Tabcorp Holdings Limited (TAH) AI Stock Analysis

• Market Cap: AU$1.52B
• Dividend Yield: 2.17%
• Average Volume (3M): 6.34M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.31
• Revenue Growth: 0.73%
• EPS Growth: -11.04%
• Country: AU
• Employees: 5,000
• Sector: Consumer Cyclical
• Sector Strength: 58
• Industry: Gambling, Resorts & Casinos
• EPS (TTM): -0.30
• Shares Outstanding: 2,286,248,300
• 10 Day Avg. Volume: 8,146,757
• 30 Day Avg. Volume: 6,336,375
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• 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: AU$0.69
• Price Target Upside: 4.37% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 8

Tabcorp Holdings Limited has significant financial hurdles, with declining revenues and negative margins, impacting its financial performance score. Technical indicators show a lack of strong momentum, while valuation metrics are unattractive due to a negative P/E ratio. These factors contribute to a moderate overall stock score, indicating caution for potential investors.

Tabcorp Holdings Limited Business Overview & Revenue Model

Company Description

Tabcorp Holdings Limited (TAH) is a leading Australian gambling and entertainment company, operating in the wagering and media, gaming services, and lotteries and keno sectors. The company offers a diverse portfolio of products and services including betting on racing and sports events, lottery games, and gaming solutions. With a strong presence in the Australian market, Tabcorp has established itself as a major player in the entertainment industry, leveraging its extensive network of retail outlets, digital platforms, and partnerships.

How the Company Makes Money

Tabcorp Holdings Limited generates revenue through several key streams. The primary source is its wagering and media operations, which include betting on horse racing, greyhound racing, and various sports, both through retail outlets and digital platforms. This segment benefits from media rights and partnerships that enhance its offerings and reach. The lotteries and keno segment contributes significantly to revenue, with products sold through a wide network of retail outlets and online platforms. Tabcorp also earns income from its gaming services, providing electronic gaming machine monitoring and other related services to venues. Strategic partnerships and media rights agreements further bolster its revenue, allowing Tabcorp to expand its distribution channels and enhance content delivery.

Tabcorp Holdings Limited Financial Statement Overview

Summary

Tabcorp Holdings Limited is facing financial challenges, with declining revenues and negative profitability margins. The balance sheet shows high leverage risks despite debt reduction, and cash flow has improved with positive free cash flow, though long-term sustainability is uncertain.

Income Statement

The income statement highlights significant challenges for Tabcorp Holdings Limited. The company has experienced a notable decline in revenue over recent years, with a negative revenue growth rate from 2020 to 2024. Additionally, net profit margins have turned negative in recent years, driven by substantial net income losses. The negative EBIT and EBITDA margins indicate operational inefficiency and financial distress. Despite these challenges, revenue improved slightly in 2024 compared to 2023, suggesting a potential turnaround.

Balance Sheet

The balance sheet reflects a mixed picture. The company has managed to reduce total debt from 2020 to 2024, which is a positive indicator. However, the debt-to-equity ratio remains high, indicating potential leverage risks. Stockholders' equity has declined significantly, impacting the equity ratio negatively. The return on equity has been erratic, with significant negative figures in recent years, highlighting profitability challenges.

Cash Flow

Cash flow analysis shows some resilience. Free cash flow turned positive in 2024 after being negative in 2023, which is a positive sign. Operating cash flow remains stable but is lower compared to earlier years, suggesting operational challenges. The free cash flow to net income ratio is favorable due to negative net income, but this is not sustainable long-term. The company needs to focus on improving cash generation efficiency.

Breakdown
Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement		Total Revenue
2.34B	2.10B	2.01B	2.15B	3.22B
	Gross Profit
2.34B	342.60M	236.50M	297.80M	910.00M
	EBIT
-48.30M	122.40M	100.60M	179.00M	611.00M
	EBITDA
-1.34B	362.80M	276.00M	344.10M	-194.00M
	Net Income Common Stockholders
-1.36B	66.50M	6.78B	269.00M	-870.00M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
313.70M	290.70M	199.40M	553.30M	375.00M
	Total Assets
3.39B	4.05B	4.05B	11.87B	12.42B
	Total Debt
1.14B	572.40M	317.00M	2.78B	4.07B
	Net Debt
830.70M	281.70M	117.60M	2.36B	3.72B
	Total Liabilities
2.14B	1.39B	1.34B	5.17B	6.39B
	Stockholders Equity
1.25B	2.66B	2.71B	6.70B	6.03B
Cash Flow		Free Cash Flow
84.80M	-77.60M	534.50M	537.70M	381.00M
	Operating Cash Flow
245.20M	119.30M	737.00M	719.50M	671.00M
	Investing Cash Flow
-739.70M	-130.00M	-455.70M	-37.60M	-292.00M
	Financing Cash Flow
517.50M	102.00M	-506.30M	-607.20M	-493.00M

Tabcorp Holdings Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.66
• 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:TAH, the sentiment is Positive. The current price of 0.66 is above the 20-day moving average (MA) of 0.57, above the 50-day MA of 0.61, and above the 200-day MA of 0.56, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 66.80 is Neutral, neither overbought nor oversold. The STOCH value of 93.07 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AU:TAH.

