Tabcorp Holdings (ASX:TAH) - Share price, News & Analysis

TAH fundamental analysis
Snowflake Score
Valuation	6/6
Future Growth	2/6
Past Performance	1/6
Financial Health	4/6
Dividends	3/6

TAH Stock Overview

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

Rewards

Trading at 69.6% below our estimate of its fair value

Earnings are forecast to grow 17.78% per year

Became profitable this year

Risk Analysis

Highly volatile share price over the past 3 months

Dividend of 12.75% is not well covered by earnings

Large one-off items impacting financial results

Tabcorp Holdings Competitors

Aristocrat Leisure

ASX:ALL

AU$22.6b

Jumbo Interactive

ASX:JIN

AU$957.1m

Ainsworth Game Technology

ASX:AGI

AU$357.0m

Domino's Pizza Enterprises

ASX:DMP

AU$5.9b

Price History & Performance

Summary of all time highs, changes and price drops for Tabcorp Holdings
Historical stock prices
Current Share Price	AU$1.02
52 Week High	AU$5.53
52 Week Low	AU$0.93
Beta	1.14
1 Month Change	-81.01%
3 Month Change	-79.48%
1 Year Change	-79.84%
3 Year Change	-77.48%
5 Year Change	-77.68%
Change since IPO	-56.96%

Recent News & Updates

Apr 20

An Intrinsic Calculation For Tabcorp Holdings Limited (ASX:TAH) Suggests It's 27% Undervalued

In this article we are going to estimate the intrinsic value of Tabcorp Holdings Limited ( ASX:TAH ) by taking the...

Mar 27

These 4 Measures Indicate That Tabcorp Holdings (ASX:TAH) Is Using Debt Reasonably Well

David Iben put it well when he said, 'Volatility is not a risk we care about. What we care about is avoiding the...

Shareholder Returns

	TAH	AU Hospitality	AU Market
7D	-80.7%	-14.8%	-0.4%
1Y	-79.8%	-27.2%	-1.1%

Return vs Industry: TAH underperformed the Australian Hospitality industry which returned -25.8% over the past year.

Return vs Market: TAH underperformed the Australian Market which returned -0% over the past year.

Price Volatility

Is TAH's price volatile compared to industry and market?
TAH volatility
TAH Average Weekly Movement	23.6%
Hospitality Industry Average Movement	5.8%
Market Average Movement	9.3%
10% most volatile stocks in AU Market	16.4%
10% least volatile stocks in AU Market	4.2%

Stable Share Price: TAH is more volatile than 90% of Australian stocks over the past 3 months, typically moving +/- 24% a week.

Volatility Over Time: TAH's weekly volatility has increased from 12% to 24% over the past year.

About the Company

Founded	Employees	CEO	Website
1881	5,000	Adam Rytenskild	https://www.tabcorp.com.au

Tabcorp Holdings Limited, together with its subsidiaries, provides gambling and entertainment services in Australia. The company’s Lotteries and Keno segment is involved in the lottery operations. It has various game brands, including 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.

Tabcorp Holdings Fundamentals Summary

How do Tabcorp Holdings's earnings and revenue compare to its market cap?
TAH fundamental statistics
Market Cap	AU$2.27b
Earnings (TTM)	AU$259.00m
Revenue (TTM)	AU$5.75b

8.8x

P/E Ratio

0.4x

P/S Ratio

Is TAH overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
TAH income statement (TTM)
Revenue	AU$5.75b
Cost of Revenue	AU$0
Gross Profit	AU$5.75b
Other Expenses	AU$5.49b
Earnings	AU$259.00m

Last Reported Earnings

Dec 31, 2021

Next Earnings Date

Aug 24, 2022

Earnings per share (EPS)	0.12
Gross Margin	100.00%
Net Profit Margin	4.50%
Debt/Equity Ratio	38.1%

How did TAH perform over the long term?

See historical performance and comparison

Dividends

12.7%

Current Dividend Yield

115%

Payout Ratio

New valuation analysis is now available for all ASX stocks. This is in beta.

Future Growth

How is Tabcorp Holdings forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?

Future Growth Score

2/6

Future Growth Score 2/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

17.8%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: TAH's forecast earnings growth (17.8% per year) is above the savings rate (1.8%).

Earnings vs Market: TAH's earnings (17.8% per year) are forecast to grow faster than the Australian market (5.9% 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 (4.8% 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 (5.6%).

Past Performance

How has Tabcorp Holdings performed over the past 5 years?

Past Performance Score

1/6

Past Performance Score 1/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

-20.3%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: TAH has a large one-off loss of A$110.0M impacting its December 31 2021 financial results.

Growing Profit Margin: TAH became profitable in the past.

Past Earnings Growth Analysis

Earnings Trend: TAH's earnings have declined by 20.3% 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 (31.6%).

Return on Equity

High ROE: TAH's Return on Equity (3.8%) is considered low.

Financial Health

How is Tabcorp Holdings's financial position?

Financial Health Score

4/6

Financial Health Score 4/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: TAH's short term assets (A$1.2B) do not cover its short term liabilities (A$2.3B).

Long Term Liabilities: TAH's short term assets (A$1.2B) do not cover its long term liabilities (A$3.1B).

Debt to Equity History and Analysis

Debt Level: TAH's net debt to equity ratio (27.4%) is considered satisfactory.

Reducing Debt: TAH's debt to equity ratio has reduced from 96.2% to 38.1% over the past 5 years.

Debt Coverage: TAH's debt is well covered by operating cash flow (22.2%).

Interest Coverage: TAH's interest payments on its debt are well covered by EBIT (4.7x coverage).

Balance Sheet

Dividend

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

Dividend Score

3/6

Dividend Score 3/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

12.75%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: TAH's dividend (12.75%) is higher than the bottom 25% of dividend payers in the Australian market (2.58%).

High Dividend: TAH's dividend (12.75%) is in the top 25% of dividend payers in the Australian market (6.13%)

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.

Earnings Payout to Shareholders

Earnings Coverage: With its high payout ratio (115.5%), TAH's dividend payments are not well covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: With its reasonable cash payout ratio (71.4%), TAH's dividend payments are covered by cash flows.

Discover strong dividend paying companies

Management

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

3.3yrs

Average board tenure

CEO

Adam Rytenskild

no data

Tenure

AU$1,713,000

Compensation

Mr. Adam Rytenskild serves as Managing Director and Chief Executive Officer at Tabcorp Holdings Limited. He served as the Managing Director of Wagering and Media at Tabcorp Holdings Ltd and Tatts Group L...

CEO Compensation Analysis

Compensation vs Market: Adam's total compensation ($USD1.21M) is about average for companies of similar size in the Australian market ($USD1.38M).

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

Board Members

Experienced Board: TAH's board of directors are considered experienced (3.3 years average tenure).

Ownership

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

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.

Data	Last Updated (UTC time)
Company Analysis	2022/05/25 00:00
End of Day Share Price	2022/05/25 00:00
Earnings	2021/12/31
Annual Earnings	2021/06/30