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RCT

Reef Casino TrustASX:RCT Stock Report

Market Cap

AU$66.7m

7D

0%

1Y

53.1%

Updated

26 Oct, 2021

Data

Company Financials
RCT fundamental analysis
Snowflake Score
Valuation4/6
Future Growth0/6
Past Performance2/6
Financial Health4/6
Dividends4/6

RCT Overview

Reef Casino Trust owns and leases the Reef Hotel Casino complex located in Cairns, North Queensland, Australia.

Price History & Performance

Summary of all time highs, changes and price drops for Reef Casino Trust
Historical stock prices
Current Share PriceAU$2.68
52 Week HighAU$1.75
52 Week LowAU$2.99
Beta1.18
1 Month Change1.13%
3 Month Change3.08%
1 Year Change53.14%
3 Year Change-13.55%
5 Year Change-26.98%
Change since IPO-90.76%

Recent News & Updates

Jun 10
Reef Casino Trust (ASX:RCT) Could Be At Risk Of Shrinking As A Company

Reef Casino Trust (ASX:RCT) Could Be At Risk Of Shrinking As A Company

If we're looking to avoid a business that is in decline, what are the trends that can warn us ahead of time? Typically...

Apr 19
Calculating The Fair Value Of Reef Casino Trust (ASX:RCT)

Calculating The Fair Value Of Reef Casino Trust (ASX:RCT)

Does the April share price for Reef Casino Trust ( ASX:RCT ) reflect what it's really worth? Today, we will estimate...

Mar 21
Do Investors Have Good Reason To Be Wary Of Reef Casino Trust's (ASX:RCT) 3.9% Dividend Yield?

Do Investors Have Good Reason To Be Wary Of Reef Casino Trust's (ASX:RCT) 3.9% Dividend Yield?

Could Reef Casino Trust ( ASX:RCT ) be an attractive dividend share to own for the long haul? Investors are often drawn...

Shareholder Returns

RCTAU HospitalityAU Market
7D0%-0.1%0.8%
1Y53.1%44.6%24.4%

Return vs Industry: RCT exceeded the Australian Hospitality industry which returned 44.6% over the past year.

Return vs Market: RCT exceeded the Australian Market which returned 24.4% over the past year.

Price Volatility

Is RCT's price volatile compared to industry and market?
RCT volatility
RCT Beta1.18
Industry Beta1.23
Market Beta1

Stable Share Price: RCT is less volatile than 75% of Australian stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: RCT's weekly volatility (5%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
1993n/aAllan Tanhttps://www.reefcasino.com.au/reef-casino-trust

Reef Casino Trust owns and leases the Reef Hotel Casino complex located in Cairns, North Queensland, Australia. The company was founded in 1993 and is based in Brisbane, Australia. Reef Casino Trust is a subsidiary of Reef Casino Investments Pty Ltd.

Reef Casino Trust Fundamentals Summary

How do Reef Casino Trust's earnings and revenue compare to its market cap?
RCT fundamental statistics
Market CapAU$66.73m
Earnings (TTM)AU$26.54m
Revenue (TTM)AU$26.08m

2.5x

P/E Ratio

2.6x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
RCT income statement (TTM)
RevenueAU$26.08m
Cost of RevenueAU$2.37m
Gross ProfitAU$23.71m
Expenses-AU$2.83m
EarningsAU$26.54m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)1.07
Gross Margin90.90%
Net Profit Margin101.76%
Debt/Equity Ratio1.7%

How did RCT perform over the long term?

See historical performance and comparison

Dividends

9.2%

Current Dividend Yield

21%

Payout Ratio

Valuation

Is Reef Casino Trust undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: RCT (A$2.68) is trading below our estimate of fair value (A$16.28)

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


Price To Earnings Ratio

PE vs Industry: RCT is good value based on its PE Ratio (2.5x) compared to the Australian Hospitality industry average (37.4x).

PE vs Market: RCT is good value based on its PE Ratio (2.5x) compared to the Australian market (20x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: RCT is overvalued based on its PB Ratio (5.8x) compared to the AU Hospitality industry average (3.8x).


Future Growth

How is Reef Casino Trust forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

31.1%

Forecasted Consumer Services industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Reef Casino Trust has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Past Performance

How has Reef Casino Trust performed over the past 5 years?

-11.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: RCT has a large one-off gain of A$19.6M impacting its June 30 2021 financial results.

Growing Profit Margin: RCT became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: RCT's earnings have declined by 11% per year over the past 5 years.

Accelerating Growth: RCT has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: RCT has become profitable in the last year, making it difficult to compare its past year earnings growth to the Hospitality industry (4.2%).


Return on Equity

High ROE: RCT's Return on Equity (229%) is considered outstanding.


Financial Health

How is Reef Casino Trust's financial position?


Financial Position Analysis

Short Term Liabilities: RCT's short term assets (A$9.1M) exceed its short term liabilities (A$4.4M).

Long Term Liabilities: RCT's short term assets (A$9.1M) do not cover its long term liabilities (A$85.5M).


Debt to Equity History and Analysis

Debt Level: RCT's debt to equity ratio (1.7%) is considered satisfactory.

Reducing Debt: RCT's debt to equity ratio has reduced from 22.5% to 1.7% over the past 5 years.

Debt Coverage: RCT's debt is well covered by operating cash flow (8473.5%).

Interest Coverage: RCT's interest payments on its debt are not well covered by EBIT (1.9x coverage).


Balance Sheet


Dividend

What is Reef Casino Trust current dividend yield, its reliability and sustainability?

9.17%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: RCT's dividend (9.17%) is higher than the bottom 25% of dividend payers in the Australian market (2.23%).

High Dividend: RCT's dividend (9.17%) is in the top 25% of dividend payers in the Australian market (5.32%)


Stability and Growth of Payments

Stable Dividend: RCT's dividend payments have been volatile in the past 10 years.

Growing Dividend: RCT's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (20.7%), RCT's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

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

6.5yrs

Average board tenure


CEO

Allan Tan

no data

Tenure

AU$92,962

Compensation

Mr. Allan Tan serves as Regional Controller of Australia, Asia & Pacific of Casinos Austria International Holding GmbH. Mr. Tan serves as Chief Financial Officer and Company Secretary of Casinos Austria In...


CEO Compensation Analysis

Compensation vs Market: Allan's total compensation ($USD69.69K) is below average for companies of similar size in the Australian market ($USD301.38K).

Compensation vs Earnings: Allan's compensation has been consistent with company performance over the past year.


Board Members

Experienced Board: RCT's board of directors are considered experienced (6.5 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 not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Reef Casino Trust's employee growth, exchange listings and data sources


Key Information


Location

  • Reef Casino Trust
  • Sofitel Hotel
  • Level 3
  • Brisbane
  • Queensland
  • 4000
  • Australia

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/10/26 16:12
End of Day Share Price2021/10/26 00:00
Earnings2021/06/30
Annual Earnings2020/12/31


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.