ASX:RDC

Stock Analysis Report

Executive Summary

Redcape Hotel Group operates in the hotel business in Australia.

Snowflake

Fundamentals

Reasonable growth potential and slightly overvalued.

Risks

  • Redcape Hotel Group's last earnings update was 181 days ago.
  • Redcape Hotel Group is covered by less than 3 analysts.

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

-1.8%

ASX:RDC

-2.1%

AU Hospitality

-2.5%

AU Market


1 Year Return

n/a

ASX:RDC

-14.0%

AU Hospitality

-0.6%

AU Market

No trading data on RDC.

No trading data on RDC.


Share holder returns

RDCIndustryMarket
7 Day-1.8%-2.1%-2.5%
30 Day-1.8%-5.6%-4.4%
90 Day0%-4.6%-1.1%
1 Yearn/a-11.6%-14.0%5.1%-0.6%
3 Yearn/a11.6%0.2%30.2%13.1%
5 Yearn/a81.3%46.5%36.5%5.9%

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 based on future cash flows and its price relative to the stock market?

44%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Redcape Hotel Group's share price is below the future cash flow value, and at a moderate discount (> 20%).

Redcape Hotel Group's share price is below the future cash flow value, and at a substantial discount (> 40%).


Price Based on Earnings

Redcape Hotel Group is loss making, we can't compare its value to the AU Hospitality industry average.

Redcape Hotel Group is loss making, we can't compare the value of its earnings to the Australia market.


Price Based on Expected Growth

Unable to calculate PEG ratio for Redcape Hotel Group, we can't assess if its growth is good value.


Price Based on Value of Assets

Redcape Hotel Group is overvalued based on assets compared to the AU Hospitality industry average.


Next Steps

Future Growth

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

49.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Redcape Hotel Group's revenue is expected to grow by 11.4% yearly, however this is not considered high growth (20% yearly).

Redcape Hotel Group's earnings are expected to grow significantly at over 20% yearly.

Redcape Hotel Group's revenue growth is expected to exceed the Australia market average.

Redcape Hotel Group's earnings growth is expected to exceed the Australia market average.

Redcape Hotel Group's earnings growth is expected to exceed the low risk savings rate of 2.3%.


Earnings per Share Growth Estimates


Future Return on Equity

Redcape Hotel Group is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


Next Steps

Past Performance

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

-106.1%

Last years earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Redcape Hotel Group 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 Redcape Hotel Group's 1-year earnings growth to the 5-year average as it is not currently profitable.

Unable to compare Redcape Hotel Group's 1-year growth to the AU Hospitality industry average as it is not currently profitable.


Return on Equity

Redcape Hotel Group has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Redcape Hotel Group used its assets less efficiently than the AU Hospitality industry average last year based on Return on Assets.


Return on Capital Employed

It is difficult to establish if Redcape Hotel Group improved its use of capital last year versus 3 years ago (Return on Capital Employed) as it is currently loss-making.


Next Steps

Financial Health

How is Redcape Hotel Group's financial position?


Financial Position Analysis

Redcape Hotel Group's short term (1 year) commitments are greater than its holdings of cash and other short term assets.

Redcape Hotel Group's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

Redcape Hotel Group's level of debt (68.9%) compared to net worth is high (greater than 40%).

Unable to establish if Redcape Hotel Group's debt level has increased without past 5-year debt data.

Debt is not well covered by operating cash flow (16.6%, less than 20% of total debt).

Redcape Hotel Group is making a loss, therefore interest payments are not well covered by earnings.


Balance Sheet

High level of physical assets or inventory.

Debt is not covered by short term assets, assets are 0.1x debt.


Next Steps

Dividend

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

8.27%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Redcape Hotel Group's pays a higher dividend yield than the bottom 25% of dividend payers in Australia (2.68%).

Redcape Hotel Group's dividend is above the markets top 25% of dividend payers in Australia (5.9%).

It is too early to tell whether Redcape Hotel Group has stable dividend payments.

Redcape Hotel Group only just started paying a dividend, it is too early to tell if payments are increasing.


Current Payout to Shareholders

Unable to calculate sustainability of dividends as Redcape Hotel Group has not reported any payouts.


Future Payout to Shareholders

Dividends after 3 years are not well covered by earnings (1x coverage).


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?

0.8yrs

Average board tenure


CEO

Dan Brady 0

2.1yrs

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. ...


Board Age and Tenure

0.8yrs

Average Tenure

The average tenure for the Redcape Hotel Group board of directors is less than 3 years, this suggests a new board.


Insider Trading

No 3 month open market individual insider trading information.


Ownership Breakdown


Management Team

  • Brett Wright

    General Manager of Human Resources

    • Tenure: 0.0yrs
  • Dan Brady

    CEO & Director

    • Tenure: 2.1yrs
  • Tim Fawaz (53yo)

    Chief Financial Officer

    • Tenure: 0.5yrs
  • Chris Unger

    Chief Operating Officer

    • Tenure: 0.0yrs

Board Members

  • David Groves (64yo)

    Independent Non-Executive Director

    • Tenure: 0.9yrs
  • Nick Collishaw (58yo)

    Independent Non-Executive Chairman

    • Tenure: 0.0yrs
  • Dan Brady

    CEO & Director

    • Tenure: 2.1yrs
  • Hugh Thomson

    Non-Executive Director

    • Tenure: 0.0yrs
  • Andrew Ireland

    Independent Non-Executive Director

    • Tenure: 0.8yrs

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: 2009
  • Industry: Casinos and Gaming
  • Sector: Consumer Services
  • Market Cap: AU$603.833m
  • Shares outstanding: 551.45m
  • Website: https://www.redcape.com.au

Location

  • Redcape Hotel Group
  • Governor Phillip Tower
  • Level 27
  • Sydney
  • New South Wales
  • 2000
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
RDCASX (Australian Securities Exchange)YesOrdinary Stapled SecuritiesAUAUDNov 2018

Biography

Redcape Hotel Group operates in the hotel business in Australia. It operates pubs and hotels New South Wales and Queensland. The company’s pubs and hotels offer food and beverage options, mixed entertainme ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/08/19 10:38
End of Day Share Price2019/08/19 00:00
Earnings2018/12/31
Annual Earnings2018/06/30


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.