PointsBet Holdings (ASX:PBH) - Share price, News & Analysis

Q: What is the Fair Price of PBH when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

PBH (A$2.75) is trading below our estimate of [[fair value]] (A$55.57)

PBH fundamental analysis
Snowflake Score
Valuation	4/6
Future Growth	2/6
Past Performance	0/6
Financial Health	5/6
Dividends	0/6

PBH Stock Overview

PointsBet Holdings Limited provides sports, racing, and iGaming betting products and services through its cloud-based technology platform in Australia and New Jersey.

Rewards

Trading at 95.1% below our estimate of its fair value

Revenue is forecast to grow 30.87% per year

Risk Analysis

Currently unprofitable and not forecast to become profitable over the next 3 years

Volatile share price over the past 3 months

Shareholders have been diluted in the past year

PointsBet Holdings Competitors

Betmakers Technology Group

ASX:BET

AU$352.7m

Jumbo Interactive

ASX:JIN

AU$918.4m

Tabcorp Holdings

ASX:TAH

AU$2.4b

Ainsworth Game Technology

ASX:AGI

AU$308.2m

Price History & Performance

Summary of all time highs, changes and price drops for PointsBet Holdings
Historical stock prices
Current Share Price	AU$2.75
52 Week High	AU$12.79
52 Week Low	AU$1.93
Beta	2.94
1 Month Change	5.77%
3 Month Change	-18.15%
1 Year Change	-77.93%
3 Year Change	-5.82%
5 Year Change	n/a
Change since IPO	22.77%

Recent News & Updates

Jun 20

Are Investors Undervaluing PointsBet Holdings Limited (ASX:PBH) By 38%?

Today we will run through one way of estimating the intrinsic value of PointsBet Holdings Limited ( ASX:PBH ) by taking...

Shareholder Returns

	PBH	AU Hospitality	AU Market
7D	13.6%	0.3%	-2.1%
1Y	-77.9%	-27.1%	-10.5%

Return vs Industry: PBH underperformed the Australian Hospitality industry which returned -27.1% over the past year.

Return vs Market: PBH underperformed the Australian Market which returned -10.5% over the past year.

Price Volatility

Is PBH's price volatile compared to industry and market?
PBH volatility
PBH Average Weekly Movement	14.4%
Hospitality Industry Average Movement	6.7%
Market Average Movement	10.0%
10% most volatile stocks in AU Market	16.7%
10% least volatile stocks in AU Market	4.5%

Stable Share Price: PBH is more volatile than 75% of Australian stocks over the past 3 months, typically moving +/- 14% a week.

Volatility Over Time: PBH's weekly volatility (14%) has been stable over the past year, but is still higher than 75% of Australian stocks.

About the Company

Founded	Employees	CEO	Website
2015	539	Sam Swanell	https://www.pointsbet.com.au

PointsBet Holdings Limited provides sports, racing, and iGaming betting products and services through its cloud-based technology platform in Australia and New Jersey. The company operates through Australian Trading, Technology, and United States segments. It also engages in the provision of gaming support, pari-mutuel advanced deposit wagering, and business-to-business services, as well as in the retail sports betting and software development activities.

PointsBet Holdings Fundamentals Summary

How do PointsBet Holdings's earnings and revenue compare to its market cap?
PBH fundamental statistics
Market Cap	AU$835.74m
Earnings (TTM)	-AU$247.92m
Revenue (TTM)	AU$258.63m

3.2x

P/S Ratio

-3.4x

P/E Ratio

Is PBH overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
PBH income statement (TTM)
Revenue	AU$258.63m
Cost of Revenue	AU$141.91m
Gross Profit	AU$116.72m
Other Expenses	AU$364.65m
Earnings	-AU$247.92m

Last Reported Earnings

Dec 31, 2021

Next Earnings Date

Aug 30, 2022

Earnings per share (EPS)	-0.82
Gross Margin	45.13%
Net Profit Margin	-95.86%
Debt/Equity Ratio	0%

How did PBH perform over the long term?

See historical performance and comparison

We’ve recently updated our valuation analysis.

Valuation

Is PBH undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

4/6

Valuation Score 4/6

Price-To-Sales vs Peers
Price-To-Sales vs Industry
Price-To-Sales vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for PBH?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for PBH. This is calculated by dividing PBH's market cap by their current preferred multiple.
What is PBH's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	AU$835.74m

PBH key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	1.1x
Enterprise Value/EBITDA	-1.2x
PEG Ratio	n/a

Price to Sales Ratio vs Peers

How does PBH's PS Ratio compare to its peers?

