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Tabcorp Holdings

ASX:TAH
Snowflake Description

Questionable track record with limited growth.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
TAH
ASX
A$9B
Market Cap
  1. Home
  2. AU
  3. Consumer Services
Company description

Tabcorp Holdings Limited, together with its subsidiaries, provides gambling and entertainment services in Australia. The last earnings update was 99 days ago. More info.


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TAH Share Price and Events
7 Day Returns
1.1%
ASX:TAH
2%
AU Hospitality
4%
AU Market
1 Year Returns
4%
ASX:TAH
-8.1%
AU Hospitality
5.2%
AU Market
TAH Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Tabcorp Holdings (TAH) 1.1% -2.9% 1.8% 4% 9.4% 33.3%
AU Hospitality 2% -1.1% 3.1% -8.1% 19.5% 48.4%
AU Market 4% 3.5% 5.9% 5.2% 21.7% 9.6%
1 Year Return vs Industry and Market
  • TAH outperformed the Hospitality industry which returned -8.1% over the past year.
  • TAH underperformed the Market in Australia which returned 5.2% over the past year.
Price Volatility
TAH
Industry
5yr Volatility vs Market

TAH Value

 Is Tabcorp Holdings undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Tabcorp Holdings to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Tabcorp Holdings.

ASX:TAH Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 11 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 9.1%
Perpetual Growth Rate 10-Year AU Government Bond Rate 2.3%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for ASX:TAH
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year AU Govt Bond Rate 2.3%
Equity Risk Premium S&P Global 6%
Hospitality Unlevered Beta Simply Wall St/ S&P Global 0.93
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.932 (1 + (1- 30%) (40.76%))
1.132
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.13
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.31% + (1.132 * 5.96%)
9.06%

Discounted Cash Flow Calculation for ASX:TAH using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Tabcorp Holdings is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

ASX:TAH DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (AUD, Millions) Source Present Value
Discounted (@ 9.06%)
2019 617.00 Analyst x3 565.74
2020 562.00 Analyst x3 472.50
2021 579.50 Analyst x2 446.74
2022 595.97 Est @ 2.84% 421.27
2023 611.95 Est @ 2.68% 396.63
2024 627.69 Est @ 2.57% 373.04
2025 643.34 Est @ 2.49% 350.58
2026 659.03 Est @ 2.44% 329.29
2027 674.85 Est @ 2.4% 309.19
2028 690.88 Est @ 2.37% 290.23
Present value of next 10 years cash flows A$3,955.22
ASX:TAH DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= A$690.88 × (1 + 2.31%) ÷ (9.06% – 2.31%)
A$10,475.03
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= A$10,475.03 ÷ (1 + 9.06%)10
A$4,400.50
ASX:TAH Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= A$3,955.22 + A$4,400.50
A$8,355.72
Equity Value per Share
(AUD)
= Total value / Shares Outstanding
= A$8,355.72 / 2,015.56
A$4.15
ASX:TAH Discount to Share Price
Calculation Result
Value per share (AUD) From above. A$4.15
Current discount Discount to share price of A$4.64
= -1 x (A$4.64 - A$4.15) / A$4.15
-11.9%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of Tabcorp Holdings is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Tabcorp Holdings's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Tabcorp Holdings's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
ASX:TAH PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-12-31) in AUD A$0.06
ASX:TAH Share Price ** ASX (2019-05-22) in AUD A$4.64
Australia Hospitality Industry PE Ratio Median Figure of 16 Publicly-Listed Hospitality Companies 17.7x
Australia Market PE Ratio Median Figure of 542 Publicly-Listed Companies 15.99x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Tabcorp Holdings.

ASX:TAH PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= ASX:TAH Share Price ÷ EPS (both in AUD)

= 4.64 ÷ 0.06

75.51x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Tabcorp Holdings is overvalued based on earnings compared to the AU Hospitality industry average.
  • Tabcorp Holdings is overvalued based on earnings compared to the Australia market.
Price based on expected Growth
Does Tabcorp Holdings's expected growth come at a high price?
Raw Data
ASX:TAH PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 75.51x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 11 Analysts
17.5%per year
Australia Hospitality Industry PEG Ratio Median Figure of 14 Publicly-Listed Hospitality Companies 1.8x
Australia Market PEG Ratio Median Figure of 359 Publicly-Listed Companies 1.4x

*Line of best fit is calculated by linear regression .

