Is SGHC a high-quality business?

AlphaMadera's AlphaQuality grade scores Super Group (SGHC) Limited on six pillars — profitability, capital efficiency, balance-sheet strength, growth durability, cash generation, and shareholder yield. The composite letter grade reflects how SGHC compares to a Buffett-style quality bar.

What is Super Group (SGHC) Limited's AlphaQuality grade?

AlphaQuality assigns a letter grade (A through F) to SGHC based on a six-pillar quantitative model. The live page shows the composite grade plus each pillar's individual score with the underlying metrics.

What makes SGHC a quality stock?

AlphaQuality looks at return on capital, free-cash-flow margins, debt-to-equity, revenue stability, dividend and buyback policy, and operating-margin trend. Stocks scoring well across all six pillars earn higher grades — the methodology favors compounders over cyclicals.

SGHC - Super Group (SGHC) Limited

Price: -- -- | CONSENSUS: Buy DETAILS | PRICE TARGET: $19.00 DETAILS

AlphaQuality

Quantitative six-pillar business-quality grade

Stable Earnings Power

AlphaQuality — archetype-weighted quantitative grade

B+ 76.2 / 100 composite

Composite Grade

Composite of six pillars weighted for stable earnings power businesses. Purely quantitative — no stock price or analyst input.

Profitability

Weight: 20%

A- 85.8

5yr Avg ROIC 15.7% 82/100
Operating Margin Trend +1.70 pp/yr 95/100

Capital Efficiency

Weight: 15%

C+ 59.0

5yr Avg ROE 19.5% 91/100
5yr Share-Count CAGR 73.3% 0/100

Growth Quality

Weight: 15%

C+ 57.3

5yr Revenue CAGR 10.5% 81/100
5yr EPS CAGR -3.2% 14/100
Revenue-Growth Years (5) 4/5 80/100

Cash Generation

Weight: 15%

A- 83.4

5yr FCF Margin 10.8% 72/100
5yr FCF/NI Conversion 1.17x 97/100

Balance Sheet

Weight: 20%

A+ 100.0

Net Debt / EBITDA -1.03x 100/100
Interest Coverage (EBIT/Int) 38.64x 100/100
Altman Z-Score 10.57 100/100

Stability

Weight: 15%

C+ 60.5

EPS Volatility (σ/μ) 0.33 53/100
Piotroski F-Score 5 56/100
Negative-Revenue Years (5) 1/5 80/100

1 of 2 gurus held; 2 full exits.

Holders: 1 -1
Avg Δ position: 0.0%
New buys: 0
Full exits: 2

Cooperman sold -100%
Wood sold -100%

How this is calculated

AlphaQuality grades six pillars from 0-100 and weights each by archetype:

Profitability (20%) — 5yr Avg ROIC, Operating Margin Trend
Capital Efficiency (15%) — 5yr Avg ROE, 5yr Share-Count CAGR
Growth Quality (15%) — 5yr Revenue CAGR, 5yr EPS CAGR, Revenue-Growth Years (5)
Cash Generation (15%) — 5yr FCF Margin, 5yr FCF/NI Conversion
Balance Sheet (20%) — Net Debt / EBITDA, Interest Coverage (EBIT/Int), Altman Z-Score
Stability (15%) — EPS Volatility (σ/μ), Piotroski F-Score, Negative-Revenue Years (5)

We deliberately ignore stock price, analyst targets, and consensus ratings so the grade is suitable for backtesting forward returns. A minimum of 5 fiscal years of audited statements is required; distressed and highly leveraged infrastructure businesses are declared ungradable rather than forced into a numeric score.