SEHK:27

Stock Analysis Report

Galaxy Entertainment Group

Executive Summary

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

Rewards

Earnings are forecast to grow 6.62% per year

Risk Analysis

No risks detected for 27 from our risk checks.


Snowflake Analysis

Adequate balance sheet with acceptable track record.


Similar Companies

Share Price & News

How has Galaxy Entertainment Group's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 27 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-8.5%

27

-4.7%

HK Hospitality

-3.3%

HK Market


1 Year Return

-5.8%

27

-7.4%

HK Hospitality

-9.6%

HK Market

Return vs Industry: 27 exceeded the Hong Kong Hospitality industry which returned -6.5% over the past year.

Return vs Market: 27 exceeded the Hong Kong Market which returned -9.8% over the past year.


Shareholder returns

27IndustryMarket
7 Day-8.5%-4.7%-3.3%
30 Day-6.3%-4.6%-3.8%
90 Day2.5%-3.0%-0.2%
1 Year-4.2%-5.8%-4.6%-7.4%-6.3%-9.6%
3 Year40.3%34.1%13.0%2.8%11.2%-0.05%
5 Year48.9%38.7%12.2%-5.1%12.7%-6.0%

Price Volatility Vs. Market

How volatile is Galaxy Entertainment Group's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Galaxy Entertainment Group undervalued compared to its fair value and its price relative to the market?

17.5x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 27 (HK$53.7) is trading above our estimate of fair value (HK$27.8)

Significantly Below Fair Value: 27 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 27 is poor value based on its PE Ratio (17.9x) compared to the Hospitality industry average (11.6x).

PE vs Market: 27 is poor value based on its PE Ratio (17.9x) compared to the Hong Kong market (9.9x).


Price to Earnings Growth Ratio

PEG Ratio: 27 is poor value based on its PEG Ratio (2.7x)


Price to Book Ratio

PB vs Industry: 27 is overvalued based on its PB Ratio (3.4x) compared to the HK Hospitality industry average (0.8x).


Next Steps

Future Growth

How is Galaxy Entertainment Group forecast to perform in the next 1 to 3 years based on estimates from 22 analysts?

6.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 27's forecast earnings growth (6.6% per year) is above the savings rate (1.6%).

Earnings vs Market: 27's earnings (6.6% per year) are forecast to grow slower than the Hong Kong market (11.7% per year).

High Growth Earnings: 27's earnings are forecast to grow, but not significantly.

Revenue vs Market: 27's revenue (4.7% per year) is forecast to grow slower than the Hong Kong market (9.7% per year).

High Growth Revenue: 27's revenue (4.7% per year) is forecast to grow slower 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 (16%).


Next Steps

Past Performance

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

12.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 27 has high quality earnings.

Growing Profit Margin: 27's current net profit margins (24.3%) are higher than last year (24.1%).


Past Earnings Growth Analysis

Earnings Trend: 27's earnings have grown by 12.5% per year over the past 5 years.

Accelerating Growth: 27's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 27 had negative earnings growth (-0.8%) over the past year, making it difficult to compare to the Hospitality industry average (-3.6%).


Return on Equity

High ROE: 27's Return on Equity (18.9%) is considered low.


Next Steps

Financial Health

How is Galaxy Entertainment Group's financial position?


Financial Position Analysis

Short Term Liabilities: 27's short term assets (HK$16.5B) do not cover its short term liabilities (HK$22.4B).

Long Term Liabilities: 27's short term assets (HK$16.5B) exceed its long term liabilities (HK$918.0M).


Debt to Equity History and Analysis

Debt Level: 27's debt to equity ratio (9.6%) is considered satisfactory.

Reducing Debt: 27's debt to equity ratio has increased from 1.1% to 9.6% over the past 5 years.

Debt Coverage: 27's debt is well covered by operating cash flow (246.9%).

Interest Coverage: 27 earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: 27 has a high level of physical assets or inventory.

Debt Coverage by Assets: 27's debt is covered by short term assets (assets are 2.5x debt).


