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TAH

Tabcorp HoldingsASX:TAH Stock Report

Market Cap

AU$11.1b

7D

-5.5%

1Y

44.5%

Updated

21 Oct, 2021

Data

Company Financials +
TAH fundamental analysis
Snowflake Score
Valuation2/6
Future Growth2/6
Past Performance2/6
Financial Health4/6
Dividends2/6

TAH Overview

Tabcorp Holdings Limited, together with its subsidiaries, provides gambling and entertainment services in Australia.

Tabcorp Holdings Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Tabcorp Holdings
Historical stock prices
Current Share PriceAU$5.00
52 Week HighAU$3.24
52 Week LowAU$5.37
Beta1.26
1 Month Change3.95%
3 Month Change1.01%
1 Year Change44.51%
3 Year Change10.13%
5 Year Change4.17%
Change since IPO110.97%

Recent News & Updates

Oct 13
Does Tabcorp Holdings (ASX:TAH) Have A Healthy Balance Sheet?

Does Tabcorp Holdings (ASX:TAH) Have A Healthy Balance Sheet?

Warren Buffett famously said, 'Volatility is far from synonymous with risk.' So it might be obvious that you need to...

Sep 22
A Look At The Fair Value Of Tabcorp Holdings Limited (ASX:TAH)

A Look At The Fair Value Of Tabcorp Holdings Limited (ASX:TAH)

Does the September share price for Tabcorp Holdings Limited ( ASX:TAH ) reflect what it's really worth? Today, we will...

Aug 24
We Think That There Are Issues Underlying Tabcorp Holdings' (ASX:TAH) Earnings

We Think That There Are Issues Underlying Tabcorp Holdings' (ASX:TAH) Earnings

Tabcorp Holdings Limited's ( ASX:TAH ) robust earnings report didn't manage to move the market for its stock. Our...

Aug 17
Why Tabcorp Holdings Limited (ASX:TAH) Could Be Worth Watching

Why Tabcorp Holdings Limited (ASX:TAH) Could Be Worth Watching

While Tabcorp Holdings Limited ( ASX:TAH ) might not be the most widely known stock at the moment, it received a lot of...

Shareholder Returns

TAHAU HospitalityAU Market
7D-5.5%-1.1%0.7%
1Y44.5%38.2%21.4%

Return vs Industry: TAH exceeded the Australian Hospitality industry which returned 39.2% over the past year.

Return vs Market: TAH exceeded the Australian Market which returned 21.1% over the past year.

Price Volatility

Is TAH's price volatile compared to industry and market?
TAH volatility
TAH Beta1.26
Industry Beta1.23
Market Beta1

Stable Share Price: TAH is less volatile than 75% of Australian stocks over the past 3 months, typically moving +/- 2% a week.

Volatility Over Time: TAH's weekly volatility (2%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
18815,000David Robert Attenboroughhttps://www.tabcorp.com.au

Tabcorp Holdings Limited, together with its subsidiaries, provides gambling and entertainment services in Australia. Its Lotteries and Keno segment operates lotteries and Kenos primarily under the Set for Life, Powerball, Oz Lotto, TattsLotto, Saturday Lotto, Gold Lotto, X Lotto, Monday and Wednesday Lotto, Lucky Lotteries, Lotto Strike, Super 66, Keno, and Instant Scratch-Its brands. The company’s Wagering and Media segment offers totalizator and fixed odds betting on racing, sports, and other events; and operates through a network of TAB agencies, hotels and clubs, and on-course operations, as well as through retail, Internet, mobile devices, and phone.

Tabcorp Holdings Fundamentals Summary

How do Tabcorp Holdings's earnings and revenue compare to its market cap?
TAH fundamental statistics
Market CapAU$11.10b
Earnings (TTM)AU$269.00m
Revenue (TTM)AU$5.69b

41.3x

P/E Ratio

2.0x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
TAH income statement (TTM)
RevenueAU$5.69b
Cost of RevenueAU$0
Gross ProfitAU$5.69b
ExpensesAU$5.42b
EarningsAU$269.00m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

Feb 17, 2022

Earnings per share (EPS)0.12
Gross Margin100.00%
Net Profit Margin4.73%
Debt/Equity Ratio38.4%

How did TAH perform over the long term?

