Tabcorp Holdings Ltd TAH

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A$0.71 0.00 (0.00%)

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As of Jul 2, 2024 6:10am Delayed Price Closed

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Company Report

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Tabcorp: We Don’t Expect Dramatic Strategy Shift Under New CEO

Angus Hewitt Jun 17, 2024

Gillon McLachlan, former CEO of the Australian Football League, is set to take the reins at Tabcorp from August 2024 following the abrupt departure of Adam Rytenskild in March. Fundamentally, we think this changes little for Tabcorp. Rytenskild’s departure was due to personal behavior, not mismanagement, and we don’t expect a major change in the general strategy. This has been broadly echoed by McLachlan’s remarks, focusing on delivering growth opportunities amid the company’s continued transformation.

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Price vs Fair Value

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TAH is trading at a 191% premium.

Price

A$0.71

Jul 2, 2024

Fair Value

A$4.43

Feb 22, 2024

Uncertainty

Medium

1-Star Price: A$1.75
5-Star Price: A$9.63
Economic Moat: Xhdbp
Capital Allocation: Xtccmjnw

Bulls Say, Bears Say

Bulls

Tabcorp's retail exclusivity and extensive brick-and-mortar distribution presence places the company in a strong position to migrate its large wagering customer base to a omnichannel environment.

Bears

A protracted impact from the covid-19 pandemic would weigh significantly on Tabcorp's retail wagering venues and gaming services customers.

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Trading Information

Previous Close Price: A$0.71
Day Range: A$0.69–0.71
52-Week Range: A$0.59–1.15
Bid/Ask: A$0.70 / A$0.71
Market Cap: A$1.61 Bil
Volume/Avg: 5.1 Mil / 7.9 Mil

Key Statistics

Price/Earnings (Normalized): 0.24
Price/Sales: 0.67
Dividend Yield (Trailing): 2.84%
Dividend Yield (Forward): 2.84%
Total Yield: 2.97%

Company Profile

Tabcorp now operates through principally two segments: wagering and media and gaming services, with the lottery and keno businesses demerged in May 2022. The firm conducts wagering activities under the TAB brand both online and physically in every Australian state and territory other than Western Australia, reaching 90% of the population through a network of retail venues. In addition, Tabcorp Gaming Services provides services to electronic gaming machine venues.

Sector: Consumer Cyclical
Industry: Gambling
Stock Style Box: Small Value
Total Number of Employees: 8,464
Website: https://www.tabcorp.com.au

Competitors

Valuation

Metric	TAH	SGR	SKC
Price/Earnings (Normalized)	0.24	3.51	12.86
Price/Book Value	0.81	0.54	0.74
Price/Sales	0.67	0.51	1.30
Price/Cash Flow	4.35	—	6.14

Price/Earnings

TAH

SGR

SKC

Financial Strength

Metric	TAH	SGR	SKC
Quick Ratio	0.73	0.66	0.64
Current Ratio	0.94	0.85	0.73
Interest Coverage	−16.87	−11.36	2.10

Quick Ratio

TAH

SGR

SKC

Profitability

Metric	TAH	SGR	SKC
Return on Assets (Normalized)	2.34%	−5.90%	1.58%
Return on Equity (Normalized)	3.67%	−10.16%	2.88%
Return on Invested Capital (Normalized)	3.69%	−4.53%	1.80%

Return on Assets

TAH

SGR

SKC

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