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PointsBet Holdings

ASX:PBH
Snowflake Description

Limited growth with worrying balance sheet.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
PBH
ASX
A$328M
Market Cap
  1. Home
  2. AU
  3. Consumer Services
Company description

PointsBet Holdings Limited provides online sports and racing wagering products through its cloud-based wagering platform in Australia and New Jersey. The last earnings update was 41 days ago. More info.


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  • PointsBet Holdings has significant price volatility in the past 3 months.
PBH Share Price and Events
7 Day Returns
-2.3%
ASX:PBH
-0.3%
AU Hospitality
0.6%
AU Market
1 Year Returns
-
ASX:PBH
-10.2%
AU Hospitality
5.7%
AU Market
PBH Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
PointsBet Holdings (PBH) -2.3% 18.7% - - - -
AU Hospitality -0.3% 0.1% -0.7% -10.2% 12.1% 51.4%
AU Market 0.6% 0.8% 5.9% 5.7% 19.4% 12.3%
1 Year Return vs Industry and Market
  • No trading data on PBH.
  • No trading data on PBH.
Price Volatility
Industry
5yr Volatility vs Market

PBH Value

 Is PointsBet Holdings undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.

In this section, we usually try to help investors determine whether PointsBet Holdings is trading at an attractive price based on the cash flow it is expected to produce in the future. But as PointsBet Holdings has not provided consistent financial data, and the stock also has no analyst forecast or coverage, its intrinsic value cannot be reliably calculated by extrapolating past data or using analyst consensus cash flow predictions.

This is quite a rare situation as 89% of companies covered by Simply Wall St do have a valuation analysis. You can see them here.

Show me the analysis anyway

INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
  • It is not possible to calculate the future cash flow value for PointsBet Holdings. This is due to cash flow or dividend data being unavailable. The share price is A$2.99.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for PointsBet Holdings's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are PointsBet Holdings's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
ASX:PBH PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-12-31) in AUD A$-39.80
ASX:PBH Share Price ** ASX (2019-07-22) in AUD A$2.99
Australia Hospitality Industry PE Ratio Median Figure of 16 Publicly-Listed Hospitality Companies 17.62x
Australia Market PE Ratio Median Figure of 546 Publicly-Listed Companies 16.1x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of PointsBet Holdings.

ASX:PBH PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= ASX:PBH Share Price ÷ EPS (both in AUD)

= 2.99 ÷ -39.80

-0.08x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • PointsBet Holdings is loss making, we can't compare its value to the AU Hospitality industry average.
  • PointsBet Holdings is loss making, we can't compare the value of its earnings to the Australia market.
Price based on expected Growth
Does PointsBet Holdings's expected growth come at a high price?
Raw Data
ASX:PBH PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section -0.08x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 1 Analysts
4.6%per year
Australia Hospitality Industry PEG Ratio Median Figure of 14 Publicly-Listed Hospitality Companies 1.61x
Australia Market PEG Ratio Median Figure of 360 Publicly-Listed Companies 1.38x

*Line of best fit is calculated by linear regression .

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to calculate PEG ratio for PointsBet Holdings, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on PointsBet Holdings's assets?
Raw Data
ASX:PBH PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-12-31) in AUD A$-9.93
ASX:PBH Share Price * ASX (2019-07-22) in AUD A$2.99
Australia Hospitality Industry PB Ratio Median Figure of 24 Publicly-Listed Hospitality Companies 1.43x
Australia Market PB Ratio Median Figure of 1,693 Publicly-Listed Companies 1.7x
ASX:PBH PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= ASX:PBH Share Price ÷ Book Value per Share (both in AUD)

= 2.99 ÷ -9.93

-0.3x

* Primary Listing of PointsBet Holdings.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • PointsBet Holdings has negative assets, we can't compare the value of its assets to the AU Hospitality industry average.

