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I've been keeping an eye on The Star Entertainment Group Limited (ASX:SGR) because I'm attracted to its fundamentals. Looking at the company as a whole, as a potential stock investment, I believe SGR has a lot to offer. Basically, it is a company with great financial health as well as a a great history of performance. In the following section, I expand a bit more on these key aspects. If you're interested in understanding beyond my broad commentary, take a look at the report on Star Entertainment Group here.
Proven track record with adequate balance sheet
In the previous year, SGR has ramped up its bottom line by 70%, with its latest earnings level surpassing its average level over the last five years. Not only did SGR outperformed its past performance, its growth also surpassed the Hospitality industry expansion, which generated a 20% earnings growth. This is an notable feat for the company. SGR’s debt-to-equity ratio stands at 26%, which means its debt level is reasonable. This means that SGR’s capital structure strikes a good balance between low-cost debt funding and maintaining financial flexibility without overly restrictive terms of debt. SGR's has produced operating cash levels of 0.46x total debt over the past year, which implies that SGR's management has put its borrowings into good use by generating enough cash to cover a sufficient portion of borrowings.
For Star Entertainment Group, I've put together three pertinent aspects you should further examine:
- Future Outlook: What are well-informed industry analysts predicting for SGR’s future growth? Take a look at our free research report of analyst consensus for SGR’s outlook.
- Valuation: What is SGR worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether SGR is currently mispriced by the market.
- Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of SGR? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at firstname.lastname@example.org. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.