Galaxy Entertainment Group (0027) AI Stock Analysis

• Market Cap: $152.18B
• Dividend Yield: 2.87%
• Average Volume (3M): 11.03M
• Price to Earnings (P/E): 17.4
• Beta (1Y): 0.91
• Revenue Growth: 17.34%
• EPS Growth: 28.21%
• Country: HK
• Employees: 21,100
• Sector: Consumer Cyclical
• Sector Strength: 59
• Industry: Gambling, Resorts & Casinos
• EPS (TTM): 0.51
• Shares Outstanding: 4,374,894,500
• 10 Day Avg. Volume: 11,858,235
• 30 Day Avg. Volume: 11,034,803
• PEG Ratio: -4.97
• Price to Book (P/B): 3.38
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 16.23
• 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: $42.47
• Price Target Upside: 22.04% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 7

• Rating: 78 Outperform
• Price Target: HK$40.00 ▲(14.94%Upside)

Galaxy Entertainment Group scores strongly due to its robust financial recovery and solid technical indicators. The company benefits from strong revenue growth and profitability, supported by effective cost management and a strategic market position. The technical analysis indicates bullish trends, while the valuation remains fair, providing a balanced investment opportunity.

Positive Factors

Financial Performance

Galaxy Entertainment Group's gaming revenue achieved low double-digit growth, outperforming most peers.

Market Position

Galaxy Entertainment Group is well-positioned for growth with ample funding to support ongoing investments.

Negative Factors

Earnings

1Q25 hold-adjusted corporate EBITDA was 4% below market expectations.

Revenue

Mass GGR excluding City Clubs dropped 6% quarter-over-quarter, which contrasts with the overall industry performance.

Galaxy Entertainment Group Business Overview & Revenue Model

Company Description

Galaxy Entertainment Group (0027) is a prominent entertainment and hospitality company based in Macau, China. The company is principally engaged in the operation of casinos, hotels, and resorts, making it a major player in the gaming and leisure industry in Asia. Galaxy Entertainment Group is known for its flagship property, Galaxy Macau, along with other notable properties such as StarWorld Hotel and Broadway Macau. The company focuses on providing a comprehensive entertainment experience, which includes luxury accommodations, premium dining, and world-class gaming facilities.

How the Company Makes Money

Galaxy Entertainment Group generates its revenue primarily through its casino operations, which include table games and electronic gaming machines. The company leverages its strategic location in Macau, a leading global gaming destination, to attract both high-stakes VIP players and mass-market patrons. In addition to gaming, the company earns revenue from non-gaming segments, including hotel accommodations, food and beverage services, retail shopping, and entertainment shows. Galaxy Entertainment Group also benefits from strategic partnerships and joint ventures that enhance its offerings and expand its market reach, contributing to its overall earnings.

Galaxy Entertainment Group Financial Statement Overview

Summary

Galaxy Entertainment Group demonstrates strong financial performance with robust recovery in revenue and profitability post-pandemic. The company maintains a solid balance sheet with low leverage, high equity ratio, and effective cash flow management. These factors position the company well for future growth and resilience in the volatile gambling and resort industry.

Income Statement

Galaxy Entertainment Group has shown a strong recovery in revenue and profitability after pandemic-related challenges. The gross profit margin improved significantly, reaching 58.8% in 2024. Net profit margin also increased to 20.2%, indicating strong cost management and operational efficiency. Revenue growth has been robust, with a significant increase of 88.8% from 2023 to 2024, reflecting a strong rebound in the gambling and resort industry.

Balance Sheet

The balance sheet reveals a strong equity position, with an equity ratio of 80.3% in 2024, suggesting financial stability and low leverage. The debt-to-equity ratio remains low at 0.06, indicating prudent financial management. Return on equity is impressive at 11.5%, highlighting effective use of shareholder funds to generate profits.

