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27

Galaxy Entertainment GroupSEHK:27 Stock Report

Market Cap

HK$182.4b

7D

1.7%

1Y

-22.0%

Updated

25 Oct, 2021

Data

Company Financials +
27 fundamental analysis
Snowflake Score
Valuation2/6
Future Growth5/6
Past Performance0/6
Financial Health3/6
Dividends1/6

27 Overview

Galaxy Entertainment Group Limited, an investment holding company, engages in the gaming and entertainment, and construction materials businesses in Macau, Hong Kong, and Mainland China.

Rewards

Trading at 56.2% below our estimate of its fair value

Earnings are forecast to grow 52.12% per year

Risk Analysis

No risks detected for 27 from our risk checks.

Galaxy Entertainment Group Competitors

Wynn Macau

SEHK:1128

HK$37.0b

Price History & Performance

Summary of all time highs, changes and price drops for Galaxy Entertainment Group
Historical stock prices
Current Share PriceHK$41.90
52 Week HighHK$38.30
52 Week LowHK$80.30
Beta1.3
1 Month Change4.10%
3 Month Change-21.39%
1 Year Change-21.97%
3 Year Change2.82%
5 Year Change28.73%
Change since IPO2,914.42%

Recent News & Updates

Sep 25
Health Check: How Prudently Does Galaxy Entertainment Group (HKG:27) Use Debt?

Health Check: How Prudently Does Galaxy Entertainment Group (HKG:27) Use Debt?

Some say volatility, rather than debt, is the best way to think about risk as an investor, but Warren Buffett famously...

Aug 29
What Does Galaxy Entertainment Group Limited's (HKG:27) Share Price Indicate?

What Does Galaxy Entertainment Group Limited's (HKG:27) Share Price Indicate?

Today we're going to take a look at the well-established Galaxy Entertainment Group Limited ( HKG:27 ). The company's...

Mar 29
Health Check: How Prudently Does Galaxy Entertainment Group (HKG:27) Use Debt?

Health Check: How Prudently Does Galaxy Entertainment Group (HKG:27) Use Debt?

Some say volatility, rather than debt, is the best way to think about risk as an investor, but Warren Buffett famously...

Shareholder Returns

27HK HospitalityHK Market
7D1.7%-2.7%0.4%
1Y-22.0%-26.9%6.7%

Return vs Industry: 27 exceeded the Hong Kong Hospitality industry which returned -25.8% over the past year.

Return vs Market: 27 underperformed the Hong Kong Market which returned 5.9% over the past year.

Price Volatility

Is 27's price volatile compared to industry and market?
27 volatility
27 Beta1.3
Industry Beta1.11
Market Beta1

Stable Share Price: 27 is not significantly more volatile than the rest of Hong Kong stocks over the past 3 months, typically moving +/- 8% a week.

Volatility Over Time: 27's weekly volatility (8%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
n/a18,000n/ahttps://www.galaxyentertainment.com

Galaxy Entertainment Group Limited, an investment holding company, engages in the gaming and entertainment, and construction materials businesses in Macau, Hong Kong, and Mainland China. The company operates casino games of chance or games of other forms; and provides hospitality and related services. It owns and operates Galaxy Macau, an integrated resort; Broadway Macau, a landmark entertainment and food street destination; StarWorld Macau, a five-star hotel located in the Macau Peninsula; and City Club casinos.

Galaxy Entertainment Group Fundamentals Summary

How do Galaxy Entertainment Group's earnings and revenue compare to its market cap?
27 fundamental statistics
Market CapHK$182.42b
Earnings (TTM)-HK$169.76m
Revenue (TTM)HK$17.31b

10.5x

P/S Ratio

-1.1kx

P/E Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
27 income statement (TTM)
RevenueHK$17.31b
Cost of RevenueHK$7.99b
Gross ProfitHK$9.33b
ExpensesHK$9.50b
Earnings-HK$169.76m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)-0.039
Gross Margin53.87%
Net Profit Margin-0.98%
Debt/Equity Ratio16.4%

How did 27 perform over the long term?