See historical performance and comparison

Dividends

2.8%

Current Dividend Yield

118%

Payout Ratio

Valuation

Is Tabcorp Holdings undervalued compared to its fair value and its price relative to the market?

1.6%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: TAH (A$5) is trading below our estimate of fair value (A$5.08)

Significantly Below Fair Value: TAH is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: TAH is poor value based on its PE Ratio (41.3x) compared to the Australian Hospitality industry average (36.8x).

PE vs Market: TAH is poor value based on its PE Ratio (41.3x) compared to the Australian market (19.7x).


Price to Earnings Growth Ratio

PEG Ratio: TAH is poor value based on its PEG Ratio (2.2x)


Price to Book Ratio

PB vs Industry: TAH is good value based on its PB Ratio (1.7x) compared to the AU Hospitality industry average (3.8x).


Future Growth

How is Tabcorp Holdings forecast to perform in the next 1 to 3 years based on estimates from 11 analysts?

18.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: TAH's forecast earnings growth (18.8% per year) is above the savings rate (1.9%).

Earnings vs Market: TAH's earnings (18.8% per year) are forecast to grow faster than the Australian market (11.6% per year).

High Growth Earnings: TAH's earnings are forecast to grow, but not significantly.

Revenue vs Market: TAH's revenue (2.5% per year) is forecast to grow slower than the Australian market (5.4% per year).

High Growth Revenue: TAH's revenue (2.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: TAH's Return on Equity is forecast to be low in 3 years time (7.2%).


Past Performance

How has Tabcorp Holdings performed over the past 5 years?

-38.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: TAH has high quality earnings.

Growing Profit Margin: TAH became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: TAH's earnings have declined by 38.9% per year over the past 5 years.

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

Earnings vs Industry: TAH 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: TAH's Return on Equity (4%) is considered low.


Financial Health

How is Tabcorp Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: TAH's short term assets (A$898.0M) do not cover its short term liabilities (A$1.7B).

Long Term Liabilities: TAH's short term assets (A$898.0M) do not cover its long term liabilities (A$3.5B).


Debt to Equity History and Analysis

Debt Level: TAH's debt to equity ratio (38.4%) is considered satisfactory.

Reducing Debt: TAH's debt to equity ratio has reduced from 68.8% to 38.4% over the past 5 years.

Debt Coverage: TAH's debt is well covered by operating cash flow (28%).

Interest Coverage: TAH's interest payments on its debt are well covered by EBIT (4.3x coverage).


Balance Sheet


Dividend

What is Tabcorp Holdings's current dividend yield, its reliability and sustainability?

2.80%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: TAH's dividend (2.8%) is higher than the bottom 25% of dividend payers in the Australian market (2.29%).

High Dividend: TAH's dividend (2.8%) is low compared to the top 25% of dividend payers in the Australian market (5.31%).


Stability and Growth of Payments

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

Growing Dividend: TAH's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (117.7%), TAH's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: TAH's dividends in 3 years are forecast to be covered by earnings (81.3% payout ratio).


Next Steps

Management

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

3.1yrs

Average management tenure


CEO

David Robert Attenborough (58 yo)

10.33yrs

Tenure

AU$4,632,000

Compensation

Mr. David Robert Henry Attenborough, BSc, MBA has been the Managing Director and Chief Executive Officer of TabCorp Holdings Ltd. since June 2011. Mr. Attenborough served as the Managing Director of Wageri...


CEO Compensation Analysis

Compensation vs Market: David Robert's total compensation ($USD3.47M) is above average for companies of similar size in the Australian market ($USD2.18M).

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


Leadership Team

Experienced Management: TAH's management team is considered experienced (3.1 years average tenure).


Board Members

Experienced Board: TAH's board of directors are not considered experienced ( 1.3 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: TAH 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

Tabcorp Holdings Limited's employee growth, exchange listings and data sources


Key Information

  • Name: Tabcorp Holdings Limited
  • Ticker: TAH
  • Exchange: ASX
  • Founded: 1881
  • Industry: Casinos and Gaming
  • Sector: Consumer Services
  • Market Cap: AU$11.099b
  • Shares outstanding: 2.22b
  • Website: https://www.tabcorp.com.au

Number of Employees


Location

  • Tabcorp Holdings Limited
  • Tower 2, Collins Square
  • Level 21
  • Melbourne
  • Victoria
  • 3008
  • Australia

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/10/21 18:04
End of Day Share Price2021/10/21 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.