Lottery Corporation Limited (TLC) AI Stock Analysis

• Market Cap: AU$11.46B
• Dividend Yield: 3.16%
• Average Volume (3M): 3.68M
• Price to Earnings (P/E): 31.3
• Beta (1Y): 0.57
• Revenue Growth: -6.28%
• EPS Growth: -11.67%
• Country: AU
• Employees: 3,000
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Gambling, Resorts & Casinos
• EPS (TTM): 0.08
• Shares Outstanding: 2,225,771,700
• 10 Day Avg. Volume: 3,852,037
• 30 Day Avg. Volume: 3,678,235
• PEG Ratio: -2.05
• Price to Book (P/B): 36.85
• Price to Sales (P/S): 3.18
• P/FCF Ratio: 25.23
• 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$5.53
• Price Target Upside: 7.38% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 6
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 61 Neutral
• Price Target: AU$6.00 ▲(16.50% Upside)

The overall stock score of 61 reflects mixed financial performance with strong cash flow but high leverage. Technical analysis indicates bearish momentum, and valuation metrics suggest the stock may be overvalued. The absence of earnings call data and corporate events means these factors do not influence the score.

Positive Factors

Cash Generation

Strong cash generation enhances financial flexibility, allowing the company to invest in growth opportunities and manage debt effectively.

Operational Margins

Healthy operational margins reflect effective cost management, supporting long-term profitability and competitive positioning.

Product Portfolio

A diverse product portfolio allows TLC to cater to a broad audience, reducing dependency on any single revenue stream and enhancing market resilience.

Negative Factors

High Leverage

High leverage can strain financial resources, limiting the company's ability to invest in growth and increasing vulnerability to economic downturns.

Declining Revenue

Declining revenue growth indicates challenges in maintaining sales momentum, which could impact long-term financial performance and market share.

Profitability Pressure

Decreasing net profit margins suggest challenges in maintaining profitability, which could affect the company's ability to reinvest in its business.

Lottery Corporation Limited Business Overview & Revenue Model

Company Description

The Lottery Corporation Limited engages in lottery and keno businesses in Australia. It operates under The Lott and Keno brand names. The company operates through a network of approximately 7,200 retail points, as well as digitally. The Lottery Corporation Limited was formerly known as Tattersall's Holdings Limited. The company was founded in 1881 and is based in Brisbane, Australia.

How the Company Makes Money

TLC primarily generates revenue through the sale of lottery tickets and game entries. The company operates a diverse portfolio of lottery games, which includes both physical and digital formats, allowing it to cater to a broad audience. A significant portion of its revenue comes from ticket sales during high-profile draws, where jackpots can reach substantial amounts, attracting more players. In addition, TLC earns money through various partnerships with retailers, where a percentage of sales is shared. The company also engages in promotional campaigns and collaborations with brands to enhance player engagement, further boosting ticket sales. Additionally, TLC benefits from a portion of the proceeds allocated to state and community programs, which helps maintain its public goodwill and supports its operational funding.

Lottery Corporation Limited Financial Statement Overview

Summary

Lottery Corporation Limited shows mixed financial performance. The income statement reflects challenges in revenue growth and profitability, but the company maintains strong operational margins. The balance sheet indicates high leverage, posing a risk factor. However, the cash flow statement is strong, showcasing robust cash generation and management.

Income Statement

The company has shown a declining revenue trend with a negative growth rate of -4.215% in the latest year, indicating potential challenges in maintaining sales momentum. However, the company maintains strong gross profit margins, suggesting effective cost management. Net profit margins have decreased, reflecting pressure on profitability. EBIT and EBITDA margins remain healthy, indicating operational efficiency.

Balance Sheet

The company has a high debt-to-equity ratio, indicating significant leverage which could pose financial risks. Return on equity is low, reflecting limited profitability from shareholders' investments. The equity ratio is also low, suggesting reliance on debt financing. Overall, the balance sheet shows potential financial stability concerns.

Cash Flow

The company has demonstrated strong free cash flow growth, indicating improved cash generation capabilities. The operating cash flow to net income ratio is robust, suggesting good cash conversion from earnings. The free cash flow to net income ratio is also strong, highlighting efficient cash management. Overall, the cash flow position is a positive aspect of the company's financial health.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	3.74B	3.73B	3.98B	3.50B	3.28B	2.95B
Gross Profit	3.17B	3.73B	3.07B	2.74B	2.65B	2.36B
EBITDA	754.10M	763.70M	788.90M	608.70M	586.80M	498.30M
Net Income	365.50M	365.50M	414.00M	264.80M	346.60M	399.30M
Balance Sheet
Total Assets	4.41B	4.41B	4.36B	4.37B	4.22B	2.71B
Cash, Cash Equivalents and Short-Term Investments	550.50M	550.50M	504.00M	841.30M	640.50M	427.20M
Total Debt	2.50B	2.50B	2.48B	2.55B	2.49B	3.20M
Total Liabilities	4.08B	4.08B	4.00B	4.11B	3.97B	2.44B
Stockholders Equity	321.80M	321.80M	363.10M	264.80M	242.80M	272.30M
Cash Flow
Free Cash Flow	470.10M	470.10M	424.30M	376.90M	600.00M	287.70M
Operating Cash Flow	541.70M	541.70M	492.80M	456.50M	624.40M	308.90M
Investing Cash Flow	-96.00M	-96.00M	-87.60M	-121.20M	-63.50M	19.20M
Financing Cash Flow	-414.70M	-414.70M	-393.80M	-217.00M	-456.60M	-330.70M

