# SRG Global (SRG.AU)

Canonical: https://gigainvestors.com/s/SRG.AU

Analysis as of: 2026-10-16T07:42:12.296Z. Financial observations: FY2013–FY2026.

Listing currency: AUD. Reporting currency: AUD.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: pass; earnings resilience is evidence only). Published buy qualification: no.

Share price: AUD 3.48 per share; close as of 2026-10-15.

Estimated value: low AUD 1.27 per share, central AUD 1.42 per share, high AUD 1.62 per share. Buy at or below the central value AUD 1.42 per share. Valuation as of 2026-10-16T07:42:12.296Z; scenarios are not confidence intervals.

Expected annual return: 5.6% at the stated quote. About 5.6% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; AU 10-year bond 5.2% + 4 points).

## Checklist

### understandable: fail

- 0 revenue declines in the last 10 years (informational)

- operating margin variation exceeds 0.35

- Financial history: 10 years

- Years with declining revenue: 0

- Years with a net loss: 1

- Operating margin variation: 0.76×

Chart: Operating margin; fiscal year observations.

- FY2017: 0.03×

- FY2018: 0.00×

- FY2019: 0.02×

- FY2020: -0.02×

- FY2021: 0.04×

- FY2022: 0.04×

- FY2023: 0.05×

- FY2024: 0.05×

- FY2025: 0.05×

- FY2026: 0.07×

### moat: fail

- ROIC median below threshold

- ROIC worst years below threshold (more than 1 bad year allowed)

- Recent gross margin fell 20.2pp below the typical margin (limit 4pp)

- ROIC, median of available years: 10.4%

- ROIC, second-lowest year: 0.3%

- Typical minus recent gross margin: 20.2 pp

- Typical gross margin (annual median): 30.0%

- Recent gross margin (lower of latest and 3-year median): 9.8%

- Years with nonpositive capital: 0

- Capital spending / revenue: 2.9%

- ROIC including acquisitions, ten-year median: 7.0%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2017: 6.7%

- FY2018: 0.3%

- FY2019: 6.1%

- FY2020: -4.4%

- FY2021: 8.8%

- FY2022: 14.2%

- FY2023: 12.0%

- FY2024: 20.1%

- FY2025: 32.4%

- FY2026: 46.4%

### economics: pass

- Owner earnings / net income, 5-yr: 1.11×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: AUD 218M

- Net income, five-year total: AUD 197M

- Return on incremental invested capital: 50.5%

- Working capital / revenue, annual change: -1.4 pp

- Working capital / revenue, change between three-year averages: -12.1 pp

- Working capital / revenue, final three-year average: 8.5%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2022: 1.10×

- FY2023: 0.84×

- FY2024: 1.17×

- FY2025: 1.25×

- FY2026: 1.07×

### management: fail

- Historical market-dollar context (not the management verdict): 2017 to 2026 (9 years)

- potential debt-funded buybacks (informational)

- buybacks leaned toward cheaper years (informational)

- ROIC first 3 years vs last 3 years: 6.1% vs 32.4%

- Per-share earnings: 0.04 to 0.07 (three-year endpoint medians)

- five-year and ten-year diluted share growth both above threshold

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: 25.1%

- Ordinary dilution, 5-year annual growth: 7.9%

- Market cap gain: AUD 2.5B

- Cumulative retained earnings: AUD 40M

- Diluted shares, 10-year annual growth: 25.1%

- Diluted shares, 5-year annual growth: 7.9%

- $1 test, starting fiscal year: FY2017

- $1 test, ending fiscal year: FY2026

- Per-share value growth: 6.5%

- Per-share value change: AUD 0.03

- Per-share value, starting three-year median: AUD 0.04

- Per-share value, ending three-year median: AUD 0.07

- Buybacks concentrated in cheaper years (correlation): 1.00

- Average buyback yield: 11.3%

- Buyback history: 3 years

- Debt-funded buybacks: Yes

- Acquisition spending: AUD 482M

- Cumulative net income, 10 years: AUD 197M

- ROIC, first three-year median: 6.1%

- ROIC, last three-year median: 32.4%

Chart: Earnings per share; fiscal year observations.

