DB:0AY

Stock Analysis Report

Executive Summary

The Stars Group Inc. engages in online gaming and betting businesses primarily in Europe, Australia, and the Americas.

Snowflake

Fundamentals

Reasonable growth potential and fair value.


Similar Companies

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

-1.1%

0AY

14.0%

DE Hospitality

4.4%

DE Market


1 Year Return

-10.7%

0AY

-21.1%

DE Hospitality

1.6%

DE Market

Return vs Industry: 0AY exceeded the German Hospitality industry which returned -21.1% over the past year.

Return vs Market: 0AY underperformed the German Market which returned 1.6% over the past year.


Shareholder returns

0AYIndustryMarket
7 Day-1.1%14.0%4.4%
30 Day26.0%15.6%0.8%
90 Day23.0%27.9%2.3%
1 Year-10.7%-10.7%-15.7%-21.1%4.8%1.6%
3 Year39.8%39.8%13.6%-1.6%18.9%8.6%
5 Year-12.7%-12.7%34.5%7.8%43.7%24.1%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

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

47.8%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: 0AY (€18.2) is trading below our estimate of fair value (€34.85)

Significantly Undervalued: 0AY is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 0AY is poor value based on its PE Ratio (643.1x) compared to the Hospitality industry average (33.1x).

PE vs Market: 0AY is poor value based on its PE Ratio (643.1x) compared to the German market (19.5x).


Price to Earnings Growth Ratio

Low PEG Ratio: 0AY is poor value based on its PEG Ratio (11.1x)


Price to Book Ratio

PB vs Industry: 0AY is good value based on its PB Ratio (1.3x) compared to the DE Hospitality industry average (2.6x).


Next Steps

Future Growth

How is Stars Group forecast to perform in the next 1 to 3 years based on estimates from 15 analysts?

57.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 0AY's forecast earnings growth (57.9% per year) is above the savings rate (0.2%).

Earnings vs Market: 0AY's earnings (57.9% per year) are forecast to grow faster than the German market (12.6% per year).

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

Revenue vs Market: 0AY's revenue (7% per year) is forecast to grow faster than the German market (5% per year).

High Growth Revenue: 0AY's revenue (7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: 0AY's Return on Equity is forecast to be low in 3 years time (12.7%).


Next Steps

Past Performance

How has Stars Group performed over the past 5 years?

-4.7%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: 0AY's earnings have declined by -4.7% per year over the past 5 years.

Accelerating Growth: 0AY's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 0AY had negative earnings growth (-81.4%) over the past year, making it difficult to compare to the Hospitality industry average (-28.4%).


Return on Equity

High ROE: 0AY's Return on Equity (0.09%) is considered low.


Return on Assets

ROA vs Industry: 0AY's Return on Assets is below or equal to the Hospitality industry average last year.


Return on Capital Employed

ROCE Improving: 0AY's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Stars Group's financial position?


Financial Position Analysis

Short Term Liabilities: 0AY's short term assets ($971.9M) do not cover its short term liabilities ($1.0B)

Long Term Liabilities: 0AY's short term assets (971.9M) do not cover its long term liabilities (5.7B)


Debt to Equity History and Analysis

Debt Level: 0AY's debt to equity ratio (117.4%) is considered high

Reducing Debt: 0AY's debt to equity ratio has reduced from 151% to 117.4% over the past 5 years.

Debt Coverage: 0AY's debt is not well covered by operating cash flow (10.7%).

Interest Coverage: 0AY's interest payments on its debt are not well covered by EBIT (0.8x coverage).


Balance Sheet

Inventory Level: 0AY has a low level of unsold assets or inventory.

Debt Coverage by Assets: 0AY's debt is not covered by short term assets (assets are 0.2x debt).


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.8%industryaverage6.1%forecastin3Years0%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: Unable to evaluate 0AY's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate 0AY'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 0AY's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 0AY'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 0AY's dividend in 3 years as they are not forecast to pay a notable one for the German market.


Next Steps

Management

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

2.2yrs

Average management tenure


CEO

Rafi Ashkenazi (44yo)

3.6yrs

Tenure

US$6,604,000

Compensation

Mr. Rafael Ashkenazi, also known as Rafi, has been the Chief Executive Officer of The Stars Group Inc.(Formerly known as Amaya, Inc.) since November 2016 and served as its Interim Chief Executive Officer f ...


CEO Compensation Analysis

Compensation vs. Market: Rafi's total compensation ($USD6.60M) is about average for companies of similar size in the German market ($USD3.62M).

Compensation vs Earnings: Rafi's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Management Age and Tenure

2.2yrs

Average Tenure

50yo

Average Age

Experienced Management: 0AY's management team is considered experienced (2.2 years average tenure).