ASX:TAH PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 75.51x ÷ 17.5%

4.32x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Tabcorp Holdings is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Tabcorp Holdings's assets?
Raw Data
ASX:TAH PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-12-31) in AUD A$3.62
ASX:TAH Share Price * ASX (2019-05-22) in AUD A$4.64
Australia Hospitality Industry PB Ratio Median Figure of 24 Publicly-Listed Hospitality Companies 1.49x
Australia Market PB Ratio Median Figure of 1,678 Publicly-Listed Companies 1.63x
ASX:TAH PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= ASX:TAH Share Price ÷ Book Value per Share (both in AUD)

= 4.64 ÷ 3.62

1.28x

* Primary Listing of Tabcorp Holdings.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Tabcorp Holdings is good value based on assets compared to the AU Hospitality industry average.
X
Value checks
We assess Tabcorp Holdings's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Hospitality industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Hospitality industry average (and greater than 0)? (1 check)
  5. Tabcorp Holdings has a total score of 1/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

TAH Future Performance

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

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
17.5%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Tabcorp Holdings expected to grow at an attractive rate?
  • Tabcorp Holdings's earnings growth is expected to exceed the low risk savings rate of 2.3%.
Growth vs Market Checks
  • Tabcorp Holdings's earnings growth is expected to exceed the Australia market average.
  • Tabcorp Holdings's revenue growth is positive but not above the Australia market average.
Annual Growth Rates Comparison
Raw Data
ASX:TAH Future Growth Rates Data Sources
Data Point Source Value (per year)
ASX:TAH Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 11 Analysts 17.5%
ASX:TAH Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 11 Analysts 2.6%
Australia Hospitality Industry Earnings Growth Rate Market Cap Weighted Average 14.5%
Australia Hospitality Industry Revenue Growth Rate Market Cap Weighted Average 6.2%
Australia Market Earnings Growth Rate Market Cap Weighted Average 6.9%
Australia Market Revenue Growth Rate Market Cap Weighted Average 3.2%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
ASX:TAH Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (4 months ago) See Below
Future Estimates Average of up to 11 Analyst Estimates (S&P Global) See Below
All numbers in AUD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
ASX:TAH Future Estimates Data
Date (Data in AUD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2023-06-30 5,987 611 2
2022-06-30 5,836 574 2
2021-06-30 5,640 819 491 9
2020-06-30 5,466 768 430 11
2019-06-30 5,385 646 369 11
ASX:TAH Past Financials Data
Date (Data in AUD Millions) Revenue Cash Flow Net Income *
2018-12-31 5,278 446 124
2018-09-30 4,553 447 76
2018-06-30 3,829 448 29
2018-03-31 3,095 383 60
2017-12-31 2,400 318 18
2017-09-30 2,317 270 -2
2017-06-30 2,234 223 -21
2017-03-31 2,230 270 63
2016-12-31 2,225 317 147
2016-09-30 2,207 359 158
2016-06-30 2,189 401 170
2016-03-31 2,185 431 232

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Tabcorp Holdings's earnings are expected to grow by 17.5% yearly, however this is not considered high growth (20% yearly).
  • Tabcorp Holdings's revenue is expected to grow by 2.6% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
ASX:TAH Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (4 months ago) See Below
Future Estimates Average of up to 11 Analyst Estimates (S&P Global) See Below

All data from Tabcorp Holdings Company Filings, last reported 4 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

ASX:TAH Future Estimates Data
Date (Data in AUD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2023-06-30 0.30 0.30 0.30 1.00
2022-06-30 0.28 0.28 0.28 1.00
2021-06-30 0.24 0.26 0.20 5.00
2020-06-30 0.21 0.24 0.18 6.00
2019-06-30 0.18 0.22 0.16 6.00
ASX:TAH Past Financials Data
Date (Data in AUD Millions) EPS *
2018-12-31 0.06
2018-09-30 0.04
2018-06-30 0.02
2018-03-31 0.05
2017-12-31 0.02
2017-09-30 0.00
2017-06-30 -0.02
2017-03-31 0.08
2016-12-31 0.18
2016-09-30 0.19
2016-06-30 0.20
2016-03-31 0.28

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Tabcorp Holdings is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Tabcorp Holdings's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Australia market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Australia market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Tabcorp Holdings has a total score of 2/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

