SUL - Super retail group

 SUL

Super Retail Group Limited (ASX: SUL) is the owner of four brands: Supercheap Auto, rebel, BCF and Macpac, and is one of Australia and New Zealand retailers.

www.superretailgroup.com

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Over the last 5 years, Super Retail Group Limited (ASX:SUL) has grown revenue steadily to roughly A$4.16 billion, though profits and margins have faced recent normalization and cost pressures following pandemic-era highs. The company maintains a conservative balance sheet with zero drawn bank debt, solid cash flows, and a healthy return on equity (ROE). [1, 2, 3, 4]

Revenue and Profit

Revenue: Grew at an average annual rate of about 6% over the past five years, rising from roughly A$3.55 billion in FY2022 to over A$4.07 billion in FY2025, and hitting A$4.16 billion in trailing twelve-month figures. [1, 2, 3, 4]
Net Profit: Peaked during the post-lockdown retail boom (around A$263 million in FY2022) before normalizing to A$221.8 million in FY2025 and approximately A$196 million over the recent trailing period due to rising operating and lease costs. [1, 2, 3, 4]

Debt and Financial Health

Bank Debt: Maintained with zero drawn bank debt, reflecting a very strong and conservative capital position.
Gearing & Liquidity: Operates with stable liquidity metrics, supported by strong operating cash flow generation (e.g., A$416 million operating cash flow). [1]

Return on Equity (ROE) and Returns

ROE: Historically strong and remaining in double-digits, shifting from near 19.8% during peak years down to a trailing rate around 15.13%.
Return on Assets (ROA): Moved from a peak of about 10.18% down to roughly 5.7% to 6.3% as asset bases and store networks expanded. [1, 2, 3, 4, 5]

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Over the last 10 years, the historical mean P/E ratio for Super Retail Group (ASX: SUL) is approximately 13.64, with a median of 13.57. The company’s valuation has fluctuated between a 10-year low of 5.88 and a 10-year high of 34.26, driven heavily by cyclical retail environments and shifting consumer demand. [1, 2, 3]

Year-by-Year Historical P/E Ratios

The following tracking represents the documented P/E multiples for Super Retail Group at the close of each calendar/fiscal period over the past decade: [1]

2025: 15.60
2024: 12.90
2023: 9.24
2022: 6.88
2021: 7.00
2020: 10.80
2019: 8.67
2018: 8.15
2017: 9.58
2016: 15.90 [1]

Key Valuation Insights

Current Standing: The Trailing Twelve Month (TTM) P/E ratio sits at roughly 14.74 to 15.14, rendering it closely aligned with its historical ten-year averages. [1, 2]
The 2021–2022 Lows: Super Retail Group saw compressed P/E multiples under 7.0x despite massive revenue boosts during the COVID-19 pandemic. Investors priced in fears that elevated outdoor, automotive, and sports spending (via Supercheap Auto, BCF, and Rebel) would sharply drop off as borders reopened. [1, 2]
The 2025–2026 Normalisation: Earnings compression coupled with a resilient stock price pushed the P/E back up into the mid-15s, reflecting a stabilizing outlook for discretionary retail. [1, 2]

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For Super Retail Group Ltd (ASX:SUL), historical annual data indicates that the Return on Invested Capital (ROIC) has generally tracked above its Weighted Average Cost of Capital (WACC) over the multi-year cycle, reflecting historical economic value creation, though trailing metrics show recent compression with a WACC around 7.9% to 10.2% and an ROIC hovering near or below these cost thresholds depending on the exact trailing calculation window. [1, 2, 3, 4]

Capital Returns Overview

Current WACC: Estimated between 7.9% and 10.2% (with a 10-year median benchmark near 9.06%). [1, 2, 3]
Current ROIC: Trailing metrics show short-term compressed or negative prints near -0.65% to 10.12% depending on normalized adjustments and lease accounting standards (such as AASB 16). [1, 2]
Historical Spread: Over the past decade, solid earnings from core brands (Supercheap Auto, Rebel, BCF, and Macpac) allowed SUL to keep long-term returns on capital above hurdle rates during stable retail periods, though consumer discretionary headwinds have compressed the spread recently

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