Reef Casino Trust (AU:RCT)
ASX:RCT
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Reef Casino
(Sydney:RCT)
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Rating:56Neutral
Price Target:
AU$3.50
▼(-0.28% Downside)
Action:ReiteratedDate:03/03/26
The score is primarily held back by high balance-sheet leverage despite solid profitability and generally positive free cash flow. Technicals are mixed with weaker near-term trend and subdued momentum, and valuation is also mixed—high dividend yield but a relatively high P/E.
Positive Factors
Strong profitability and margins
Reef Casino has returned to consistent profitability with solid margins, which underpins durable earnings power. Strong margins improve internal cash generation and the ability to fund operations, maintenance and distributions, supporting resilience across the next 2–6 months.
Negative Factors
Very high balance-sheet leverage
Leverage at many multiples of equity markedly increases financial risk and reduces operational flexibility. High debt amplifies downturn losses, raises refinancing and covenant risk, and constrains capital allocation decisions, materially limiting the company's downside protection over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong profitability and margins
Reef Casino has returned to consistent profitability with solid margins, which underpins durable earnings power. Strong margins improve internal cash generation and the ability to fund operations, maintenance and distributions, supporting resilience across the next 2–6 months.
Read all positive factors
Reef Casino (RCT) vs. iShares MSCI Australia ETF (EWA)
Market Cap
AU$169.82M
Dividend Yield5%
Average Volume (3M)5.05K
Price to Earnings (P/E)16.2
Beta (1Y)0.06
Revenue Growth-4.01%
EPS Growth-12.08%
CountryAU
Employees1
SectorConsumer Cyclical
Sector Strength84
IndustryGambling, Resorts & Casinos
Share Statistics
EPS (TTM)0.08
Shares Outstanding49,801,037
10 Day Avg. Volume4,007
30 Day Avg. Volume5,053
Financial Highlights & Ratios
PEG Ratio1.62
Price to Book (P/B)7.19
Price to Sales (P/S)3.28
P/FCF Ratio10.05
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Reef Casino Business Overview & Revenue Model
Company Description
Reef Casino Trust owns and leases the Reef Hotel Casino complex located in Cairns, North Queensland, Australia. The company was founded in 1993 and is based in Brisbane, Australia. Reef Casino Trust is a subsidiary of Reef Casino Investments Pty Ltd....
How the Company Makes Money
Reef Casino generates revenue primarily through its gaming operations, which include table games, electronic gaming machines, and sports betting. The casino attracts patrons by offering a variety of gaming experiences, contributing significantly t...
Reef Casino Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
38
Negative
Cash Flow
72
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 26.75M | 25.52M | 26.29M | 30.51M | 26.86M |
| Gross Profit | 12.31M | 21.27M | 21.68M | 22.92M | 19.16M |
| EBITDA | 16.44M | 15.34M | 15.71M | 22.64M | 19.61M |
| Net Income | 5.41M | 5.08M | 5.37M | 8.99M | 7.36M |
Balance Sheet | |||||
| Total Assets | 103.62M | 101.13M | 102.55M | 107.36M | 104.44M |
| Cash, Cash Equivalents and Short-Term Investments | 3.81M | 3.19M | 7.34M | 13.74M | 9.62M |
| Total Debt | 86.05M | 1.00K | 85.16M | 85.45M | 85.55M |
| Total Liabilities | 91.42M | 89.78M | 91.04M | 93.12M | 91.61M |
| Stockholders Equity | 12.19M | 11.35M | 11.51M | 14.23M | 12.83M |
Cash Flow | |||||
| Free Cash Flow | 8.72M | 6.38M | 10.04M | 19.40M | 16.61M |
| Operating Cash Flow | 15.96M | 14.57M | 16.75M | 22.37M | 19.78M |
| Investing Cash Flow | -7.20M | -8.18M | -6.71M | -2.97M | -3.17M |
| Financing Cash Flow | -8.13M | -10.54M | -16.45M | -15.27M | -11.07M |
Reef Casino Technical Analysis
Negative
3.51
Price Trends
3.51
Negative
3.48
Negative
3.42
Negative
Market Momentum
-0.03
Positive
37.91
Neutral
9.68
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:RCT, the sentiment is Negative. The current price of 3.51 is above the 20-day moving average (MA) of 3.50, below the 50-day MA of 3.51, and above the 200-day MA of 3.42, indicating a bearish trend. The MACD of -0.03 indicates Positive momentum. The RSI at 37.91 is Neutral, neither overbought nor oversold. The STOCH value of 9.68 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AU:RCT.
