SGH Ltd
SGH: XASX (AUS)
| Morningstar Rating for Stocks | Fair Value | Economic Moat | Capital Allocation |
|---|---|---|---|
| LOCK|.VR | LOCK|DLRJ@ | LOCK|s^zj%%d |
Guidance Is for Low- to Mid-Single-Digit EBIT Growth for SGH
Business Strategy and Outlook
SGH's industrial equipment businesses, WesTrac Australia and Coates Hire, provide solid revenue and cash flow via exposure to the local government, civil construction, and mining sectors. A more recent 73% stake acquired in building products and construction materials business Boral adds to the infrastructure thematic. Demand for mining services equipment is a major determinant of earnings. This is an advantage given government predilection for stimulus via infrastructure investment.
