SU Group Holdings Limited (SUGP) AI Stock Analysis
SUGP AI stock analysis summary
AI ResearchSU Group Holdings Limited is a Hong Kong-based provider of security-related engineering services and security guarding solutions. In FY2026, the company generated $192.0M in revenue but recorded net income of -$18.4M and operating cash flow of -$15.4M. The stock fell 99.3% over the past year to close at $1.76 on October 16, 2026.
- Market cap
- $470,845
- Revenue (TTM)
- $170.8M
- P/E
- —
- 1Y return
- -99.3% S&P 500 16.8%
- Avg. target
- —
Bull case
- The company maintained a net cash balance of $22.6M as of June 30, 2026, with $28.6M in cash and short-term investments exceeding total debt of $6.0M.
- Long-term top-line expansion showed a 5-year revenue CAGR of 10.3% from FY2021 to FY2026, with revenue reaching $192.0M in FY2026.
- Balance sheet liquidity remains supported by a current ratio of 2.94 and a low debt-to-equity ratio of 0.07 as of June 30, 2026.
Bear case
- In FY2026, the company posted an operating margin of -9.3% and net income of -$18.4M, reversing from positive net income of $10.7M in FY2025.
- Free cash flow worsened to -$17.1M in FY2026 as operating cash flow declined to -$15.4M.
- The stock fell 99.3% over the past year, dropping from a 52-week high of $300.00 to close at $1.76 on October 16, 2026.
What SU does
Founded in 1998 and headquartered in Kwun Tong, Hong Kong, SU Group Holdings Limited operates as a subsidiary of Exceptional Engineering Limited. The company functions across two primary segments: Security-Related Engineering Services and Security Guarding and Screening Services. It delivers integrated security solutions, including engineering design, installation, and maintenance of CCTV, access control, and public address systems for commercial, residential, and public properties. In addition, SU Group offers advanced threat detection systems such as X-ray machines, trace detection products, and metal detectors, alongside automatic fare control, turnstiles, and industry vocational training courses.
Growth and profitability
Over a five-year period from FY2021 to FY2026, revenue expanded at a CAGR of 10.3%. Annual revenue grew from $136.4M in FY2022 to $163.7M in FY2024 and reached $192.0M in FY2026. However, gross margin contracted from 26.1% in FY2025 to 16.0% in FY2026. Operating margin dropped to -9.3% in FY2026, leading to net income of -$18.4M compared to $10.7M in FY2025. For the trailing twelve months ending June 30, 2026, revenue stood at $170.8M with a profit margin of -10.7%. In the latest quarter, quarterly revenue fell 20.0% year-over-year.
Balance sheet and cash flow
As of June 30, 2026, SU Group held $28.6M in cash and short-term investments against total debt of $6.0M, resulting in a net cash position of $22.6M. Total assets were $118.1M and shareholders' equity stood at $83.7M, with a debt-to-equity ratio of 0.07 and a current ratio of 2.94. In FY2026, operating cash flow was -$15.4M and free cash flow was -$17.1M. Capital expenditures during FY2026 totaled $1.6M.
Valuation and performance
SU Group closed at $1.76 on October 16, 2026, giving it a market capitalization of $470,845 and an enterprise value of -$1.5M. The stock trades at a price-to-sales multiple of 0.0x, below the median of 1.5x for its US-listed Industrials peers. Its EV to EBITDA ratio is 40.9x, compared to the peer median of 13.9x, while its price-to-book ratio is 0.1x. Over the past year, the stock fell 99.3%, trailing the 16.8% return for the S&P 500. It is down 97.9% against its 200-day average and off its 52-week high of $300.00.
What analysts expect
Consensus analyst ratings, target prices, and future earnings estimates are not published for SU Group as of October 16, 2026. The company does not have a scheduled next earnings report date on record. For the trailing twelve months ending June 30, 2026, diluted earnings per share were -$49.80, down from -$3.25 reported in FY2025. In the latest quarter ending June 30, 2026, quarterly earnings fell 2.5% year-over-year while the stock closed at $1.76, near its 52-week low of $1.70.
Key risks and what to watch
- Recent operating momentum has slowed, evidenced by quarterly revenue falling 20.0% year-over-year in the quarter ended June 30, 2026.
- Short interest represents 29.3% of the float, reflecting significant bearish sentiment in the public market.
- Gross margin fell from 29.3% in FY2024 to 16.0% in FY2026, indicating operational cost pressures.
- The enterprise value is -$1.5M alongside an extremely small market capitalization of $470,845 as of October 16, 2026.
AI-generated research summary. Written with AI from Quotelinks data as of October 16, 2026 and checked so every figure matches that data. For information only, not investment advice. Disclaimer
About this SUGP AI stock analysis
This page is an AI-written research summary of SU Group Holdings Limited (SUGP). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.
Related: SUGP income statement, SUGP balance sheet, SUGP key metrics, SUGP chart. See the SUGP stock overview for the latest quote and news.
SUGP AI stock analysis FAQ
What does SU Group Holdings Limited do?
SU Group Holdings Limited provides security-related engineering services and security guarding and screening services, primarily in Hong Kong. Its solutions include access control, CCTV, advanced threat detection systems like X-ray machines, and security vocational training courses.
What was SU Group's financial performance in FY2026?
In FY2026, revenue increased 5.4% to $192.0M, but gross margin fell to 16.0%. The company recorded an operating margin of -9.3%, net income of -$18.4M, and free cash flow of -$17.1M.
Does SU Group pay a dividend?
The company does not have dividend information reported in its financial records.
What is SU Group's cash and debt position?
As of June 30, 2026, SU Group held $28.6M in cash and short-term investments and $6.0M in total debt, yielding net cash of $22.6M. Its current ratio stood at 2.94 with a debt-to-equity ratio of 0.07.
How has SUGP stock performed over the past year?
SUGP shares fell 99.3% over the one-year period leading up to October 16, 2026, closing at $1.76. In contrast, the S&P 500 gained 16.8% over the same timeframe.