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Stars Group

TSX:TSGI
Snowflake Description

Reasonable growth potential and slightly overvalued.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
TSGI
TSX
CA$8B
Market Cap
  1. Home
  2. CA
  3. Consumer Services
Company description

The Stars Group Inc. engages in online gaming and betting businesses primarily in Europe, Australia, and the Americas. The last earnings update was 42 days ago. More info.


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  • Stars Group has significant price volatility in the past 3 months.
TSGI Share Price and Events
7 Day Returns
6.6%
TSX:TSGI
-0.6%
CA Hospitality
5.5%
CA Market
1 Year Returns
14.7%
TSX:TSGI
-20.5%
CA Hospitality
-20.3%
CA Market
TSGI Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Stars Group (TSGI) 6.6% -4.5% -14.8% 14.7% 28% 7.6%
CA Hospitality -0.6% -18.8% -30% -20.5% -6.6% -15%
CA Market 5.5% -6.5% -20.9% -20.3% -17.4% -12.5%
1 Year Return vs Industry and Market
  • TSGI outperformed the Hospitality industry which returned -20.5% over the past year.
  • TSGI outperformed the Market in Canada which returned -20.3% over the past year.
Price Volatility
TSGI
Industry
5yr Volatility vs Market

Value

 Is Stars Group undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Stars Group to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Stars Group.

TSX:TSGI Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 10 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 8.6%
Perpetual Growth Rate 10-Year CA Government Bond Rate 1.4%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for TSX:TSGI
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year CA Govt Bond Rate 1.4%
Equity Risk Premium S&P Global 5.4%
Hospitality Unlevered Beta Simply Wall St/ S&P Global 0.9
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.899 (1 + (1- 26.5%) (85.48%))
1.311
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.31
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 1.44% + (1.311 * 5.44%)
8.57%

Discounted Cash Flow Calculation for TSX:TSGI using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Stars Group is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

Note: Free cash flow to equity valuations ignore the company's cash or debt.

TSX:TSGI DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 8.57%)
2020 537.28 Analyst x4 494.85
2021 611.20 Analyst x5 518.49
2022 730.00 Analyst x1 570.38
2023 767.32 Est @ 5.11% 552.20
2024 798.09 Est @ 4.01% 529.00
2025 823.94 Est @ 3.24% 503.01
2026 846.19 Est @ 2.7% 475.80
2027 865.83 Est @ 2.32% 448.41
2028 883.64 Est @ 2.06% 421.50
2029 900.19 Est @ 1.87% 395.49
Present value of next 10 years cash flows $4,909.00
TSX:TSGI DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= $900.19 × (1 + 1.44%) ÷ (8.57% – 1.44%)
$12,802.56
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $12,802.56 ÷ (1 + 8.57%)10
$5,624.67
TSX:TSGI Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $4,909.00 + $5,624.67
$10,533.67
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $10,533.67 / 289.54
$36.38
TSX:TSGI Discount to Share Price
Calculation Result
Exchange Rate USD/CAD
(Reporting currency to currency of TSX:TSGI)
1.4
Value per Share
(CAD)
= Value per Share in USD x Exchange Rate (USD/CAD)
= $36.38 x 1.4
CA$50.94
Value per share (CAD) From above. CA$50.94
Current discount Discount to share price of CA$28.75
= -1 x (CA$28.75 - CA$50.94) / CA$50.94
43.6%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Stars Group is available for.
Intrinsic value
44%
Share price is CA$28.75 vs Future cash flow value of CA$50.94
Current Discount Checks
For Stars Group to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Stars Group's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Stars Group's share price is below the future cash flow value, and at a substantial discount (> 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Stars Group's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Stars Group's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
TSX:TSGI PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-12-31) in USD $0.22
TSX:TSGI Share Price ** TSX (2020-04-08) in CAD CA$28.75
TSX:TSGI Share Price converted to USD reporting currency Exchange rate (CAD/ USD) 0.714 $20.53
Canada Hospitality Industry PE Ratio Median Figure of 12 Publicly-Listed Hospitality Companies 10.04x
Canada Market PE Ratio Median Figure of 499 Publicly-Listed Companies 11.49x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Stars Group.