TAH Past Performance

  How has Tabcorp Holdings performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Tabcorp Holdings's growth in the last year to its industry (Hospitality).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Tabcorp Holdings's year on year earnings growth rate was negative over the past 5 years and the most recent earnings are below average.
  • Tabcorp Holdings's 1-year earnings growth exceeds its 5-year average (593.8% vs -29%)
  • Tabcorp Holdings's earnings growth has exceeded the AU Hospitality industry average in the past year (593.8% vs 11.1%).
Earnings and Revenue History
Tabcorp Holdings's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Tabcorp Holdings Company Filings, last reported 4 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

ASX:TAH Past Revenue, Cash Flow and Net Income Data
Date (Data in AUD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-12-31 5,278.00 123.50 2,274.50
2018-09-30 4,553.35 76.10 2,059.65
2018-06-30 3,828.70 28.70 1,844.80
2018-03-31 3,095.30 59.70 1,568.85
2017-12-31 2,400.00 17.80 1,347.30
2017-09-30 2,317.05 -1.50 1,326.15
2017-06-30 2,234.10 -20.80 1,305.00
2017-03-31 2,229.70 62.95 1,276.70
2016-12-31 2,225.30 146.70 1,248.40
2016-09-30 2,207.00 158.20 1,223.55
2016-06-30 2,188.70 169.70 1,198.70
2016-03-31 2,184.55 231.85 1,180.75
2015-12-31 2,180.40 294.00 1,162.80
2015-09-30 2,169.10 314.25 1,141.40
2015-06-30 2,157.80 334.50 1,120.00
2014-12-31 2,108.40 197.20 1,084.70
2014-09-30 2,074.45 173.30 1,067.30
2014-06-30 2,040.50 149.40 1,049.90
2013-12-31 2,013.70 127.70 1,042.90
2013-09-30 2,008.60 137.65 1,041.10
2013-06-30 2,003.50 147.60 1,039.30
2013-03-31 1,994.45 153.80 1,051.55
2012-12-31 1,985.40 160.00 1,063.80
2012-09-30 1,974.85 160.05 1,020.00
2012-06-30 1,964.30 160.10 976.20

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Tabcorp Holdings has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Tabcorp Holdings used its assets less efficiently than the AU Hospitality industry average last year based on Return on Assets.
  • Tabcorp Holdings's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Tabcorp Holdings's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Hospitality industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Tabcorp Holdings has a total score of 2/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

TAH Health

 How is Tabcorp Holdings's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Tabcorp Holdings's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Tabcorp Holdings's short term (1 year) commitments are greater than its holdings of cash and other short term assets.
  • Tabcorp Holdings's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of Tabcorp Holdings's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Debt is not covered by short term assets, assets are 0.2x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Tabcorp Holdings Company Filings, last reported 4 months ago.

ASX:TAH Past Debt and Equity Data
Date (Data in AUD Millions) Total Equity Total Debt Cash & Short Term Investments
2018-12-31 7,254.00 3,812.20 413.90
2018-09-30 7,254.00 3,812.20 413.90
2018-06-30 7,238.60 3,558.40 368.20
2018-03-31 7,238.60 3,558.40 368.20
2017-12-31 7,475.30 3,980.70 484.80
2017-09-30 7,475.30 3,980.70 484.80
2017-06-30 1,483.40 1,710.80 114.30
2017-03-31 1,483.40 1,710.80 114.30
2016-12-31 1,663.30 1,596.20 109.00
2016-09-30 1,663.30 1,596.20 109.00
2016-06-30 1,688.10 1,156.00 126.00
2016-03-31 1,688.10 1,156.00 126.00
2015-12-31 1,697.50 1,121.70 117.80
2015-09-30 1,697.50 1,121.70 117.80
2015-06-30 1,690.10 1,224.70 160.00
2014-12-31 1,544.00 1,274.20 117.10
2014-09-30 1,544.00 1,274.20 117.10
2014-06-30 1,481.40 1,163.70 126.80
2013-12-31 1,462.00 1,286.30 125.20
2013-09-30 1,462.00 1,286.30 125.20
2013-06-30 1,413.20 1,317.80 109.70
2013-03-31 1,413.20 1,317.80 109.70
2012-12-31 1,402.50 1,323.30 135.80
2012-09-30 1,402.50 1,323.30 135.80
2012-06-30 1,405.80 1,297.20 151.40
  • Tabcorp Holdings's level of debt (52.6%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has been reduced over the past 5 years (87.9% vs 52.6% today).
  • Debt is not well covered by operating cash flow (11.7%, less than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 3.2x coverage).
X
Financial health checks
We assess Tabcorp Holdings's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Tabcorp Holdings has a total score of 2/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

