TSX:GH

Stock Analysis Report

Executive Summary

Gamehost Inc., together with its subsidiaries, operates hospitality and gaming properties in Alberta.

Snowflake

Fundamentals

Fair value with mediocre balance sheet.

Share Price & News

How has Gamehost's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

-1.4%

GH

-2.4%

CA Hospitality

0.1%

CA Market


1 Year Return

-20.8%

GH

-10.7%

CA Hospitality

1.6%

CA Market

Return vs Industry: GH underperformed the Canadian Hospitality industry which returned -10.7% over the past year.

Return vs Market: GH underperformed the Canadian Market which returned 1.6% over the past year.


Shareholder returns

GHIndustryMarket
7 Day-1.4%-2.4%0.1%
30 Day-2.0%7.3%-2.9%
90 Day-11.6%5.7%-1.4%
1 Year-14.8%-20.8%-10.1%-10.7%5.2%1.6%
3 Year-1.6%-19.6%38.3%34.4%13.8%3.7%
5 Year-29.3%-50.7%6.9%3.6%25.3%7.2%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

23.9%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: GH (CA$8.2) is trading below our estimate of fair value (CA$10.77)

Significantly Undervalued: GH is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: GH is good value based on its PE Ratio (12.6x) compared to the Hospitality industry average (19x).

PE vs Market: GH is good value based on its PE Ratio (12.6x) compared to the Canadian market (13.7x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: GH is overvalued based on its PB Ratio (1.8x) compared to the CA Hospitality industry average (1.3x).


Next Steps

Future Growth

How is Gamehost forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

-4.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: GH's earnings are forecast to decline over the next 3 years (-4.4% per year).

Earnings vs Market: GH's earnings are forecast to decline over the next 3 years (-4.4% per year).

High Growth Earnings: GH's earnings are forecast to decline over the next 3 years.

Revenue vs Market: GH's revenue (3.5% per year) is forecast to grow slower than the Canadian market (5.8% per year).

High Growth Revenue: GH's revenue (3.5% 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 GH's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Gamehost performed over the past 5 years?

-6.7%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: GH's earnings have declined by -6.7% per year over the past 5 years.

Accelerating Growth: GH's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: GH had negative earnings growth (-12.2%) over the past year, making it difficult to compare to the Hospitality industry average (-12.2%).


Return on Equity

High ROE: GH's Return on Equity (14.2%) is considered low.


Return on Assets

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


Return on Capital Employed

ROCE Improving: GH's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Gamehost's financial position?


Financial Position Analysis

Short Term Liabilities: GH's short term assets (CA$18.3M) do not cover its short term liabilities (CA$31.3M)

Long Term Liabilities: GH's short term assets (18.3M) do not cover its long term liabilities (26.7M)


Debt to Equity History and Analysis

Debt Level: GH's debt to equity ratio (33.8%) is considered satisfactory

Reducing Debt: GH's debt to equity ratio has increased from 31.9% to 33.8% over the past 5 years.

Debt Coverage: GH's debt is well covered by operating cash flow (46.7%).

Interest Coverage: GH's interest payments on its debt are well covered by EBIT (14.3x coverage).


Balance Sheet

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

Debt Coverage by Assets: GH's debt is not covered by short term assets (assets are 0.5x debt).


Next Steps

Dividend

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

8.41%

Current Dividend Yield


Dividend Yield vs Market

company8.4%marketbottom25%2.0%markettop25%6.0%industryaverage2.6%forecastin3Yearsn/a

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: GH's dividend (8.41%) is higher than the bottom 25% of dividend payers in the Canadian market (2.01%).

High Dividend: GH's dividend (8.41%) is in the top 25% of dividend payers in the Canadian market (6.01%)

Stable Dividend: GH's dividends per share have been stable in the past 10 years.

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


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (106.3%), GH's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

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

15.7yrs

Average management tenure


CEO

David Will 0

16.8yrs

Tenure

CA$687,191

Compensation

Mr. David J. Will, B.Sc., has been the Chief Executive Officer of Gamehost Management Inc. (GMI) of Gamehost Management Inc., Manager of Gamehost Income Fund since June 1, 2003 and also has been its Presid ...


Management Age and Tenure

15.7yrs

Average Tenure

Experienced Management: GH's management team is seasoned and experienced (15.7 years average tenure).