TSX:TSGI PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= TSX:TSGI Share Price ÷ EPS (both in USD)

= 20.53 ÷ 0.22

92.47x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Stars Group is overvalued based on earnings compared to the CA Hospitality industry average.
  • Stars Group is overvalued based on earnings compared to the Canada market.
Price based on expected Growth
Does Stars Group's expected growth come at a high price?
Raw Data
TSX:TSGI PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 92.47x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 10 Analysts
71.4%per year
North America Hospitality Industry PEG Ratio Median Figure of 52 Publicly-Listed Hospitality Companies 0.76x
Canada Market PEG Ratio Median Figure of 234 Publicly-Listed Companies 0.76x

*Line of best fit is calculated by linear regression .

TSX:TSGI PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 92.47x ÷ 71.4%

1.29x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Stars Group is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Stars Group's assets?
Raw Data
TSX:TSGI PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-12-31) in USD $15.65
TSX:TSGI Share Price * TSX (2020-04-08) in CAD CA$28.75
TSX:TSGI Share Price converted to USD reporting currency Exchange rate (CAD/ USD) 0.714 $20.53
Canada Hospitality Industry PB Ratio Median Figure of 19 Publicly-Listed Hospitality Companies 0.83x
Canada Market PB Ratio Median Figure of 2,366 Publicly-Listed Companies 1.05x
TSX:TSGI PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= TSX:TSGI Share Price ÷ Book Value per Share (both in USD)

= 20.53 ÷ 15.65

1.31x

* Primary Listing of Stars Group.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Stars Group is overvalued based on assets compared to the CA Hospitality industry average.
X
Value checks
We assess Stars Group's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Hospitality industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Hospitality industry average (and greater than 0)? (1 check)
  5. Stars Group has a total score of 2/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is Stars Group expected to perform in the next 1 to 3 years based on estimates from 10 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
71.4%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Stars Group expected to grow at an attractive rate?
  • Stars Group's earnings growth is expected to exceed the low risk savings rate of 1.4%.
Growth vs Market Checks
  • Stars Group's earnings growth is expected to exceed the Canada market average.
  • Stars Group's revenue growth is expected to exceed the Canada market average.
Annual Growth Rates Comparison
Raw Data
TSX:TSGI Future Growth Rates Data Sources
Data Point Source Value (per year)
TSX:TSGI Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 10 Analysts 71.4%
TSX:TSGI Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 10 Analysts 7.5%
North America Hospitality Industry Earnings Growth Rate Market Cap Weighted Average 18.5%
Canada Hospitality Industry Revenue Growth Rate Market Cap Weighted Average 7.3%
Canada Market Earnings Growth Rate Market Cap Weighted Average 6.5%
Canada Market Revenue Growth Rate Market Cap Weighted Average 3.4%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
TSX:TSGI Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 10 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
TSX:TSGI Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2023-12-31 3,589 1,211 1
2022-12-31 3,176 918 5
2021-12-31 2,879 738 426 10
2020-12-31 2,568 611 318 9
2020-04-09
TSX:TSGI Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-12-31 2,528 671 63
2019-09-30 2,493 671 -58
2019-06-30 2,443 547 8
2019-03-31 2,217 538 -150
2018-12-31 2,029 560 -102
2018-09-30 1,737 493 -16
2018-06-30 1,494 565 45
2018-03-31 1,388 531 269
2017-12-31 1,312 495 259
2017-09-30 1,262 519 257
2017-06-30 1,204 461 194
2017-03-31 1,184 400 146

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Stars Group's earnings are expected to grow significantly at over 20% yearly.
  • Stars Group's revenue is expected to grow by 7.5% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
TSX:TSGI Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 10 Analyst Estimates (S&P Global) See Below

All data from Stars Group Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

TSX:TSGI Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2023-12-31
2022-12-31 0.70 0.70 0.70 1.00
2021-12-31 0.98 1.46 0.50 2.00
2020-12-31 0.85 1.09 0.60 2.00
2020-04-09
TSX:TSGI Past Financials Data
Date (Data in USD Millions) EPS *
2019-12-31 0.22
2019-09-30 -0.21
2019-06-30 0.03
2019-03-31 -0.63
2018-12-31 -0.49
2018-09-30 -0.09
2018-06-30 0.30
2018-03-31 1.83
2017-12-31 1.77
2017-09-30 1.76
2017-06-30 1.33
2017-03-31 1.01