TAH Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
4.53%
Current annual income from Tabcorp Holdings dividends. Estimated to be 5.16% next year.
If you bought A$2,000 of Tabcorp Holdings shares you are expected to receive A$91 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Tabcorp Holdings's pays a higher dividend yield than the bottom 25% of dividend payers in Australia (2.59%).
  • Tabcorp Holdings's dividend is below the markets top 25% of dividend payers in Australia (5.7%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
ASX:TAH Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 11 Analyst Estimates (S&P Global) See Below
Australia Hospitality Industry Average Dividend Yield Market Cap Weighted Average of 17 Stocks 3.4%
Australia Market Average Dividend Yield Market Cap Weighted Average of 414 Stocks 4.2%
Australia Minimum Threshold Dividend Yield 10th Percentile 1.6%
Australia Bottom 25% Dividend Yield 25th Percentile 2.6%
Australia Top 25% Dividend Yield 75th Percentile 5.7%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

ASX:TAH Future Dividends Estimate Data
Date (Data in A$) Dividend per Share (annual) Avg. No. Analysts
2023-06-30 0.29 2.00
2022-06-30 0.28 2.00
2021-06-30 0.26 9.00
2020-06-30 0.23 11.00
2019-06-30 0.22 11.00
ASX:TAH Past Annualized Dividends Data
Date (Data in A$) Dividend per share (annual) Avg. Yield (%)
2019-02-12 0.210 4.458
2018-09-03 0.200 4.353
2018-02-07 0.235 5.157
2017-08-03 0.250 5.415
2017-02-01 0.250 5.557
2016-08-03 0.240 4.955
2016-02-03 0.240 5.512
2015-08-12 0.200 4.328
2015-02-04 0.200 4.179
2014-08-06 0.160 4.094
2014-02-05 0.160 4.565
2013-08-08 0.160 4.717
2013-02-06 0.220 6.719
2012-08-08 0.220 7.577
2012-02-09 0.260 9.012
2011-08-16 0.380 13.695
2011-02-03 0.480 9.667
2010-08-04 0.550 7.906
2010-02-09 0.600 8.936
2009-08-06 0.600 8.537

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been volatile in the past 10 years (annual drop of over 20%).
  • Dividends per share have fallen over the past 10 years.
Current Payout to shareholders
What portion of Tabcorp Holdings's earnings are paid to the shareholders as a dividend.
  • Dividends paid are not well covered by earnings (0.3x coverage).
Future Payout to shareholders
  • Dividends after 3 years are not well covered by earnings (0.9x coverage).
X
Income/ dividend checks
We assess Tabcorp Holdings's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.6%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Tabcorp Holdings afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Tabcorp Holdings has a total score of 1/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

TAH Management

 What is the CEO of Tabcorp Holdings's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
David Robert Attenborough
COMPENSATION A$4,028,737
AGE 55
TENURE AS CEO 7.9 years
CEO Bio

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 Wagering Division of Tabcorp Holdings Ltd. since April 2010. Mr. Attenborough joined Tabcorp in April 2010. Mr. Attenborough served as the Chief Executive Officer of South African Operations at Phumelela Gaming & Leisure Ltd. since August 1, 2008. He has an extensive background in totalisator and fixed odds betting, racing and broadcasting. He was appointed as the Managing Director and Chief Executive Officer following the Tabcorp-Tatts combination. Mr. Attenborough served as the Chief Operating Officer at Phumelela Gaming & Leisure Ltd. since May 2004. His previous experience includes the development of casino and gaming opportunities for the Hilton Group Plc. Mr. Attenborough managed the licensing and development division of British bookmaking chain, Ladbrokes, for five years before transferring to Africa where he was responsible for the development of casino and other gaming opportunities for a further five years. Mr. Attenborough served as Vice-President of Development at African Lakes Corporation since 2001. He joined Phumelela in September 2003. He has a deep understanding of the racing industry, with Phumelela operating five race courses in South Africa. Mr. Attenborough serves as Executive Director at TabCorp Holdings Ltd. and has been Director of Tatts Group Ltd. since December 2017 and also serves as its Managing Director and Chief Executive Officer since June 2011. Mr. Attenborough served as a Non Executive Director of Automatic Systems Ltd. from February 20, 2008 to March 1, 2010. He is also a Director of the Australasian Gaming Council. Mr. Attenborough served as Executive Director at Phumelela Gaming & Leisure Ltd. from June 30, 2005 to March 31, 2010. He holds a Bachelor of Science (Honours) and a Masters of Business Administration. He is a Member of AICD.