PBH PS Ratio vs Peers

The above table shows the PS ratio for PBH vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PS	Estimated Growth	Market Cap
Peer Average	4.5x
BET Betmakers Technology Group	6.4x	34.0%	AU$352.7m
JIN Jumbo Interactive	9.6x	15.1%	AU$918.4m
TAH Tabcorp Holdings	0.4x	-0.8%	AU$2.4b
AGI Ainsworth Game Technology	1.6x	10.5%	AU$308.2m
PBH PointsBet Holdings	3.2x	30.9%	AU$835.7m

Forward PS

Price-To-Sales vs Peers: PBH is good value based on its Price-To-Sales Ratio (3.2x) compared to the peer average (4.5x).

Price to Earnings Ratio vs Industry

How does PBH's PE Ratio compare vs other companies in the AU Hospitality Industry?

Price-To-Sales vs Industry: PBH is expensive based on its Price-To-Sales Ratio (3.2x) compared to the Australian Hospitality industry average (2.4x)

Price to Sales Ratio vs Fair Ratio

What is PBH's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

PBH PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio	3.2x
Fair PS Ratio	6x

Price-To-Sales vs Fair Ratio: PBH is good value based on its Price-To-Sales Ratio (3.2x) compared to the estimated Fair Price-To-Sales Ratio (6x).

Share Price vs Fair Value

What is the Fair Price of PBH when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: PBH (A$2.75) is trading below our estimate of fair value (A$55.57)

Significantly Below Fair Value: PBH is trading below fair value by more than 20%.

Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate PBH's PEG Ratio to determine if it is good value.

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Future Growth

How is PointsBet Holdings forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?

Future Growth Score

2/6

Future Growth Score 2/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

23.3%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: PBH is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: PBH is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: PBH is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: PBH's revenue (30.9% per year) is forecast to grow faster than the Australian market (5.2% per year).

High Growth Revenue: PBH's revenue (30.9% per year) is forecast to grow faster than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: PBH is forecast to be unprofitable in 3 years.

Discover growth companies

Past Performance

How has PointsBet Holdings performed over the past 5 years?

Past Performance Score

0/6

Past Performance Score 0/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

-66.8%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: PBH is currently unprofitable.

Growing Profit Margin: PBH is currently unprofitable.

Past Earnings Growth Analysis

Earnings Trend: PBH is unprofitable, and losses have increased over the past 5 years at a rate of 66.8% per year.

Accelerating Growth: Unable to compare PBH's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: PBH is unprofitable, making it difficult to compare its past year earnings growth to the Hospitality industry (47.1%).

Return on Equity

High ROE: PBH has a negative Return on Equity (-33.38%), as it is currently unprofitable.

Discover strong past performing companies

Financial Health

How is PointsBet Holdings's financial position?

Financial Health Score

5/6

Financial Health Score 5/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Stable Cash Runway
Forecast Cash Runway

Financial Position Analysis

Short Term Liabilities: PBH's short term assets (A$626.4M) exceed its short term liabilities (A$113.0M).

Long Term Liabilities: PBH's short term assets (A$626.4M) exceed its long term liabilities (A$115.5M).

Debt to Equity History and Analysis

Debt Level: PBH is debt free.

Reducing Debt: PBH had no debt 5 years ago.

Balance Sheet

Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: PBH has sufficient cash runway for more than a year based on its current free cash flow.

Forecast Cash Runway: Insufficient data to determine if PBH has enough cash runway if its free cash flow continues to grow or shrink based on historical rates.

Discover healthy companies

Dividend

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

Dividend Score

0/6

Dividend Score 0/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Cash Flow Coverage

Dividend Yield vs Market

Notable Dividend: Unable to evaluate PBH's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate PBH's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.

Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if PBH's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if PBH's dividend payments have been increasing.

Earnings Payout to Shareholders

Earnings Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as PBH has not reported any payouts.

Discover strong dividend paying companies

Management

How experienced are the management team and are they aligned to shareholders interests?

1.2yrs

Average management tenure

CEO

Sam Swanell

no data

Tenure

AU$1,493,865

Compensation

Mr. Samuel J. Swanell, also known as Sam, is the Co-Founder, Managing Director and Group Chief Executive Officer at PointsBet Holdings Limited and has been its Director since March 15, 2015. He has experie...

CEO Compensation Analysis

Compensation vs Market: Sam's total compensation ($USD1.02M) is about average for companies of similar size in the Australian market ($USD834.80K).

Compensation vs Earnings: Sam's compensation has increased whilst the company is unprofitable.

Leadership Team

Experienced Management: PBH's management team is not considered experienced ( 1.2 years average tenure), which suggests a new team.

Board Members

Experienced Board: PBH's board of directors are considered experienced (3.7 years average tenure).

Ownership

Who are the major shareholders and have insiders been buying or selling?

Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.

Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 46.3%.

Data	Last Updated (UTC time)
Company Analysis	2022/07/05 00:00
End of Day Share Price	2022/07/05 00:00
Earnings	2021/12/31
Annual Earnings	2021/06/30