Redcape Hotel Group, a hospitality company, engages in the ownership and operation of hotels in Australia.
Moderate growth potential and slightly overvalued.
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
Stable Share Price: RDC's share price has been volatile over the past 3 months.
7 Day Return
1 Year Return
Return vs Industry: RDC underperformed the Australian Hospitality industry which returned -18.9% over the past year.
Return vs Market: RDC underperformed the Australian Market which returned -8.1% over the past year.
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
18 hours ago | Simply Wall StWould Shareholders Who Purchased Redcape Hotel Group's(ASX:RDC) Stock Year Be Happy With The Share price Today?
1 month ago | Simply Wall StRedcape Hotel Group (ASX:RDC) Investors Should Think About This Before Buying It For Its Dividend
Is Redcape Hotel Group undervalued compared to its fair value and its price relative to the market?
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: RDC (A$0.67) is trading below our estimate of fair value (A$0.9)
Significantly Below Fair Value: RDC is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: RDC is poor value based on its PE Ratio (64.3x) compared to the AU Hospitality industry average (20.1x).
PE vs Market: RDC is poor value based on its PE Ratio (64.3x) compared to the Australian market (16x).
Price to Earnings Growth Ratio
PEG Ratio: RDC is poor value based on its PEG Ratio (1.2x)
Price to Book Ratio
PB vs Industry: RDC is overvalued based on its PB Ratio (2x) compared to the AU Hospitality industry average (1x).
How is Redcape Hotel Group forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: RDC's forecast earnings growth (55.6% per year) is above the savings rate (2.3%).
Earnings vs Market: RDC's earnings (55.6% per year) are forecast to grow faster than the Australian market (14.9% per year).
High Growth Earnings: earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: RDC's revenue (4.1% per year) is forecast to grow slower than the Australian market (4.2% per year).
High Growth Revenue: RDC's revenue (4.1% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: RDC's Return on Equity is forecast to be low in 3 years time (5.6%).
How has Redcape Hotel Group performed over the past 5 years?
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: RDC has a large one-off loss of A$17.2M impacting its December 31 2019 financial results.
Growing Profit Margin: RDC became profitable in the past.
Past Earnings Growth Analysis
Earnings Trend: RDC's earnings have declined by 101.1% per year over the past 5 years.
Accelerating Growth: RDC has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.
Earnings vs Industry: RDC has become profitable in the last year, making it difficult to compare its past year earnings growth to the Hospitality industry (-5.5%).
Return on Equity
High ROE: RDC's Return on Equity (3.8%) is considered low.
How is Redcape Hotel Group's financial position?
Financial Position Analysis
Short Term Liabilities: RDC's short term assets (A$90.3M) exceed its short term liabilities (A$46.8M).
Long Term Liabilities: RDC's short term assets (A$90.3M) do not cover its long term liabilities (A$473.6M).
Debt to Equity History and Analysis
Debt Level: RDC's debt to equity ratio (67.5%) 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 (9.3%).
Interest Coverage: RDC's interest payments on its debt are well covered by EBIT (3.4x coverage).
What is Redcape Hotel Group current dividend yield, its reliability and sustainability?
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: RDC's dividend (1.86%) isn’t notable compared to the bottom 25% of dividend payers in the Australian market (2.47%).
High Dividend: RDC's dividend (1.86%) is low compared to the top 25% of dividend payers in the Australian market (6.6%).
Stability and Growth of Payments
Stable Dividend: RDC has been paying a dividend for less than 10 years and during this time payments have been volatile.
Growing Dividend: RDC has only been paying a dividend for 2 years, and since then payments have fallen.
Current Payout to Shareholders
Dividend Coverage: With its high payout ratio (846.5%), RDC's dividend payments are not well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: RDC's dividends in 3 years are not forecast to be well covered by earnings (109.3% payout ratio).
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
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. ...
|CEO & Director||3.08yrs||no data||0.10% |
|Chief Financial Officer||1.5yrs||no data||no data|
|Chief Operating Officer||no data||no data||no data|
|General Manager of Human Resources||no data||no data||no data|
|Company Secretary||1.83yrs||no data||no data|
Experienced Management: RDC's management team is not considered experienced ( 1.8 years average tenure), which suggests a new team.
|CEO & Director||3.08yrs||no data||0.10% |
|Independent Non-Executive Director||1.92yrs||no data||0.036% |
|Independent Non-Executive Chairman||no data||no data||0.018% |
|Non-Executive Director||4.5yrs||no data||0.0091% |
|Independent Non-Executive Director||1.83yrs||no data||0.0091% |
Experienced Board: RDC's board of directors are not considered experienced ( 1.9 years average tenure), which suggests a new board.
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
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Redcape Hotel Group's company bio, employee growth, exchange listings and data sources
- Name: Redcape Hotel Group
- Ticker: RDC
- Exchange: ASX
- Founded: 2017
- Industry: Casinos and Gaming
- Sector: Consumer Services
- Market Cap: AU$367.210m
- Shares outstanding: 552.20m
- Website: https://www.redcape.com.au
Number of Employees
- Redcape Hotel Group
- Minskys Hotel
- Level 1
- New South Wales
|Ticker||Exchange||Primary Security||Security Type||Country||Currency||Listed on|
|RDC||ASX (Australian Securities Exchange)||Yes||Ordinary Stapled Securities||AU||AUD||Nov 2018|
|RDC||CHIA (Chi-X Australia)||Yes||Ordinary Stapled Securities||AU||AUD||Nov 2018|
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
|Data||Last Updated (UTC time)|
|Company Analysis||2020/08/11 10:33|
|End of Day Share Price||2020/08/10 00:00|
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.