The Lottery Corp Ltd TLC

Morningstar Rating
A$5.12 −0.02 (0.39%)
View Full Chart

Company Report

Lottery Corp Earnings: A Strong Year Unlikely to Repeat in Fiscal 2025

Fiscal-year 2024 was a bumper year for wide-moat Lottery Corp. Sales beat our expectations, led by outsized 15% growth in the core lottery segment. Oz Lotto and Powerball tickets, which surged in the second half on favorable jackpot sequences, more than offset modest sales declines across most base games. Higher commissions and higher margin digital sales underpinned operating margin expansion in lotteries. Underlying EPS jumped roughly 20% to AUD 18 cents per share, compared with our AUD 16 cents per share forecast.

Price vs Fair Value

TLC is trading within a range we consider fairly valued.
Price
A$5.14
Fair Value
A$1.00
Uncertainty
Low
1-Star Price
A$8.85
5-Star Price
A$9.00
Economic Moat
Vwzl
Capital Allocation
Bnqhcfcl

Bulls Say, Bears Say

Bulls

The Lottery Corp's earnings are defensive, with historical performance indicating resilience during economic recessions, furnishing Lottery Corp with a stable earnings profile.

Bears

With already two thirds of lottery revenue collected by state governments in the form of taxes, fees and contributions, increased taxes would weigh on The Lottery Corp earnings.

Trading Information

Previous Close Price
A$5.14
Day Range
A$5.115.15
52-Week Range
A$4.355.26
Bid/Ask
A$5.11 / A$5.12
Market Cap
A$11.40 Bil
Volume/Avg
728,071 / 4.3 Mil

Key Statistics

Price/Earnings (Normalized)
27.91
Price/Sales
2.88
Dividend Yield (Trailing)
3.11%
Dividend Yield (Forward)
3.11%
Total Yield
3.11%

Company Profile

The Lottery Corp is Australia's largest provider of lottery, Keno and instant scratch products, with long-dated and/or exclusive licences for lottery in all Australian states and territories except Western Australia, and in most states and territories for Keno. The Lottery Corp has a distribution network of over 3,800 franchised retailers selling instant scratch and lottery products through vendors such as newsagents, service stations, pharmacies, and convenience stores, in addition to online sales. Keno is sold in over 3,400 pubs and clubs.
Sector
Consumer Cyclical
Industry
Gambling
Stock Style Box
Large Growth
Total Number of Employees

Competitors

Valuation

Metric
TLC
SGR
TAH
Price/Earnings (Normalized)
27.911.853.20
Price/Book Value
31.510.860.87
Price/Sales
2.880.380.46
Price/Cash Flow
23.214.42
Price/Earnings
TLC
SGR
TAH

Financial Strength

Metric
TLC
SGR
TAH
Quick Ratio
0.540.660.71
Current Ratio
0.690.850.86
Interest Coverage
4.87−11.36−30.60
Quick Ratio
TLC
SGR
TAH

Profitability

Metric
TLC
SGR
TAH
Return on Assets (Normalized)
9.22%−5.90%0.79%
Return on Equity (Normalized)
126.55%−10.16%1.42%
Return on Invested Capital (Normalized)
16.75%−4.53%2.01%
Return on Assets
TLC
SGR
TAH

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