Gamehost (GH) AI Stock Analysis

• Market Cap: C$257.06M
• Dividend Yield: 4.85%
• Average Volume (3M): 2.12K
• Price to Earnings (P/E): 12.9
• Beta (1Y): 0.35
• Revenue Growth: -1.19%
• EPS Growth: -2.42%
• Country: CA
• Employees: 55
• Sector: Consumer Cyclical
• Sector Strength: 69
• Industry: Gambling, Resorts & Casinos
• EPS (TTM): 0.26
• Shares Outstanding: 20,764,442
• 10 Day Avg. Volume: 1,346
• 30 Day Avg. Volume: 2,115
• PEG Ratio: 2.97
• Price to Book (P/B): 2.25
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 10.42
• 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: C$11.50
• Price Target Upside: -7.11% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 75 Outperform
• Price Target: C$14.00 ▲(13.09%Upside)

Gamehost's strong financial performance and strategic corporate actions, including revenue growth and share buybacks, are key strengths. The technical analysis suggests a bullish trend, though caution is warranted due to overbought indicators. The company's reasonable valuation and high dividend yield further support its attractiveness as an investment.

Gamehost Business Overview & Revenue Model

Company Description

Gamehost Inc., together with its subsidiaries, operates hospitality and gaming properties in Alberta. The company operates through Gaming, Hotel, and Food and Beverage segments. Its gaming activities include the operation of company owned table games and government owned slot machines, video lottery terminals, and lottery ticket kiosks, as well as the provision of food, beverage, and entertainment services; and hotel activities comprise the operation of full and limited service hotels, and the provision of banquet and convention services. The company owns and operates the Rivers Casino, a 33,314 square foot casino and entertainment facility located in Grande Prairie; the Boomtown Casino, a 27,976 square foot casino and entertainment facility located in Fort McMurray; and the Service Plus Inns & Suites, Encore Suites, and limited service hotels in Grande Prairie. It also owns a 10,530 square-foot commercial multi-tenant lease facility in Grande Prairie; and a 91% interest in the Deerfoot Inn & Casino joint venture, which owns and operates the Deerfoot Inn & Casino, a full-service convention, entertainment, and casino facility in south-east Calgary, Alberta. Gamehost Inc.was founded in 2003 and is headquartered in Red Deer County, Canada.

How the Company Makes Money

Gamehost generates revenue through multiple streams, primarily driven by its operations in the gaming and hospitality industries. The company's primary revenue source is its casinos, where it earns money from various gaming activities, including slot machines, table games, and other casino offerings. In addition to gaming revenue, Gamehost derives income from its hotel operations, charging for accommodations, and offering amenities such as conference spaces. The food and beverage sector also contributes significantly to the company's earnings, with revenue coming from restaurants, bars, and catering services. Gamehost's strategic location of its properties and its ability to attract a diverse customer base further enhance its revenue-generating potential. Additionally, strategic partnerships with local businesses and marketing initiatives help to drive customer traffic and increase the company's profitability.

Gamehost Financial Statement Overview

Summary

Gamehost exhibits strong profitability and operational efficiency with solid margins and effective cash flow management. The balance sheet reveals a conservative leverage stance and strong equity position, though asset growth is a potential area for improvement. Overall, the financial health is robust, but attention to revenue and asset growth could enhance long-term potential.

Income Statement

The company shows strong profitability with a Gross Profit Margin of 39.43% and a Net Profit Margin of 24.44% for TTM, indicating effective cost management. Revenue growth is slightly positive at 0.82% from 2024 to TTM, which reflects moderate market performance. EBIT and EBITDA Margins are robust at 34.43% and 39.66% respectively, showcasing operational efficiency. However, the high margins are offset by slow revenue growth, which slightly tempers the overall score.