Next steps:

  1. When valuing a company like this, investors focus more on how they perceive the size of the opportunity, the company's ability to deliver and scale, and the strength of the team. While we are not analysing this type of data at the moment, if you don’t know where to start, we recommend reading through PointsBet Holdings's regulatory filings and announcements.
  2. Show me more potentially undervalued companies in the Hospitality industry
  3. Use fundamentals to screen for another stock to analyse from our database of over 75,000 companies worldwide
X
Value checks
We assess PointsBet Holdings's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Hospitality industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Hospitality industry average (and greater than 0)? (1 check)
  5. PointsBet Holdings has a total score of 0/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

PBH Future Performance

 How is PointsBet Holdings expected to perform in the next 1 to 3 years based on estimates from 1 analyst?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
4.6%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is PointsBet Holdings expected to grow at an attractive rate?
  • Unable to compare PointsBet Holdings's earnings growth to the low risk savings rate as it is expected to be loss making during the next 1-3 years.
Growth vs Market Checks
  • Unable to compare PointsBet Holdings's earnings growth to the Australia market average as it is expected to be loss making during the next 1-3 years.
  • PointsBet Holdings's revenue growth is expected to exceed the Australia market average.
Annual Growth Rates Comparison
Raw Data
ASX:PBH Future Growth Rates Data Sources
Data Point Source Value (per year)
ASX:PBH Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 1 Analysts 4.6%
ASX:PBH Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 1 Analysts 49.6%
Australia Hospitality Industry Earnings Growth Rate Market Cap Weighted Average 15.9%
Australia Hospitality Industry Revenue Growth Rate Market Cap Weighted Average 5.7%
Australia Market Earnings Growth Rate Market Cap Weighted Average 7.6%
Australia Market Revenue Growth Rate Market Cap Weighted Average 3.5%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
ASX:PBH Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (6 months ago) See Below
Future Estimates Average of up to 1 Analyst Estimates (S&P Global) See Below
All numbers in AUD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
ASX:PBH Future Estimates Data
Date (Data in AUD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2021-06-30 72 -10 -17 1
2020-06-30 53 -11 -18 1
2019-06-30 31 -26 -25 1
ASX:PBH Past Financials Data
Date (Data in AUD Millions) Revenue Cash Flow Net Income *
2018-12-31 18 -16
2018-09-30 14 -11
2018-06-30 9 -7
2017-06-30 0 -3

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • PointsBet Holdings is not considered high growth as it is expected to be loss making for the next 1-3 years.
  • PointsBet Holdings's revenue is expected to grow significantly at over 20% yearly.
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
ASX:PBH Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (6 months ago) See Below
Future Estimates Average of up to 1 Analyst Estimates (S&P Global) See Below

All data from PointsBet Holdings Company Filings, last reported 6 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

ASX:PBH Future Estimates Data
Date (Data in AUD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2021-06-30 -0.16 -0.16 -0.16 1.00
2020-06-30 -0.16 -0.16 -0.16 1.00
2019-06-30
ASX:PBH Past Financials Data
Date (Data in AUD Millions) EPS *
2018-12-31 -39.80
2018-09-30 -28.34
2018-06-30
2017-06-30

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Unable to establish if PointsBet Holdings will efficiently use shareholders’ funds in the future (Return on Equity greater than 20%) as it is not expected to be profitable.
X
Future performance checks
We assess PointsBet Holdings's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Australia market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Australia market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
PointsBet Holdings has a total score of 2/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

PBH Past Performance

  How has PointsBet Holdings performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare PointsBet Holdings's growth in the last year to its industry (Hospitality).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • PointsBet Holdings does not make a profit and there is insufficient past data to establish if their 5 year on year earnings growth rate was positive.
  • Unable to compare PointsBet Holdings's 1-year earnings growth to the 5-year average as it is not currently profitable.
  • Unable to compare PointsBet Holdings's 1-year growth to the AU Hospitality industry average as it is not currently profitable.
Earnings and Revenue History
PointsBet Holdings's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from PointsBet Holdings Company Filings, last reported 6 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

ASX:PBH Past Revenue, Cash Flow and Net Income Data
Date (Data in AUD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-12-31 17.85 -15.69 22.65 0.26
2018-09-30 13.61 -11.17 17.11 0.26
2018-06-30 9.38 -6.66 11.57 0.26
2017-06-30 0.37 -3.15 3.24 0.15

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • It is difficult to establish if PointsBet Holdings has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) due to its liabilities exceeding its assets.
  • It is difficult to establish if PointsBet Holdings has efficiently used its assets last year compared to the AU Hospitality industry average (Return on Assets) as it is loss-making.
  • It is difficult to establish if PointsBet Holdings improved its use of capital last year versus 3 years ago (Return on Capital Employed) due to its liabilities exceeding its assets.
X
Past performance checks
We assess PointsBet Holdings's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Hospitality industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
PointsBet Holdings has a total score of 0/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

PBH Health

 How is PointsBet Holdings's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up PointsBet Holdings's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • PointsBet Holdings's short term (1 year) commitments are greater than its holdings of cash and other short term assets.
  • PointsBet Holdings has no long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of PointsBet Holdings's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • PointsBet Holdings has negative shareholder equity (liabilities exceed assets) therefore debt is not covered by short term assets.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from PointsBet Holdings Company Filings, last reported 6 months ago.

