4% and a 36.59% success rate. Baxter covers the Consumer Defensive sector, focusing on stocks such as Treasury Wine Estates Limited, Woolworths Group Ltd, and Coles Group. Currently, the analyst consensus on Super Retail Group Limited is a Moderate Buy with an average price target of A$15.71. The company has a one-year high of A$18.40 and a one-year low of A$12.06. Currently, Super Retail Group Limited has an average volume of 764.3K. Based on the recent corporate insider activity of 17 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of SUL in relation to earlier this year.
Yahoo
29-04-2025
- Business
- Yahoo
A Look At The Fair Value Of Super Retail Group Limited (ASX:SUL)
Super Retail Group's estimated fair value is AU$13.70 based on 2 Stage Free Cash Flow to Equity Current share price of AU$13.23 suggests Super Retail Group is potentially trading close to its fair value Our fair value estimate is 7.3% lower than Super Retail Group's analyst price target of AU$14.78 Today we will run through one way of estimating the intrinsic value of Super Retail Group Limited (ASX:SUL) by taking the expected future cash flows and discounting them to their present value. The Discounted Cash Flow (DCF) model is the tool we will apply to do this. There's really not all that much to it, even though it might appear quite complex. We generally believe that a company's value is the present value of all of the cash it will generate in the future. However, a DCF is just one valuation metric among many, and it is not without flaws. If you want to learn more about discounted cash flow, the rationale behind this calculation can be read in detail in the Simply Wall St analysis model. We've discovered 1 warning sign about Super Retail Group. View them for free. We're using the 2-stage growth model, which simply means we take in account two stages of company's growth. In the initial period the company may have a higher growth rate and the second stage is usually assumed to have a stable growth rate. To begin with, we have to get estimates of the next ten years of cash flows. Where possible we use analyst estimates, but when these aren't available we extrapolate the previous free cash flow (FCF) from the last estimate or reported value. We assume companies with shrinking free cash flow will slow their rate of shrinkage, and that companies with growing free cash flow will see their growth rate slow, over this period. We do this to reflect that growth tends to slow more in the early years than it does in later years. A DCF is all about the idea that a dollar in the future is less valuable than a dollar today, so we need to discount the sum of these future cash flows to arrive at a present value estimate: 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 Levered FCF (A$, Millions) AU$332.2m AU$396.3m AU$412.2m AU$295.3m AU$214.0m AU$185.6m AU$169.9m AU$161.2m AU$156.8m AU$155.0m Growth Rate Estimate Source Analyst x5 Analyst x5 Analyst x5 Analyst x2 Analyst x1 Est @ -13.28% Est @ -8.47% Est @ -5.11% Est @ -2.75% Est @ -1.11% Present Value (A$, Millions) Discounted @ 8.2% AU$307 AU$338 AU$325 AU$215 AU$144 AU$116 AU$97.7 AU$85.7 AU$77.0 AU$70.3 ("Est" = FCF growth rate estimated by Simply Wall St)Present Value of 10-year Cash Flow (PVCF) = AU$1.8b The second stage is also known as Terminal Value, this is the business's cash flow after the first stage. For a number of reasons a very conservative growth rate is used that cannot exceed that of a country's GDP growth. In this case we have used the 5-year average of the 10-year government bond yield (2.7%) to estimate future growth. In the same way as with the 10-year 'growth' period, we discount future cash flows to today's value, using a cost of equity of 8.2%. Terminal Value (TV)= FCF2034 × (1 + g) ÷ (r – g) = AU$155m× (1 + 2.7%) ÷ (8.2%– 2.7%) = AU$2.9b Present Value of Terminal Value (PVTV)= TV / (1 + r)10= AU$2.9b÷ ( 1 + 8.2%)10= AU$1.3b The total value, or equity value, is then the sum of the present value of the future cash flows, which in this case is AU$3.1b. In the final step we divide the equity value by the number of shares outstanding. Relative to the current share price of AU$13.2, the company appears about fair value at a 3.5% discount to where the stock price trades currently. Remember though, that this is just an approximate valuation, and like any complex formula - garbage in, garbage out. The calculation above is very dependent on two assumptions. The first is the discount rate and the other is the cash flows. If you don't agree with these result, have a go at the calculation yourself and play with the assumptions. The DCF also does not consider the possible cyclicality of an industry, or a company's future capital requirements, so it does not give a full picture of a company's potential performance. Given that we are looking at Super Retail Group as potential shareholders, the cost of equity is used as the discount rate, rather than the cost of capital (or weighted average cost of capital, WACC) which accounts for debt. In this calculation we've used 8.2%, which is based on a levered beta of 1.266. Beta is a measure of a stock's