ASX:RDC

Stock Analysis Report

Executive Summary

Redcape Hotel Group, a hospitality company, engages in the ownership and operation of hotels in Australia.

Snowflake

Fundamentals

Reasonable growth potential with imperfect balance sheet.

Share Price & News

How has Redcape Hotel Group's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

0.9%

RDC

1.7%

AU Hospitality

0.4%

AU Market


1 Year Return

n/a

RDC

-1.8%

AU Hospitality

9.8%

AU Market

Return vs Industry: Insufficient data to determine how RDC performed against the Australian Hospitality industry.

Return vs Market: Insufficient data to determine how RDC performed against the Australian Market.


Shareholder returns

RDCIndustryMarket
7 Day0.9%1.7%0.4%
30 Day0%1.7%-0.7%
90 Day-2.3%5.6%-0.6%
1 Yearn/a1.8%-1.8%16.1%9.8%
3 Yearn/a33.8%19.5%36.1%17.9%
5 Yearn/a93.7%55.8%49.4%15.8%

Price Volatility Vs. Market

How volatile is Redcape Hotel Group's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Redcape Hotel Group undervalued compared to its fair value and its price relative to the market?

3.08x

Price to Book (PB) ratio


Share Price vs. Fair Value

Undervalued: RDC (A$1.08) is trading above our estimate of fair value (A$0.97)

Significantly Undervalued: RDC is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: RDC is unprofitable, so we can't compare its PE Ratio to the Hospitality industry average.

PE vs Market: RDC is unprofitable, so we can't compare its PE Ratio to the Australian market.


Price to Earnings Growth Ratio

Low 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 overvalued based on its PB Ratio (3.1x) compared to the AU Hospitality industry average (1.6x).


Next Steps

Future Growth

How is Redcape Hotel Group forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

35.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: RDC is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (2.3%).

Earnings vs Market: RDC is forecast to become profitable over the next 3 year, which is considered above average market growth.

High Growth Earnings: RDC's loss is forecast to worsen by 0% next year.

Revenue vs Market: RDC's revenue (6.2% per year) is forecast to grow faster than the Australian market (3.6% per year).

High Growth Revenue: RDC's revenue (6.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: RDC's Return on Equity is forecast to be low in 3 years time (7.7%).


Next Steps

Past Performance

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

-326.5%

Last years earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: RDC is unprofitable, and there is insufficient past data to establish if their past 5-year earnings growth rate was positive.

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

Earnings vs Industry: RDC is unprofitable, making it difficult to compare its past year earnings growth to the Hospitality industry (12.4%).


Return on Equity

High ROE: RDC has a negative Return on Equity (-0.78%), as it is currently unprofitable.


Return on Assets

ROA vs Industry: RDC is currently unprofitable, so its Return on Assets is negative.


Return on Capital Employed

ROCE Improving: RDC is currently unprofitable, so its Return on Capital Employed is negative.


Next Steps

Financial Health

How is Redcape Hotel Group's financial position?


Financial Position Analysis

Short Term Liabilities: RDC's short term assets (A$29.4M) do not cover its short term liabilities (A$52.5M)

Long Term Liabilities: RDC's short term assets (29.4M) do not cover its long term liabilities (440.7M)


Debt to Equity History and Analysis

Debt Level: RDC's debt to equity ratio (69.9%) is considered high

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


Balance Sheet

Inventory Level: RDC has a high level of physical assets or inventory.

Debt Coverage by Assets: RDC's debt is not covered by short term assets (assets are 0.1x debt).


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: Whilst unprofitable RDC has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: RDC is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 16.4% per year.


Next Steps

Dividend

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

8.18%

Current Dividend Yield


Dividend Yield vs Market

company8.2%marketbottom25%2.4%markettop25%5.6%industryaverage3.2%forecastin3Years8.4%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: RDC's dividend (8.18%) is higher than the bottom 25% of dividend payers in the Australian market (2.44%).

High Dividend: RDC's dividend (8.18%) is in the top 25% of dividend payers in the Australian market (5.58%)

Stable Dividend: Too early to tell whether RDC's dividend payments have been stable as they only just started paying a dividend.

Growing Dividend: Too early to tell if RDC's dividend payments are increasing as they only just started paying a dividend.


Current Payout to Shareholders

Dividend Coverage: RDC is paying a dividend but the company is unprofitable.


Future Payout to Shareholders

Future Dividend Coverage: RDC's dividends in 3 years are not forecast to be well covered by earnings (101.6% payout ratio).


Next Steps

Management

What is the CEO of Redcape Hotel Group's salary, the management and board of directors tenure and is there insider trading?

1.0yrs

Average management tenure


CEO

Dan Brady 0

2.3yrs

Tenure

0

Mr. Daniel John Brady, also known as Dan, has been Director at Redcape Hotel Group since October 29, 2018. Mr. Brady has been Chief Executive Officer of Redcape Hotel Group Pty Ltd since July 17, 2017. Mr. ...


Management Age and Tenure

1.0yrs

Average Tenure

Experienced Management: RDC's management team is not considered experienced ( 1 years average tenure), which suggests a new team.


Board Age and Tenure

1.0yrs

Average Tenure

Experienced Board: RDC's board of directors are not considered experienced ( 1 years average tenure), which suggests a new board.


Insider Trading

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


Recent Insider Transactions

BuyAU$3,942,00503 Sep 19
Fil Responsible Entity (Australia) Limited
EntityCompany
Shares3,528,786
Max PriceAU$1.12

Ownership Breakdown


Management Team

  • Brett Wright

    General Manager of Human Resources

    • Tenure: 0yrs
  • Dan Brady

    CEO & Director

    • Tenure: 2.3yrs
  • Tim Fawaz (53yo)

    Chief Financial Officer

    • Tenure: 0.7yrs
  • Chris Unger

    Chief Operating Officer

    • Tenure: 0yrs
  • Rebecca Ong

    Company Secretary

    • Tenure: 1yrs

Board Members

  • David Groves (64yo)

    Independent Non-Executive Director

    • Tenure: 1.1yrs
  • Nick Collishaw (58yo)

    Independent Non-Executive Chairman

    • Tenure: 0yrs
  • Dan Brady

    CEO & Director

    • Tenure: 2.3yrs
  • Hugh Thomson

    Non-Executive Director

    • Tenure: 3.7yrs
  • Andrew Ireland

    Independent Non-Executive Director

    • Tenure: 1yrs

Company Information

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


Key Information

  • Name: Redcape Hotel Group
  • Ticker: RDC
  • Exchange: ASX
  • Founded: 2017
  • Industry: Casinos and Gaming
  • Sector: Consumer Services
  • Market Cap: AU$593.211m
  • Shares outstanding: 551.82m
  • Website: https://www.redcape.com.au

Number of Employees


Location

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

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
RDCASX (Australian Securities Exchange)YesOrdinary Stapled SecuritiesAUAUDNov 2018
RDCCHIA (Chi-X Australia)YesOrdinary Stapled SecuritiesAUAUDNov 2018

Biography

Redcape Hotel Group, a hospitality company, engages in the ownership and operation of hotels in Australia. The company offers gaming, on-premise food and beverage, accommodation, and other services, as wel ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/19 10:44
End of Day Share Price2019/10/18 00:00
Earnings2019/06/30
Annual Earnings2019/06/30


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.