DB:THL

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

Questionable track record with limited growth.

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

2.4%

DB:THL

-2.9%

DE Hospitality

0.9%

DE Market


1 Year Return

-2.7%

DB:THL

-52.6%

DE Hospitality

-8.5%

DE Market

THL outperformed the Hospitality industry which returned -52.5% over the past year.

THL outperformed the Market in Germany which returned -8.7% over the past year.


Share holder returns

THLIndustryMarket
7 Day2.4%-2.9%0.9%
30 Day-0.9%-6.5%0.3%
90 Day-2.7%-9.2%1.1%
1 Year1.8%-2.7%-49.4%-52.6%-5.6%-8.5%
3 Year13.4%-2.6%-22.3%-33.1%20.7%10.1%
5 Year72.7%25.1%-6.5%-25.2%26.8%9.1%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

Is Tabcorp Holdings undervalued based on future cash flows and its price relative to the stock market?

75.83x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

Tabcorp Holdings's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).

Tabcorp Holdings's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).


Price Based on Earnings

Tabcorp Holdings is overvalued based on earnings compared to the DE Hospitality industry average.

Tabcorp Holdings is overvalued based on earnings compared to the Germany market.


Price Based on Expected Growth

Tabcorp Holdings is poor value based on expected growth next year.


Price Based on Value of Assets

Tabcorp Holdings is good value based on assets compared to the DE Hospitality industry average.


Next Steps

Future Growth

How is Tabcorp Holdings expected to perform in the next 1 to 3 years based on estimates from 11 analysts?

17.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Tabcorp Holdings's revenue is expected to grow by 2.5% yearly, however this is not considered high growth (20% yearly).

Tabcorp Holdings's earnings are expected to grow by 17.1% yearly, however this is not considered high growth (20% yearly).

Tabcorp Holdings's revenue growth is positive but not above the Germany market average.

Tabcorp Holdings's earnings growth is expected to exceed the Germany market average.

Tabcorp Holdings's earnings growth is expected to exceed the low risk savings rate of 0.2%.


Earnings per Share Growth Estimates


Future Return on Equity

Tabcorp Holdings is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


Next Steps

Past Performance

How has Tabcorp Holdings performed over the past 5 years?

-29.0%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Tabcorp Holdings's year on year earnings growth rate was negative over the past 5 years and the most recent earnings are below average.

Tabcorp Holdings's 1-year earnings growth exceeds its 5-year average (593.8% vs -29%)

Tabcorp Holdings's earnings growth has exceeded the DE Hospitality industry average in the past year (593.8% vs -2.6%).


Return on Equity

Tabcorp Holdings has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Tabcorp Holdings used its assets less efficiently than the DE Hospitality industry average last year based on Return on Assets.


Return on Capital Employed

Tabcorp Holdings's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Tabcorp Holdings's financial position?


Financial Position Analysis

Tabcorp Holdings's short term (1 year) commitments are greater than its holdings of cash and other short term assets.

Tabcorp Holdings's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

Tabcorp Holdings's level of debt (52.6%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has been reduced over the past 5 years (87.9% vs 52.6% today).

Debt is not well covered by operating cash flow (11.7%, less than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 3.2x coverage).


Balance Sheet

Low level of unsold assets.

Debt is not covered by short term assets, assets are 0.2x debt.


Next Steps

Dividend

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

5.06%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Tabcorp Holdings's pays a higher dividend yield than the bottom 25% of dividend payers in Germany (1.45%).

Tabcorp Holdings's dividend is above the markets top 25% of dividend payers in Germany (3.91%).

Dividends per share have been volatile in the past 10 years (annual drop of over 20%).

Dividends per share have fallen over the past 10 years.


Current Payout to Shareholders

Dividends paid are not well covered by earnings (0.3x coverage).


Future Payout to Shareholders

Dividends after 3 years are not well covered by earnings (0.9x coverage).


Next Steps

Management

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

1.7yrs

Average management tenure


CEO

David Robert Attenborough (55yo)

8.0yrs

Tenure

AU$4,028,737

Compensation

Mr. David Robert Henry Attenborough, BSc, MBA has been the Managing Director and Chief Executive Officer of TabCorp Holdings Ltd. since June 2011. Mr. Attenborough served as the Managing Director of Wageri ...


CEO Compensation Analysis

David Robert's remuneration is about average for companies of similar size in Germany.

David Robert's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

1.7yrs

Average Tenure

The average tenure for the Tabcorp Holdings management team is less than 2 years, this suggests a new team.


Board Age and Tenure

6.9yrs

Average Tenure

59yo

Average Age

The tenure for the Tabcorp Holdings board of directors is about average.


Insider Trading

No 3 month insider trading information.


