company background image
RDC

Redcape Hotel GroupASX:RDC Stock Report

Market Cap

AU$604.7m

7D

1.9%

1Y

19.0%

Updated

20 Oct, 2021

Data

Company Financials
RDC fundamental analysis
Snowflake Score
Valuation4/6
Future Growth0/6
Past Performance5/6
Financial Health1/6
Dividends0/6

RDC Overview

Redcape Hotel Group, a hospitality company, owns and operates hotels in Australia.

Price History & Performance

Summary of all time highs, changes and price drops for Redcape Hotel Group
Historical stock prices
Current Share PriceAU$1.10
52 Week HighAU$0.87
52 Week LowAU$1.15
Beta0.97
1 Month Change-3.52%
3 Month Change11.74%
1 Year Change19.02%
3 Year Changen/a
5 Year Changen/a
Change since IPO5.29%

Recent News & Updates

May 08
Should You Think About Buying Redcape Hotel Group (ASX:RDC) Now?

Should You Think About Buying Redcape Hotel Group (ASX:RDC) Now?

While Redcape Hotel Group ( ASX:RDC ) might not be the most widely known stock at the moment, it saw a decent share...

Shareholder Returns

RDCAU HospitalityAU Market
7D1.9%0.1%1.5%
1Y19.0%39.2%21.1%

Return vs Industry: RDC underperformed the Australian Hospitality industry which returned 39% over the past year.

Return vs Market: RDC underperformed the Australian Market which returned 20.2% over the past year.

Price Volatility

Is RDC's price volatile compared to industry and market?
RDC volatility
RDC Beta0.97
Industry Beta1.23
Market Beta1

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

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

About the Company

FoundedEmployeesCEOWebsite
2013840Dan Bradyhttps://www.redcape.com.au

Redcape Hotel Group, a hospitality company, owns and operates hotels in Australia. It operates 36 hotels in New South Wales and Queensland, as well as 26 bottle shops, four motels, and The Australian Brewery. Redcape Hotel Group was founded in 2013 and is based in Sydney, Australia.

Redcape Hotel Group Fundamentals Summary

How do Redcape Hotel Group's earnings and revenue compare to its market cap?
RDC fundamental statistics
Market CapAU$604.65m
Earnings (TTM)AU$28.47m
Revenue (TTM)AU$335.32m

21.2x

P/E Ratio

1.8x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
RDC income statement (TTM)
RevenueAU$335.32m
Cost of RevenueAU$163.01m
Gross ProfitAU$172.31m
ExpensesAU$143.84m
EarningsAU$28.47m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)0.052
Gross Margin51.39%
Net Profit Margin8.49%
Debt/Equity Ratio80.4%

How did RDC perform over the long term?

See historical performance and comparison

Valuation

Is Redcape Hotel Group 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: RDC (A$1.1) is trading below our estimate of fair value (A$3.25)

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


Price To Earnings Ratio

PE vs Industry: RDC is good value based on its PE Ratio (21.2x) compared to the Australian Hospitality industry average (36.7x).

PE vs Market: RDC is poor value based on its PE Ratio (21.2x) compared to the Australian market (19.7x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: RDC is good value based on its PB Ratio (3.6x) compared to the AU Hospitality industry average (3.8x).


Future Growth

How is Redcape Hotel Group forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

31.7%

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 Redcape Hotel Group 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 Redcape Hotel Group performed over the past 5 years?

8.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: RDC has high quality earnings.

Growing Profit Margin: RDC's current net profit margins (8.5%) are higher than last year (4.3%).


Past Earnings Growth Analysis

Earnings Trend: RDC's earnings have grown by 8.1% per year over the past 5 years.

Accelerating Growth: RDC's earnings growth over the past year (153.6%) exceeds its 5-year average (8.1% per year).

Earnings vs Industry: RDC earnings growth over the past year (153.6%) exceeded the Hospitality industry 4.2%.


Return on Equity

High ROE: RDC's Return on Equity (4.4%) is considered low.


Financial Health

How is Redcape Hotel Group's financial position?


Financial Position Analysis

Short Term Liabilities: RDC's short term assets (A$60.1M) do not cover its short term liabilities (A$78.3M).

Long Term Liabilities: RDC's short term assets (A$60.1M) do not cover its long term liabilities (A$565.4M).


Debt to Equity History and Analysis

Debt Level: RDC's debt to equity ratio (80.4%) is considered high.

Reducing Debt: Insufficient data to determine if RDC's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: RDC's debt is not well covered by operating cash flow (13.3%).

Interest Coverage: RDC's interest payments on its debt are well covered by EBIT (3.6x coverage).


Balance Sheet


Dividend

What is Redcape Hotel Group current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

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

High Dividend: Unable to evaluate RDC'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 RDC's dividends per share have been stable in the past.

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


Current Payout to Shareholders

Dividend Coverage: RDC is not paying a notable dividend for the Australian market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of RDC's dividend in 3 years as they are not forecast to pay a notable one for the Australian market.


Next Steps

Management

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

3.0yrs

Average management tenure


CEO

Dan Brady

4.25yrs

Tenure

Mr. Daniel John Brady, also known as Dan, has been Non-Executive Director at Redcape Hotel Group since October 29, 2018. Mr. Brady has been Chief Executive Officer of Redcape Hotel Group Pty Ltd since July...


Leadership Team

Experienced Management: RDC's management team is considered experienced (3 years average tenure).


Board Members

Experienced Board: RDC's board of directors are considered experienced (3 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

Redcape Hotel Group's employee growth, exchange listings and data sources


Key Information

  • Name: Redcape Hotel Group
  • Ticker: RDC
  • Exchange: ASX
  • Founded: 2013
  • Industry: Casinos and Gaming
  • Sector: Consumer Services
  • Market Cap: AU$604.654m
  • Shares outstanding: 552.20m
  • Website: https://www.redcape.com.au

Number of Employees


Location

  • Redcape Hotel Group
  • Minskys Hotel
  • Level 1
  • Sydney
  • New South Wales
  • 2090
  • Australia

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/10/20 15:32
End of Day Share Price2021/10/20 00:00
Earnings2021/06/30
Annual Earnings2021/06/30


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.