Morningstar

The Lottery Corp Ltd TLC

Morningstar Rating
Unlock
Stock XASX Rating as of
A$5.03 +0.02 (0.40%)
View Full Chart
As of Delayed Price Closed

Company Report

View Archive

The Lottery Corp: Sales Can Be Volatile, Long-Run Growth Underpinned by Population and Inflation

Angus Hewitt, Esther Holloway

We expect The Lottery Corp to thrive now that it is unshackled from Tabcorp's competitively challenged wagering business. Regulation limits competition via compulsory licensing, bestowing Lottery Corp with a near-monopoly on long-dated licences in all Australian states and territories except Western Australia. The only significant licence due to expire before 2050 is for the Victorian lottery, which expires in 2028. We think competition for the Victorian licence on renewal is likely and anticipate a good chance Victoria would grant a second lottery licence, but the risk is immaterial to our fair value estimate. We do not expect any significant changes in regulation due to the government and community's dependence on The Lottery Corp revenue.

Read Full Report

Price vs Fair Value

View History
TLC is trading at a 497% premium.
Price
A$5.03
Fair Value
A$3.00
Uncertainty
Low
1-Star Price
A$6.16
5-Star Price
A$8.00
Economic Moat
Jblr
Capital Allocation
Qrwbpnwg

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.

Show More

Trading Information

Previous Close Price
A$5.01
Day Range
A$4.94–5.03
52-Week Range
A$4.35–5.26
Bid/Ask
A$4.95 / A$5.04
Market Cap
A$11.20 Bil
Volume/Avg
2.6 Mil / 4.1 Mil

Key Statistics

Price/Earnings (Normalized)
27.31
Price/Sales
2.81
Dividend Yield (Trailing)
3.18%
Dividend Yield (Forward)
3.18%
Total Yield
3.18%

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
—
Website
https://www.thelotterycorporation.com

Competitors

Valuation

View More
Metric
TLC
SGR
TAH
Price/Earnings (Normalized)
 27.311.373.16
Price/Book Value
 30.830.910.86
Price/Sales
 2.810.400.46
Price/Cash Flow
 22.71—4.38
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

Gambling Industry Comparables

Screen With Investor
1-Day Chart
Name
Price
Morningstar Rating for Stocks
Capital Allocation
Economic Moat
Market Cap
Flutter Entertainment PLC
FLUT
BnsngttxhyTtqgd$42.2 Bil
 Aristocrat Leisure Ltd
ARLUF
—Cxd$24.6 Bil
 Evolution AB ADR
EVVTY
—Bhtl$20.1 Bil
 Evolution AB
EVGGF
—Vfsw$20.1 Bil
 DraftKings Inc Ordinary Shares - Class A
DKNG
CdnspbtJxzdtn$19.1 Bil
 Churchill Downs Inc
CHDN
—Llvjbtf$10.1 Bil
 Light & Wonder Inc Ordinary Shares
LNW
BhsgbrxHnjbh$8.3 Bil
 The Lottery Corp Ltd
LTRCF
—Hrlvw$7.7 Bil
 La Francaise Des Jeux SA Ordinary Shares
LFDJF
—Vtxck$7.1 Bil
 Entain PLC
GMVHF
—Mswtb$6.4 Bil

Sponsor Center