Reef Casino (RCT) AI Stock Analysis

• Market Cap: $158.87M
• Dividend Yield: 4.77%
• Average Volume (3M): 3.12K
• Price to Earnings (P/E): 15.6
• Beta (1Y): 0.07
• Revenue Growth: -2.89%
• EPS Growth: -5.33%
• Country: AU
• Employees: 1
• Sector: Consumer Cyclical
• Sector Strength: 73
• Industry: Gambling, Resorts & Casinos
• EPS (TTM): 0.12
• Shares Outstanding: 49,801,037
• 10 Day Avg. Volume: 2,240
• 30 Day Avg. Volume: 3,123
• PEG Ratio: N/A
• Price to Book (P/B): 7.13
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 25.36
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 69 Neutral
• Price Target: AU$3.50 ▲(10.06%Upside)

Reef Casino's overall stock score reflects its strong financial management and robust cash flow, which provide a stable foundation amidst revenue challenges. The valuation is attractive, supported by a reasonable P/E ratio and strong dividend yield. Technical indicators suggest some caution in the short term, but the stock is not overbought.

Reef Casino Business Overview & Revenue Model

Company Description

Reef Casino Trust (RCT) is a publicly listed entity that operates a premier entertainment complex in Cairns, Queensland, Australia. The complex includes the Reef Hotel Casino, a leading leisure and entertainment destination offering gaming, dining, and accommodation services. The casino features a wide range of gaming options, including table games, electronic gaming machines, and premium gaming experiences. Additionally, the complex includes a hotel with luxury accommodation, multiple dining venues, and event spaces, catering to both local visitors and international tourists.

How the Company Makes Money

Reef Casino Trust generates revenue primarily through its gaming operations, which include table games and electronic gaming machines. These gaming activities attract both local and tourist patrons, contributing significantly to the company's earnings. The company also derives income from its hotel operations, which provide luxury accommodation and amenities to guests. Dining and event services within the complex further supplement the company's revenue streams. Key partnerships with tourism operators and marketing collaborations enhance the casino's visibility, attracting a diverse clientele and boosting overall revenue. The combination of gaming, hospitality, and dining services forms the core of RCT's revenue model.

Reef Casino Financial Statement Overview

Summary

Reef Casino demonstrates solid financial management with a strong cash flow position and improved leverage. While profitability margins are under pressure, the company's balance sheet resilience and cash flow generation provide stability amidst revenue challenges.

Income Statement

Revenue has shown volatility over the years, with a decline in the latest year. Gross profit margins remain robust at 100% due to the company's revenue structure. Net profit and EBIT margins have decreased slightly, indicating pressure on profitability. The revenue growth rate is negative, reflecting a challenging market environment.

Balance Sheet

The balance sheet shows a strong equity position with an improving Debt-to-Equity ratio due to significant debt reduction. ROE is moderate, demonstrating reasonable efficiency in generating profits from equity. The equity ratio is stable, indicating a balanced capital structure.

Cash Flow

Cash flow performance is strong, with positive operating cash flow and a healthy free cash flow despite lower capital expenditures. The Free Cash Flow to Net Income ratio remains high, showing efficient cash conversion from net income.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
25.24M	26.28M	30.51M	26.86M	15.66M
	Gross Profit
21.27M	17.33M	22.92M	19.16M	8.43M
	EBIT
10.27M	11.34M	18.07M	14.81M	5.05M
	EBITDA
15.34M	15.71M	22.64M	19.61M	9.47M
	Net Income Common Stockholders
5.08M	5.37M	8.99M	7.36M	-209.00K
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
3.19M	7.34M	13.74M	9.62M	4.08M
	Total Assets
101.13M	102.55M	107.36M	104.44M	100.29M
	Total Debt
1.00K	85.16M	85.45M	85.55M	85.25M
	Net Debt
-3.19M	77.81M	71.71M	75.94M	81.17M
	Total Liabilities
89.78M	91.04M	93.12M	91.61M	91.48M
	Stockholders Equity
11.35M	11.51M	14.23M	12.83M	8.80M
Cash Flow		Free Cash Flow
6.38M	10.04M	19.40M	16.61M	6.77M
	Operating Cash Flow
14.57M	16.75M	22.37M	19.78M	8.40M
	Investing Cash Flow
-8.18M	-6.71M	-2.97M	-3.17M	-1.63M
	Financing Cash Flow
-10.54M	-16.45M	-15.27M	-11.07M	-5.65M

