Tabcorp Holdings Limited
Tabcorp Holdings Limited Fundamental Analysis
Tabcorp Holdings Limited (TABCF) shows weak financial fundamentals with a PE ratio of 65.45, profit margin of 1.53%, and ROE of 2.62%. The company generates $2.2B in annual revenue with strong year-over-year growth of 11.79%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 31.0/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze TABCF's fundamental strength across five key dimensions:
Efficiency Score
WeakTABCF struggles to generate sufficient returns from assets.
Valuation Score
ModerateTABCF shows balanced valuation metrics.
Growth Score
ModerateTABCF shows steady but slowing expansion.
Financial Health Score
ModerateTABCF shows balanced financial health with some risks.
Profitability Score
ModerateTABCF maintains healthy but balanced margins.
Key Financial Metrics
Is TABCF Expensive or Cheap?
P/E Ratio
TABCF trades at 65.45 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, TABCF's PEG of -4.48 indicates potential undervaluation.
Price to Book
The market values Tabcorp Holdings Limited at 1.70 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 3.78 times EBITDA. This is generally considered low.
How Well Does TABCF Make Money?
Net Profit Margin
For every $100 in sales, Tabcorp Holdings Limited keeps $1.53 as profit after all expenses.
Operating Margin
Core operations generate 7.42 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $2.62 in profit for every $100 of shareholder equity.
ROA
Tabcorp Holdings Limited generates $1.05 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Tabcorp Holdings Limited produces operating cash flow of $330.26M, showing steady but balanced cash generation.
Free Cash Flow
Tabcorp Holdings Limited produces free cash flow of $207.60M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $0.09 in free cash annually.
FCF Yield
TABCF converts 9.58% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
65.45
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-4.48
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.70
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.003
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.75
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.55
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.03
vs 25 benchmark
ROA
Return on assets percentage
0.01
vs 25 benchmark
ROCE
Return on capital employed
0.07
vs 25 benchmark
How TABCF Stacks Against Its Sector Peers
| Metric | TABCF Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 65.45 | 23.78 | Worse (Expensive) |
| ROE | 2.62% | 1098.00% | Weak |
| Net Margin | 1.53% | -626.00% (disorted) | Weak |
| Debt/Equity | 0.75 | 0.86 | Neutral |
| Current Ratio | 0.55 | 2.64 | Weak Liquidity |
| ROA | 1.05% | -8081.00% (disorted) | Weak |
TABCF outperforms its industry in 0 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Tabcorp Holdings Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
-27.29%
Industry Style: Cyclical, Growth, Discretionary
DecliningEPS CAGR
103.77%
Industry Style: Cyclical, Growth, Discretionary
High GrowthFCF CAGR
-45.77%
Industry Style: Cyclical, Growth, Discretionary
Declining