TSX:GC

Stock Analysis Report

Great Canadian Gaming

Executive Summary

Great Canadian Gaming Corporation operates gaming properties in Canada and the United States.

Snowflake

Fundamentals

Outstanding track record with adequate balance sheet.

Share Price & News

How has Great Canadian Gaming's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

3.0%

GC

-1.5%

CA Hospitality

0.3%

CA Market


1 Year Return

-5.2%

GC

-11.4%

CA Hospitality

0.1%

CA Market

Return vs Industry: GC exceeded the Canadian Hospitality industry which returned -11.4% over the past year.

Return vs Market: GC underperformed the Canadian Market which returned 0.1% over the past year.


Shareholder returns

GCIndustryMarket
7 Day3.0%-1.5%0.3%
30 Day0.3%6.5%-2.5%
90 Day-6.9%6.9%-1.4%
1 Year-5.2%-5.2%-10.8%-11.4%3.6%0.1%
3 Year82.9%82.9%40.6%36.6%14.3%4.1%
5 Year141.6%141.6%12.5%9.0%25.0%6.9%

Price Volatility Vs. Market

How volatile is Great Canadian Gaming's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Great Canadian Gaming undervalued compared to its fair value and its price relative to the market?

15.69x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Undervalued: GC (CA$42.33) is trading above our estimate of fair value (CA$7.56)

Significantly Undervalued: GC is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: GC is good value based on its PE Ratio (15.7x) compared to the Hospitality industry average (20.4x).

PE vs Market: GC is poor value based on its PE Ratio (15.7x) compared to the Canadian market (13.7x).


Price to Earnings Growth Ratio

Low PEG Ratio: Insufficient data to calculate GC's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: GC is overvalued based on its PB Ratio (4.2x) compared to the CA Hospitality industry average (1.3x).


Next Steps

Future Growth

How is Great Canadian Gaming forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

5.5%

Forecasted annual revenue growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if GC's forecast earnings growth is above the savings rate (1.9%).

Earnings vs Market: Insufficient data to determine if GC's earnings are forecast to grow faster than the Canadian market

High Growth Earnings: Insufficient data to determine if earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: GC's revenue (5.5% per year) is forecast to grow slower than the Canadian market (5.7% per year).

High Growth Revenue: GC's revenue (5.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: Insufficient data to determine if GC's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Great Canadian Gaming performed over the past 5 years?

18.1%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: GC's earnings have grown by 18.1% per year over the past 5 years.

Accelerating Growth: GC's earnings growth over the past year (48.2%) exceeds its 5-year average (18.1% per year).

Earnings vs Industry: GC earnings growth over the past year (48.2%) exceeded the Hospitality industry -12.2%.


Return on Equity

High ROE: GC's Return on Equity (33.1%) is considered high.


Return on Assets

ROA vs Industry: GC has a higher Return on Assets than the Hospitality industry average last year.


Return on Capital Employed

ROCE Improving: GC has improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is Great Canadian Gaming's financial position?


Financial Position Analysis

Short Term Liabilities: GC's short term assets (CA$520.7M) exceeds its short term liabilities (CA$280.8M)

Long Term Liabilities: GC's short term assets (520.7M) do not cover its long term liabilities (1.7B)


Debt to Equity History and Analysis

Debt Level: GC's debt to equity ratio (89.4%) is considered high

Reducing Debt: GC's debt to equity ratio has reduced from 126.4% to 89.4% over the past 5 years.

Debt Coverage: GC's debt is well covered by operating cash flow (66.1%).

Interest Coverage: GC's interest payments on its debt are well covered by EBIT (4.8x coverage).


Balance Sheet

Inventory Level: GC has a high level of physical assets or inventory.

Debt Coverage by Assets: GC's debt is not covered by short term assets (assets are 0.8x debt).


Next Steps

Dividend

What is Great Canadian Gaming's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%2.0%markettop25%6.0%industryaverage2.6%forecastin3Yearsn/a

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: Unable to evaluate GC's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate GC's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.

Stable Dividend: Insufficient data to determine if GC's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if GC's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of GC's dividend in 3 years as they are not forecast to pay a notable one for the Canadian market.


Next Steps

Management

What is the CEO of Great Canadian Gaming's salary, the management and board of directors tenure and is there insider trading?

1.3yrs

Average management tenure


CEO

Rod Baker (53yo)

8yrs

Tenure

CA$6,202,291

Compensation

Mr. Rodney N. Baker, also known as Rod, has been the Chief Executive Officer of Great Canadian Gaming Corporation since October 11, 2011 and has been as its President from January 1, 2010 and also served a ...


CEO Compensation Analysis

Compensation vs. Market: Rod's total compensation ($USD4.70M) is about average for companies of similar size in the Canadian market ($USD2.21M).

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


Management Age and Tenure

1.3yrs

Average Tenure

47.5yo

Average Age

Experienced Management: GC's management team is not considered experienced ( 1.3 years average tenure), which suggests a new team.