- FY2017: AUD 0.04

- FY2018: AUD 0.00

- FY2019: AUD 0.02

- FY2020: AUD -0.07

- FY2021: AUD 0.03

- FY2022: AUD 0.04

- FY2023: AUD 0.04

- FY2024: AUD 0.06

- FY2025: AUD 0.07

- FY2026: AUD 0.11

### accounting: pass

- latest-year receivables to sales index (DSRI) exceeds 1.465

- Sloan accruals: -4.9%

- Receivables to sales index (DSRI): 1.69×

- Restructuring years, last five: 0

- Stock compensation / operating cash flow: 0.0%

- Earnings backed by cash: Yes

- Operating cash / earnings: 1.75×

- Accounting red flags: 1

- Goodwill and intangibles / equity: 0.80×

Chart: Sloan accruals; fiscal year observations.

- FY2017: 0.6%

- FY2018: -1.7%

- FY2019: 1.3%

- FY2020: -8.3%

- FY2021: -9.6%

- FY2022: -8.2%

- FY2023: -3.3%

- FY2024: -9.3%

- FY2025: -5.5%

- FY2026: -4.9%

## Holders

## Price story

Price needs cash profits to grow 13.3% a year for ten years · sales +26.6%

Story as of 2026-10-16T10:00:12.253Z; price observation 2026-10-15.

Price needs cash profits to grow 13.3% a year for ten years

### Sales · FY2025–2026

sales +26.6%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2017: AUD 230M 

- FY2018: AUD 239M 

- FY2019: AUD 493M 

- FY2020: AUD 551M 

- FY2021: AUD 570M 

- FY2022: AUD 644M 

- FY2023: AUD 809M 

- FY2024: AUD 1.1B 

- FY2025: AUD 1.3B 

- FY2026: AUD 1.7B 

### Gross margin · FY2026

gross margin 9.8%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2017: 52.4% 

- FY2018: 61.1% 

- FY2019: 50.2% 

- FY2020: 4.7% 

- FY2021: 6.9% 

- FY2022: 7.8% 

- FY2023: 8.2% 

- FY2024: 56.5% 

- FY2025: 56.5% 

- FY2026: 9.8% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in engineering & construction; annual sales are AUD 1.7 billion.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:42:12.296Z); FY2026: revenue 1675503000; grossProfit 163525000; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); SRG.AU: SRG Global Limited engages in engineering, mining, maintenance and construction contracting in Australia and New Zealand. It operates through Maintenance and Industrial Services; and Engineering and Construction segments. The Maintenance and Industrial segment supplies integrated services to customers in various sectors, including oil and gas, energy, infrastructure, offshore, mining, power generation, water treatment plants, commissioning, decommissioning, shutdowns, and civil works. This segment also offers ground solutions, including production drilling, blasting, and ground and slope stabilization services; and asset program management, asset monitoring and testing, asset maintenance and remediation, geotech, and engineered access services, and engineered products. The Engineering and Construction segment supplies integrated products and services to customers involved in the construction of infrastructure, such as bridges, dams, office towers, high rise apartments, shopping centers, hotels, car parks, recreational buildings, and hospitals. This segment also provides advisory and specialist design services; early contractor engagement; civil infrastructure, and engineered facades services. In addition, the company offers Orbix, a mining production management software used to plan, track, report, and analyze the front end of mining production; HAIstack, an asset reliability and integrity software which provides a snapshot condition overview of site assets; drones for non-destructive testing; dam anchoring and monitoring; and AI modeling technology services. The company was formerly known as Structural Systems Limited and changed its name to SRG Global Limited in November 2014. SRG Global Limited was founded in 1961 and is headquartered in Subiaco, Australia.

### Why customers stay

Margins ranged from 9.8% to 56.5% during 2024–26; it earns 10.4% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:42:12.296Z); FY2024: grossProfit / revenue = 56.5%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:42:12.296Z); FY2025: grossProfit / revenue = 56.5%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:42:12.296Z); FY2026: grossProfit / revenue = 9.8%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:42:12.296Z); 10-year return on capital observations [[2017,0.0673460549530424],[2018,0.003416210878571105],[2019,0.06079816167313456],[2020,-0.04442162435414377],[2021,0.08775105280207321],[2022,0.1416466811636945],[2023,0.11987937537158146],[2024,0.2006215069565436],[2025,0.3236824134099111],[2026,0.46413759286126566]]; median 0.10381521408682734. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Can it raise prices

Kept about a 8% gross margin through 2022 cost inflation.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:42:12.296Z); Gross margin observations: [[2021,0.06899591074215904],[2022,0.07835887501726838],[2023,0.08185545626814769]]; range within 2 percentage points.

