Latest news with #SkyCityEntertainmentGroup
NZ Herald
3 days ago
- Business
- NZ Herald
NZX 50 gains 0.2%, SkyCity loses spot on the 20
SkyCity Entertainment Group reversed gains made earlier in the week after it fell victim to an index reshuffle. The S&P/NZX 50 climbed 0.2% to 12,564.420 with about 35.3 million shares changing hands, amounting to $118.7m in value traded. Harbour Asset Management portfolio manager Shane Solly said Fisher & Paykel Healthcare
NZ Herald
06-06-2025
- Business
- NZ Herald
SkyCity v Fletcher Building on $330m NZICC claim: Call for a ‘tombstone' to mark completion
SkyCity Entertainment Group and Fletcher Building would have been better to settle the $330 million NZ International Convention Centre dispute, an analyst says, while another wishes for a 'tombstone' to mark the project's end. Geoff Zame, head of institutional equities at Craigs Investment Partners, said avoiding court would have been
Yahoo
28-05-2025
- Business
- Yahoo
With 63% institutional ownership, SkyCity Entertainment Group Limited (NZSE:SKC) is a favorite amongst the big guns
Significantly high institutional ownership implies SkyCity Entertainment Group's stock price is sensitive to their trading actions A total of 7 investors have a majority stake in the company with 52% ownership Analyst forecasts along with ownership data serve to give a strong idea about prospects for a business AI is about to change healthcare. These 20 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10bn in marketcap - there is still time to get in early. If you want to know who really controls SkyCity Entertainment Group Limited (NZSE:SKC), then you'll have to look at the makeup of its share registry. We can see that institutions own the lion's share in the company with 63% ownership. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn). Since institutional have access to huge amounts of capital, their market moves tend to receive a lot of scrutiny by retail or individual investors. Hence, having a considerable amount of institutional money invested in a company is often regarded as a desirable trait. In the chart below, we zoom in on the different ownership groups of SkyCity Entertainment Group. Check out our latest analysis for SkyCity Entertainment Group Institutions typically measure themselves against a benchmark when reporting to their own investors, so they often become more enthusiastic about a stock once it's included in a major index. We would expect most companies to have some institutions on the register, especially if they are growing. SkyCity Entertainment Group already has institutions on the share registry. Indeed, they own a respectable stake in the company. This implies the analysts working for those institutions have looked at the stock and they like it. But just like anyone else, they could be wrong. When multiple institutions own a stock, there's always a risk that they are in a 'crowded trade'. When such a trade goes wrong, multiple parties may compete to sell stock fast. This risk is higher in a company without a history of growth. You can see SkyCity Entertainment Group's historic earnings and revenue below, but keep in mind there's always more to the story. Investors should note that institutions actually own more than half the company, so they can collectively wield significant power. We note that hedge funds don't have a meaningful investment in SkyCity Entertainment Group. Orbis Investment Management Limited is currently the company's largest shareholder with 15% of shares outstanding. Australian Super Pty Ltd is the second largest shareholder owning 10% of common stock, and Accident Compensation Corporation, Asset Management Arm holds about 8.8% of the company stock. On further inspection, we found that more than half the company's shares are owned by the top 7 shareholders, suggesting that the interests of the larger shareholders are balanced out to an extent by the smaller ones. While it makes sense to study institutional ownership data for a company, it also makes sense to study analyst sentiments to know which way the wind is blowing. There are plenty of analysts covering the stock, so it might be worth seeing what they are forecasting, too. The definition of company insiders can be subjective and does vary between jurisdictions. Our data reflects individual insiders, capturing board members at the very least. The company management answer to the board and the latter should represent the interests of shareholders. Notably, sometimes top-level managers are on the board themselves. I generally consider insider ownership to be a good thing. However, on some occasions it makes it more difficult for other shareholders to hold the board accountable for decisions. Our information suggests that SkyCity Entertainment Group Limited insiders own under 1% of the company. It has a market capitalization of just NZ$721m, and the board has only NZ$7.0m worth of shares in their own names. Many investors in smaller companies prefer to see the board more heavily invested. You can click here to see if those insiders have been buying or selling. The general public-- including retail investors -- own 35% stake in the company, and hence can't easily be ignored. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run. It's always worth thinking about the different groups who own shares in a company. But to understand SkyCity Entertainment Group better, we need to consider many other factors. For example, we've discovered 1 warning sign for SkyCity Entertainment Group that you should be aware of before investing here. If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its future. NB: Figures in this article are calculated using data from the last twelve months, which refer to the 12-month period ending on the last date of the month the financial statement is dated. This may not be consistent with full year annual report figures. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
Yahoo
27-04-2025
- Business
- Yahoo
The past three years for SkyCity Entertainment Group (NZSE:SKC) investors has not been profitable
The truth is that if you invest for long enough, you're going to end up with some losing stocks. But the last three years have been particularly tough on longer term SkyCity Entertainment Group Limited (NZSE:SKC) shareholders. Regrettably, they have had to cope with a 61% drop in the share price over that period. And over the last year the share price fell 39%, so we doubt many shareholders are delighted. The falls have accelerated recently, with the share price down 20% in the last three months. Since shareholders are down over the longer term, lets look at the underlying fundamentals over the that time and see if they've been consistent with returns. Our free stock report includes 1 warning sign investors should be aware of before investing in SkyCity Entertainment Group. Read for free now. In his essay The Superinvestors of Graham-and-Doddsville Warren Buffett described how share prices do not always rationally reflect the value of a business. By comparing earnings per share (EPS) and share price changes over time, we can get a feel for how investor attitudes to a company have morphed over time. SkyCity Entertainment Group saw its share price decline over the three years in which its EPS also dropped, falling to a loss. Extraordinary items contributed to this situation. Due to the loss, it's not easy to use EPS as a reliable guide to the business. But it's safe to say we'd generally expect the share price to be lower as a result! You can see below how EPS has changed over time (discover the exact values by clicking on the image). This free interactive report on SkyCity Entertainment Group's earnings, revenue and cash flow is a great place to start, if you want to investigate the stock further. We'd be remiss not to mention the difference between SkyCity Entertainment Group's total shareholder return (TSR) and its share price return. The TSR attempts to capture the value of dividends (as if they were reinvested) as well as any spin-offs or discounted capital raisings offered to shareholders. Dividends have been really beneficial for SkyCity Entertainment Group shareholders, and that cash payout explains why its total shareholder loss of 57%, over the last 3 years, isn't as bad as the share price return. SkyCity Entertainment Group shareholders are down 39% for the year, but the market itself is up 4.1%. However, keep in mind that even the best stocks will sometimes underperform the market over a twelve month period. Unfortunately, last year's performance may indicate unresolved challenges, given that it was worse than the annualised loss of 9% over the last half decade. We realise that Baron Rothschild has said investors should "buy when there is blood on the streets", but we caution that investors should first be sure they are buying a high quality business. I find it very interesting to look at share price over the long term as a proxy for business performance. But to truly gain insight, we need to consider other information, too. For example, we've discovered 1 warning sign for SkyCity Entertainment Group that you should be aware of before investing here. But note: SkyCity Entertainment Group may not be the best stock to buy. So take a peek at this free list of interesting companies with past earnings growth (and further growth forecast). Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on New Zealander exchanges. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Sign in to access your portfolio
Yahoo
05-04-2025
- Business
- Yahoo
Are Investors Undervaluing SkyCity Entertainment Group Limited (NZSE:SKC) By 42%?