Recent Insider Transactions

Buy€521,06122 May 19
BlackRock, Inc.
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Shares182,269
Max Price€2.86
Sell€509,48421 May 19
BlackRock, Inc.
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Shares177,864
Max Price€2.87
Buy€021 May 19
BlackRock, Inc.
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Shares266,264
Max Price€2.88
Buy€38,09413 May 19
BlackRock, Inc.
EntityCompany
Shares1,782,780
Max Price€3.09
Buy€451,608,38810 Apr 19
Perpetual Limited
EntityCompany
Shares160,199,391
Max Price€2.82
Sell€218,536,11910 Apr 19
Perpetual Limited
EntityCompany
Shares73,349,504
Max Price€2.98
Buy€23,90218 Mar 19
BlackRock, Inc.
EntityCompany
Shares26,799,733
Max Price€3.75
Sell€129,07918 Mar 19
BlackRock, Inc.
EntityCompany
Shares39,290,086
Max Price€3.54
Buy€20,86305 Sep 18
Steven Gregg
EntityIndividual
Role
Member of the Board of Directors
Shares7,000
Max Price€2.98
Sell€1,040,01024 Aug 18
David Robert Attenborough
EntityIndividual
Role
MD, CEO & Executive Director
Member of the Board of Directors
Shares350,000
Max Price€2.97
Buy€31,86617 Aug 18
Justin Milne
EntityIndividual
Role
Member of the Board of Directors
Shares10,600
Max Price€3.01

Ownership Breakdown


Management Team

  • Patrick McGlinchey

    Group General Counsel

    • Tenure: 0.3yrs
  • Mandy Ross

    Chief Information Officer

    • Tenure: 1.5yrs
  • Adam Rytenskild

    Managing Director of Wagering & Media

    • Tenure: 1.8yrs
    • Compensation: A$1.71m
  • Merryl Dooley

    Chief People Officer

    • Tenure: 3.3yrs
  • Damien Johnston

    Chief Financial Officer

    • Tenure: 8.0yrs
    • Compensation: A$1.57m
  • David Robert Attenborough (55yo)

    MD, CEO & Executive Director

    • Tenure: 8.0yrs
    • Compensation: A$4.03m
  • Nicholas Tzaferis

    General Manager of Corporate Communications

  • Frank Makryllos

    Managing Director of Gaming Services

    • Tenure: 1.5yrs
    • Compensation: A$753.22k
  • Sue van der Merwe

    Managing Director of Lotteries & Keno

    • Tenure: 1.5yrs
    • Compensation: A$729.62k
  • Chris Richardson

    General Manager of Investor Relations


Board Members

  • Justin Milne (65yo)

    Non-Executive Director

    • Tenure: 7.8yrs
    • Compensation: A$221.74k
  • Harry Boon (70yo)

    Non Executive Director

    • Tenure: 1.5yrs
    • Compensation: A$143.05k
  • Damien Johnston

    Chief Financial Officer

    • Tenure: 1.5yrs
    • Compensation: A$1.57m
  • David Robert Attenborough (55yo)

    MD, CEO & Executive Director

    • Compensation: A$4.03m
  • Paula Dwyer (57yo)

    Chairman

    • Tenure: 8.0yrs
    • Compensation: A$558.45k
  • Steven Gregg (57yo)

    Non Executive Director

    • Tenure: 6.9yrs
    • Compensation: A$272.11k
  • Vickki McFadden (59yo)

    Non-Executive Director

    • Tenure: 1.9yrs
    • Compensation: A$253.45k
  • Ziggy Switkowski (70yo)

    Non-Executive Director

    • Tenure: 12.7yrs
    • Compensation: A$245.01k
  • Bruce Akhurst (58yo)

    Non-Executive Director

    • Tenure: 1.9yrs
    • Compensation: A$247.47k
  • Ziggy Switkowski (69yo)

    • Tenure: 13.4yrs

Company Information

Tabcorp Holdings Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Tabcorp Holdings Limited
  • Ticker: THL
  • Exchange: DB
  • Founded: 1994
  • Industry: casinos and gaming
  • Sector: consumer services
  • Market Cap: AU$9.393b
  • Listing Market Cap: AU$5.753b
  • Shares outstanding: 2.02b
  • Website: Click here

Number of Employees


Location

  • Tabcorp Holdings Limited
  • Tower 2
  • Level 21
  • Melbourne
  • Victoria
  • 3008
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
TABC.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDAug 1994
THLDB (Deutsche Boerse AG)YesOrdinary SharesDEEURAug 1994
TAHASX (Australian Securities Exchange)YesOrdinary SharesAUAUDAug 1994
TAHCHIA (Chi-X Australia)YesOrdinary SharesAUAUDAug 1994
TACB.YOTCPK (Pink Sheets LLC)UNSPONSORD ADRUSUSDMay 2010

Biography

Tabcorp Holdings Limited, together with its subsidiaries, provides gambling and entertainment services in Australia. The company operates in four segments: Wagering and Media, Lotteries and Keno, Gaming Se ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/06/19 20:35
End of Day Share Price2019/06/19 00:00
Earnings2018/12/31
Annual Earnings2018/06/30


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.