CEO Compensation
  • David Robert's compensation has been consistent with company performance over the past year, both up more than 20%.
  • David Robert's remuneration is about average for companies of similar size in Australia.
Management Team Tenure

Average tenure of the Tabcorp Holdings management team in years:

1.6
Average Tenure
  • The average tenure for the Tabcorp Holdings management team is less than 2 years, this suggests a new team.
Management Team

David Robert Attenborough

TITLE
MD, CEO & Executive Director
COMPENSATION
A$4M
AGE
55
TENURE
7.9 yrs

Damien Johnston

TITLE
Chief Financial Officer
COMPENSATION
A$2M
TENURE
7.9 yrs

Adam Rytenskild

TITLE
Managing Director of Wagering & Media
COMPENSATION
A$2M
TENURE
1.8 yrs

Frank Makryllos

TITLE
Managing Director of Gaming Services
COMPENSATION
A$753K
TENURE
1.4 yrs

Sue van der Merwe

TITLE
Managing Director of Lotteries & Keno
COMPENSATION
A$730K
TENURE
1.4 yrs

Mandy Ross

TITLE
Chief Information Officer
TENURE
1.4 yrs

Chris Richardson

TITLE
General Manager of Investor Relations

Patrick McGlinchey

TITLE
Group General Counsel
TENURE
0.2 yrs

Nicholas Tzaferis

TITLE
General Manager of Corporate Communications

Merryl Dooley

TITLE
Chief People Officer
TENURE
3.2 yrs
Board of Directors Tenure

Average tenure and age of the Tabcorp Holdings board of directors in years:

6.8
Average Tenure
59
Average Age
  • The tenure for the Tabcorp Holdings board of directors is about average.
Board of Directors

Paula Dwyer

TITLE
Chairman
COMPENSATION
A$558K
AGE
57
TENURE
7.9 yrs

David Robert Attenborough

TITLE
MD, CEO & Executive Director
COMPENSATION
A$4M
AGE
55

Damien Johnston

TITLE
Chief Financial Officer
COMPENSATION
A$2M
TENURE
1.4 yrs

Ziggy Switkowski

TITLE
Non-Executive Director
COMPENSATION
A$245K
AGE
70
TENURE
12.6 yrs

Bruce Akhurst

TITLE
Non-Executive Director
COMPENSATION
A$247K
AGE
58
TENURE
1.8 yrs

Vickki McFadden

TITLE
Non-Executive Director
COMPENSATION
A$253K
AGE
59
TENURE
1.8 yrs

Justin Milne

TITLE
Non-Executive Director
COMPENSATION
A$222K
AGE
65
TENURE
7.8 yrs

Steven Gregg

TITLE
Non Executive Director
COMPENSATION
A$272K
AGE
57
TENURE
6.8 yrs

Harry Boon

TITLE
Non Executive Director
COMPENSATION
A$143K
AGE
70
TENURE
1.4 yrs

Ziggy Switkowski

TITLE
AGE
69
TENURE
13.3 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (A$) Value (A$)
13. May 19 Buy BlackRock, Inc. Company 18. Mar 19 10. May 19 1,782,780 A$4.96 A$61,221
10. Apr 19 Sell Perpetual Limited Company 05. Jun 17 08. Apr 19 -73,349,504 A$4.71 A$-345,558,239
10. Apr 19 Buy Perpetual Limited Company 05. Jun 17 28. Mar 19 160,199,391 A$4.48 A$716,896,637
18. Mar 19 Sell BlackRock, Inc. Company 20. Dec 17 15. Mar 19 -39,290,086 A$5.65 A$-206,290
18. Mar 19 Buy BlackRock, Inc. Company 20. Dec 17 15. Mar 19 26,799,733 A$5.99 A$38,199
05. Sep 18 Buy Steven Gregg Individual 04. Sep 18 04. Sep 18 7,000 A$4.80 A$33,600
24. Aug 18 Sell David Robert Attenborough Individual 23. Aug 18 23. Aug 18 -350,000 A$4.73 A$-1,655,710
17. Aug 18 Buy Justin Milne Individual 17. Aug 18 17. Aug 18 10,600 A$4.71 A$49,926
X
Management checks
We assess Tabcorp Holdings's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Tabcorp Holdings has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

TAH News

Simply Wall St News

Is Tabcorp Holdings Limited's (ASX:TAH) 4.5% Dividend Sustainable?