Reef Casino Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 3.18
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:RCT, the sentiment is Neutral. The current price of 3.18 is below the 20-day moving average (MA) of 3.29, below the 50-day MA of 3.33, and above the 200-day MA of 2.87, indicating a neutral trend. The MACD of 0.01 indicates Positive momentum. The RSI at 41.98 is Neutral, neither overbought nor oversold. The STOCH value of 1.01 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for AU:RCT.

Reef Casino Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RCT	69 Neutral	$158.87M	15.62	45.08%	4.77%	-2.89%	-5.33%
ALL	66 Neutral	$37.88B	28.16	16.48%	1.30%	-1.79%	-7.81%
FLT	65 Neutral	AU$2.93B	25.50	9.61%	3.19%	7.22%	-28.93%
EVT	63 Neutral	AU$2.46B	278.97	0.90%	2.33%	-1.82%	-76.20%
Sector *	62 Neutral	$6.84B	11.23	3.09%	3.95%	2.66%	-25.23%
TAH	50 Neutral	$1.57B	―	-42.74%	1.92%	0.73%	-11.04%

Reef Casino Corporate Events

Reef Casino Trust Reports Stable 2024 Performance Amid Board Changes

During the 2025 Annual General Meeting, Reef Casino Trust announced several board changes, including the appointment of a new Chair and other key positions. The Trust reported a stable financial performance for 2024, with total revenue of $25.5 million, primarily from rental income, despite higher operational costs. The Trust declared a total distribution of 20.42 cents per unit for 2024, reflecting its strong financial health and commitment to returning profits to unitholders. Additionally, the Trust renegotiated its loan facility, maintained a healthy balance sheet, and invested in capital expenditures to enhance its offerings and ensure sustainable operations.

Reef Casino Trust Reports Lower Profit Amid Rising Costs

Reef Casino Trust has announced an estimated distributable profit for the first half of 2025 ranging between $3.2 million and $3.8 million, a decrease from the $4.336 million reported in the same period of 2024. This decline is attributed to increased regulatory and compliance costs, as well as expenses related to a potential control transaction. Despite these challenges, the Trust has maintained comparable revenues to the previous year and anticipates continued profitability through May. A further announcement regarding unit distribution is expected in June.

Reef Casino Trust in Acquisition Talks with Iris and Morris Groups

Reef Corporate Services Limited, as the responsible entity of Reef Casino Trust, is engaged in ongoing negotiations with Iris Hotel Group and Morris Group regarding potential acquisitions of the Reef Hotel Casino. These discussions involve non-binding proposals exceeding A$200 million, although the allocation to the units in Reef Casino Trust is less than A$200 million. The negotiations are confidential and incomplete, with no certainty of a transaction being finalized, and any potential deal would require regulatory approvals.

Reef Casino Trust Announces 2025 Annual General Meeting with Special Offers

Reef Casino Trust has announced its 2025 Annual General Meeting, scheduled for May 23, 2025, at the Reef Hotel Casino in Cairns. Unitholders are invited to attend in person, with special offers available for dining and accommodation. No resolutions requiring a vote will be presented, and alternative arrangements will be communicated if necessary.

Reef Casino Trust Announces Distribution for Second Half of 2024

Reef Casino Trust announced a distribution rate of 11.71 cents per unit for the six months ended 31 December 2024, to be paid to unitholders on 12 March 2025. The distribution includes interest income, other income, and tax-deferred amounts, with specific components subject to non-resident withholding tax. This announcement provides financial details relevant to unitholders but does not qualify as a ‘Fund Payment’ under the Taxation Administration Act 1953.