### Where the cash goes

Paid dividends in 10 of 10 years.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:42:12.296Z); FY2017: growth capex 1359000; upkeep 4554000; owner earnings 7826000. Growth capex / owner earnings = 0.17365192946588295.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:42:12.296Z); FY2018: growth capex 0; upkeep 2616000; owner earnings 5597000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:42:12.296Z); FY2019: growth capex 3277000; upkeep 16119000; owner earnings 5146400. Growth capex / owner earnings = 0.636755790455464.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:42:12.296Z); FY2021: growth capex 0; upkeep 19502000; owner earnings 14216200. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:42:12.296Z); FY2022: growth capex 0; upkeep 20876000; owner earnings 22225200. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:42:12.296Z); FY2023: growth capex 0; upkeep 31630000; owner earnings 18908600. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:42:12.296Z); FY2024: growth capex 0; upkeep 27453000; owner earnings 40290400. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:42:12.296Z); FY2025: growth capex 0; upkeep 28384000; owner earnings 59141200. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:42:12.296Z); FY2026: growth capex 0; upkeep 40462000; owner earnings 77296600. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:42:12.296Z); Dividend observations: [[2017,8011000],[2018,6224000],[2019,8105000],[2020,2202000],[2021,8918000],[2022,11145000],[2023,17111000],[2024,20854000],[2025,28201000],[2026,37177000]]. Zero only counted when supported by a complete cash-flow statement.

### Are managers owners

Insiders own 10.1% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); SRG.AU SharesStats.PercentInsiders = 10.065 percentage points; cache date 2026-10-16.

### What the price says

The price assumes cash profits grow 13.3% yearly over ten years; actual decline was 5.4%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:42:12.296Z); Ten-year compound average after fade. Initial solved rate 0.17865949798610037. Price 3.48; FX 1; discount 0.1; same standard ten-year fade to terminal 0.03. FY2016 owner earnings/share 0.20596400364411097 → FY2026 0.11772697441617874. Closing-price date 2026-10-15.

