Reef Casino (RCT) AI Stock Analysis

• Market Cap: AU$178.79M
• Dividend Yield: 5%
• Average Volume (3M): 5.05K
• Price to Earnings (P/E): 19.6
• Beta (1Y): 0.06
• Revenue Growth: -4.01%
• EPS Growth: -12.08%
• Country: AU
• Employees: 1
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Gambling, Resorts & Casinos
• EPS (TTM): 0.07
• Shares Outstanding: 49,801,037
• 10 Day Avg. Volume: 4,007
• 30 Day Avg. Volume: 5,053
• PEG Ratio: -1.56
• Price to Book (P/B): 6.36
• Price to Sales (P/S): 2.83
• P/FCF Ratio: 11.31
• 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
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 63 Neutral
• Price Target: AU$4.00 ▲(13.96% Upside)

Reef Casino's overall score is driven by its solid financial performance, particularly its strong cash flow and balance sheet resilience. Technical analysis presents a mixed picture with no clear momentum, and valuation metrics are reasonable but not compelling. The absence of earnings call data and notable corporate events limits additional insights.

Positive Factors

Cash Flow Strength

Strong cash flow indicates efficient operations and financial health, providing flexibility for investments and debt management.

Balance Sheet Resilience

A resilient balance sheet with reduced debt enhances financial stability and lowers risk, supporting long-term growth.

Gross Profit Margins

High gross profit margins suggest strong pricing power and cost management, contributing to sustained profitability.

Negative Factors

Revenue Decline

Declining revenue indicates potential market challenges or competitive pressures, which could impact long-term growth prospects.

Profitability Pressure

Decreasing margins suggest rising costs or pricing challenges, which could erode profitability if not addressed.

EPS Growth Decline

Negative EPS growth reflects reduced earnings, potentially impacting investor confidence and future investment capacity.

Reef Casino Business Overview & Revenue Model

Company Description

Reef Casino (RCT) is a premier entertainment and gaming destination located in Cairns, Australia. The company operates a casino along with various hospitality services, including restaurants, bars, and event spaces. As a key player in the tourism sector, RCT caters to both local and international visitors, offering a diverse range of gaming options, live entertainment, and dining experiences, all set against the backdrop of the stunning Great Barrier Reef.

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 to its overall income. Additionally, RCT earns money through its hospitality services, which encompass several restaurants, bars, and event facilities that cater to both casino guests and the general public. The company also benefits from partnerships with travel agencies and tour operators that promote the casino as part of travel packages to the region. Seasonal events and promotions further enhance foot traffic and customer engagement, leading to increased revenue generation across its services.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	25.13M	25.52M	26.29M	30.51M	26.86M	15.66M
Gross Profit	21.12M	21.27M	21.68M	22.92M	19.16M	8.43M
EBITDA	13.73M	15.34M	15.71M	22.64M	19.61M	9.47M
Net Income	4.57M	5.08M	5.37M	8.99M	7.36M	-209.00K
Balance Sheet
Total Assets	100.96M	101.13M	102.55M	107.36M	104.44M	100.29M
Cash, Cash Equivalents and Short-Term Investments	1.78M	3.19M	7.34M	13.74M	9.62M	4.08M
Total Debt	2.00M	1.00K	85.16M	85.45M	85.55M	85.25M
Total Liabilities	90.87M	89.78M	91.04M	93.12M	91.61M	91.48M
Stockholders Equity	10.08M	11.35M	11.51M	14.23M	12.83M	8.80M
Cash Flow
Free Cash Flow	7.15M	6.38M	10.04M	19.40M	16.61M	6.77M
Operating Cash Flow	14.17M	14.57M	16.75M	22.37M	19.78M	8.40M
Investing Cash Flow	-6.98M	-8.18M	-6.71M	-2.97M	-3.17M	-1.63M
Financing Cash Flow	-8.22M	-10.54M	-16.45M	-15.27M	-11.07M	-5.65M

Reef Casino Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3.51
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:RCT, the sentiment is Positive. The current price of 3.51 is above the 20-day moving average (MA) of 3.48, above the 50-day MA of 3.46, and above the 200-day MA of 3.31, indicating a bullish trend. The MACD of 0.03 indicates Negative momentum. The RSI at 63.57 is Neutral, neither overbought nor oversold. The STOCH value of 94.35 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AU:RCT.