Lottery Corporation Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 5.15
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:TLC, the sentiment is Negative. The current price of 5.15 is above the 20-day moving average (MA) of 5.10, below the 50-day MA of 5.21, and below the 200-day MA of 5.37, indicating a neutral trend. The MACD of -0.02 indicates Negative momentum. The RSI at 47.31 is Neutral, neither overbought nor oversold. The STOCH value of 49.38 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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	72 Outperform	AU$649.76M	15.99	34.17%	4.84%	-8.81%	-6.84%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
TLC	61 Neutral	AU$11.46B	31.35	106.73%	3.16%	-6.28%	-11.67%
TAH	55 Neutral	AU$2.03B	55.31	2.89%	2.01%	8.62%	―
BET	54 Neutral	AU$212.85M	-7.38	-25.15%	―	-10.59%	32.75%
BBT	49 Neutral	AU$255.45M	-24.06	-14.71%	―	126.29%	95.17%
PBH	43 Neutral	AU$323.26M	-16.61	-142.61%	―	6.47%	60.03%

Lottery Corporation Limited Corporate Events

Lottery Corporation Sets February Date for Half-Year Results and Interim Dividend Timetable

The Lottery Corporation Limited has set 18 February 2026, prior to market open, as the date to release its half-year financial results for the six months ended 31 December 2025, followed by a results briefing webcast at 10:30am Melbourne time on the same day. The company has also outlined its indicative timetable for an interim dividend, with the ex-dividend date scheduled for 25 February 2026, the record date on 26 February 2026 and payment expected on 26 March 2026, subject to legal requirements, business performance and Board approval, providing investors with clear visibility on upcoming financial disclosures and potential capital returns.

The most recent analyst rating on (AU:TLC) stock is a Sell with a A$5.10 price target. To see the full list of analyst forecasts on Lottery Corporation Limited stock, see the AU:TLC Stock Forecast page.

Wayne Pickup Appointed as CEO of The Lottery Corporation

The Lottery Corporation Limited has announced the appointment of Wayne Pickup as the new Managing Director and Chief Executive. This appointment is expected to influence the company’s strategic direction and potentially impact its market operations, as Mr. Pickup holds 401,033 performance rights, indicating a significant stake in the company’s future performance.

The most recent analyst rating on (AU:TLC) stock is a Sell with a A$5.10 price target. To see the full list of analyst forecasts on Lottery Corporation Limited stock, see the AU:TLC Stock Forecast page.

Lottery Corporation Appoints Wayne Pickup as CEO

The Lottery Corporation has announced the appointment of Mr. Wayne Pickup as a Director, who will also assume the role of Managing Director and Chief Executive Officer. This leadership change is expected to influence the company’s strategic direction and operational management, potentially impacting its market positioning and stakeholder relations.

The most recent analyst rating on (AU:TLC) stock is a Sell with a A$5.10 price target. To see the full list of analyst forecasts on Lottery Corporation Limited stock, see the AU:TLC Stock Forecast page.

Sue van der Merwe Resigns from The Lottery Corporation Board

The Lottery Corporation Limited announced the resignation of Sue van der Merwe from her position as a director, effective 27 November 2025. This change in the board’s composition may impact the company’s strategic direction and stakeholder relations, as van der Merwe held significant interests in the company, including ordinary shares and performance rights.

The most recent analyst rating on (AU:TLC) stock is a Buy with a A$6.35 price target. To see the full list of analyst forecasts on Lottery Corporation Limited stock, see the AU:TLC Stock Forecast page.

The Lottery Corporation Announces New CEO Appointment

The Lottery Corporation Limited has announced the appointment of Wayne Pickup as the new Chief Executive Officer and observer to the Board, with plans for him to become Managing Director following administrative formalities. This leadership change follows the retirement of Sue van der Merwe as Managing Director and CEO, who will assist with the transition until January 2026. This transition marks a significant leadership shift for the company, potentially impacting its strategic direction and operations.

The most recent analyst rating on (AU:TLC) stock is a Sell with a A$5.20 price target. To see the full list of analyst forecasts on Lottery Corporation Limited stock, see the AU:TLC Stock Forecast page.

Lottery Corporation Addresses Late Lodgement of Appendix 3G

The Lottery Corporation Limited announced a late lodgement of Appendix 3G related to performance rights granted under its employee incentive plan for FY26. The delay was attributed to an administrative oversight, which the company has addressed, assuring stakeholders that its compliance processes are adequate and that this incident is isolated.

The most recent analyst rating on (AU:TLC) stock is a Sell with a A$5.20 price target. To see the full list of analyst forecasts on Lottery Corporation Limited stock, see the AU:TLC Stock Forecast page.

The Lottery Corporation Issues New Performance Rights

The Lottery Corporation Limited announced the issuance of 1,362,457 unquoted performance rights as part of an employee incentive scheme. This move is aimed at aligning employee interests with company performance, potentially impacting the company’s operational strategies and stakeholder engagement positively.

The most recent analyst rating on (AU:TLC) stock is a Sell with a A$5.20 price target. To see the full list of analyst forecasts on Lottery Corporation Limited stock, see the AU:TLC Stock Forecast page.

Lottery Corporation Announces Cessation of Performance Rights

The Lottery Corporation Limited announced the cessation of 1,004,214 performance rights due to unmet conditions, effective October 21, 2025. This development may impact the company’s capital structure and could have implications for stakeholders regarding the company’s future performance and strategic direction.

The most recent analyst rating on (AU:TLC) stock is a Hold with a A$6.00 price target. To see the full list of analyst forecasts on Lottery Corporation Limited stock, see the AU:TLC Stock Forecast page.