Tabcorp Holdings Limited (TAH) AI Stock Analysis

• Market Cap: AU$1.83B
• Dividend Yield: 2.5%
• Average Volume (3M): 5.38M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.52
• Revenue Growth: 0.73%
• EPS Growth: -11.04%
• Country: AU
• Employees: 5,000
• Sector: Consumer Cyclical
• Sector Strength: 65
• Industry: Gambling, Resorts & Casinos
• EPS (TTM): 0.02
• Shares Outstanding: 2,286,248,300
• 10 Day Avg. Volume: 5,062,720
• 30 Day Avg. Volume: 5,377,863
• PEG Ratio: -0.05
• Price to Book (P/B): 1.40
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 12.38
• 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: AU$0.76
• Price Target Upside: -4.45% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 56 Neutral
• Price Target: AU$1.00 ▲(25.00%Upside)

The overall stock score of 56 reflects significant financial challenges and valuation concerns. While the stock shows positive technical momentum, overvaluation risks and financial instability weigh heavily on its attractiveness.

Tabcorp Holdings Limited Business Overview & Revenue Model

Company Description

Tabcorp Holdings Limited (TAH) is a leading Australian gambling and entertainment company. It operates within various sectors, including wagering, media, and gaming services. The company's core products and services encompass sports and racing betting, lotteries, and Keno, delivered through multiple platforms including retail, online, and mobile applications. Tabcorp's media division also provides broadcasting and digital services related to racing and sports content.

How the Company Makes Money

Tabcorp Holdings Limited generates revenue primarily through its wagering and media operations. The wagering division accounts for a significant portion of its income, derived from betting on horse racing, sports, and other events via physical retail outlets, online platforms, and mobile applications. The company's media segment contributes to earnings by offering broadcasting services, licensing content, and selling advertising. The gaming services segment provides additional revenue through the supply of electronic gaming machines and related services to licensed venues. Strategic partnerships with racing bodies, sports organizations, and media entities enhance its service offerings and market reach, further driving revenue growth.

Tabcorp Holdings Limited Financial Statement Overview

Summary

Tabcorp Holdings Limited faces significant financial challenges, including declining revenues and negative profitability margins. Debt reduction and improved free cash flow are positive signs, but high leverage and operational inefficiencies remain concerns.

Income Statement

The income statement highlights significant challenges for Tabcorp Holdings Limited. The company has experienced a notable decline in revenue over recent years, with a negative revenue growth rate from 2020 to 2024. Additionally, net profit margins have turned negative in recent years, driven by substantial net income losses. The negative EBIT and EBITDA margins indicate operational inefficiency and financial distress. Despite these challenges, revenue improved slightly in 2024 compared to 2023, suggesting a potential turnaround.

Balance Sheet

The balance sheet reflects a mixed picture. The company has managed to reduce total debt from 2020 to 2024, which is a positive indicator. However, the debt-to-equity ratio remains high, indicating potential leverage risks. Stockholders' equity has declined significantly, impacting the equity ratio negatively. The return on equity has been erratic, with significant negative figures in recent years, highlighting profitability challenges.

Cash Flow

Cash flow analysis shows some resilience. Free cash flow turned positive in 2024 after being negative in 2023, which is a positive sign. Operating cash flow remains stable but is lower compared to earlier years, suggesting operational challenges. The free cash flow to net income ratio is favorable due to negative net income, but this is not sustainable long-term. The company needs to focus on improving cash generation efficiency.

Breakdown	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement
Total Revenue	2.34B	2.10B	2.01B	2.15B	3.22B
Gross Profit	2.34B	342.60M	236.50M	297.80M	910.00M
EBITDA	-1.34B	362.80M	276.00M	344.10M	-194.00M
Net Income	-1.36B	66.50M	6.78B	269.00M	-870.00M
Balance Sheet
Total Assets	3.39B	4.05B	4.05B	11.87B	12.42B
Cash, Cash Equivalents and Short-Term Investments	313.70M	290.70M	199.40M	553.30M	375.00M
Total Debt	1.14B	572.40M	317.00M	2.78B	4.07B
Total Liabilities	2.14B	1.39B	1.34B	5.17B	6.39B
Stockholders Equity	1.25B	2.66B	2.71B	6.70B	6.03B
Cash Flow
Free Cash Flow	84.80M	-77.60M	534.50M	537.70M	381.00M
Operating Cash Flow	245.20M	119.30M	737.00M	719.50M	671.00M
Investing Cash Flow	-739.70M	-130.00M	-455.70M	-37.60M	-292.00M
Financing Cash Flow	517.50M	102.00M	-506.30M	-607.20M	-493.00M

Tabcorp Holdings Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.80
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:TAH, the sentiment is Positive. The current price of 0.8 is above the 20-day moving average (MA) of 0.75, above the 50-day MA of 0.73, and above the 200-day MA of 0.61, indicating a bullish trend. The MACD of 0.02 indicates Negative momentum. The RSI at 65.46 is Neutral, neither overbought nor oversold. The STOCH value of 72.31 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AU:TAH.

Tabcorp Holdings Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JIN	73 Outperform	€634.74M	15.59	37.11%	4.79%	16.41%	18.97%
TLC	68 Neutral	AU$12.02B	32.28	115.26%	2.95%	12.08%	20.36%
Sector *	62 Neutral	AU$2.91B	27.66	4.79%	5.13%	2.38%	-31.70%
TAH	56 Neutral	AU$1.83B	―	-42.74%	2.50%	0.73%	-11.04%
PBH	53 Neutral	$402.52M	―	-30.20%	32.64%	―	―
SGR	45 Neutral	$343.94M	―	-127.99%	―	-16.00%	3.57%
BBT	40 Underperform	AU$317.91M	―	-99.47%	―	76.49%	-75.29%

Tabcorp Holdings Limited Corporate Events

Tabcorp Announces Cessation of Securities

Tabcorp Holdings Limited announced the cessation of 416,228 securities, specifically options expiring on August 31, 2027, with an exercise price of $0.8923. This move is part of the company’s capital management strategy, potentially impacting its financial structure and signaling a shift in its securities management approach.

The most recent analyst rating on (AU:TAH) stock is a Buy with a A$0.58 price target. To see the full list of analyst forecasts on Tabcorp Holdings Limited stock, see the AU:TAH Stock Forecast page.

Tabcorp CEO to Present at Macquarie Australia Conference

Tabcorp Holdings Limited announced that its Managing Director and CEO, Gillon McLachlan, will deliver a presentation at the Macquarie Australia Conference. This event is significant for Tabcorp as it provides an opportunity to showcase its strategic direction and operational updates to investors and stakeholders, potentially influencing the company’s market perception and future engagements.