Reef Casino Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RCT	63 Neutral	AU$178.79M	19.57	43.45%	5.00%	-4.01%	-12.08%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
TAH	55 Neutral	$2.28B	62.19	2.89%	2.01%	8.62%	―
BET	54 Neutral	AU$224.06M	-7.38	-25.15%	―	-10.59%	32.75%
SGR	45 Neutral	AU$1.13B	-1.17	-65.81%	―	-31.07%	74.57%
BBT	43 Neutral	AU$234.60M	-21.23	-14.71%	―	126.29%	95.17%

Reef Casino Corporate Events

Reef Casino Trust Reports Strong Second Half Performance with Increased Distributions

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 was driven by increased visitation and gaming revenues due to a buoyant high season in Cairns, resulting in an estimated net profit of $5.2 million for the year, after distributions.

The most recent analyst rating on (AU:RCT) stock is a Hold with a A$4.00 price target. To see the full list of analyst forecasts on Reef Casino stock, see the AU:RCT Stock Forecast page.

Reef Casino Trust Announces New Distribution for Stakeholders

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, and payment scheduled for March 11, 2026. This announcement reflects the company’s ongoing commitment to providing returns to its stakeholders and may influence its market positioning by demonstrating financial stability and shareholder value.

The most recent analyst rating on (AU:RCT) stock is a Hold with a A$4.00 price target. To see the full list of analyst forecasts on Reef Casino stock, see the AU:RCT Stock Forecast page.

Iris Cairns Property Pty Ltd Launches Takeover Bid for Reef Casino Trust

Iris Cairns Property Pty Ltd, acting as trustee for the Iris Cairns Property Trust, has made an off-market takeover bid for all units of Reef Casino Trust at a price of $3.87 per unit. The first supplementary bidder’s statement has been lodged with the Australian Securities and Investments Commission and sent to Reef Casino Trust, indicating a formal step in the acquisition process, which could impact the company’s ownership and market position.

The most recent analyst rating on (AU:RCT) stock is a Hold with a A$4.00 price target. To see the full list of analyst forecasts on Reef Casino stock, see the AU:RCT Stock Forecast page.

Reef Casino Trust Faces Takeover Bid from Iris Cairns Property

Reef Casino Trust has announced an off-market takeover bid by Iris Cairns Property Pty Ltd for all issued units in the trust. The company has lodged a Supplementary Target Statement with the Australian Securities & Investments Commission and informed its unitholders about the details of the offer, which could significantly impact its operations and stakeholder interests.

The most recent analyst rating on (AU:RCT) stock is a Hold with a A$4.00 price target. To see the full list of analyst forecasts on Reef Casino stock, see the AU:RCT Stock Forecast page.

Reef Casino Trust Updates on Takeover Bid and Suitability Investigations

Reef Casino Trust has been informed that the suitability investigations by the Office of Liquor and Gaming Regulation for Iris Cairns Property Pty Ltd’s involvement in the casino operations in Queensland will not be completed before the current Offer Period ends on March 13, 2026. As a result, Iris plans to extend the Offer Period beyond May 31, 2026, to allow more time for these investigations, with a notice of variation to be lodged with ASIC and ASX. Unitholders are advised to review the forthcoming Supplementary Target’s Statement for further details.

The most recent analyst rating on (AU:RCT) stock is a Hold with a A$4.00 price target. To see the full list of analyst forecasts on Reef Casino stock, see the AU:RCT Stock Forecast page.