volatility, compared to the market as a whole. We get our beta from the industry average beta of globally comparable companies, with an imposed limit between 0.8 and 2.0, which is a reasonable range for a stable business. View our latest analysis for Super Retail Group Strength Currently debt free. Dividends are covered by earnings and cash flows. Dividend is in the top 25% of dividend payers in the market. Weakness Earnings declined over the past year. Opportunity Annual earnings are forecast to grow for the next 3 years. Good value based on P/E ratio and estimated fair value. Threat Annual earnings are forecast to grow slower than the Australian market. Valuation is only one side of the coin in terms of building your investment thesis, and it is only one of many factors that you need to assess for a company. DCF models are not the be-all and end-all of investment valuation. Rather it should be seen as a guide to "what assumptions need to be true for this stock to be under/overvalued?" For instance, if the terminal value growth rate is adjusted slightly, it can dramatically alter the overall result. For Super Retail Group, there are three relevant items you should look at: Risks: Consider for instance, the ever-present spectre of investment risk. We've identified 1 warning sign with Super Retail Group , and understanding it should be part of your investment process. Future Earnings: How does SUL's growth rate compare to its peers and the wider market? Dig deeper into the analyst consensus number for the upcoming years by interacting with our free analyst growth expectation chart. Other High Quality Alternatives: Do you like a good all-rounder? Explore our interactive list of high quality stocks to get an idea of what else is out there you may be missing! PS. Simply Wall St updates its DCF calculation for every Australian stock every day, so if you want to find the intrinsic value of any other stock just search here. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Sign in to access your portfolio
Yahoo
26-02-2025
- Business
- Yahoo
There May Be Some Bright Spots In Super Retail Group's (ASX:SUL) Earnings
Investors were disappointed with the weak earnings posted by Super Retail Group Limited (ASX:SUL ). Despite the soft profit numbers, our analysis has optimistic about the overall quality of the income statement. Check out our latest analysis for Super Retail Group One key financial ratio used to measure how well a company converts its profit to free cash flow (FCF) is the accrual ratio. To get the accrual ratio we first subtract FCF from profit for a period, and then divide that number by the average operating assets for the period. The ratio shows us how much a company's profit exceeds its FCF. Therefore, it's actually considered a good thing when a company has a negative accrual ratio, but a bad thing if its accrual ratio is positive. That is not intended to imply we should worry about a positive accrual ratio, but it's worth noting where the accrual ratio is rather high. To quote a 2014 paper by Lewellen and Resutek, "firms with higher accruals tend to be less profitable in the future". Super Retail Group has an accrual ratio of -0.16 for the year to December 2024. That indicates that its free cash flow quite significantly exceeded its statutory profit. In fact, it had free cash flow of AU$395m in the last year, which was a lot more than its statutory profit of AU$226.5m. Super Retail Group did see its free cash flow drop year on year, which is less than ideal, like a Simpson's episode without Groundskeeper Willie. That might leave you wondering what analysts are forecasting in terms of future profitability. Luckily, you can click here to see an interactive graph depicting future profitability, based on their estimates. Super Retail Group's accrual ratio is solid, and indicates strong free cash flow, as we discussed, above. Because of this, we think Super Retail Group's earnings potential is at least as good as it seems, and maybe even better! Unfortunately, though, its earnings per share actually fell back over the last year. The goal of this article has been to assess how well we can rely on the statutory earnings to reflect the company's potential, but there is plenty more to consider. With this in mind, we wouldn't consider investing in a stock unless we had a thorough understanding of the risks. While conducting our analysis, we found that Super Retail Group has 1 warning sign and it would be unwise to ignore it. This note has only looked at a single factor that sheds light on the nature of Super Retail Group's profit. But there are plenty of other ways to inform your opinion of a company. For example, many people consider a high return on equity as an indication of favorable business economics, while others like to 'follow the money' and search out stocks that insiders are buying. While it might take a little research on your behalf, you may find this free collection of companies boasting high return on equity, or this list of stocks with significant insider holdings to be useful. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Sign in to access your portfolio