ASX:PBH Past Debt and Equity Data
Date (Data in AUD Millions) Total Equity Total Debt Cash & Short Term Investments
2018-12-31 -3.92 21.44 13.97
2018-09-30 -3.92 21.44 13.97
2018-06-30
2017-06-30
  • PointsBet Holdings has negative shareholder equity (liabilities exceed assets), this is a more serious situation compared with a high debt level.
  • Irrelevant to check if PointsBet Holdings's debt level has increased considering it has negative shareholder equity.
  • Unable to verify if debt is well covered by operating cash flow as PointsBet Holdings has not reported sufficient balance sheet data.
  • Unable to confirm if the interest payments on PointsBet Holdings's debt are well covered by earnings due to lack of past financial data.
X
Financial health checks
We assess PointsBet Holdings's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. PointsBet Holdings has a total score of 1/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

PBH Dividends

 What is PointsBet Holdings's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0%
Current annual income from PointsBet Holdings dividends.
If you bought A$2,000 of PointsBet Holdings shares you are expected to receive A$0 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Unable to evaluate PointsBet Holdings's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
  • Unable to evaluate PointsBet Holdings's dividend against the top 25% market benchmark as the company has not reported any payouts.
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
ASX:PBH Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 1 Analyst Estimates (S&P Global) See Below
Australia Hospitality Industry Average Dividend Yield Market Cap Weighted Average of 17 Stocks 3.4%
Australia Market Average Dividend Yield Market Cap Weighted Average of 416 Stocks 4%
Australia Minimum Threshold Dividend Yield 10th Percentile 1.4%
Australia Bottom 25% Dividend Yield 25th Percentile 2.5%
Australia Top 25% Dividend Yield 75th Percentile 5.8%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

ASX:PBH Future Dividends Estimate Data
Date (Data in A$) Dividend per Share (annual) Avg. No. Analysts
2021-06-30
2020-06-30
2019-06-30

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to perform a dividend volatility check as PointsBet Holdings has not reported any payouts.
  • Unable to verify if PointsBet Holdings's dividend has been increasing as the company has not reported any payouts.
Current Payout to shareholders
What portion of PointsBet Holdings's earnings are paid to the shareholders as a dividend.
  • Unable to calculate sustainability of dividends as PointsBet Holdings has not reported any payouts.
Future Payout to shareholders
  • Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.
X
Income/ dividend checks
We assess PointsBet Holdings's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.4%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can PointsBet Holdings afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. PointsBet Holdings has a total score of 0/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

PBH Management

 What is the CEO of PointsBet Holdings's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
  • PointsBet Holdings has no CEO, or we have no data on them.
Management Team
Board of Directors
Who owns this company?
Recent Insider Trading
  • No 3 month individual insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (A$) Value (A$)
X
Management checks
We assess PointsBet Holdings's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. PointsBet Holdings has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

PBH News

Simply Wall St News

PBH Company Info

Description

PointsBet Holdings Limited provides online sports and racing wagering products through its cloud-based wagering platform in Australia and New Jersey. It offers traditional fixed odds betting on racing and sports, as well as spread betting, a form of betting where the bettor wins or loses money based on the margin of variation of outcome from the spread of expected values quoted by the bookmaker. The company was founded in 2015 and is based in Cremorne, Australia.

Details
Name: PointsBet Holdings Limited
PBH
Exchange: ASX
Founded: 2015
A$327,800,000
110,000,000
Website: http://www.pointsbet.com.au
Address: PointsBet Holdings Limited
155 Cremorne Street,
Cremorne,
Victoria, 3121,
Australia
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
ASX PBH Ordinary Shares Australian Securities Exchange AU AUD 12. Jun 2019
CHIA PBH Ordinary Shares Chi-X Australia AU AUD 12. Jun 2019
Number of employees
Current staff
Staff numbers
0
PointsBet Holdings employees.
Industry
Casinos and Gaming
Consumer Services
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/07/22 10:38
End of day share price update: 2019/07/22 00:00
Last estimates confirmation: 2019/06/25
Last earnings filing: 2019/06/11
Last earnings reported: 2018/12/31
Last annual earnings reported: 2018/06/30


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.