Reef Casino Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
64 Neutral | AU$2.28B | 26.11 | 2.62% | 2.01% | 8.62% | ― | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
56 Neutral | AU$169.82M | 16.20 | 48.57% | 5.00% | -4.01% | -12.08% | |
49 Neutral | AU$218.84M | -1.63 | -22.97% | ― | 126.29% | 95.17% | |
45 Neutral | AU$190.45M | -14.86 | -13.44% | ― | -10.59% | 32.75% | |
43 Neutral | AU$829.41M | -1.45 | -57.00% | ― | -31.07% | 74.57% |
* Consumer Cyclical Sector Average
AU:RCT
Reef Casino
3.41
0.03
0.77%
AU:SGR
Star Entertainment Group Limited
0.13
0.02
13.64%
AU:TAH
Tabcorp Holdings Limited
1.00
0.38
62.05%
AU:BET
Betmakers Technology Group
0.17
0.07
70.00%
AU:BBT
BlueBet Holdings Ltd.
0.21
-0.14
-40.00%
Reef Casino Corporate Events
Reef Casino Trust Issues Second Supplementary Target’s Statement on Iris Takeover Bid
Mar 2, 2026
Reef Casino Trust has lodged its Second Supplementary Target’s Statement with the Australian Securities Investments Commission in relation to the off-market takeover bid for all its issued units by Iris Cairns Property Pty Ltd, as trustee f...
Iris Extends Reef Casino Trust Takeover Offer Amid Regulatory Delays
Mar 2, 2026
Iris Cairns Property Pty Ltd, as trustee for the Iris Cairns Property Trust, has issued a third supplementary bidder’s statement for its off-market takeover offer for all units in Reef Casino Trust. The move follows ongoing regulatory suitab...
Reef Casino Trust Sets 15.1 Cent Distribution for Half-Year to December 2025
Feb 20, 2026
Reef Casino Trust, an Australian listed trust that owns and operates the Reef Hotel Casino complex in Cairns, Queensland, derives its income from casino and hospitality operations and distributes these earnings to investors as periodic trust distr...
Reef Casino Trust Confirms Half-Year Distribution for December 2025 Period
Feb 19, 2026
Reef Casino Trust has updated its previous guidance to confirm the actual distribution amount for the six months ended 31 December 2025 on its ordinary fully paid units. The update formalizes the half-year distribution details tied to the December...
Reef Casino Trust Lifts Profit, NTA and Payouts in 2025
Feb 19, 2026
Reef Casino Trust reported a 4.8% increase in revenue to $26.75 million for the year ended 31 December 2025, reflecting steady growth in its Cairns-based casino and hotel operations. Net tangible asset backing per unit rose to $1.42 from $1.37, un...
Iris Cairns Updates Funding for $3.87-a-Unit Reef Casino Trust Bid
Feb 6, 2026
Iris Cairns Property Pty Ltd, as trustee for the Iris Cairns Property Trust, has issued a second supplementary bidder’s statement for its ongoing off‑market takeover bid for all units in Reef Casino Trust at $3.87 per unit, updating in...
Reef Casino Trust Reports Strong Second Half Performance with Increased Distributions
Dec 4, 2025
Reef Casino Trust has announced an estimated distribution of 14.26 cents per unit for the second half of 2025, totaling approximately $7.1 million, reflecting a strong performance compared to the previous year. The Trust’s robust second half...
Reef Casino Trust Announces New Distribution for Stakeholders
Dec 4, 2025
Reef Casino Trust has announced a new distribution of AUD 0.1426 per ordinary unit, covering a six-month period ending on December 31, 2025. The ex-date for this distribution is set for December 30, 2025, with a record date of December 31, 2025, a...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.