Board Age and Tenure

6.3yrs

Average Tenure

60yo

Average Age

Experienced Board: GC's board of directors are considered experienced (6.3 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyCA$21,50223 May 19
Jackie Gorton
EntityIndividual
Role
Chief Technology Officer
Vice President of Technology & Enterprise Risk Management
Shares500
Max PriceCA$43.00
BuyCA$21,60516 May 19
David Desmarais
EntityIndividual
Shares500
Max PriceCA$43.22
BuyCA$103,42514 May 19
Christopher Roberts
EntityIndividual
Shares2,500
Max PriceCA$41.37
BuyCA$43,41009 May 19
John Russo
EntityIndividual
Role
Member of the Board of Directors
General Counsel
Shares1,000
Max PriceCA$43.41
SellCA$55,19725 Apr 19
Craig Betts
EntityIndividual
Shares1,045
Max PriceCA$52.82
SellCA$331,84107 Jan 19
Patrick Ennis
EntityIndividual
Shares6,667
Max PriceCA$51.30
SellCA$1,281,75003 Dec 18
Christopher Roberts
EntityIndividual
Shares25,000
Max PriceCA$51.27
SellCA$51,09018 Nov 18
Michael Young
EntityIndividual
Shares1,000
Max PriceCA$51.09
SellCA$20,20018 Nov 18
Chuck Keeling
EntityIndividual
Shares400
Max PriceCA$50.50
SellCA$590,22115 Nov 18
Chuck Keeling
EntityIndividual
Shares11,600
Max PriceCA$51.20
SellCA$86,68412 Nov 18
Radoslaw Kielar
EntityIndividual
Shares1,667
Max PriceCA$52.00

Ownership Breakdown


Management Team

  • Walter Soo

    Executive Vice-President of Player & Gaming Development

    • Tenure: 4.6yrs
    • Compensation: CA$533.54k
  • G. Oliver

    Vice President of Great Canadian Casinos Inc

    • Tenure: 0yrs
    • Compensation: CA$77.75k
  • Andrea Lieuwen

    Financial Controller of River Rock Casino Resort

    • Tenure: 0yrs
  • Terrance Doyle (46yo)

    President of Strategic Growth & Chief Compliance Officer

    • Tenure: 0.6yrs
    • Compensation: CA$2.94m
  • Rod Baker (53yo)

    President

    • Tenure: 8yrs
    • Compensation: CA$6.20m
  • Raj Mutti (37yo)

    Executive Vice President of Operations - West

    • Tenure: 0.8yrs
    • Compensation: CA$442.53k
  • John Russo (49yo)

    General Counsel

    • Tenure: 0yrs
    • Compensation: CA$1.05m
  • Craig DeMarta (62yo)

    Executive Vice President of Operations – GTA

    • Tenure: 0.8yrs
  • Jackie Gorton

    Vice President of Technology & Enterprise Risk Management

    • Tenure: 2.9yrs
  • Matt Newsome (40yo)

    Vice President of Finance

    • Tenure: 1.8yrs
    • Compensation: CA$509.50k

Board Members

  • Jacob Brouwer (92yo)

    Member of the Advisory Board

    • Tenure: 0yrs
    • Compensation: CA$13.30k
  • Peter Meredith (75yo)

    Independent Chairman

    • Tenure: 4.3yrs
    • Compensation: CA$265.63k
  • Gordon Flatt

    Member of the Advisory Board

    • Tenure: 0yrs
  • Mark Davis (60yo)

    Independent Director

    • Tenure: 6.3yrs
    • Compensation: CA$193.75k
  • Larry Campbell (71yo)

    Independent Director

    • Tenure: 11.3yrs
    • Compensation: CA$143.75k
  • Chris Hart (60yo)

    Independent Director

    • Tenure: 0.9yrs
    • Compensation: CA$58.42k
  • Thomas Gaffney (69yo)

    Independent Director

    • Tenure: 13.3yrs
    • Compensation: CA$143.75k
  • Rod Baker (53yo)

    President

    • Tenure: 8yrs
    • Compensation: CA$6.20m
  • Karen Keilty (59yo)

    Independent Director

    • Tenure: 4.8yrs
    • Compensation: CA$193.75k
  • John Russo (49yo)

    General Counsel

    • Tenure: 0yrs
    • Compensation: CA$1.05m

Company Information

Great Canadian Gaming Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Great Canadian Gaming Corporation
  • Ticker: GC
  • Exchange: TSX
  • Founded: 1982
  • Industry: Casinos and Gaming
  • Sector: Consumer Services
  • Market Cap: CA$2.491b
  • Shares outstanding: 58.84m
  • Website: https://www.gcgaming.com

Number of Employees


Location

  • Great Canadian Gaming Corporation
  • 95 Schooner Street
  • Coquitlam
  • British Columbia
  • V3K 7A8
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
GCTSX (The Toronto Stock Exchange)YesCommon SharesCACADJun 1998
GCGM.FOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDJun 1998
K3WDB (Deutsche Boerse AG)YesCommon SharesDEEURJun 1998

Biography

Great Canadian Gaming Corporation operates gaming properties in Canada and the United States. The company’s gaming properties include casinos, horse racetrack casinos, community gaming centers, and commerc ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/15 23:37
End of Day Share Price2019/10/15 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.