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SKC

SkyCity Entertainment Group NZSE:SKC Stock Report

Last Price

NZ$2.85

Market Cap

NZ$2.2b

7D

-0.4%

1Y

-12.0%

Updated

24 Sep, 2022

Data

Company Financials +
SKC fundamental analysis
Snowflake Score
Valuation3/6
Future Growth4/6
Past Performance0/6
Financial Health3/6
Dividends0/6

SKC Stock Overview

SkyCity Entertainment Group Limited, together with its subsidiaries, operates in the gaming, entertainment, hotel, convention, hospitality, and tourism sectors in New Zealand and Australia.

SkyCity Entertainment Group Competitors

Price History & Performance

Summary of all time highs, changes and price drops for SkyCity Entertainment Group
Historical stock prices
Current Share PriceNZ$2.85
52 Week HighNZ$3.31
52 Week LowNZ$2.47
Beta0.98
1 Month Change-2.40%
3 Month Change3.64%
1 Year Change-12.04%
3 Year Change-29.10%
5 Year Change-24.00%
Change since IPO88.43%

Recent News & Updates

Sep 05
These 4 Measures Indicate That SkyCity Entertainment Group (NZSE:SKC) Is Using Debt Extensively

These 4 Measures Indicate That SkyCity Entertainment Group (NZSE:SKC) Is Using Debt Extensively

Howard Marks put it nicely when he said that, rather than worrying about share price volatility, 'The possibility of...

Aug 03
SkyCity Entertainment Group's (NZSE:SKC) Returns On Capital Not Reflecting Well On The Business

SkyCity Entertainment Group's (NZSE:SKC) Returns On Capital Not Reflecting Well On The Business

What underlying fundamental trends can indicate that a company might be in decline? Businesses in decline often have...

Shareholder Returns

SKCNZ HospitalityNZ Market
7D-0.4%-1.2%-1.4%
1Y-12.0%-27.3%-17.0%

Return vs Industry: SKC exceeded the NZ Hospitality industry which returned -27.3% over the past year.

Return vs Market: SKC exceeded the NZ Market which returned -17% over the past year.

Price Volatility

Is SKC's price volatile compared to industry and market?
SKC volatility
SKC Average Weekly Movement3.6%
Hospitality Industry Average Movement5.6%
Market Average Movement3.8%
10% most volatile stocks in NZ Market8.0%
10% least volatile stocks in NZ Market2.7%

Stable Share Price: SKC is not significantly more volatile than the rest of NZ stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: SKC's weekly volatility (4%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
19943,496Michael Ahearnehttps://skycityentertainmentgroup.com

SkyCity Entertainment Group Limited, together with its subsidiaries, operates in the gaming, entertainment, hotel, convention, hospitality, and tourism sectors in New Zealand and Australia. The company operates through Skycity Auckland, Other NZ Operations, SkyCity Adelaide, and International Business segments. It engages in the hotels and convention, food and beverage, sky tower, car parking, property investment, and other related activities.

SkyCity Entertainment Group Fundamentals Summary

How do SkyCity Entertainment Group's earnings and revenue compare to its market cap?
SKC fundamental statistics
Market CapNZ$2.16b
Earnings (TTM)-NZ$33.59m
Revenue (TTM)NZ$555.87m

3.9x

P/S Ratio

-64.3x

P/E Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
SKC income statement (TTM)
RevenueNZ$555.87m
Cost of RevenueNZ$288.92m
Gross ProfitNZ$266.95m
Other ExpensesNZ$300.54m
Earnings-NZ$33.59m

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

Feb 15, 2023

Earnings per share (EPS)-0.044
Gross Margin48.02%
Net Profit Margin-6.04%
Debt/Equity Ratio33.7%

How did SKC perform over the long term?

See historical performance and comparison
We’ve recently updated our valuation analysis.

Valuation

Is SKC undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

  • Price-To-Sales vs Peers

  • Price-To-Sales vs Industry

  • Price-To-Sales vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for SKC?

Other financial metrics that can be useful for relative valuation.

SKC key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue5x
Enterprise Value/EBITDA27.9x
PEG Ration/a

Price to Sales Ratio vs Peers

How does SKC's PS Ratio compare to its peers?

SKC PS Ratio vs Peers
The above table shows the PS ratio for SKC vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPSEstimated GrowthMarket Cap
Peer Average1.2x
RBD Restaurant Brands New Zealand
0.8x6.9%NZ$988.1m
MCK Millennium & Copthorne Hotels New Zealand
2.2xn/aNZ$332.3m
TAH Tabcorp Holdings
0.9x2.6%AU$2.1b
PTEC Playtech
0.9x4.7%UK£1.2b
SKC SkyCity Entertainment Group
3.9x14.8%NZ$2.2b

Price-To-Sales vs Peers: SKC is expensive based on its Price-To-Sales Ratio (3.9x) compared to the peer average (1.2x).