Cash Flow

Cash flow from operations remained strong in 2024, with an operating cash flow to net income ratio of 1.32, indicating efficient cash generation from core operations. Free cash flow showed healthy growth of 18.6% from 2023 to 2024, supporting future investment and debt servicing. However, historical fluctuations in cash flow should be monitored.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	43.43B	23.00B	8.40B	12.95B	8.39B
Gross Profit	25.54B	8.97B	-779.32M	3.43B	-2.31B
EBITDA	12.62B	9.91B	-1.16B	3.47B	-1.36B
Net Income	8.76B	6.83B	-3.43B	1.33B	-3.97B
Balance Sheet
Total Assets	94.58B	87.22B	80.96B	85.24B	92.73B
Cash, Cash Equivalents and Short-Term Investments	22.42B	17.15B	16.35B	21.44B	18.31B
Total Debt	4.85B	2.16B	7.99B	6.87B	9.58B
Total Liabilities	18.19B	16.00B	16.50B	16.17B	24.69B
Stockholders Equity	75.95B	70.76B	63.91B	68.42B	67.42B
Cash Flow
Free Cash Flow	6.68B	5.63B	-8.04B	-10.39B	-13.40B
Operating Cash Flow	11.55B	11.59B	-2.98B	-3.49B	-7.63B
Investing Cash Flow	-4.75B	-10.67B	3.04B	4.58B	9.50B
Financing Cash Flow	-1.98B	-7.81B	-155.89M	-2.41B	6.77B

Galaxy Entertainment Group Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 34.80
• 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 HK:0027, the sentiment is Positive. The current price of 34.8 is above the 20-day moving average (MA) of 33.57, above the 50-day MA of 31.43, and above the 200-day MA of 31.95, indicating a bullish trend. The MACD of 0.74 indicates Negative momentum. The RSI at 61.46 is Neutral, neither overbought nor oversold. The STOCH value of 83.01 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:0027.

Galaxy Entertainment Group Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
0027	78 Outperform	$152.18B	17.38	11.92%	2.87%	17.34%	28.21%
1928	73 Outperform	HK$134.03B	16.44	203.51%	11.90%	6.04%	50.60%
2282	68 Neutral	$48.34B	10.50		1.97%	26.22%	74.49%
1128	61 Neutral	$28.49B	8.85		6.83%	16.27%	172.71%
3918	58 Neutral	$15.97B	18.70	5.24%	―	5.15%	-38.63%
Sector *	56 Neutral	HK$23.97B	4.08	-1.57%	8.88%	0.06%	-64.88%
0880	45 Neutral	$18.04B	6,350.00	0.03%	―	31.24%	―

Galaxy Entertainment Group Corporate Events

Galaxy Entertainment Group Announces Board Composition

Galaxy Entertainment Group Limited has announced the composition of its board of directors, highlighting the roles and functions of each member. This announcement is crucial for stakeholders as it outlines the leadership structure and governance of the company, potentially impacting its strategic direction and operational decisions.

Galaxy Entertainment Group Appoints Eileen Lui as Executive Director

Galaxy Entertainment Group Limited has announced the appointment of Ms. Eileen Lui Wai Ling as an executive director, effective from May 9, 2025. Ms. Lui, who has been with the company since 1993 and currently serves as the Group Director of Human Resources and Administration, brings a wealth of experience and leadership to the board. Her appointment is expected to strengthen the company’s executive team and enhance its strategic direction, given her extensive background in both the company and various advisory roles in Macau and China.

Galaxy Entertainment Group Approves Key Resolutions at AGM

Galaxy Entertainment Group Limited held its Annual General Meeting on May 8, 2025, where all proposed resolutions were approved by the shareholders. Key resolutions included the approval of the audited financial statements, declaration of a final dividend, re-election of directors, and the reappointment of PricewaterhouseCoopers as auditor. The meeting also approved a general mandate for directors to buy-back shares and issue additional shares, reflecting strategic moves to enhance shareholder value.

Galaxy Entertainment Group Reports Strong Q1 2025 Results Amid Macau Market Resilience

Galaxy Entertainment Group Limited reported strong financial performance for Q1 2025, with net revenue of HK$11.2 billion, reflecting a 6% year-on-year increase. Despite geopolitical challenges, the Macau market showed resilience, and GEG’s diverse entertainment offerings contributed to a 64% increase in foot traffic. The company’s healthy financial position, with HK$33.0 billion in cash and liquid investments, supports its development pipeline and shareholder returns. GEG continues to align with Macau’s economic diversification goals, enhancing its resorts and expanding entertainment events to attract more visitors.

Galaxy Entertainment Group Announces 2025 AGM with Key Resolutions

Galaxy Entertainment Group Limited has announced its 2025 annual general meeting, scheduled for May 8, 2025, in Hong Kong. The meeting will address several key issues, including the approval of audited financial statements for 2024, the declaration of a final dividend, the re-election of directors, and the authorization for the company to purchase its shares and issue additional shares. These resolutions are aimed at strengthening the company’s governance and financial strategies, potentially impacting its market positioning and shareholder value.