Board Age and Tenure

1.8yrs

Average Tenure

63yo

Average Age

Experienced Board: 0AY's board of directors are not considered experienced ( 1.8 years average tenure), which suggests a new board.


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

SellUS$89,22222 May 19
Harlan Goodson
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares5,571
Max PriceUS$16.02
BuyUS$885,48408 Mar 19
Marlon Goldstein
EntityIndividual
Role
Chief Legal Officer
Executive VP
Shares50,979
Max PriceUS$17.70
BuyUS$165,44011 Dec 18
Robindar Chhabra
EntityIndividual
Role
Head of Corporate Development
Chief Corporate Development Officer
Shares10,723
Max PriceUS$15.43
BuyUS$343,97130 Nov 18
Brian Kyle
EntityIndividual
Role
Chief Financial Officer
Chief Financial Officer
Shares20,000
Max PriceUS$17.20
BuyUS$865,56530 Nov 18
Rafael Ashkenazi
EntityIndividual
Role
Chief Executive Officer
CEO & Director
Shares66,600
Max PriceUS$13.00

Ownership Breakdown


Management Team

  • Dave Gadhia (56yo)

    Executive Chairman

    • Tenure: 3.3yrs
    • Compensation: US$2.01m
  • Brian Kyle (54yo)

    Chief Financial Officer

    • Tenure: 2.3yrs
    • Compensation: US$1.97m
  • Rafi Ashkenazi (44yo)

    CEO & Director

    • Tenure: 3.6yrs
    • Compensation: US$6.60m
  • Guy Templer (50yo)

    Chief Operating Officer of Stars Interactive Group

    • Tenure: 0yrs
    • Compensation: US$2.26m
  • Robin Chhabra (48yo)

    Chief Corporate Development Officer

    • Tenure: 2.1yrs
    • Compensation: US$2.76m
  • David Sebag (54yo)

    Executive Officer

    • Tenure: 2.3yrs
    • Compensation: US$1.10m
  • Marlon Goldstein (45yo)

    Executive VP

    • Tenure: 2.2yrs
    • Compensation: US$2.36m
  • Matt Tripp

    Chief Executive Officer of BetEasy

    • Tenure: 0yrs
  • Andy Burton

    Senior Vice President of Global Sports Platform

    • Tenure: 1yrs
  • Vaughan Lewis

    Senior Vice President of Communications

    • Tenure: 1yrs

Board Members

  • Dave Lazzarato (63yo)

    Independent Director

    • Tenure: 3.3yrs
    • Compensation: US$448.38k
  • Al Hurley (64yo)

    Lead Director

    • Tenure: 1.4yrs
    • Compensation: US$972.31k
  • Eugene Roman (60yo)

    Independent Director

    • Tenure: 0.4yrs
  • Dave Gadhia (56yo)

    Executive Chairman

    • Tenure: 3.3yrs
    • Compensation: US$2.01m
  • Mary Turner (66yo)

    Independent Director

    • Tenure: 2.3yrs
    • Compensation: US$427.55k
  • Harlan Goodson (72yo)

    Independent Director

    • Tenure: 9.4yrs
    • Compensation: US$435.77k
  • John Schappert (48yo)

    Independent Director

    • Tenure: 0.2yrs
  • Rafi Ashkenazi (44yo)

    CEO & Director

    • Tenure: 3.6yrs
    • Compensation: US$6.60m
  • Melvin Zhang (63yo)

    observer member of the board

    • Tenure: 1.8yrs

Company Information

The Stars Group Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: The Stars Group Inc.
  • Ticker: 0AY
  • Exchange: DB
  • Founded: 2004
  • Industry: Casinos and Gaming
  • Sector: Consumer Services
  • Market Cap: CA$7.620b
  • Listing Market Cap: CA$5.229b
  • Shares outstanding: 287.77m
  • Website: https://www.starsgroup.com

Number of Employees


Location

  • The Stars Group Inc.
  • South Tower
  • Suite 3205
  • Toronto
  • Ontario
  • M5J 2J3
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
TSGITSX (The Toronto Stock Exchange)YesCommon SharesCACADJul 2010
0AYDB (Deutsche Boerse AG)YesCommon SharesDEEURJul 2010
TSGNasdaqGS (Nasdaq Global Select)YesCommon SharesUSUSDJul 2010
0VIOLSE (London Stock Exchange)YesCommon SharesGBCADJul 2010

Biography

The Stars Group Inc. engages in online gaming and betting businesses primarily in Europe, Australia, and the Americas. It owns and operates gaming and related interactive entertainment businesses, such as  ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/15 21:07
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.