Is Tabcorp Holdings Limited (ASX:TAH) a good dividend stock? How would you know? Dividend paying companies with growing earnings can be highly rewarding in the long term. Unfortunately, it's common for investors to be enticed in by the seemingly attractive yield, and lose money when the company has to cut its dividend payments. A high yield and a long history of paying dividends is an appealing combination for Tabcorp Holdings. We'd guess that plenty of investors have purchased it for the income. Some simple analysis can reduce the risk of holding Tabcorp Holdings for its dividend, and we'll focus on the most important aspects below. Click the interactive chart for our full dividend analysis ASX:TAH Historical Dividend Yield, May 20th 2019 Want to participate in a short research study? Help shape the future of investing tools and you could win a $250 gift card! Payout ratios Dividends are typically paid from company earnings. If a company pays more in dividends than it earned, then the dividend might become unsustainable - hardly an ideal situation. Comparing dividend payments to a company's net profit after tax is a simple way of reality-checking whether a dividend is sustainable. Tabcorp Holdings paid out 342% of its profit as dividends, over the trailing twelve month period. A payout ratio above 100% is definitely an item of concern, unless there are some other circumstances that would justify it. We also measure dividends paid against a company's levered free cash flow, to see if enough cash was generated to cover the dividend. With a cash payout ratio of 210%, Tabcorp Holdings's dividend payments are poorly covered by cash flow. Paying out more than 100% of your free cash flow in dividends is generally not a long-term, sustainable state of affairs, so we think shareholders should watch this metric closely. Is Tabcorp Holdings's Balance Sheet Risky? As Tabcorp Holdings's dividend was not well covered by earnings, we need to check its balance sheet for signs of financial distress. A rough way to check this is with these two simple ratios: a) net debt divided by EBITDA (earnings before interest, tax, depreciation and amortisation), and b) net interest cover. Net debt to EBITDA is a measure of a company's total debt. Net interest cover measures the ability to meet interest payments on debt. Essentially we check that a) a company does not have too much debt, and b) that it can afford to pay the interest. … Conclusion To summarise, shareholders should always check that Tabcorp Holdings's dividends are affordable, that its dividend payments are relatively stable, and that it has decent prospects for growing its earnings and dividend. … In this analysis, Tabcorp Holdings doesn't shape up too well as a dividend stock.

Simply Wall St -

Should You Be Concerned About Tabcorp Holdings Limited's (ASX:TAH) ROE?

With that in mind, this article will work through how we can use Return On Equity (ROE) to better understand a business. … That means that for every A$1 worth of shareholders' equity, it generated A$0.017 in profit. … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St -

Are Tabcorp Holdings Limited's (ASX:TAH) Interest Costs Too High?

Small and large cap stocks are widely popular for a variety of reasons, however, mid-cap companies such as Tabcorp Holdings Limited (ASX:TAH), with a market cap of AU$9.9b, often get neglected by retail investors. … However, history shows that overlooked mid-cap companies have performed better on a risk-adjusted manner than the smaller and larger segment of the market. … This article will examine TAH’s financial liquidity and debt levels to get an idea of whether the company can deal with cyclical downturns and maintain funds to accommodate strategic spending for future growth.

Simply Wall St -

How Much Are Tabcorp Holdings Limited (ASX:TAH) Insiders Taking Off The Table?

So we'll take a look at whether insiders have been buying or selling shares in Tabcorp Holdings Limited (ASX:TAH). … As Peter Lynch said, 'insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise.'. … In the last twelve months, the biggest single sale by an insider was when the MD, CEO & Executive Director, David Robert Attenborough, sold AU$1.7m worth of shares at a price of AU$4.73 per share.

Simply Wall St -

What Kind Of Shareholders Own Tabcorp Holdings Limited (ASX:TAH)?

Every investor in Tabcorp Holdings Limited (ASX:TAH) should be aware of the most powerful shareholder groups. … Institutions often own shares in more established companies, while it's not unusual to see insiders own a fair bit of smaller companies. … Tabcorp Holdings has a market capitalization of AU$9.5b, so it's too big to fly under the radar.

Simply Wall St -

What Did Tabcorp Holdings Limited's (ASX:TAH) CEO Take Home Last Year?

