DB:THL

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Executive Summary

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


Snowflake Analysis

Undervalued with solid track record.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

-3.4%

THL

-3.0%

DE Hospitality

0.05%

DE Market


1 Year Return

-32.1%

THL

-38.5%

DE Hospitality

3.4%

DE Market

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

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


Shareholder returns

THLIndustryMarket
7 Day-3.4%-3.0%0.05%
30 Day-2.5%-11.5%5.5%
90 Day13.2%13.3%19.9%
1 Year-28.4%-32.1%-35.9%-38.5%5.7%3.4%
3 Year-21.0%-32.2%-51.0%-57.7%3.4%-4.7%
5 Year-23.3%-40.5%-52.1%-62.2%10.4%-4.5%

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 compared to its fair value and its price relative to the market?

29.4%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: THL (€1.97) is trading below our estimate of fair value (€2.79)

Significantly Below Fair Value: THL is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: THL is good value based on its PE Ratio (17.2x) compared to the DE Hospitality industry average (20.2x).

PE vs Market: THL is good value based on its PE Ratio (17.2x) compared to the German market (21.2x).


Price to Earnings Growth Ratio

PEG Ratio: THL is poor value based on its PEG Ratio (1.6x)


Price to Book Ratio

PB vs Industry: THL is good value based on its PB Ratio (0.9x) compared to the DE Hospitality industry average (2x).


Next Steps

Future Growth

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

10.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: THL's forecast earnings growth (10.5% per year) is above the savings rate (0.2%).

Earnings vs Market: THL's earnings (10.5% per year) are forecast to grow slower than the German market (22.3% per year).

High Growth Earnings: THL's earnings are forecast to grow, but not significantly.

Revenue vs Market: THL's revenue (1.8% per year) is forecast to grow slower than the German market (5.9% per year).

High Growth Revenue: THL's revenue (1.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: THL's Return on Equity is forecast to be low in 3 years time (4.9%).


Next Steps

Past Performance

How has Tabcorp Holdings performed over the past 5 years?

5.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: THL has high quality earnings.

Growing Profit Margin: THL's current net profit margins (6.8%) are higher than last year (4.7%).


Past Earnings Growth Analysis

Earnings Trend: THL's earnings have grown by 5.7% per year over the past 5 years.

Accelerating Growth: THL's earnings growth over the past year (56.6%) exceeds its 5-year average (5.7% per year).

Earnings vs Industry: THL earnings growth over the past year (56.6%) exceeded the Hospitality industry -15.6%.


Return on Equity

High ROE: THL's Return on Equity (5.3%) is considered low.


Next Steps

Financial Health

How is Tabcorp Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: THL's short term assets (A$787.1M) do not cover its short term liabilities (A$1.6B).

Long Term Liabilities: THL's short term assets (A$787.1M) do not cover its long term liabilities (A$4.8B).


Debt to Equity History and Analysis

Debt Level: THL's debt to equity ratio (54%) is considered high.

Reducing Debt: THL's debt to equity ratio has reduced from 82.5% to 54% over the past 5 years.

Debt Coverage: THL's debt is not well covered by operating cash flow (17.7%).

Interest Coverage: THL's interest payments on its debt are well covered by EBIT (4.3x coverage).


Balance Sheet


Next Steps

Dividend

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

6.79%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: THL's dividend (6.79%) is higher than the bottom 25% of dividend payers in the German market (1.24%).

High Dividend: THL's dividend (6.79%) is in the top 25% of dividend payers in the German market (3.77%)


Stability and Growth of Payments

Stable Dividend: THL's dividend payments have been volatile in the past 10 years.

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


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (116.5%), THL's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: THL's dividends in 3 years are not forecast to be well covered by earnings (101.3% payout ratio).


Next Steps

Management

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

2.0yrs

Average management tenure


CEO

David Robert Attenborough (57yo)

9.08yrs

Tenure

AU$4,526,589

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

Compensation vs Market: David Robert's total compensation ($USD3.15M) is above average for companies of similar size in the German market ($USD2.41M).

