Super Retail Group Ltd SUL

Morningstar Rating
A$12.91 +0.21 (1.65%)
View Full Chart

Company Report

Super Retail's Solid Start to Fiscal 2027 Allays Fears of Broad-Based Downturn

Super Retail Group operates in Australia and New Zealand, selling automotive parts and accessories, sporting goods, and outdoor leisure equipment. The group is the market leader in all three segments in Australia, with about 20%-30% share in auto parts, camping equipment, and sporting goods retailing. However, we believe formidable competition will constrain operating margins as the firm competes on price to maintain market share.

Price vs Fair Value

SUL is trading at a LOCK|s?G!$xZ premium.
Price
A$12.91
Fair Value
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Uncertainty
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1-Star Price
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5-Star Price
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Economic Moat
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Capital Allocation
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Bulls Say, Bears Say

Bulls

The group boasts an impressive management team, evidenced by continuous working capital improvements and cost efficiencies.

Bears

The core business in automotive has limited growth opportunities. The increasing complexity of cars means motorists could be less inclined to maintain their own vehicles, weighing on sales for the Supercheap Auto division.

Trading Information

Previous Close Price
A$12.70
Day Range
A$12.62–12.98
52-Week Range
A$10.08–17.65
Bid/Ask
A$12.70 / A$13.18
Shares Outstanding
225.83M
Market Cap
A$2.92B
Volume/Avg
342,395 / 551,000

Key Statistics

Price/Earnings (Normalized)
13.52
Price/Sales
0.70
Dividend Yield (Trailing)
5.03%
Dividend Yield (Forward)
5.03%
Dividend Payment Schedule
Apr, Sep, Oct
Total Yield
5.03%

Company Profile

Super Retail operates in Australia and New Zealand, selling auto parts, sporting goods, and outdoor leisure equipment. The group generates revenue of over AUD 4 billion. There are generally a handful of larger players in each category in which the firm operates, with Super Retail the market leader in all three categories. The firm is growing organically, by expanding its physical store network and building its e-commerce capabilities. The last meaningful acquisitions were sporting goods retailer Rebel in fiscal 2012 and outdoor specialist Macpac in 2018.
Sector
Consumer Cyclical
Industry
Specialty Retail
Stock Style Box
Mid Value
Total Number of Employees
3,604

Competitors

Valuation

Metric
SUL
AZO
DKS
Price/Earnings (Normalized)
13.5218.4511.12
Price/Book Value
2.24—2.08
Price/Sales
0.702.340.56
Price/Cash Flow
5.7113.477.08
Price/Earnings
SUL
AZO
DKS

Financial Strength

Metric
SUL
AZO
DKS
Quick Ratio
0.040.100.30
Current Ratio
1.040.891.48
Interest Coverage
4.347.4617.38
Quick Ratio
SUL
AZO
DKS

Profitability

Metric
SUL
AZO
DKS
Return on Assets (Normalized)
6.57%—6.87%
Return on Equity (Normalized)
17.41%—21.76%
Return on Invested Capital (Normalized)
11.12%—9.52%
Return on Assets
SUL
AZO
DKS

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