Balance Sheet

Gamehost maintains a stable financial structure with a Debt-to-Equity Ratio of 0.40, indicating a conservative leverage position. The Return on Equity is healthy at 17.63% for TTM, reflecting effective use of equity to generate profits. The Equity Ratio stands at 66.01%, showcasing a strong equity base. Stability is evident, but the slightly declining total assets over recent periods suggest a need for asset growth to sustain long-term financial health.

Cash Flow

The cash flow situation is positive with a solid Free Cash Flow of 24.61M for TTM and a Free Cash Flow to Net Income Ratio of 1.21, indicating efficient cash conversion. Operating Cash Flow to Net Income Ratio is 1.25, suggesting strong operational cash generation. Despite these strengths, the Free Cash Flow Growth Rate is modest at 1.56%, indicating limited cash flow expansion.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	82.39M	83.36M	69.70M	33.30M	34.60M
Gross Profit	32.34M	34.79M	23.70M	8.40M	9.10M
EBITDA	32.40M	34.96M	23.70M	13.70M	13.10M
Net Income	19.65M	21.06M	12.67M	5.60M	5.30M
Balance Sheet
Total Assets	175.84M	179.40M	183.40M	188.40M	175.00M
Cash, Cash Equivalents and Short-Term Investments	14.39M	13.98M	15.60M	15.60M	10.30M
Total Debt	48.27M	57.77M	66.30M	61.90M	51.60M
Total Liabilities	61.56M	70.60M	79.50M	73.90M	62.20M
Stockholders Equity	114.28M	108.80M	103.90M	108.00M	106.10M
Cash Flow
Free Cash Flow	24.23M	23.33M	18.30M	2.40M	6.60M
Operating Cash Flow	25.00M	24.00M	20.80M	10.80M	8.70M
Investing Cash Flow	-681.80K	-619.10K	-2.50M	-8.40M	-2.10M
Financing Cash Flow	-23.90M	-25.02M	-18.30M	2.90M	-11.70M

Gamehost Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 12.38
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:GH, the sentiment is Positive. The current price of 12.38 is above the 20-day moving average (MA) of 12.31, above the 50-day MA of 11.59, and above the 200-day MA of 10.42, indicating a bullish trend. The MACD of 0.22 indicates Positive momentum. The RSI at 63.77 is Neutral, neither overbought nor oversold. The STOCH value of 24.34 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:GH.

Gamehost Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GH	75 Outperform	C$257.06M	12.88	17.99%	4.85%	-1.19%	-2.42%
Sector *	61 Neutral	€6.51B	12.08	-11.12%	4.17%	3.79%	-34.20%
EXCOF	―	$184.69M	9.69	6.86%	6.43%	―	―
PBL	79 Outperform	C$588.72M	14.73	12.45%	0.92%	11.03%	18.83%
GBT	74 Outperform	C$447.18M	15.19	5.95%	2.60%	5.97%	174.18%
CKI	68 Neutral	C$387.68M	11.99	12.96%	―	3.76%	992.15%
ROOT	60 Neutral	C$124.28M	30.45	-19.69%	―	2.63%	-3376.73%

Gamehost Corporate Events

Gamehost Inc. Reports Q1 2025 Financial Growth Amid Economic Uncertainties

Gamehost Inc. reported a 3.3% increase in operating revenue for the first quarter of 2025, reaching $21.2 million, with EBITDA rising by 7.5% to $8.5 million. The company experienced notable growth in its hotel segment and varied regional performance, with Calgary showing an 8% increase in revenue. Gamehost also repurchased shares, reduced debt, and declared a monthly dividend. The company faces potential impacts from recent U.S. tariffs and a federal election in Canada, which could influence consumer behavior and economic independence initiatives.

Gamehost Announces AGM Venue Change and Dividend Correction

Gamehost Inc. has announced that its annual general meeting will be held on May 13, 2025, at Service Plus Inns & Suites in Calgary, marking a change from its usual venue. Additionally, the company issued a correction to a previous dividend notice, clarifying that a cash dividend of $0.05 per common share for April 2025 will be paid on May 15, 2025, to shareholders of record on April 30, 2025.