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Stars Group is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Stars Group's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the North America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Canada market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Stars Group has a total score of 4/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Stars Group performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Stars Group's growth in the last year to its industry (Hospitality).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Stars Group's year on year earnings growth rate was negative over the past 5 years, however the most recent earnings are above average.
  • Stars Group has become profitable in the last year making the earnings growth rate difficult to compare to the 5-year average.
  • Stars Group has become profitable in the last year making it difficult to compare the CA Hospitality industry average.
Earnings and Revenue History
Stars Group's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Stars Group Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

TSX:TSGI Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-12-31 2,528.45 62.82 1,435.64 55.09
2019-09-30 2,493.34 -58.01 1,537.46 50.14
2019-06-30 2,442.84 8.41 1,503.19 48.74
2019-03-31 2,216.73 -149.99 1,364.79 44.47
2018-12-31 2,029.24 -102.45 1,205.01 40.00
2018-09-30 1,736.64 -15.82 889.07 35.69
2018-06-30 1,494.09 45.13 707.51 29.86
2018-03-31 1,387.89 269.27 598.70 33.22
2017-12-31 1,312.32 259.23 595.96 25.18
2017-09-30 1,262.35 257.18 609.57 18.51
2017-06-30 1,203.59 193.77 640.22 12.48
2017-03-31 1,184.05 145.92 717.28
2016-12-31 1,155.25 136.14 717.14
2016-09-30 1,138.16 76.14 715.03
2016-06-30 1,114.81 29.01 724.10
2016-03-31 1,088.55 12.75 720.47
2015-12-31 1,072.32 -19.63 714.26
2015-09-30 1,032.48 23.21 692.93
2015-06-30 971.46 80.04 626.52
2015-03-31 699.41 65.76 442.39
2014-12-31 478.09 84.78 307.20
2014-09-30 224.83 53.78 162.33
2014-06-30 75.71 34.14 74.26
2014-03-31 109.38 42.64 91.46
2013-12-31 137.33 -4.49 115.10
2013-09-30 141.92 -4.81 108.77
2013-06-30 119.31 -5.66 93.41

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Stars Group has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Stars Group used its assets less efficiently than the CA Hospitality industry average last year based on Return on Assets.
  • Stars Group's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Stars Group's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Hospitality industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Stars Group has a total score of 0/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Stars Group's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Stars Group's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Stars Group's short term (1 year) commitments are greater than its holdings of cash and other short term assets.
  • Stars Group's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of Stars Group's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Debt is not covered by short term assets, assets are 0.2x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Stars Group Company Filings, last reported 3 months ago.

TSX:TSGI Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-12-31 4,519.44 5,027.11 321.01
2019-09-30 4,282.03 5,085.60 405.78
2019-06-30 4,369.66 5,129.59 339.24
2019-03-31 4,257.13 5,334.01 266.51
2018-12-31 4,153.40 5,453.03 392.85
2018-09-30 4,199.14 5,577.04 418.90
2018-06-30 2,878.41 2,824.80 1,052.15
2018-03-31 2,381.48 2,470.45 256.65
2017-12-31 2,303.43 2,470.33 283.23
2017-09-30 2,297.17 2,448.61 198.22
2017-06-30 2,249.62 2,510.97 182.01
2017-03-31 2,261.33 2,427.02 409.88
2016-12-31 2,201.73 2,428.58 189.44
2016-09-30 2,020.41 2,531.79 168.31
2016-06-30 2,028.47 2,501.50 141.15
2016-03-31 1,946.13 2,568.89 533.37
2015-12-31 2,019.91 2,485.98 147.90
2015-09-30 1,961.04 2,479.88 575.52
2015-06-30 2,004.75 2,675.47 731.27
2015-03-31 1,905.94 2,672.76 720.51
2014-12-31 1,831.66 3,032.01 711.48
2014-09-30 1,840.96 3,038.30 677.28
2014-06-30 231.97 347.42 213.79
2014-03-31 215.31 184.36 108.11
2013-12-31 182.94 185.31 88.14
2013-09-30 189.10 129.72 56.53
2013-06-30 155.53 129.90 34.25
  • Stars Group's level of debt (111.2%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has been reduced over the past 5 years (165.2% vs 111.2% today).
  • Debt is not well covered by operating cash flow (13.3%, less than 20% of total debt).
  • Interest payments on debt are not well covered by earnings (EBIT is 1.2x annual interest expense, ideally 3x coverage).
X
Financial health checks
We assess Stars Group's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Stars Group has a total score of 1/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

