DB:UGS

Stock Analysis Report

Executive Summary

Donaco International Limited engages in leisure and hospitality businesses in the Asia Pacific region.

Rewards

Trading at 63.3% below its fair value

Risk Analysis

Earnings have declined by -53.84% per year over past 5 years

Currently unprofitable and not forecast to become profitable over the next 3 years

Highly volatile share price over past 3 months

Does not have a meaningful market cap (€68M)



Snowflake Analysis

Adequate balance sheet and fair value.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: UGS's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

0%

UGS

-3.9%

DE Hospitality

-0.5%

DE Market


1 Year Return

38.1%

UGS

-18.6%

DE Hospitality

16.6%

DE Market

Return vs Industry: UGS exceeded the German Hospitality industry which returned -15.8% over the past year.

Return vs Market: UGS exceeded the German Market which returned 17.1% over the past year.


Shareholder returns

UGSIndustryMarket
7 Day0%-3.9%-0.5%
30 Day1.8%-7.8%0.8%
90 Day5.5%-10.6%6.6%
1 Year38.1%38.1%-13.3%-18.6%20.2%16.6%
3 Yearn/a-8.9%-21.0%17.1%6.8%
5 Yearn/a-8.8%-26.4%29.7%11.9%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

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

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: UGS (€0.03) is trading below our estimate of fair value (€0.08)

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


Price To Earnings Ratio

PE vs Industry: UGS is unprofitable, so we can't compare its PE Ratio to the Hospitality industry average.

PE vs Market: UGS is unprofitable, so we can't compare its PE Ratio to the German market.


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: UGS is good value based on its PB Ratio (0.3x) compared to the DE Hospitality industry average (2.3x).


Next Steps

Future Growth

How is Donaco International forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

18.6%

Forecasted Consumer Services industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Donaco International has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has Donaco International performed over the past 5 years?

-53.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: UGS is currently unprofitable.

Growing Profit Margin: UGS is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: UGS is unprofitable, and losses have increased over the past 5 years at a rate of -53.8% per year.

Accelerating Growth: Unable to compare UGS's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: UGS is unprofitable, making it difficult to compare its past year earnings growth to the Hospitality industry (-39.6%).


Return on Equity

High ROE: UGS has a negative Return on Equity (-99.05%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Donaco International's financial position?


Financial Position Analysis

Short Term Liabilities: UGS's short term assets (A$32.3M) do not cover its short term liabilities (A$63.2M).

Long Term Liabilities: UGS's short term assets (A$32.3M) exceed its long term liabilities (A$19.6M).


Debt to Equity History and Analysis

Debt Level: UGS's debt to equity ratio (18.4%) is considered satisfactory.

Reducing Debt: UGS's debt to equity ratio has increased from 8.1% to 18.4% over the past 5 years.


Balance Sheet

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

Debt Coverage by Assets: UGS's debt is not covered by short term assets (assets are 0.9x debt).


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: Whilst unprofitable UGS has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: UGS is unprofitable but has sufficient cash runway for more than 3 years, even with free cash flow being positive and shrinking by -29.7% per year.


Next Steps

Dividend

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


Dividend Yield vs Market

company0%marketbottom25%1.4%markettop25%3.6%industryaverage5.3%forecastin3Yearsn/a

Current dividend yield vs market & industry

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

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


Stability and Growth of Payments

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

Growing Dividend: Insufficient data to determine if UGS's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: UGS is not paying a notable dividend for the German market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of UGS'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 Donaco International's salary, the management and board of directors tenure and is there insider trading?

0.08yrs

Average board tenure


CEO

Paul Arbuckle 0

0.6yrs

Tenure

AU$359,046

Compensation

Mr. Paul Arbuckle has been the Chief Executive Officer at Donaco International Limited since June 11, 2019. Mr. Arbuckle has experience in casino and gaming businesses in Australia and Asia. His most recen ...


CEO Compensation Analysis

Compensation vs Market: Paul's total compensation ($USD247.79K) is below average for companies of similar size in the German market ($USD425.50K).

Compensation vs Earnings: Insufficient data to compare Paul's compensation with company performance.


Board Age and Tenure

0.08yrs

Average Tenure

Experienced Board: UGS's board of directors are not considered experienced ( 0.1 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.


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Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • Ben Reichel

    General Counsel

    • Compensation: AU$453.02k
  • Kent Foo

    General Director

    • Paul Arbuckle

      Chief Executive Officer

      • Tenure: 0.6yrs
      • Compensation: AU$359.05k
    • Gordon Lo (38yo)

      Chief Financial Officer


      Board Members

      • Rod Sutton (53yo)

        Independent Non-Executive Director

        • Tenure: 0.08yrs
      • Mel Ashton

        Non-Executive Chairman

        • Tenure: 0.08yrs
      • Kurkye Wong

        Non-Executive Director

        • Tenure: 0.4yrs
      • Leo Chan

        Non-Executive Director

        • Tenure: 0.4yrs
      • Simon Vertullo

        Non-Executive Director

        • Tenure: 0.08yrs

      Company Information

      Donaco International Limited's company bio, employee growth, exchange listings and data sources


      Key Information

      • Name: Donaco International Limited
      • Ticker: UGS
      • Exchange: DB
      • Founded: 1990
      • Industry: Casinos and Gaming
      • Sector: Consumer Services
      • Market Cap: AU$66.711m
      • Listing Market Cap: AU$41.317m
      • Shares outstanding: 823.59m
      • Website: https://www.donacointernational.com

      Location

      • Donaco International Limited
      • 420 George Street
      • Level 18
      • Sydney
      • New South Wales
      • 2000
      • Australia

      Listings

      TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
      DNAASX (Australian Securities Exchange)YesOrdinary SharesAUAUDFeb 2013
      DNACHIA (Chi-X Australia)YesOrdinary SharesAUAUDFeb 2013
      UGSDB (Deutsche Boerse AG)YesOrdinary SharesDEEURFeb 2013
      DNIL.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDFeb 2013

      Biography

      Donaco International Limited engages in leisure and hospitality businesses in the Asia Pacific region. It operates Star Vegas Resort & Club, a casino and hotel complex comprising approximately 100 gaming tables, 1,000 slot machines, and 385 hotel rooms in Poipet, Cambodia on the border with Thailand; and Aristo International Hotel, a boutique casino comprising 400 hotel rooms in northern Vietnam, on the border with Yunnan Province, China. The company was incorporated in 1990 and is based in Sydney, Australia. 


      Company Analysis and Financial Data Status

      All financial data provided by Standard & Poor's Capital IQ.
      DataLast Updated (UTC time)
      Company Analysis2020/01/16 22:31
      End of Day Share Price2020/01/16 00:00
      Earnings2019/06/30
      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.