Lottery Corporation Limited (TLC) AI Stock Analysis

• Market Cap: AU$12.06B
• Dividend Yield: 2.95%
• Average Volume (3M): 3.99M
• Price to Earnings (P/E): 32.4
• Beta (1Y): 0.59
• Revenue Growth: 12.08%
• EPS Growth: 20.36%
• Country: AU
• Employees: 3,000
• Sector: Consumer Cyclical
• Sector Strength: 65
• Industry: Gambling, Resorts & Casinos
• EPS (TTM): 0.08
• Shares Outstanding: 2,225,771,700
• 10 Day Avg. Volume: 3,669,062
• 30 Day Avg. Volume: 3,990,758
• PEG Ratio: -3.08
• Price to Book (P/B): 40.51
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 52.13
• 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$5.55
• Price Target Upside: 2.40% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 7

• Rating: 68 Neutral
• Price Target: AU$5.50 ▲(1.48%Upside)

Lottery Corporation Limited shows strong financial performance, with significant revenue growth and robust cash flow generation. However, high leverage poses some risk. The technical analysis suggests a positive trend but lacks strong momentum signals. The stock's high P/E ratio indicates potential overvaluation despite a modest dividend yield.

Lottery Corporation Limited Business Overview & Revenue Model

Company Description

Lottery Corporation Limited (TLC) is a leading provider in the gaming and lottery industry, specializing in the operation and management of national and regional lotteries. The company offers a range of products, including traditional draw games, scratch-off instant tickets, and digital lottery services. With a commitment to responsible gaming, TLC aims to deliver exciting and secure gaming experiences to its customers while contributing to community development through lottery proceeds.

How the Company Makes Money

Lottery Corporation Limited (TLC) generates revenue primarily through the sale of lottery tickets. The company operates various types of lottery games, including traditional draw games, which include daily and weekly lottery draws, and instant win games such as scratch-off tickets. These games are sold through a network of authorized retailers and digital platforms, providing broad accessibility to consumers. TLC also earns money by offering digital lottery services, enabling customers to participate in games online. A portion of the revenue from ticket sales is distributed as prizes, while the remaining funds are allocated to cover operational costs, retailer commissions, and contributions to government and community programs. Key partnerships with technology providers and retail networks enhance distribution and operational efficiency, further contributing to TLC's financial performance.

Lottery Corporation Limited Financial Statement Overview

Summary

Lottery Corporation Limited demonstrates strong financial health with impressive revenue growth and profitability. While operational efficiency is commendable, the high leverage presents potential risks. The company's cash flow generation is robust, supporting its operations and financial obligations effectively.

Income Statement

The company exhibits strong revenue growth, with a 13.7% increase in the latest annual report. Gross profit margins are robust at 77.1%, indicating efficient cost management. However, the net profit margin at 10.4% suggests room for improvement in controlling expenses below the gross profit line. EBIT and EBITDA margins are solid at 17.5% and 19.8%, respectively, reflecting good operational efficiency.

Balance Sheet

The balance sheet shows a high debt-to-equity ratio of 6.83, indicating significant leverage, which could pose risks. However, the return on equity is impressive at 114%, suggesting effective use of equity to generate profits. The equity ratio is low at 8.3%, highlighting potential vulnerability in financial stability.

Cash Flow

Cash flow performance is strong with a 12.6% growth in free cash flow, indicating healthy cash generation. The operating cash flow to net income ratio is 1.19, reflecting solid cash conversion from earnings. The free cash flow to net income ratio stands at 1.02, suggesting efficient use of cash.

Breakdown	Jun 2024	Jun 2023	Jun 2022	Jun 2021
Income Statement
Total Revenue	3.98B	3.50B	3.28B	2.95B
Gross Profit	3.07B	2.74B	2.65B	2.36B
EBITDA	788.90M	608.70M	586.80M	498.30M
Net Income	414.00M	264.80M	346.60M	399.30M
Balance Sheet
Total Assets	4.36B	4.37B	4.22B	2.71B
Cash, Cash Equivalents and Short-Term Investments	504.00M	841.30M	640.50M	427.20M
Total Debt	2.48B	2.55B	2.49B	3.20M
Total Liabilities	4.00B	4.11B	3.97B	2.44B
Stockholders Equity	363.10M	264.80M	242.80M	272.30M
Cash Flow
Free Cash Flow	424.30M	376.90M	600.00M	287.70M
Operating Cash Flow	492.80M	456.50M	624.40M	308.90M
Investing Cash Flow	-87.60M	-121.20M	-63.50M	19.20M
Financing Cash Flow	-393.80M	-217.00M	-456.60M	-330.70M

Lottery Corporation Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 5.42
• 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:TLC, the sentiment is Positive. The current price of 5.42 is above the 20-day moving average (MA) of 5.31, above the 50-day MA of 5.27, and above the 200-day MA of 5.02, indicating a bullish trend. The MACD of 0.04 indicates Negative momentum. The RSI at 57.95 is Neutral, neither overbought nor oversold. The STOCH value of 88.36 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AU:TLC.

Lottery Corporation Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JIN	73 Outperform	€620.40M	15.24	37.11%	4.82%	16.41%	18.97%
TLC	68 Neutral	AU$12.06B	32.40	115.26%	2.95%	12.08%	20.36%
Sector *	64 Neutral	£1.69B	10.20	6.12%	3.31%	0.55%	-32.84%
TAH	55 Neutral	$1.77B	―	-42.74%	2.58%	0.73%	-11.04%
PBH	53 Neutral	$399.15M	―	-30.20%	32.91%	―	―
BET	51 Neutral	$109.86M	―	-36.49%	―	-14.46%	-28.07%
BBT	40 Underperform	AU$266.63M	―	-99.47%	―	76.49%	-75.29%

Lottery Corporation Limited Corporate Events

Lottery Corporation Updates Securities Trading Policy to Enhance Market Integrity

The Lottery Corporation Limited has updated its Securities Trading Policy in compliance with ASX Listing Rule 12.10. The revised policy emphasizes strict adherence to insider trading laws and sets clear guidelines for directors, restricted employees, and their associates regarding securities trading. The policy aims to bolster market confidence and safeguard the company’s reputation by prohibiting insider trading, short selling, and other high-risk trading activities during blackout periods. This update reflects the company’s commitment to maintaining transparency and integrity in its financial dealings, which is crucial for its stakeholders.

The most recent analyst rating on (AU:TLC) stock is a Buy with a A$5.50 price target. To see the full list of analyst forecasts on Lottery Corporation Limited stock, see the AU:TLC Stock Forecast page.

State Street Global Advisors Alters Stake in Lottery Corporation

Lottery Corporation Limited has announced a change in the interests of a substantial holder, State Street Global Advisors, which now holds a significant number of voting securities across various subsidiaries. This change in voting power reflects State Street’s strategic positioning in the market, potentially impacting the company’s governance and decision-making processes.

The most recent analyst rating on (AU:TLC) stock is a Hold with a A$5.09 price target. To see the full list of analyst forecasts on Lottery Corporation Limited stock, see the AU:TLC Stock Forecast page.