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SKC

SkyCity Entertainment GroupNZSE:SKC Stock Report

Market Cap

NZ$2.3b

7D

-3.5%

1Y

-4.8%

Updated

04 Dec, 2021

Data

Company Financials +
SKC fundamental analysis
Snowflake Score
Valuation5/6
Future Growth3/6
Past Performance1/6
Financial Health5/6
Dividends2/6

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.

Price History & Performance

Summary of all time highs, changes and price drops for SkyCity Entertainment Group
Historical stock prices
Current Share PriceNZ$2.99
52 Week HighNZ$3.69
52 Week LowNZ$2.82
Beta1.26
1 Month Change-6.27%
3 Month Change-11.28%
1 Year Change-4.78%
3 Year Change-16.94%
5 Year Change-25.06%
Change since IPO97.69%

Recent News & Updates

May 23
Is Now The Time To Look At Buying SkyCity Entertainment Group Limited (NZSE:SKC)?

Is Now The Time To Look At Buying SkyCity Entertainment Group Limited (NZSE:SKC)?

SkyCity Entertainment Group Limited ( NZSE:SKC ), is not the largest company out there, but it received a lot of...

May 08
Calculating The Intrinsic Value Of SkyCity Entertainment Group Limited (NZSE:SKC)

Calculating The Intrinsic Value Of SkyCity Entertainment Group Limited (NZSE:SKC)

Today we'll do a simple run through of a valuation method used to estimate the attractiveness of SkyCity Entertainment...

Mar 31
These Return Metrics Don't Make SkyCity Entertainment Group (NZSE:SKC) Look Too Strong

These Return Metrics Don't Make SkyCity Entertainment Group (NZSE:SKC) Look Too Strong

Ignoring the stock price of a company, what are the underlying trends that tell us a business is past the growth phase...

Shareholder Returns

SKCNZ HospitalityNZ Market
7D-3.5%-0.3%0.4%
1Y-4.8%5.1%-3.2%

Return vs Industry: SKC underperformed the NZ Hospitality industry which returned 5.1% over the past year.

Return vs Market: SKC underperformed the NZ Market which returned -3.2% over the past year.

Price Volatility

Is SKC's price volatile compared to industry and market?
SKC volatility
SKC Average Weekly Movement3.2%
Hospitality Industry Average Movement3.2%
Market Average Movement3.6%
10% most volatile stocks in NZ Market6.7%
10% least volatile stocks in NZ Market2.4%

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

Volatility Over Time: SKC's weekly volatility (3%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
19943,784Michael 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$2.26b
Earnings (TTM)NZ$156.13m
Revenue (TTM)NZ$715.36m

14.5x

P/E Ratio

3.2x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
SKC income statement (TTM)
RevenueNZ$715.36m
Cost of RevenueNZ$314.55m
Gross ProfitNZ$400.81m
ExpensesNZ$244.68m
EarningsNZ$156.13m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)0.21
Gross Margin56.03%
Net Profit Margin21.82%
Debt/Equity Ratio30.1%

How did SKC perform over the long term?

See historical performance and comparison

Dividends

2.3%

Current Dividend Yield

34%

Payout Ratio

Valuation

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

36.4%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: SKC (NZ$2.99) is trading below our estimate of fair value (NZ$4.7)

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


Price To Earnings Ratio

PE vs Industry: SKC is good value based on its PE Ratio (14.5x) compared to the Oceanic Hospitality industry average (24.8x).

PE vs Market: SKC is good value based on its PE Ratio (14.5x) compared to the NZ market (19.9x).


Price to Earnings Growth Ratio

PEG Ratio: SKC is poor value based on its PEG Ratio (1.2x)


Price to Book Ratio

PB vs Industry: SKC is good value based on its PB Ratio (1.4x) compared to the XO Hospitality industry average (3x).


Future Growth

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

11.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SKC's forecast earnings growth (11.6% per year) is above the savings rate (2.1%).

Earnings vs Market: SKC's earnings (11.6% per year) are forecast to grow faster than the NZ market (7.2% per year).

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

Revenue vs Market: SKC's revenue (12.4% per year) is forecast to grow faster than the NZ market (4.9% per year).

High Growth Revenue: SKC's revenue (12.4% 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 (9.9%).


Past Performance

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

9.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SKC has a large one-off gain of NZ$43.7M impacting its June 30 2021 financial results.

Growing Profit Margin: SKC's current net profit margins (21.8%) are lower than last year (36.5%).


Past Earnings Growth Analysis

Earnings Trend: SKC's earnings have grown by 9.2% per year over the past 5 years.

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

Earnings vs Industry: SKC had negative earnings growth (-33.6%) over the past year, making it difficult to compare to the Hospitality industry average (4.2%).


Return on Equity

High ROE: SKC's Return on Equity (9.5%) is considered low.


Financial Health

How is SkyCity Entertainment Group's financial position?


Financial Position Analysis

Short Term Liabilities: SKC's short term assets (NZ$279.6M) exceed its short term liabilities (NZ$269.4M).

Long Term Liabilities: SKC's short term assets (NZ$279.6M) do not cover its long term liabilities (NZ$885.4M).


Debt to Equity History and Analysis

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

Reducing Debt: SKC's debt to equity ratio has reduced from 41.9% to 30.1% over the past 5 years.

Debt Coverage: SKC's debt is well covered by operating cash flow (58%).

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


Balance Sheet


Dividend

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

2.34%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: SKC's dividend (2.34%) isn’t notable compared to the bottom 25% of dividend payers in the NZ market (2.78%).

High Dividend: SKC's dividend (2.34%) is low compared to the top 25% of dividend payers in the NZ market (4.99%).


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (34.1%), SKC's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: SKC's dividends in 3 years are forecast to be covered by earnings (77.3% payout ratio).


Next Steps

Management

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

0.9yrs

Average management tenure


CEO

Michael Ahearne

1.08yrs

Tenure

NZ$2,267,713

Compensation

Mr. Michael Ahearne has been Chief Executive Officer since November 16, 2020 and served as Group Chief Operating Officer of SKYCITY Entertainment Group Ltd since January 01, 2018 until November 2020 where...


CEO Compensation Analysis

Compensation vs Market: Michael's total compensation ($USD1.53M) is about average for companies of similar size in the NZ market ($USD1.51M).

Compensation vs Earnings: Michael's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Leadership Team

Experienced Management: SKC's management team is not considered experienced ( 0.9 years average tenure), which suggests a new team.


Board Members

Experienced Board: SKC's board of directors are not considered experienced ( 2.2 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: SKC insiders have sold more shares than they have bought 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

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
  • Market Cap: NZ$2.263b
  • Shares outstanding: 756.81m
  • Website: https://skycityentertainmentgroup.com

Number of Employees


Location

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

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/12/04 06:02
End of Day Share Price2021/12/03 00:00
Earnings2021/06/30
Annual Earnings2021/06/30


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.