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Reef Casino Trust (AU:RCT)
ASX:RCT

Reef Casino (RCT) AI Stock Analysis

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AU

Reef Casino

(Sydney:RCT)

Rating:65Neutral
Price Target:
AU$3.00
▼(-0.66%Downside)
Reef Casino's solid financial performance is the most significant factor, given its strong cash flow and improved leverage, which provide stability amidst revenue and profitability pressures. The technical analysis suggests a neutral stock trend, while the valuation reflects fair pricing with a decent dividend yield.

Reef Casino (RCT) vs. iShares MSCI Australia ETF (EWA)

Reef Casino Business Overview & Revenue Model

Company DescriptionReef 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 MoneyReef Casino Trust primarily generates revenue through its gaming operations, which include electronic gaming machines, table games, and keno. The gaming sector is a significant contributor to its income, supplemented by earnings from hotel accommodations and food and beverage services offered at its on-site restaurants and bars. Additionally, the trust benefits from partnerships with tourism operators and marketing initiatives that help to drive guest traffic. Overall, the combination of gaming, hospitality services, and strategic partnerships forms the core of RCT's revenue model.

Reef Casino Financial Statement Overview

Summary
Reef Casino demonstrates solid financial management with a strong cash flow position and improved leverage. Despite pressure on profitability margins, the company's balance sheet resilience and cash flow generation provide stability amidst revenue challenges.
Income Statement
65
Positive
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
70
Positive
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
75
Positive
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.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue25.24M25.93M30.51M26.86M15.66M
Gross Profit16.80M17.33M22.92M19.16M8.43M
EBITDA15.34M15.71M22.64M19.61M8.99M
Net Income5.08M5.37M8.99M7.36M-209.00K
Balance Sheet
Total Assets101.13M102.55M107.36M104.44M100.29M
Cash, Cash Equivalents and Short-Term Investments3.19M7.34M13.74M9.62M4.08M
Total Debt1.00K85.16M85.45M85.55M85.25M
Total Liabilities89.78M91.04M93.12M91.61M91.48M
Stockholders Equity11.35M11.51M14.23M12.83M8.80M
Cash Flow
Free Cash Flow6.38M10.04M19.40M16.61M6.77M
Operating Cash Flow14.57M16.75M22.37M19.78M8.40M
Investing Cash Flow-8.18M-6.71M-2.97M-3.17M-1.63M
Financing Cash Flow-10.54M-16.45M-15.27M-11.07M-5.65M

Reef Casino Technical Analysis

Technical Analysis Sentiment
Negative
Last Price3.02
Price Trends
50DMA
3.11
Negative
100DMA
3.09
Negative
200DMA
2.86
Positive
Market Momentum
MACD
-0.01
Negative
RSI
46.82
Neutral
STOCH
33.92
Neutral
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 3.02 is below the 20-day moving average (MA) of 3.04, below the 50-day MA of 3.11, and above the 200-day MA of 2.86, indicating a neutral trend. The MACD of -0.01 indicates Negative momentum. The RSI at 46.82 is Neutral, neither overbought nor oversold. The STOCH value of 33.92 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AU:RCT.

Reef Casino Peers Comparison

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
AURCT
65
Neutral
$150.40M14.7945.08%4.37%-2.89%-5.33%
63
Neutral
$16.62B10.98-6.98%2.96%1.73%-24.23%
$243.80M-127.99%
$1.15B-42.74%2.54%
$75.48M-36.49%
AUDNA
79
Outperform
AU$53.07M1.3626.04%23.66%589.13%
AUBBT
40
Underperform
AU$271.76M-99.47%76.49%-75.29%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AU:RCT
Reef Casino
3.02
0.30
10.87%
EHGRF
Star Entertainment Group Limited
0.08
-0.25
-75.76%
TABCF
Tabcorp Holdings Limited
0.50
0.04
8.70%
TPBTF
Betmakers Technology Group
0.08
0.02
33.33%
AU:DNA
Donaco International Ltd.
0.04
0.01
33.33%
AU:BBT
BlueBet Holdings Ltd.
0.26
0.06
30.00%

Reef Casino Corporate Events

Reef Casino Trust Announces Estimated Distribution for First Half of 2025
Jun 20, 2025

Reef Casino Trust has announced an estimated distribution of 6.60 cents per unit, totaling approximately $3.30 million, for the first half of 2025. This reflects the Trust’s policy of distributing all distributable profits, with the final decision to be made in August after the approval of audited results. The estimated net profit for the period is around $1.65 million after accounting for distributions treated as finance costs.

Reef Casino Trust Announces New Distribution for 2025
Jun 20, 2025

Reef Casino Trust has announced a new distribution of AUD 0.066 per ordinary unit, with the ex-date set for June 27, 2025, and the payment date scheduled for September 10, 2025. This announcement reflects the company’s financial performance over the six-month period ending June 30, 2025, and may impact investor returns and market positioning.

Reef Casino Trust Reports Stable 2024 Performance Amid Board Changes
May 23, 2025

During the 2025 Annual General Meeting, Reef Casino Trust announced several board changes, including the appointment of a new Chair and other key positions. The Trust reported a stable financial performance for 2024, with total revenue of $25.5 million, primarily from rental income, despite higher operational costs. The Trust declared a total distribution of 20.42 cents per unit for 2024, reflecting its strong financial health and commitment to returning profits to unitholders. Additionally, the Trust renegotiated its loan facility, maintained a healthy balance sheet, and invested in capital expenditures to enhance its offerings and ensure sustainable operations.

Reef Casino Trust Reports Lower Profit Amid Rising Costs
May 23, 2025

Reef Casino Trust has announced an estimated distributable profit for the first half of 2025 ranging between $3.2 million and $3.8 million, a decrease from the $4.336 million reported in the same period of 2024. This decline is attributed to increased regulatory and compliance costs, as well as expenses related to a potential control transaction. Despite these challenges, the Trust has maintained comparable revenues to the previous year and anticipates continued profitability through May. A further announcement regarding unit distribution is expected in June.

Reef Casino Trust in Acquisition Talks with Iris and Morris Groups
Apr 30, 2025

Reef Corporate Services Limited, as the responsible entity of Reef Casino Trust, is engaged in ongoing negotiations with Iris Hotel Group and Morris Group regarding potential acquisitions of the Reef Hotel Casino. These discussions involve non-binding proposals exceeding A$200 million, although the allocation to the units in Reef Casino Trust is less than A$200 million. The negotiations are confidential and incomplete, with no certainty of a transaction being finalized, and any potential deal would require regulatory approvals.

Reef Casino Trust Announces 2025 Annual General Meeting with Special Offers
Apr 16, 2025

Reef Casino Trust has announced its 2025 Annual General Meeting, scheduled for May 23, 2025, at the Reef Hotel Casino in Cairns. Unitholders are invited to attend in person, with special offers available for dining and accommodation. No resolutions requiring a vote will be presented, and alternative arrangements will be communicated if necessary.

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.Date of analysis: Jul 09, 2025