How Does David Robert Attenborough's Compensation Compare With Similar Sized Companies. … Our data indicates that Tabcorp Holdings Limited is worth AU$9.5b, and total annual CEO compensation is AU$4.0m. … While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at AU$1.6m

Simply Wall St -

Don't Sell Tabcorp Holdings Limited (ASX:TAH) Before You Read This

We'll show how you can use Tabcorp Holdings Limited's (ASX:TAH) P/E ratio to inform your assessment of the investment opportunity. … Tabcorp Holdings has a P/E ratio of 77.78, based on the last twelve months. … Price to Earnings Ratio = Price per Share ÷ Earnings per Share (EPS)

Simply Wall St -

If You Had Bought Tabcorp Holdings Shares Five Years Ago You'd Have Made 32%

Better yet, you'd like to see the share price move up more than the market average. … But Tabcorp Holdings Limited (ASX:TAH) has fallen short of that second goal, with a share price rise of 32% over five years, which is below the market return. … During the five years of share price growth, Tabcorp Holdings moved from a loss to profitability.

Simply Wall St -

An Intrinsic Calculation For Tabcorp Holdings Limited (ASX:TAH) Shows It's 25.99% Undervalued

In this article I am going to calculate the intrinsic value of Tabcorp Holdings Limited (ASX:TAH). … by taking the expected future cash flows and discounting them to today's value. … Anyone interested in learning a bit more about intrinsic value should have a read of the Simply Wall St analysis model.

Simply Wall St -

Should Tabcorp Holdings Limited (ASX:TAH) Be Part Of Your Income Portfolio?

Historically, Tabcorp Holdings Limited (ASX:TAH) has been paying a dividend to shareholders. … Does Tabcorp Holdings tick all the boxes of a great dividend stock? … See our latest analysis for Tabcorp Holdings

Simply Wall St -

TAH Company Info

Description

Tabcorp Holdings Limited, together with its subsidiaries, provides gambling and entertainment services in Australia. The company operates in four segments: Wagering and Media, Lotteries and Keno, Gaming Services, and Sun Bets. The Wagering and Media segment is involved in the provision of totalizator and fixed odds betting products on racing, sporting, and other events; and operating a network of TAB and UBET agencies, hotels and clubs, and on-course operations. It also operates retail, Internet, mobile devices, and phone wagering channels; and Trackside, a computer simulated racing product, as well as offers international wagering and pooling services. In addition, this segment engages in Three Sky Racing television channels broadcasting thoroughbred, harness, and greyhound racing, and other sports to audiences in TAB outlets, hotels, clubs, other licensed venues, and in-home to pay TV subscribers; operating Sky Sports Radio network; and advertising and sponsorship arrangement, and broadcasting racing activities. The Lotteries and Keno segment is involved in lottery business. The Gaming Services segment offers electronic gaming machines; and monitoring and value-add services to venues, such as reporting, loyalty systems management, linked jackpots, cashless pre-commitment, and ticket in ticket out services. The Sun Bets segment provides wagering and gaming services through Internet, mobile devices, and phone. Tabcorp Holdings Limited was founded in 1994 and is based in Melbourne, Australia.

Details
Name: Tabcorp Holdings Limited
TAH
Exchange: ASX
Founded: 1994
A$9,352,220,268
2,015,564,713
Website: http://www.tabcorp.com.au
Address: Tabcorp Holdings Limited
Tower 2,
Level 21,
Melbourne,
Victoria, 3008,
Australia
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
ASX TAH Ordinary Shares Australian Securities Exchange AU AUD 31. Aug 1994
OTCPK TABC.F Ordinary Shares Pink Sheets LLC US USD 31. Aug 1994
DB THL Ordinary Shares Deutsche Boerse AG DE EUR 31. Aug 1994
CHIA TAH Ordinary Shares Chi-X Australia AU AUD 31. Aug 1994
OTCPK TACB.Y UNSPONSORD ADR Pink Sheets LLC US USD 20. May 2010
Number of employees
Current staff
Staff numbers
5,000
Tabcorp Holdings employees.
Industry
Casinos and Gaming
Consumer Services
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/05/22 10:33
End of day share price update: 2019/05/22 00:00
Last estimates confirmation: 2019/05/16
Last earnings filing: 2019/02/12
Last earnings reported: 2018/12/31
Last annual earnings reported: 2018/06/30


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.