Galaxy Entertainment Group (0027) AI Stock Analysis

• Market Cap: HK$175.18B
• Dividend Yield: 3.06%
• Average Volume (3M): 12.72M
• Price to Earnings (P/E): 18.2
• Beta (1Y): 0.85
• Revenue Growth: 4.94%
• EPS Growth: 15.38%
• Country: HK
• Employees: 21,100
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Gambling, Resorts & Casinos
• EPS (TTM): 0.66
• Shares Outstanding: 4,379,240,700
• 10 Day Avg. Volume: 12,241,609
• 30 Day Avg. Volume: 12,722,427
• PEG Ratio: 0.58
• Price to Book (P/B): 1.90
• Price to Sales (P/S): 3.32
• P/FCF Ratio: 21.47
• 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: HK$48.58
• Price Target Upside: 19.43% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 15
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 72 Outperform
• Price Target: HK$43.00 ▲(5.70% Upside)

Galaxy Entertainment Group's strong financial performance, characterized by robust revenue growth and solid balance sheet, is the primary driver of its stock score. Technical analysis suggests mixed signals with short-term bearish momentum but a longer-term bullish trend. The valuation is fair, supported by a reasonable P/E ratio and attractive dividend yield.

Galaxy Entertainment Group Business Overview & Revenue Model

Company Description

Galaxy Entertainment Group Limited, an investment holding company, engages in the gaming and entertainment, and construction materials businesses in Macau, Hong Kong, and Mainland China. The company operates casino games of chance or games of other forms; and provides hospitality and related services. It owns and operates Galaxy Macau, an integrated resort; Broadway Macau, a landmark entertainment and food street destination; StarWorld Macau, a five-star hotel located in the Macau Peninsula; and City Club casinos. The company also manufactures, sells, and distributes construction materials, including concrete pipes and piles, asphalt, ready-mixed concrete, concrete products, cement, aggregates, and slag; provides property investment, handling, quality assurance, project management, and security services; and imports, exports, trades in, and transports construction materials. In addition, it is involved in quarrying, aircraft holding, and vessel holding activities. The company is based in Central, Hong Kong.

How the Company Makes Money

Galaxy Entertainment Group generates revenue primarily through its gaming operations, which include a wide array of table games, slot machines, and electronic gaming. The majority of its income is derived from the gaming segment, specifically from VIP gaming, mass gaming, and electronic gaming machines. In addition to gaming revenue, the company also earns income from hotel operations, food and beverage services, retail shopping, and entertainment events held at its resorts. Significant partnerships with international brands and entertainment companies enhance its offerings and attract a larger customer base. The company benefits from the growing tourism sector in Macau, which drives foot traffic to its properties, further contributing to its overall earnings. Economic conditions, regulatory changes, and tourism trends in the region also play a crucial role in influencing its financial performance.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	45.21B	43.43B	23.00B	8.40B	12.95B	12.88B
Gross Profit	36.00B	25.54B	11.61B	-779.32M	3.43B	-2.31B
EBITDA	11.01B	12.62B	9.99B	-1.16B	3.47B	-1.36B
Net Income	9.61B	8.76B	6.83B	-3.43B	1.33B	-3.97B
Balance Sheet
Total Assets	94.81B	94.58B	87.22B	80.96B	85.24B	92.73B
Cash, Cash Equivalents and Short-Term Investments	20.71B	22.42B	17.15B	16.35B	21.44B	18.31B
Total Debt	1.18B	4.85B	2.16B	8.06B	6.97B	9.66B
Total Liabilities	14.74B	18.19B	16.00B	16.50B	16.17B	24.69B
Stockholders Equity	79.60B	75.95B	70.76B	63.91B	68.42B	67.42B
Cash Flow
Free Cash Flow	9.77B	6.72B	5.63B	-8.04B	-10.39B	-13.40B
Operating Cash Flow	13.99B	11.55B	11.59B	-2.98B	-3.49B	-7.63B
Investing Cash Flow	-3.40B	-4.75B	-10.67B	3.04B	4.58B	9.50B
Financing Cash Flow	-7.30B	-1.98B	-7.81B	-155.89M	-2.41B	6.77B

Galaxy Entertainment Group Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 40.68
• 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 40.68 is above the 20-day moving average (MA) of 38.60, above the 50-day MA of 39.35, and above the 200-day MA of 36.40, indicating a bullish trend. The MACD of 0.11 indicates Negative momentum. The RSI at 63.22 is Neutral, neither overbought nor oversold. The STOCH value of 84.10 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
2282	74 Outperform	HK$47.96B	11.14	452.88%	5.73%	5.59%	-4.38%
0027	72 Outperform	HK$175.18B	18.21	12.59%	3.06%	4.94%	15.38%
1928	72 Outperform	HK$151.99B	21.28	111.35%	2.39%	-3.13%	-13.65%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
1128	61 Neutral	HK$31.02B	16.78	―	5.92%	-4.41%	-31.45%
3918	55 Neutral	HK$20.61B	10.20	11.98%	1.63%	8.23%	175.51%
0880	40 Neutral	HK$16.55B	-1,021.74	-0.13%	―	12.29%	98.20%

Galaxy Entertainment Group Corporate Events

Galaxy Entertainment Grants Over 8.5 Million Share Options and Awards to Staff and Directors

Galaxy Entertainment Group has granted a total of 210,000 share options and 8,355,200 share awards to selected employee participants under its share option and share award schemes adopted in May 2023, with grants allocated across the chairman, executive directors, associates and other staff. The awards, which vest between 2026 and 2028 and were approved by independent non-executive directors, form part of the group’s compensation strategy to incentivise long-term commitment and align management and employee interests with shareholders, with the remuneration committee stating that the terms, including the absence of performance targets and clawback mechanisms, are fair, reasonable and in line with market practice.

The most recent analyst rating on (HK:0027) stock is a Buy with a HK$44.00 price target. To see the full list of analyst forecasts on Galaxy Entertainment Group stock, see the HK:0027 Stock Forecast page.

Galaxy Entertainment Group Reports Strong Q3 2025 Performance Amid Strategic Expansions

Galaxy Entertainment Group reported a 14% year-on-year increase in both net revenue and adjusted EBITDA for Q3 2025, despite challenges such as Typhoon Ragasa and seasonal visitor fluctuations. The company continues to support Macau’s development into a ‘City of Performing Arts’ by hosting numerous world-class events, which have significantly boosted foot traffic and business. Additionally, Galaxy is investing in technology to enhance customer experiences and has announced the closure of Waldo Casino, aligning with local employment policies. The company is also progressing with its Phase 4 development, expected to complete in 2027, and has signed strategic partnerships to enhance its entertainment offerings.

The most recent analyst rating on (HK:0027) stock is a Buy with a HK$47.61 price target. To see the full list of analyst forecasts on Galaxy Entertainment Group stock, see the HK:0027 Stock Forecast page.