Next Steps

Dividend

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

1.73%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 27's dividend (1.69%) isn’t notable compared to the bottom 25% of dividend payers in the Hong Kong market (2.32%).

High Dividend: 27's dividend (1.69%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.41%).


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 5 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 (30.8% payout ratio).


Next Steps

Management

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

11.8yrs

Average management tenure


CEO

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


Leadership Team

NamePositionTenureCompensationOwnership
Che-Woo Lui
Founder0yrsHK$59.54m7.83% HK$18.2b
Yiu Tung Lui
Deputy Chairman & Member of Executive Board0yrsHK$81.89m3.33% HK$7.7b
Ying Chee
MD of the Construction Materials Division15.8yrsHK$8.05m0.036% HK$84.7m
Lui Wai Yu Tang
Member of Executive Board & Executive Director28.5yrsHK$4.65m0.31% HK$720.2m
Robert Drake
Group Chief Financial Officer11.8yrsno datano data
James Houghton
Director of Information Systems & Technology3.8yrsno datano data
Peter J. Caveny
Assistant Senior Vice President of Investor Relations0yrsno datano data
Mun Kwok
Senior Director of Legal0yrsno datano data
Buddy Lam
Senior Vice President of Public Relations0yrsno datano data
Gillian Murphy
Senior Vice President of Galaxy Macau and General Manager of Broadway - Galaxy Macau0yrsno datano data

11.8yrs

Average Tenure

64yo

Average Age

Experienced Management: 27's management team is seasoned and experienced (11.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Che-Woo Lui
Founder0yrsHK$59.54m7.83% HK$18.2b
Yiu Tung Lui
Deputy Chairman & Member of Executive Board0yrsHK$81.89m3.33% HK$7.7b
Ying Chee
MD of the Construction Materials Division15.8yrsHK$8.05m0.036% HK$84.7m
Lui Wai Yu Tang
Member of Executive Board & Executive Director28.5yrsHK$4.65m0.31% HK$720.2m
Wai Bun Cheung
Non-Executive Director4.3yrsHK$240.00kno data
Lung Tak Wong
Independent Non Executive Director11.5yrsHK$620.00kno data
Michael Mecca
Non-Executive Director1.8yrsno data0.00098% HK$2.3m
Shue Lam Yip
Independent Non-Executive Director15.2yrsHK$590.00k0.0058% HK$13.4m
James Ancell
Independent Non-Executive Director15.8yrsHK$510.00k0.0069% HK$16.1m

15.2yrs

Average Tenure

70yo

Average Age

Experienced Board: 27's board of directors are seasoned and experienced ( 15.2 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 company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Galaxy Entertainment Group Limited
  • Ticker: 27
  • Exchange: SEHK
  • Founded:
  • Industry: Casinos and Gaming
  • Sector: Consumer Services
  • Market Cap: HK$232.780b
  • Shares outstanding: 4.33b
  • Website: https://www.galaxyentertainment.com

Number of Employees


Location

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

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
27SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDJan 1992
GXYE.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJan 1992
KW9ADB (Deutsche Boerse AG)YesOrdinary SharesDEEURJan 1992
27SHSC (Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect)YesOrdinary SharesHKHKDJan 1992
GLXSWX (SIX Swiss Exchange)YesOrdinary SharesCHCHFJan 1992
27SZSC (The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect)YesOrdinary SharesHKHKDJan 1992
GXYY.YOTCPK (Pink Sheets LLC)UNSPONSORED ADRUSUSDAug 2016

Biography

Galaxy Entertainment Group Limited, an investment holding company, engages 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 situated; and StarWorld Macau, a 5-star hotel located in the Macau Peninsula, as well as City Club casinos. The company also manufactures, sells, and distributes construction materials, including concrete pipes and piles, asphalt, ready-mixed concrete, concrete products, slag, and cement; provides property investment, equipment leasing, quality assurance, project management, and security services; and imports, exports, trades in, and transports construction materials. In addition, it is involved in quarrying, aircraft holding and operating, and vessel holding activities. Galaxy Entertainment Group Limited is based in Central, Hong Kong. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/27 12:43
End of Day Share Price2020/02/27 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.