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


Leadership Team

NamePositionTenureCompensationOwnership
David Robert Attenborough
MD, CEO & Executive Director9.08yrsAU$4.53m0.060% A$2.4m
Adam Rytenskild
Managing Director of Wagering & Media2.92yrsAU$1.73m0.0095% A$380.5k
Sue van der Merwe
Managing Director of Lotteries & Keno2.58yrsAU$1.18m0.0039% A$157.3k
Adam Newman
Chief Financial Officer0.75yrno datano data
Francoise Russo
Chief Information Officer0.17yrno datano data
Chris Richardson
General Manager of Investor Relationsno datano datano data
Patrick McGlinchey
Group General Counsel & Additional Company Secretary1.33yrsno datano data
Nicholas Tzaferis
General Manager of Corporate Communicationsno datano datano data
Michelle Williams
Chief People Officer0.42yrno datano data
Clinton Lollback
Chief Risk Officer4.5yrsno datano data
Ben Simons
Chief Strategy Officer3yrsno datano data
Paul Carew
Chief Operating Officer of Gaming Services0.42yrno datano data

2.0yrs

Average Tenure

Experienced Management: THL's management team is not considered experienced ( 2 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
David Robert Attenborough
MD, CEO & Executive Director9.08yrsAU$4.53m0.060% A$2.4m
Harry Boon
Independent Non Executive Director2.58yrsAU$275.94k0.0034% A$138.5k
Bruce Akhurst
Independent Non-Executive Director3yrsAU$291.00k0.0049% A$197.9k
Steven Gregg
Independent Non Executive Director8yrsAU$273.20k0.0021% A$83.1k
Paula Dwyer
Independent Chairman of the Board9.08yrsAU$646.05k0.0062% A$247.7k
Vickki McFadden
Independent Non-Executive Director3yrsAU$284.70k0.0025% A$99.1k
Justin Milne
Independent Non-Executive Director8.92yrsAU$239.53k0.0023% A$92.3k
Anne Brennan
Board Observer0.42yrno datano data
David Gallop
Non-Executive Directorno datano data0.00017% A$6.8k

3.0yrs

Average Tenure

60yo

Average Age

Experienced Board: THL's board of directors are considered experienced (3 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: Insufficient data to determine if 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

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$6.569b
  • Listing Market Cap: AU$4.014b
  • Shares outstanding: 2.03b
  • Website: https://www.tabcorp.com.au

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. It operates in three segments: Lotteries and Keno, Wagering and Media, and Gaming Services. The Lotteries and Keno segment operates lotteries and Kenos primarily under the Set for Life, Powerball, Oz Lotto, TattsLotto, Saturday Lotto, Gold Lotto, X Lotto, Monday and Wednesday Lotto, Lucky Lotteries, Lotto Strike, Super 66, and Keno brands. The Wagering and Media segment offers totalizator and fixed odds betting on racing, sports, and other events; and operates through a network of TAB agencies, hotels and clubs, and on-course operations, as well as through retail, Internet, mobile devices, and phone. It also provides Trackside, a computer simulate racing product; and international wagering and pooling services. In addition, this segment engages in the Three Sky Racing television channels broadcasting thoroughbred, harness and greyhound racing, and other sports to audiences in TAB outlets, hotels, clubs, and other licensed venues, as well as in-home to pay TV subscribers; operating Sky Sports Radio network; and advertising and sponsorship arrangement, and broadcasting racing activities. The Gaming Services segment offers electronic gaming machine (EGMs) monitoring and related services under the MAX Regulatory Services brand. It also provides gaming machine and systems supply and expertise; specialized services and strategic advice to licensed gaming venues; value-add services to venues, such as gaming and loyalty systems, business intelligence tools, linked jackpots, and cashless and ticket in ticket out services; and logistics, installation, and relocation services, as well as EGMs, lottery and wagering terminals, and other transaction device repair and maintenance services under the MAX Venue Services brand. The company was founded in 1994 and is based in Melbourne, Australia. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/07/14 21:37
End of Day Share Price2020/07/14 00:00
Earnings2019/12/31
Annual Earnings2019/06/30


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.