 What is Stars Group's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0%
Current annual income from Stars Group dividends. Estimated to be 0% next year.
If you bought CA$2,000 of Stars Group shares you are expected to receive CA$0 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Unable to evaluate Stars Group's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
  • Unable to evaluate Stars Group's dividend against the top 25% market benchmark as the company has not reported any payouts.
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
TSX:TSGI Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 10 Analyst Estimates (S&P Global) See Below
Canada Hospitality Industry Average Dividend Yield Market Cap Weighted Average of 6 Stocks 4.2%
Canada Market Average Dividend Yield Market Cap Weighted Average of 324 Stocks 4.4%
Canada Minimum Threshold Dividend Yield 10th Percentile 1.3%
Canada Bottom 25% Dividend Yield 25th Percentile 2.5%
Canada Top 25% Dividend Yield 75th Percentile 8%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

TSX:TSGI Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2023-12-31
2022-12-31 0.00 2.00
2021-12-31 0.00 2.00
2020-12-31 0.00 2.00
2020-04-09

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to perform a dividend volatility check as Stars Group has not reported any payouts.
  • Unable to verify if Stars Group's dividend has been increasing as the company has not reported any payouts.
Current Payout to shareholders
What portion of Stars Group's earnings are paid to the shareholders as a dividend.
  • Unable to calculate sustainability of dividends as Stars Group has not reported any payouts.
Future Payout to shareholders
  • No need to calculate the sustainability of Stars Group's dividends in 3 years as they are not expected to pay a notable one for Canada.
X
Income/ dividend checks
We assess Stars Group's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.3%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Stars Group afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Stars Group has a total score of 0/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of Stars Group's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Rafi Ashkenazi
COMPENSATION $6,604,000
AGE 44
TENURE AS CEO 4.1 years
CEO Bio

Mr. Rafael Ashkenazi, also known as Rafi, has been the Chief Executive Officer of The Stars Group Inc.(Formerly known as Amaya, Inc.) since November 2016 and served as its Interim Chief Executive Officer from March 29, 2016 to November 2016. Mr. Ashkenazi is also the Chief Executive Officer for The Stars Group’s primary operating business, Stars Interactive Group, and is responsible for the performance and strategy of its offerings, including PokerStars and related brands. Mr. Ashkenazi serves as Chief Executive Officer of Amaya Group Holdings (IOM) Limited. He served as Senior Vice President of Strategy at Amaya, Inc. since April 2015. He serves as the Chief Operating Officer at Rational Group Limited. He is responsible for the day-to-day operations and also for its brands, including PokerStars and Full Tilt Poker. He is an experienced gaming industry executive and joins Rational Group from Playtech, a global gaming software company. He served as the Chief Operating Officer of Playtech Limited. Mr. Ashkenazi served as Chief Operating Officer of Playtech PLC from January 2006 to March 2010. From 2001 to 2005, Mr. Ashkenazi served as Vice President of project & products for SQLink Group, an Israeli company and provider of end-to-end IT services specialising in onsite software consulting and services. Prior to this, he worked at Hapoalim Bank, the largest bank in Israel, as a System Analyst and Developer. He has been a Director at Amaya, Inc., since May 10, 2018. He served as a Director of Playtech Limited from March 24, 2006 to March 2010. Mr. Ashkenazi graduated with honors from Shenkar College in Israel where he earned a B.A. in Industrial Engineering.