Tabcorp Holdings Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DNA	79 Outperform	AU$53.07M	1.36	26.04%	―	23.66%	589.13%
JIN	69 Neutral	AU$642.52M	15.76	37.11%	5.56%	16.41%	18.97%
ALL	66 Neutral	$42.28B	32.85	19.74%	1.23%	4.89%	-7.96%
Sector *	61 Neutral	$6.59B	11.77	3.06%	3.98%	2.56%	-20.85%
TAH	50 Neutral	AU$1.52B	―	-42.74%	2.17%	0.73%	-11.04%

Tabcorp Holdings Limited Corporate Events

Tabcorp CEO to Present at Macquarie Australia Conference

Tabcorp Holdings Limited announced that its Managing Director and CEO, Gillon McLachlan, will deliver a presentation at the Macquarie Australia Conference. This event is significant for Tabcorp as it provides an opportunity to showcase its strategic direction and operational updates to investors and stakeholders, potentially influencing the company’s market perception and future engagements.

Tabcorp Director Increases Shareholding

Tabcorp Holdings Limited announced a change in the director’s interest, with Director Karen Stocks acquiring an additional 78,500 ordinary shares through an on-market purchase. This transaction increases her indirect holding to 245,263 shares, potentially reflecting confidence in the company’s future performance and aligning with shareholder interests.

Tabcorp Director Increases Shareholding, Signaling Confidence

Tabcorp Holdings Limited announced a change in the director’s interest, specifically concerning David Gallop, who acquired an additional 36,363 ordinary shares through an on-market purchase. This transaction increased his total holdings to 280,738 ordinary shares, reflecting a strategic move that could signal confidence in the company’s future performance and potentially influence stakeholder perceptions.

Tabcorp Announces Change in Substantial Shareholder Status

Tabcorp Holdings Limited announced that Magellan Financial Group Limited has ceased to be a substantial shareholder as of March 14, 2025. This change is significant due to the strict regulatory framework governing shareholdings in Tabcorp, which limits any individual or entity from holding more than 10% of the company’s shares or voting power without government consent. This development may impact the company’s shareholder structure and compliance with existing regulations.

Magellan Financial Group Ceases Substantial Holding in Tabcorp

Tabcorp Holdings Limited has announced that Magellan Financial Group Ltd and its related bodies corporate have ceased to be substantial holders in the company as of March 14, 2025. This change in substantial holding reflects a shift in Magellan’s voting securities, which may impact Tabcorp’s shareholder composition and influence within the market.

Tabcorp Holdings Limited Announces New Securities Issuance

Tabcorp Holdings Limited has announced the issuance of 1,378,586 fully paid ordinary securities, which will be quoted on the Australian Securities Exchange (ASX) under the code TAH. This move is part of a dividend or distribution plan and reflects the company’s ongoing efforts to enhance its financial structure and provide value to its stakeholders.

Tabcorp Unveils Half-Year Financial Results

Tabcorp Holdings Limited released its half-year results for the period ending December 2024, showcasing their financial performance and operational outcomes. The presentation, available on their website, aligns with their recent annual report, giving stakeholders insights into the company’s current standing and strategic direction, as authorized by the Tabcorp Board.

Tabcorp Holdings Reports Strong Half-Year Financial Results

Tabcorp Holdings Limited reported a significant financial performance for the half-year ending December 31, 2024, with a 10.1% increase in group revenue to $1,331.3 million and a 12.0% rise in EBITDA to $190.2 million compared to the previous year. The company successfully transitioned to a modernized Victorian Wagering and Betting License, contributing to a $36.4 million EBITDA uplift, despite facing soft trading conditions. The results reflect strong cost discipline, with underlying operational expenses improving by 1.8%. The company’s wagering and media revenue rose by 11.3%, with cash wagering outperforming digital. Additionally, Tabcorp declared an interim dividend of 1.0 cents per share, unfranked, indicating stable returns for shareholders.

Tabcorp Announces 10% Revenue Growth and Interim Dividend for H1 2024

Tabcorp Holdings Limited announced its half-year financial results for the period ending December 31, 2024, reporting a 10% increase in revenue from continuing operations, reaching $1,331.3 million. However, the net profit after tax for the period stood at $25.3 million, which was not meaningfully comparable to previous figures. The company declared an interim dividend of 1.0 cent per share, maintainable through its Dividend Reinvestment Plan without any discounts or transaction costs. This financial update reflects Tabcorp’s efforts to enhance its market position and shareholder returns amidst evolving industry dynamics.