Price to Earnings Ratio vs Industry

How does SKC's PE Ratio compare vs other companies in the Oceanian Hospitality Industry?

Price-To-Sales vs Industry: SKC is expensive based on its Price-To-Sales Ratio (3.9x) compared to the Oceanic Hospitality industry average (2x)


Price to Sales Ratio vs Fair Ratio

What is SKC's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

SKC PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio3.9x
Fair PS Ratio2.1x

Price-To-Sales vs Fair Ratio: SKC is expensive based on its Price-To-Sales Ratio (3.9x) compared to the estimated Fair Price-To-Sales Ratio (2.1x).


Share Price vs Fair Value

What is the Fair Price of SKC when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: SKC (NZ$2.85) is trading below our estimate of fair value (NZ$5.78)

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


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.


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Future Growth

How is SkyCity Entertainment Group forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?

Future Growth Score

4/6

Future Growth Score 4/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


31.7%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SKC is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (2.1%).

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

High Growth Earnings: SKC is expected to become profitable in the next 3 years.

Revenue vs Market: SKC's revenue (14.8% per year) is forecast to grow faster than the NZ market (5.6% per year).

High Growth Revenue: SKC's revenue (14.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: SKC's Return on Equity is forecast to be low in 3 years time (9.6%).


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Past Performance

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

Past Performance Score

0/6

Past Performance Score 0/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


-8.4%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: SKC is currently unprofitable.

Growing Profit Margin: SKC is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: SKC is unprofitable, and losses have increased over the past 5 years at a rate of 8.4% per year.

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

Earnings vs Industry: SKC is unprofitable, making it difficult to compare its past year earnings growth to the Hospitality industry (-13.5%).


Return on Equity

High ROE: SKC has a negative Return on Equity (-2.14%), as it is currently unprofitable.


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Financial Health

How is SkyCity Entertainment Group's financial position?

Financial Health Score

3/6

Financial Health Score 3/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: SKC's short term assets (NZ$326.0M) exceed its short term liabilities (NZ$268.9M).

Long Term Liabilities: SKC's short term assets (NZ$326.0M) do not cover its long term liabilities (NZ$903.5M).


Debt to Equity History and Analysis

Debt Level: SKC's net debt to equity ratio (30.6%) is considered satisfactory.

Reducing Debt: SKC's debt to equity ratio has reduced from 39.2% to 33.7% over the past 5 years.

Debt Coverage: SKC's debt is not well covered by operating cash flow (17.2%).

Interest Coverage: SKC's interest payments on its debt are not well covered by EBIT (0.6x coverage).


Balance Sheet


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Dividend

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

Dividend Score

0/6

Dividend Score 0/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage


5.85%

Forecast Dividend Yield

Dividend Yield vs Market

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

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


Stability and Growth of Payments

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

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


Earnings Payout to Shareholders

Earnings Coverage: SKC is not paying a notable dividend for the NZ market.


Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as SKC has not reported any payouts.


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Management

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

1.8yrs

Average management tenure


CEO

Michael Ahearne

1.83yrs

Tenure

NZ$2,854,641

Compensation

Mr. Michael Ahearne is Director at Gaming Innovation Group Inc. from April 2022. He has been Chief Executive Officer since November 16, 2020 and served as Group Chief Operating Officer of SKYCITY Entertain...


CEO Compensation Analysis

Compensation vs Market: Michael's total compensation ($USD1.65M) is about average for companies of similar size in the NZ market ($USD1.48M).

Compensation vs Earnings: Michael's compensation has increased whilst the company is unprofitable.


Leadership Team

Experienced Management: SKC's management team is not considered experienced ( 1.8 years average tenure), which suggests a new team.


Board Members

Experienced Board: SKC's board of directors are not considered experienced ( 1.3 years average tenure), which suggests a new board.