CEO Compensation
  • Rafi's compensation has increased in line with Stars Group recently becoming profitable.
  • Rafi's remuneration is higher than average for companies of similar size in Canada.
Management Team Tenure

Average tenure and age of the Stars Group management team in years:

2.7
Average Tenure
50
Average Age
  • The tenure for the Stars Group management team is about average.
Management Team

Dave Gadhia

TITLE
Executive Chairman
COMPENSATION
$2M
AGE
56

Rafi Ashkenazi

TITLE
CEO & Director
COMPENSATION
$7M
AGE
44
TENURE
4.1 yrs

Brian Kyle

TITLE
Chief Financial Officer
COMPENSATION
$2M
AGE
54
TENURE
2.8 yrs

Marlon Goldstein

TITLE
Executive VP
COMPENSATION
$2M
AGE
45
TENURE
2.7 yrs

Robin Chhabra

TITLE
Chief Corporate Development Officer
COMPENSATION
$3M
AGE
48
TENURE
2.6 yrs

Guy Templer

TITLE
Chief Operating Officer of Stars Interactive Group
COMPENSATION
$2M
AGE
50

Vaughan Lewis

TITLE
Senior Vice President of Communications
TENURE
1.5 yrs

Matt Tripp

TITLE
Chief Executive Officer of BetEasy

Ian David Proctor

TITLE
Chief Executive Officer of Sky Betting & Gaming
AGE
53
Board of Directors Tenure

Average tenure and age of the Stars Group board of directors in years:

2.1
Average Tenure
61.5
Average Age
  • The average tenure for the Stars Group board of directors is less than 3 years, this suggests a new board.
Board of Directors

Rafi Ashkenazi

TITLE
CEO & Director
COMPENSATION
$7M
AGE
44
TENURE
1.9 yrs

Al Hurley

TITLE
Lead Director
COMPENSATION
$972K
AGE
64
TENURE
1.9 yrs

Dave Gadhia

TITLE
Executive Chairman
COMPENSATION
$2M
AGE
56
TENURE
3.8 yrs

Dave Lazzarato

TITLE
Independent Director
COMPENSATION
$448K
AGE
63
TENURE
3.8 yrs

Mary Turner

TITLE
Independent Director
COMPENSATION
$428K
AGE
66
TENURE
2.8 yrs

Melvin Zhang

TITLE
Observer member of the board
AGE
63
TENURE
2.3 yrs

Eugene Roman

TITLE
Independent Director
AGE
60
TENURE
0.9 yrs

John Schappert

TITLE
Independent Director
AGE
48
TENURE
0.7 yrs
Who owns this company?
Recent Insider Trading
  • Stars Group individual insiders have only sold shares in the past 3 months, but not in substantial volumes.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (CA$) Value (CA$)
03. Apr 20 Sell Guy Templer Individual 31. Mar 20 31. Mar 20 -1 CA$28.27 CA$-28
09. Mar 20 Sell Brian Kyle Individual 03. Mar 20 03. Mar 20 -3 CA$31.56 CA$-95
22. May 19 Sell Harlan Goodson Individual 20. May 19 20. May 19 -5,571 CA$24.05 CA$-133,938
X
Management checks
We assess Stars Group's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Stars Group has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Here's What We Think About The Stars Group Inc.'s (TSE:TSGI) CEO Pay

See our latest analysis for Stars Group How Does Rafi Ashkenazi's Compensation Compare With Similar Sized Companies? … We looked at a group of companies with market capitalizations from US$2.0b to US$6.4b, and the median CEO total compensation was US$2.9m. … Thus we can conclude that Rafi Ashkenazi receives more in total compensation than the median of a group of companies in the same market, and of similar size to The Stars Group Inc..

Simply Wall St -

Does The Stars Group Inc. (TSE:TSGI) Have A High Beta?

(TSE:TSGI), then you might want to consider its beta (a measure of share price volatility) in order to understand how the stock could impact your portfolio. … This is above 1, so historically its share price has been influenced by the broader volatility of the stock market. … What this means for you: Since Stars Group has a reasonably high beta, it's worth considering why it is so heavily influenced by broader market sentiment.

Simply Wall St -

The Stars Group Inc (TSE:TSGI): What Are Investors Earning On Their Capital?

and want a simplistic look at the return on The Stars Group Inc (TSE:TSGI) stock. … Therefore, looking at how efficiently Stars Group is able to use capital to create earnings will help us understand your potential return. … Investors use many different metrics but the analysis below focuses on return on capital employed (ROCE).

Simply Wall St -

Will The Stars Group Inc (TSE:TSGI) Continue To Underperform Its Industry?

Stars Group has a ROE of 1.5%, based on the last twelve months. … That means that for every CA$1 worth of shareholders' equity, it generated CA$0.015 in profit. … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St -

Is The Stars Group Inc's (TSE:TSGI) Balance Sheet A Threat To Its Future?

