DB:K3W

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Great Canadian Gaming

Executive Summary

Great Canadian Gaming Corporation operates as a gaming and entertainment company in Canada.


Snowflake Analysis

Proven track record with mediocre 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

Stable Share Price: K3W has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

2.9%

K3W

-3.0%

DE Hospitality

0.05%

DE Market


1 Year Return

-42.5%

K3W

-38.5%

DE Hospitality

3.4%

DE Market

Return vs Industry: K3W underperformed the German Hospitality industry which returned -34.4% over the past year.

Return vs Market: K3W underperformed the German Market which returned 4.5% over the past year.


Shareholder returns

K3WIndustryMarket
7 Day2.9%-3.0%0.05%
30 Day-5.9%-11.5%5.5%
90 Day4.7%13.3%19.9%
1 Year-42.5%-42.5%-35.9%-38.5%5.7%3.4%
3 Year11.4%11.4%-51.0%-57.7%3.4%-4.7%
5 Yearn/a-52.1%-62.2%10.4%-4.5%

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

No news available

Valuation

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

9.56x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate K3W's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate K3W's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: K3W is good value based on its PE Ratio (9.6x) compared to the DE Hospitality industry average (20.2x).

PE vs Market: K3W is good value based on its PE Ratio (9.6x) compared to the German market (21.2x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate K3W's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: K3W is overvalued based on its PB Ratio (2.8x) compared to the DE Hospitality industry average (2x).


Next Steps

Future Growth

How is Great Canadian Gaming forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

16.0%

Forecasted annual revenue growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if K3W's forecast earnings growth is above the savings rate (0.2%).

Earnings vs Market: Insufficient data to determine if K3W's earnings are forecast to grow faster than the German market

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

Revenue vs Market: K3W's revenue (16% per year) is forecast to grow faster than the German market (5.9% per year).

High Growth Revenue: K3W's revenue (16% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if K3W'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?

20.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: K3W has high quality earnings.

Growing Profit Margin: K3W's current net profit margins (12.3%) are higher than last year (11.8%).


Past Earnings Growth Analysis

Earnings Trend: K3W's earnings have grown significantly by 20.1% per year over the past 5 years.

Accelerating Growth: K3W's earnings growth over the past year (9.3%) is below its 5-year average (20.1% per year).

Earnings vs Industry: K3W earnings growth over the past year (9.3%) exceeded the Hospitality industry -15.6%.


Return on Equity

High ROE: Whilst K3W's Return on Equity (34.25%) is high, this metric is skewed due to their high level of debt.


Next Steps

Financial Health

How is Great Canadian Gaming's financial position?


Financial Position Analysis

Short Term Liabilities: K3W's short term assets (CA$991.7M) exceed its short term liabilities (CA$279.5M).

Long Term Liabilities: K3W's short term assets (CA$991.7M) do not cover its long term liabilities (CA$2.5B).


Debt to Equity History and Analysis

Debt Level: K3W's debt to equity ratio (218.9%) is considered high.

Reducing Debt: K3W's debt to equity ratio has increased from 104.1% to 218.9% over the past 5 years.

Debt Coverage: K3W's debt is well covered by operating cash flow (29.1%).

Interest Coverage: K3W's interest payments on its debt are well covered by EBIT (4.8x coverage).


Balance Sheet


Next Steps

Dividend

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


Dividend Yield vs Market

Notable Dividend: Unable to evaluate K3W's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate K3W's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if K3W's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if K3W'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 K3W's dividend in 3 years as they are not forecast to pay a notable one for the German market.


Next Steps

Management

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

2.5yrs

Average management tenure


CEO

Rod Baker (54yo)

8.75yrs

Tenure

CA$10,643,072

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 ($USD7.82M) is above average for companies of similar size in the German market ($USD1.30M).

Compensation vs Earnings: Rod's compensation has increased by more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Rodney Baker
President8.75yrsCA$10.64m0.14% CA$1.3m
Matthew Newsome
Vice President of Finance2.5yrsCA$418.55k0.0059% CA$57.8k
Matthew Anfinson
Chief Operating Officer0.58yrCA$1.97mno data
Terrance Doyle
President of Strategic Growth & Chief Compliance Officer1.33yrsCA$5.60m0.033% CA$323.1k
John Russo
General Counsel1.67yrsCA$770.74k0.0045% CA$44.4k
Jacqueline Gorton
Vice President of Technology & Enterprise Risk Management3.67yrsno data0.00090% CA$8.8k
Walter Soo
Executive Vice-President of Player & Gaming Development5.33yrsCA$533.54kno data
Craig DeMarta
Executive Vice President of Operations – GTA1.58yrsno datano data
G. Oliver
Vice President of Great Canadian Casinos Incno dataCA$77.75kno data
Andrea Lieuwen
Financial Controller of River Rock Casino Resortno datano data0.015% CA$146.2k
Bruce Barbour
Executive Director of Racing Operationsno datano datano data
Andre LaCroix
Executive Director of Stakeholder Relations - Ontario3.83yrsno datano data

2.5yrs

Average Tenure

48.5yo

Average Age

Experienced Management: K3W's management team is considered experienced (2.5 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Rodney Baker
President8.75yrsCA$10.64m0.14% CA$1.3m
Jacob Brouwer
Member of the Advisory Boardno dataCA$13.30kno data
Peter Meredith
Independent Chairman5.08yrsCA$262.50kno data
Gordon Flatt
Member of the Advisory Boardno datano datano data
Mark Davis
Independent Director7.08yrsCA$187.50k0.010% CA$99.1k
Larry Campbell
Independent Director12.08yrsCA$187.50kno data
Thomas Gaffney
Independent Director14.08yrsCA$187.50k0.0018% CA$17.8k
Karen Keilty
Independent Director5.58yrsCA$187.50k0.011% CA$106.6k

8.6yrs

Average Tenure

70yo

Average Age

Experienced Board: K3W's board of directors are considered experienced (8.6 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: K3W 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.


Top Shareholders

Company Information

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


Key Information

  • Name: Great Canadian Gaming Corporation
  • Ticker: K3W
  • Exchange: DB
  • Founded: 1982
  • Industry: Casinos and Gaming
  • Sector: Consumer Services
  • Market Cap: CA$1.526b
  • Listing Market Cap: CA$983.186m
  • Shares outstanding: 55.33m
  • Website: https://www.gcgaming.com

Number of Employees


Location

  • Great Canadian Gaming Corporation
  • 39 Wynford Drive
  • North York
  • Ontario
  • M3C 3K5
  • 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 as a gaming and entertainment company in Canada. As of March 3, 2020, it operated 25 gaming, entertainment, and hospitality facilities in Ontario, British Columbia, New Brunswick, and Nova Scotia. Its facilities include approximately 16,000 slot machines, 575 table games, 71 dining amenities, and 500 hotel rooms. The company was founded in 1982 and is based in North York, Canada. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/07/14 21:45
End of Day Share Price2020/07/14 00:00
Earnings2020/03/31
Annual Earnings2019/12/31


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.