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

NZSE:SKC Recent Insider Transactions by Companies or Individuals
DateValueNameEntityRoleSharesMax Price
21 Sep 22BuyNZ$14,386,109Accident Compensation Corporation, Asset Management ArmCompany5,353,359NZ$2.73
21 Sep 22SellNZ$15,769,799Accident Compensation Corporation, Asset Management ArmCompany5,481,014NZ$2.88
31 Aug 22BuyNZ$25,964,483Orbis Investment Management LimitedCompany9,351,952NZ$2.78
31 Aug 22SellNZ$4,697,961Orbis Investment Management LimitedCompany1,661,834NZ$2.83
03 Jun 22BuyNZ$26,614,731Orbis Investment Management LimitedCompany10,243,493NZ$2.60
03 Jun 22BuyNZ$32,507,128Investors Mutual LimitedCompany11,562,574NZ$2.81
03 Jun 22SellNZ$5,199,118Orbis Investment Management LimitedCompany1,968,424NZ$2.64
31 May 22BuyNZ$6,634,013Accident Compensation Corporation, Asset Management ArmCompany2,396,433NZ$3.07
31 May 22SellNZ$5,683,196Accident Compensation Corporation, Asset Management ArmCompany1,915,069NZ$2.97
05 May 22BuyNZ$38,204,376AustralianSuper Pty. Ltd.Company10,146,097NZ$3.77
02 May 22SellNZ$2,878,384AustralianSuper Pty. Ltd.Company760,638NZ$3.78
24 Feb 22BuyNZ$175,872Chad BartonIndividual60,000NZ$2.93
24 Feb 22SellNZ$324,719Robert CampbellIndividual111,000NZ$2.93
30 Nov 21BuyNZ$13,998,184ASB Group Investments Ltd.Company4,187,838NZ$3.34
30 Nov 21BuyNZ$16,915,798Colonial First State Investments LimitedCompany5,191,273NZ$3.33
30 Nov 21SellNZ$16,403,097Colonial First State Investments LimitedCompany4,979,191NZ$3.39
25 Oct 21BuyNZ$23,762First Sentier Investors (Australia) IM LtdCompany7,823NZ$3.04
19 Oct 21BuyNZ$100,346Silvana SchenoneIndividual31,745NZ$3.16
19 Oct 21SellNZ$12,520,501ASB Group Investments Ltd.Company4,150,011NZ$3.02
27 Sep 21SellNZ$189,597Glen McLatchieIndividual58,552NZ$3.24

Ownership Breakdown

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


Top Shareholders

Top 25 shareholders own 62.7% of the company
OwnershipNameSharesCurrent ValueChange %Portfolio %
9.37%
Sumitomo Mitsui Trust Asset Management Co., Ltd.
70,963,067NZ$202.2m0%0.09%
8.66%
Ta Universal Investment Holdings Ltd.
65,593,783NZ$186.9m0%no data
7.29%
AustralianSuper Pty. Ltd.
55,229,888NZ$157.4m20.47%0.35%
6.22%
Orbis Investment Management Limited
47,087,332NZ$134.2m19.52%0.33%
5.26%
Accident Compensation Corporation, Asset Management Arm
39,847,524NZ$113.6m4.49%2.52%
5.07%
Investors Mutual Limited
38,436,546NZ$109.5m3.99%19.28%
3.61%
Colonial First State Investments Limited
27,369,670NZ$78.0m0.16%0.61%
3.56%
The Vanguard Group, Inc.
26,986,664NZ$76.9m0%no data
2.77%
BNY Mellon Asset Management
20,945,533NZ$59.7m0%0.01%
2.54%
ASB Group Investments Ltd.
19,229,108NZ$54.8m0%14.66%
1.56%
Dimensional Fund Advisors LP
11,797,123NZ$33.6m1.53%no data
1.38%
UBS Asset Management
10,440,026NZ$29.8m18.5%no data
1.18%
Nikko Asset Management Co., Ltd.
8,961,748NZ$25.5m22.67%0.01%
0.91%
Norges Bank Investment Management
6,903,924NZ$19.7m0%no data
0.87%
Smartshares Limited
6,616,036NZ$18.9m0%2.37%
0.76%
Peter Masfen
5,750,986NZ$16.4m0%no data
0.61%
Netwealth Investments Ltd.
4,613,746NZ$13.1m0%0.16%
0.41%
American Century Investment Management Inc
3,104,680NZ$8.8m43.04%no data
0.17%
Charles Schwab Investment Management, Inc.
1,281,584NZ$3.7m1.44%no data
0.13%
Zurich Investment Management Limited
963,348NZ$2.7m0%0.33%
0.12%
Teachers Insurance and Annuity Association-College Retirement Equities Fund
909,196NZ$2.6m-1.89%no data
0.079%
State Street Global Advisors, Inc.
599,875NZ$1.7m0.59%no data
0.059%
Michael Ahearne
450,105NZ$1.3m1.88%no data
0.057%
Geode Capital Management, LLC
435,196NZ$1.2m0.13%no data
0.055%
Credit Suisse Asset Management (Switzerland)
419,378NZ$1.2m0%no data

Company Information

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


Key Information

  • Name: SkyCity Entertainment Group Limited
  • Ticker: SKC
  • Exchange: NZSE
  • Founded: 1994
  • Industry: Casinos and Gaming
  • Sector: Consumer Services
  • Implied Market Cap: NZ$2.159b
  • Shares outstanding: 757.51m
  • Website: https://skycityentertainmentgroup.com

Number of Employees


Location

  • SkyCity Entertainment Group Limited
  • 99 Albert Street
  • Level 13
  • Auckland
  • 1010
  • New Zealand


Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SKYZ.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDFeb 1996
SKCASX (Australian Securities Exchange)YesOrdinary SharesAUAUDFeb 1996
SKCNZSE (New Zealand Stock Exchange)YesOrdinary SharesNZNZDFeb 1996
SKCCHIA (Chi-X Australia)YesOrdinary SharesAUAUDFeb 1996

Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/09/24 00:00
End of Day Share Price2022/09/23 00:00
Earnings2022/06/30
Annual Earnings2022/06/30


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.