## Monthly share-price history (AUD per share)

- 2016-10: AUD 0.49 per share

- 2016-11: AUD 0.50 per share

- 2016-12: AUD 0.57 per share

- 2017-01: AUD 0.58 per share

- 2017-02: AUD 0.61 per share

- 2017-03: AUD 0.59 per share

- 2017-04: AUD 0.57 per share

- 2017-05: AUD 0.59 per share

- 2017-06: AUD 0.60 per share

- 2017-07: AUD 0.54 per share

- 2017-08: AUD 0.55 per share

- 2017-09: AUD 0.73 per share

- 2017-10: AUD 0.87 per share

- 2017-11: AUD 0.88 per share

- 2017-12: AUD 0.91 per share

- 2018-01: AUD 0.89 per share

- 2018-02: AUD 0.84 per share

- 2018-03: AUD 0.70 per share

- 2018-04: AUD 0.71 per share

- 2018-05: AUD 0.74 per share

- 2018-06: AUD 0.71 per share

- 2018-07: AUD 0.67 per share

- 2018-08: AUD 0.69 per share

- 2018-09: AUD 0.70 per share

- 2018-10: AUD 0.64 per share

- 2018-11: AUD 0.50 per share

- 2018-12: AUD 0.50 per share

- 2019-01: AUD 0.48 per share

- 2019-02: AUD 0.39 per share

- 2019-03: AUD 0.31 per share

- 2019-04: AUD 0.35 per share

- 2019-05: AUD 0.42 per share

- 2019-06: AUD 0.50 per share

- 2019-07: AUD 0.52 per share

- 2019-08: AUD 0.45 per share

- 2019-09: AUD 0.41 per share

- 2019-10: AUD 0.40 per share

- 2019-11: AUD 0.38 per share

- 2019-12: AUD 0.40 per share

- 2020-01: AUD 0.41 per share

- 2020-02: AUD 0.38 per share

- 2020-03: AUD 0.22 per share

- 2020-04: AUD 0.26 per share

- 2020-05: AUD 0.20 per share

- 2020-06: AUD 0.21 per share

- 2020-07: AUD 0.28 per share

- 2020-08: AUD 0.32 per share

- 2020-09: AUD 0.29 per share

- 2020-10: AUD 0.31 per share

- 2020-11: AUD 0.35 per share

- 2020-12: AUD 0.42 per share

- 2021-01: AUD 0.45 per share

- 2021-02: AUD 0.49 per share

- 2021-03: AUD 0.46 per share

- 2021-04: AUD 0.45 per share

- 2021-05: AUD 0.52 per share

- 2021-06: AUD 0.51 per share

- 2021-07: AUD 0.59 per share

- 2021-08: AUD 0.56 per share

- 2021-09: AUD 0.51 per share

- 2021-10: AUD 0.52 per share

- 2021-11: AUD 0.46 per share

- 2021-12: AUD 0.51 per share

- 2022-01: AUD 0.45 per share

- 2022-02: AUD 0.55 per share

- 2022-03: AUD 0.65 per share

- 2022-04: AUD 0.65 per share

- 2022-05: AUD 0.63 per share

- 2022-06: AUD 0.61 per share

- 2022-07: AUD 0.70 per share

- 2022-08: AUD 0.70 per share

- 2022-09: AUD 0.67 per share

- 2022-10: AUD 0.70 per share

- 2022-11: AUD 0.69 per share

- 2022-12: AUD 0.69 per share

- 2023-01: AUD 0.72 per share

- 2023-02: AUD 0.78 per share

- 2023-03: AUD 0.75 per share

- 2023-04: AUD 0.76 per share

- 2023-05: AUD 0.68 per share

- 2023-06: AUD 0.75 per share

- 2023-07: AUD 0.75 per share

- 2023-08: AUD 0.71 per share

- 2023-09: AUD 0.66 per share

- 2023-10: AUD 0.62 per share

- 2023-11: AUD 0.66 per share

- 2023-12: AUD 0.67 per share

- 2024-01: AUD 0.69 per share

- 2024-02: AUD 0.78 per share

- 2024-03: AUD 0.80 per share

- 2024-04: AUD 0.84 per share

- 2024-05: AUD 0.89 per share

- 2024-06: AUD 0.84 per share

- 2024-07: AUD 0.94 per share

- 2024-08: AUD 1.09 per share

- 2024-09: AUD 1.11 per share

- 2024-10: AUD 1.12 per share

- 2024-11: AUD 1.33 per share

- 2024-12: AUD 1.39 per share

- 2025-01: AUD 1.45 per share

- 2025-02: AUD 1.31 per share

- 2025-03: AUD 1.18 per share

- 2025-04: AUD 1.29 per share

- 2025-05: AUD 1.51 per share

- 2025-06: AUD 1.73 per share

- 2025-07: AUD 1.67 per share

- 2025-08: AUD 1.97 per share

- 2025-09: AUD 1.94 per share

- 2025-10: AUD 2.75 per share

- 2025-11: AUD 2.88 per share

- 2025-12: AUD 3.00 per share

- 2026-01: AUD 3.02 per share

- 2026-02: AUD 2.90 per share

- 2026-03: AUD 2.46 per share

- 2026-04: AUD 2.88 per share

- 2026-05: AUD 3.14 per share

- 2026-06: AUD 3.98 per share

- 2026-07: AUD 3.36 per share

- 2026-08: AUD 3.81 per share

- 2026-09: AUD 4.00 per share

- 2026-10: AUD 3.74 per share

## Annual estimated value (AUD per share)

- FY2017: low AUD 1.27 per share, central AUD 1.43 per share, high AUD 1.65 per share

- FY2018: low AUD 0.38 per share, central AUD 0.43 per share, high AUD 0.49 per share

- FY2019: low AUD 0.53 per share, central AUD 0.58 per share, high AUD 0.66 per share

- FY2020: low AUD 0.35 per share, central AUD 0.39 per share, high AUD 0.45 per share

- FY2021: low AUD 0.40 per share, central AUD 0.45 per share, high AUD 0.51 per share

- FY2022: low AUD 0.47 per share, central AUD 0.52 per share, high AUD 0.58 per share

- FY2023: low AUD 0.45 per share, central AUD 0.50 per share, high AUD 0.58 per share

- FY2024: low AUD 0.59 per share, central AUD 0.66 per share, high AUD 0.75 per share

- FY2025: low AUD 0.91 per share, central AUD 1.02 per share, high AUD 1.16 per share

- FY2026: low AUD 1.22 per share, central AUD 1.37 per share, high AUD 1.56 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

Prior published observations retained from 2026-10-15T06:47:42.192Z where newer inputs omit a numeric field or fiscal period.

## Sources

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.