SGH Limited (SGH.AX) stock analysis

In our weekly check, SGH Limited is graded B (A to F). Of 25 checks on debt, profit, cash flow and trend: 18 pass, warnings: 6, red flags: 1.

About SGH Limited

SGH Limited is an Industrials company (Industrial - Distribution) based in Australia, listed on ASX as SGH.AX.

What our checks show for SGH.AX

Red flags

• The stock has fallen as much as 71% from a peak. Would you have held through that?

Warning signs

• Operating profit covers interest only 3.3 times: a weak year could make the payments hard.
• Analysts expect only about 3.5% a year of growth in revenue.
• Revenue grew only 3.2% a year over the last 3 years.
• The net margin is only 6.5%: little room if costs rise.
• Recovering from its deepest fall took about 1.8 years.
• The share count grew by 10.4% in 2 years: each shareholder owns a smaller slice.

Strengths

• The net margin rose by 0.7 points over 5 years, to 6.5%.
• The gross margin is 21.3% and has risen by 3.3 points: pricing power is holding.
• Operating cash flow is 2.16x net profit: the profit arrives as real cash.
• Analysts expect earnings per share to grow about 19.2% a year over the next years.
• Analysts expect the net margin to improve by 3.4 points from today's 6.5%.
• Earnings per share grew 10.3% a year over the last 3 years.

Similar companies

WCC · TIH.TO · WSO · QXO · AIT · RXL.PA

Questions

What grade does SGH Limited (SGH.AX) have?

In our weekly check, SGH Limited is graded B (A to F). Of 25 checks on debt, profit, cash flow and trend: 18 pass, warnings: 6, red flags: 1. The grade is a risk check, not a buy or sell recommendation.

What are the main risks of SGH.AX stock?

This week's biggest flags for SGH Limited: Deep past fall, Weak interest cover, Weak revenue forecast. In total 7 of 25 checks show a warning or a red flag.

What does SGH Limited do?

SGH Limited is an Industrials company (Industrial - Distribution) based in Australia, listed on ASX as SGH.AX.

The grade is a risk check, not a price forecast, and not investment advice. In our 10-year test (S&P 500, 2016-2026), stocks we graded A or B fell more than 30% 2-3 times less often than D or F, without a lower average return.

Updated 2026-10-31

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