Donaco International Ltd. (DNA) AI Stock Analysis

• Market Cap: AU$46.90M
• Dividend Yield: N/A
• Average Volume (3M): 1.24M
• Price to Earnings (P/E): 1.3
• Beta (1Y): 1.16
• Revenue Growth: 23.66%
• EPS Growth: 589.13%
• Country: AU
• Employees: 850
• Sector: Consumer Cyclical
• Sector Strength: 70
• Industry: Gambling, Resorts & Casinos
• EPS (TTM): <0.01
• Shares Outstanding: 1,235,389,400
• 10 Day Avg. Volume: 934,710
• 30 Day Avg. Volume: 1,240,293
• PEG Ratio: -0.29
• Price to Book (P/B): 0.29
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 3.08
• 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: 79 Outperform
• Price Target: ―

Donaco International Ltd. scores well overall with strong financial performance, driven by impressive profitability and growth, supported by a robust balance sheet and healthy cash flow generation. The stock's valuation is attractive, with a low P/E ratio suggesting potential undervaluation. Technical analysis shows positive price trends, further enhancing the stock's appeal. The absence of earnings call data and corporate events does not detract from the strong fundamentals and market performance.

Donaco International Ltd. Business Overview & Revenue Model

Company Description

Donaco International Limited engages in the leisure and entertainment business in the Asia Pacific region. It operates Star Vegas Resort & Club, a casino and hotel complex that comprises approximately 100 gaming tables, 800 slot machines, and 385 hotel rooms in Poipet, Cambodia; and Aristo International Hotel, a boutique casino, which includes 400 hotel rooms in northern Vietnam located in Yunnan, China. The company was incorporated in 1990 and is based in Sydney, Australia.

How the Company Makes Money

Donaco International Ltd. generates revenue primarily through its casino operations, which include gaming activities such as table games and electronic gaming machines. The company also earns income from its hospitality services, including hotel room bookings, food and beverage sales, and other related leisure activities provided at its resorts. These revenue streams are supported by Donaco's strategic location of its properties in popular tourist destinations and its focus on offering high-quality entertainment and leisure experiences. Additionally, partnerships with local and international travel agencies help drive customer traffic to their facilities.

Donaco International Ltd. Financial Statement Overview

Summary

Donaco International Ltd. demonstrates strong financial performance, with impressive profitability and growth in its income statement. The balance sheet is robust with low leverage, and cash flow generation is healthy, supporting operational and financial strategies. Despite past volatility, the company shows resilience and potential for future growth.

Income Statement

Donaco International Ltd. has shown significant improvement in its income statement metrics over the past periods. The TTM (Trailing-Twelve-Months) gross profit margin is strong at 65.8%, and the net profit margin is impressive at 93.3%, indicating robust profitability. The revenue growth rate from the previous annual period is 71.6%, demonstrating substantial growth. Despite past volatility, the company has achieved positive EBIT and EBITDA margins, reflecting operational efficiency.

Balance Sheet

The balance sheet shows a healthy equity ratio of 79.2%, suggesting a strong equity base. The debt-to-equity ratio is low at 0.11, indicating low leverage and financial stability. The return on equity (ROE) is high at 22.1%, showcasing effective use of equity to generate profits. Overall, the balance sheet indicates strong financial health, with ample liquidity and low financial risk.

Cash Flow

The cash flow statement reveals a positive trend with a free cash flow growth rate of 51.5% in the latest TTM period. The operating cash flow to net income ratio is 0.46, and the free cash flow to net income ratio is 0.43, indicating efficient cash generation relative to net income. This performance highlights the company's ability to generate cash flow and invest in its operations.

Breakdown
TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement		Total Revenue
41.91M	39.53M	24.33M	2.44M	10.30M	53.42M
	Gross Profit
27.58M	26.07M	23.38M	2.18M	9.92M	49.98M
	EBIT
24.18M	15.53M	2.28M	-13.55M	-9.63M	-2.07M
	EBITDA
22.10M	45.55M	-26.39M	-6.58M	41.82M	-42.17M
	Net Income Common Stockholders
39.13M	37.06M	-36.75M	-16.49M	25.18M	-58.95M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
36.26M	29.69M	16.72M	6.09M	6.32M	12.63M
	Total Assets
223.96M	200.85M	181.76M	199.23M	199.12M	211.40M
	Total Debt
18.92M	23.21M	27.46M	25.51M	18.79M	28.23M
	Net Debt
-17.34M	-6.08M	10.74M	19.42M	12.47M	15.60M
	Total Liabilities
45.17M	47.65M	61.09M	45.34M	36.38M	73.46M
	Stockholders Equity
177.43M	152.02M	120.70M	152.27M	160.93M	135.90M
Cash Flow		Free Cash Flow
16.83M	14.70M	11.12M	-5.71M	-4.73M	-4.29M
	Operating Cash Flow
17.83M	15.03M	11.25M	-5.71M	-4.54M	-3.21M
	Investing Cash Flow
-1.01M	-331.51K	-108.44K	-1.89K	-187.82K	-1.03M
	Financing Cash Flow
-8.04M	-2.46M	721.63K	4.63M	-1.55M	-9.70M

Donaco International Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.04
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:DNA, the sentiment is Positive. The current price of 0.04 is below the 20-day moving average (MA) of 0.04, below the 50-day MA of 0.04, and above the 200-day MA of 0.03, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 94.26 is Negative, neither overbought nor oversold. The STOCH value of 81.02 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AU:DNA.

Donaco International Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DNA	79 Outperform	AU$46.90M	1.29	26.04%	―	23.66%	589.13%
Sector *	62 Neutral	$6.94B	11.29	2.95%	3.87%	2.70%	-24.49%
ARLUF		$24.92B	29.71	16.48%	1.35%	―	―
RCTUF		$99.35M	14.11	45.08%	4.77%	―	―
SKYZF		$422.36M	―	-11.54%	5.24%	―	―
TABCF		$1.08B	―	-42.74%	1.82%	―	―
JUB		€335.87M	12.94	37.11%	5.98%	―	―

Donaco International Ltd. Corporate Events

Donaco International Faces Acquisition Delay and New Tax Liabilities

Donaco International Limited has announced a delay in the timeline for its acquisition by On Nut Road Limited due to extended valuation processes and legal analyses. Additionally, Donaco faces potential tax liabilities in Cambodia, as the government has clarified that a 10% VAT on gross gaming revenue, effective from January 2025, is applicable, despite previous deferments. This development could significantly impact Donaco’s financial obligations and operational costs.

Donaco International Reports Q3 Results and Announces Acquisition Scheme

Donaco International Limited reported a decrease in revenue and EBITDA for Q3 FY2025, with net revenue at A$10.03 million and EBITDA at A$4.10 million. Despite stable visitation numbers, the company faced challenges in its operating environment. Donaco’s cash position improved to A$39.98 million. The company entered a Scheme Implementation Deed with On Nut Road Limited for a proposed acquisition of shares, offering a significant premium to shareholders. The board recommends shareholders vote in favor of the scheme, which promises a certain cash price and mitigates risks associated with the cyclical industry.

Donaco Agrees to Acquisition by On Nut Road Limited at Premium Price

Donaco International Limited has entered into a Scheme Implementation Deed with On Nut Road Limited for the acquisition of all shares not already owned by ONR at A$0.045 per share. This offer represents a significant premium over recent trading prices and is recommended by Donaco’s board as it provides shareholders with a cash payment and mitigates risks associated with the company’s cyclical business and external challenges. The acquisition is seen as an opportunity for shareholders to de-risk their investment amidst the company’s financial headwinds and operational uncertainties.