Board Age and Tenure

15.3yrs

Average Tenure

Experienced Board: GH's board of directors are seasoned and experienced ( 15.3 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$63,95303 Oct 19
Acumen Capital Finance Partners Limited, Asset Management Arm
EntityCompany
Shares7,800
Max PriceCA$8.25
BuyCA$52,00804 Sep 19
Acumen Capital Finance Partners Limited, Asset Management Arm
EntityCompany
Shares6,300
Max PriceCA$8.27
SellCA$67,52517 Jul 19
Peter Miles
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares7,300
Max PriceCA$9.25
SellCA$2,91303 Jul 19
Craig Thomas
EntityIndividual
Role
Chief Financial Officer
Chief Financial Officer
Shares300
Max PriceCA$9.71
BuyCA$7,36004 Feb 19
Acumen Capital Finance Partners Limited, Asset Management Arm
EntityCompany
Shares800
Max PriceCA$9.20
BuyCA$923,15025 Jan 19
Darcy Will
EntityIndividual
Role
Member of the Board of Directors
VP, Secretary & Director
Shares92,500
Max PriceCA$9.98
BuyCA$19,60023 Jan 19
Peter Miles
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares2,000
Max PriceCA$9.80
BuyCA$185,07009 Jan 19
Darcy Will
EntityIndividual
Role
Member of the Board of Directors
VP, Secretary & Director
Shares19,900
Max PriceCA$9.30
SellCA$14,587,03403 Jan 19
Darcy Will
EntityIndividual
Role
Member of the Board of Directors
VP, Secretary & Director
Shares1,496,650
Max PriceCA$9.75
BuyCA$594,81502 Jan 19
Acumen Capital Finance Partners Limited, Asset Management Arm
EntityCompany
Shares62,400
Max PriceCA$10.78
BuyCA$59,14226 Dec 18
Darcy Will
EntityIndividual
Role
Member of the Board of Directors
VP, Secretary & Director
Shares9,800
Max PriceCA$9.05
BuyCA$1,84021 Dec 18
Scotiabank Global Banking and Markets, Asset Management Division
EntityCompany
Shares200
Max PriceCA$9.20
BuyCA$167,66320 Dec 18
Darcy Will
EntityIndividual
Role
Member of the Board of Directors
VP, Secretary & Director
Shares17,300
Max PriceCA$9.69
BuyCA$67,16817 Dec 18
Darcy Will
EntityIndividual
Role
Member of the Board of Directors
VP, Secretary & Director
Shares6,900
Max PriceCA$9.73
BuyCA$4,87514 Dec 18
Darcy Will
EntityIndividual
Role
Member of the Board of Directors
VP, Secretary & Director
Shares500
Max PriceCA$9.75
BuyCA$48,91913 Dec 18
Darcy Will
EntityIndividual
Role
Member of the Board of Directors
VP, Secretary & Director
Shares5,300
Max PriceCA$9.23
BuyCA$210,21903 Dec 18
Acumen Capital Finance Partners Limited, Asset Management Arm
EntityCompany
Shares21,000
Max PriceCA$10.21
BuyCA$28,42027 Nov 18
David Will
EntityIndividual
Role
Chief Executive Officer
Chairman
Shares2,900
Max PriceCA$9.80

Ownership Breakdown


Management Team

  • Darcy Will

    VP, Secretary & Director

    • Tenure: 16.5yrs
    • Compensation: CA$687.19k
  • David Will

    Chairman

    • Tenure: 16.8yrs
    • Compensation: CA$687.19k
  • Craig Thomas

    Chief Financial Officer

    • Tenure: 14.9yrs
    • Compensation: CA$200.60k
  • Elston Noren

    Chief Operating Officer

    • Tenure: 9.8yrs
    • Compensation: CA$350.00k

Board Members

  • Tim Sebastian (54yo)

    Independent Director

    • Tenure: 15.3yrs
    • Compensation: CA$34.50k
  • Darcy Will

    VP, Secretary & Director

    • Tenure: 16.5yrs
    • Compensation: CA$687.19k
  • David Will

    Chairman

    • Tenure: 16.8yrs
    • Compensation: CA$687.19k
  • James McPherson

    Independent Director

    • Tenure: 16.5yrs
    • Compensation: CA$36.50k
  • Jerry Van Someren

    Independent Director

    • Tenure: 14.2yrs
    • Compensation: CA$37.00k
  • Peter Miles (59yo)

    Independent Director

    • Tenure: 13.4yrs
    • Compensation: CA$26.50k

Company Information

Gamehost Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Gamehost Inc.
  • Ticker: GH
  • Exchange: TSX
  • Founded: 2003
  • Industry: Casinos and Gaming
  • Sector: Consumer Services
  • Market Cap: CA$199.325m
  • Shares outstanding: 24.31m
  • Website: https://www.gamehost.ca

Number of Employees


Location

  • Gamehost Inc.
  • 548 Laura Avenue
  • Suite 104
  • Red Deer County
  • Alberta
  • T4E 0A5
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
GHTSX (The Toronto Stock Exchange)YesCommon SharesCACADJan 1998
GHIF.FOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDJan 1998

Biography

Gamehost Inc., together with its subsidiaries, operates hospitality and gaming properties in Alberta. The company operates through Gaming, Hotel, and Food and Beverage segments. Its gaming activities inclu ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/18 00:02
End of Day Share Price2019/10/17 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.