See historical performance and comparison

Dividends

1.1%

Current Dividend Yield

n/a

Payout Ratio

Valuation

Is Galaxy Entertainment Group 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: 27 (HK$41.9) is trading below our estimate of fair value (HK$95.57)

Significantly Below Fair Value: 27 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 27 is unprofitable, so we can't compare its PE Ratio to the Hong Kong Hospitality industry average.

PE vs Market: 27 is unprofitable, so we can't compare its PE Ratio to the Hong Kong market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 27's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 27 is overvalued based on its PB Ratio (2.6x) compared to the HK Hospitality industry average (1.1x).


Future Growth

How is Galaxy Entertainment Group forecast to perform in the next 1 to 3 years based on estimates from 14 analysts?

52.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 27 is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.5%).

Earnings vs Market: 27 is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: 27's is expected to become profitable in the next 3 years.

Revenue vs Market: 27's revenue (29.7% per year) is forecast to grow faster than the Hong Kong market (12.5% per year).

High Growth Revenue: 27's revenue (29.7% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 27's Return on Equity is forecast to be low in 3 years time (15.4%).


Past Performance

How has Galaxy Entertainment Group performed over the past 5 years?

-17.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 27 is currently unprofitable.

Growing Profit Margin: 27 is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: 27 is unprofitable, and losses have increased over the past 5 years at a rate of 17.1% per year.

Accelerating Growth: Unable to compare 27's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: 27 is unprofitable, making it difficult to compare its past year earnings growth to the Hospitality industry (34.7%).


Return on Equity

High ROE: 27 has a negative Return on Equity (-0.22%), as it is currently unprofitable.


Financial Health

How is Galaxy Entertainment Group's financial position?


Financial Position Analysis

Short Term Liabilities: 27's short term assets (HK$26.1B) exceed its short term liabilities (HK$20.7B).

Long Term Liabilities: 27's short term assets (HK$26.1B) exceed its long term liabilities (HK$1.2B).


Debt to Equity History and Analysis

Debt Level: 27's debt to equity ratio (16.4%) is considered satisfactory.

Reducing Debt: 27's debt to equity ratio has increased from 2.8% to 16.4% over the past 5 years.

Debt Coverage: 27's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: Insufficient data to determine if 27's interest payments on its debt are well covered by EBIT.


Balance Sheet


Dividend

What is Galaxy Entertainment Group current dividend yield, its reliability and sustainability?

1.07%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 27's dividend (1.07%) isn’t notable compared to the bottom 25% of dividend payers in the Hong Kong market (2.22%).

High Dividend: 27's dividend (1.07%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.77%).


Stability and Growth of Payments

Stable Dividend: 27 has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: 27's dividend payments have increased, but the company has only paid a dividend for 6 years.


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: 27's dividends in 3 years are forecast to be well covered by earnings (28.5% payout ratio).


Next Steps

Management

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

9.8yrs

Average management tenure


CEO

Galaxy Entertainment Group has no CEO, or we have no data on them.


Leadership Team

Experienced Management: 27's management team is seasoned and experienced (9.8 years average tenure).


Board Members

Experienced Board: 27's board of directors are seasoned and experienced ( 16.8 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

Galaxy Entertainment Group Limited's employee growth, exchange listings and data sources


Key Information

  • Name: Galaxy Entertainment Group Limited
  • Ticker: 27
  • Exchange: SEHK
  • Founded: NaN
  • Industry: Casinos and Gaming
  • Sector: Consumer Services
  • Market Cap: HK$182.421b
  • Shares outstanding: 4.35b
  • Website: https://www.galaxyentertainment.com

Number of Employees


Location

  • Galaxy Entertainment Group Limited
  • Wing On Centre
  • 22nd Floor
  • Central
  • Hong Kong

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/10/25 16:39
End of Day Share Price2021/10/25 00:00
Earnings2021/06/30
Annual Earnings2020/12/31


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.