SkyCity Entertainment Group's estimated fair value is NZ$2.18 based on 2 Stage Free Cash Flow to Equity SkyCity Entertainment Group's NZ$1.27 share price signals that it might be 42% undervalued The NZ$1.69 analyst price target for SKC is 23% less than our estimate of fair value In this article we are going to estimate the intrinsic value of SkyCity Entertainment Group Limited (NZSE:SKC) by estimating the company's future cash flows and discounting them to their present value. This will be done using the Discounted Cash Flow (DCF) model. It may sound complicated, but actually it is quite simple! We generally believe that a company's value is the present value of all of the cash it will generate in the future. However, a DCF is just one valuation metric among many, and it is not without flaws. Anyone interested in learning a bit more about intrinsic value should have a read of the Simply Wall St analysis model. This technology could replace computers: discover the 20 stocks are working to make quantum computing a reality. We use what is known as a 2-stage model, which simply means we have two different periods of growth rates for the company's cash flows. Generally the first stage is higher growth, and the second stage is a lower growth phase. To begin with, we have to get estimates of the next ten years of cash flows. Where possible we use analyst estimates, but when these aren't available we extrapolate the previous free cash flow (FCF) from the last estimate or reported value. We assume companies with shrinking free cash flow will slow their rate of shrinkage, and that companies with growing free cash flow will see their growth rate slow, over this period. We do this to reflect that growth tends to slow more in the early years than it does in later years. A DCF is all about the idea that a dollar in the future is less valuable than a dollar today, so we need to discount the sum of these future cash flows to arrive at a present value estimate: 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 Levered FCF (NZ$, Millions) -NZ$15.8m NZ$91.5m NZ$103.7m NZ$133.7m NZ$138.5m NZ$143.0m NZ$147.5m NZ$152.2m NZ$157.1m NZ$162.0m Growth Rate Estimate Source Analyst x3 Analyst x3 Analyst x3 Analyst x1 Analyst x1 Est @ 3.22% Est @ 3.20% Est @ 3.18% Est @ 3.17% Est @ 3.17% Present Value (NZ$, Millions) Discounted @ 9.8% -NZ$14.4 NZ$75.8 NZ$78.2 NZ$91.9 NZ$86.6 NZ$81.4 NZ$76.5 NZ$71.9 NZ$67.5 NZ$63.4 ("Est" = FCF growth rate estimated by Simply Wall St)Present Value of 10-year Cash Flow (PVCF) = NZ$679m The second stage is also known as Terminal Value, this is the business's cash flow after the first stage. For a number of reasons a very conservative growth rate is used that cannot exceed that of a country's GDP growth. In this case we have used the 5-year average of the 10-year government bond yield (3.2%) to estimate future growth. In the same way as with the 10-year 'growth' period, we discount future cash flows to today's value, using a cost of equity of 9.8%. Terminal Value (TV)= FCF2034 × (1 + g) ÷ (r – g) = NZ$162m× (1 + 3.2%) ÷ (9.8%– 3.2%) = NZ$2.5b Present Value of Terminal Value (PVTV)= TV / (1 + r)10= NZ$2.5b÷ ( 1 + 9.8%)10= NZ$978m The total value, or equity value, is then the sum of the present value of the future cash flows, which in this case is NZ$1.7b. In the final step we divide the equity value by the number of shares outstanding. Relative to the current share price of NZ$1.3, the company appears quite undervalued at a 42% discount to where the stock price trades currently. Remember though, that this is just an approximate valuation, and like any complex formula - garbage in, garbage out. Now the most important inputs to a discounted cash flow are the discount rate, and of course, the actual cash flows. You don't have to agree with these inputs, I recommend redoing the calculations yourself and playing with them. The DCF also does not consider the possible cyclicality of an industry, or a company's future capital requirements, so it does not give a full picture of a company's potential performance. Given that we are looking at SkyCity Entertainment Group as potential shareholders, the cost of equity is used as the discount rate, rather than the cost of capital (or weighted average cost of capital, WACC) which accounts for debt. In this calculation we've used 9.8%, which is based on a levered beta of 1.544. Beta is a measure of a stock's volatility, compared to the market as a whole. We get our beta from the industry average beta of globally comparable companies, with an imposed limit between 0.8 and 2.0, which is a reasonable range for a stable business. See our latest analysis for SkyCity Entertainment Group Strength Debt is well covered by earnings. Weakness No major weaknesses identified for SKC. Opportunity Expected to breakeven next year. Has sufficient cash runway for more than 3 years based on current free cash flows. Trading below our estimate of fair value by more than 20%. Threat Debt is not well covered by operating cash flow. Valuation is only one side of the coin in terms of building your investment thesis, and it shouldn't be the only metric you look at when researching a company. The DCF model is not a perfect stock valuation tool. Rather it should be seen as a guide to "what assumptions need to be true for this stock to be under/overvalued?" For instance, if the terminal value growth rate is adjusted slightly, it can dramatically alter the overall result. Why is the intrinsic value higher than the current share price? For SkyCity Entertainment Group, we've compiled three pertinent elements you should consider: Risks: Every company has them, and we've spotted 1 warning sign for SkyCity Entertainment Group you should know about. Management:Have insiders been ramping up their shares to take advantage of the market's sentiment for SKC's future outlook? Check out our management and board analysis with insights on CEO compensation and governance factors. Other Solid Businesses: Low debt, high returns on equity and good past performance are fundamental to a strong business. Why not explore our interactive list of stocks with solid business fundamentals to see if there are other companies you may not have considered! PS. The Simply Wall St app conducts a discounted cash flow valuation for every stock on the NZSE every day. If you want to find the calculation for other stocks just search here. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Sign in to access your portfolio