Small and large cap stocks are widely popular for a variety of reasons, however, mid-cap companies such as The Stars Group Inc (TSE:TSGI), with a market cap of US$11.31b, often get neglected by retail investors. … Let’s take a look at TSGI’s debt concentration and assess their financial liquidity to get an idea of their ability to fund strategic acquisitions and grow through cyclical pressures. … Check out our latest analysis for Stars Group

Simply Wall St -

Understanding Your Return On Investment In The Stars Group Inc (TSE:TSGI)

You need to pay attention to this because your return on investment is linked to dividends and internal investments to improve the business, which can only occur if the company is expected to produce adequate earnings with the capital that has been provided. … To understand Stars Group’s capital returns we will look at a useful metric called return on capital employed. … Calculating Return On Capital Employed for TSGI

Simply Wall St -

Breaking Down The Stars Group Inc's (TSE:TSGI) Ownership Structure

Today, I will be analyzing The Stars Group Inc’s (TSE:TSGI) recent ownership structure, an important but not-so-popular subject among individual investors. … A company's ownership structure is often linked to its share performance in both the long- and short-term. … Differences in ownership structure of companies can have a profound effect on how management's incentives are aligned with shareholder returns, and whether they adhere to corporate governance best practices.

Simply Wall St -

Investors Are Undervaluing The Stars Group Inc (TSE:TSGI) By 23.58%

by taking the expected future cash flows and discounting them to their present value. … discounted cash flows (DCF). … If you want to learn more about discounted cash flow, the basis for my calcs can be read in detail in the Simply Wall St analysis model

Simply Wall St -

The Stars Group Inc (TSE:TSGI) Is Trading At A 41% Discount

5-year cash flow forecast 2018 2019 2020 2021 2022 Levered FCF ($, Millions) $603.00 $867.00 $941.00 $1,037.00 $1,155.00 Source Analyst x1 Analyst x1 Analyst x1 Analyst x1 Analyst x1 Present Value Discounted @ 14.28% $527.63 $663.82 $630.43 $607.91 $592.46 Present Value of 5-year Cash Flow (PVCF)= $3,022 The second stage is also known as Terminal Value, this is the business's cash flow after the first stage. … Terminal Value (TV) = FCF2022 × (1 + g) ÷ (r – g) = $1,155 × (1 + 2.1%) ÷ (14.3% – 2.1%) = $9,706 Present Value of Terminal Value (PVTV) = TV / (1 + r)5 = $9,706 / ( 1 + 14.3%)5 = $4,979 The total value is the sum of cash flows for the next five years and the discounted terminal value, which results in the Total Equity Value, which in this case is CA$8,001. … TSX:TSGI Intrinsic Value May 1st 18 Important assumptions I'd like to point out that the most important inputs to a discounted cash flow are the discount rate and of course the actual cash flows.

Simply Wall St -

What You Must Know About The Stars Group Inc's (TSE:TSGI) Financial Strength

At this current level of debt, TSGI currently has US$556.17M remaining in cash and short-term investments for investing into the business. … On top of this, TSGI has generated US$349.94M in operating cash flow over the same time period, resulting in an operating cash to total debt ratio of 14.41%, indicating that TSGI’s debt is not appropriately covered by operating cash. … Next Steps: With a high level of debt on its balance sheet, TSGI could still be in a financially strong position if its cash flow also stacked up.

Simply Wall St -

Company Info

Description

The Stars Group Inc. engages in online gaming and betting businesses primarily in Europe, Australia, and the Americas. The company owns and operates gaming and related interactive entertainment businesses, such as online real-money poker, casino and poker, play-money poker, and casino and sports prediction games, which are delivered through mobile, Web, and desktop applications. It provides its products under various owned or licensed gaming and related consumer businesses and brands, including PokerStars, PokerStars Casino, BetStars, Full Tilt, FOX Bet, BetEasy, Sky Bet, Sky Vegas, Sky Casino, Sky Bingo, Sky Poker, and Oddschecker, as well as live poker tour and events brands, such as PokerStars Players No Limit Hold’em Championship, European Poker Tour, and Asia Pacific Poker Tour. The company was formerly known as Amaya, Inc. and changed its name to The Stars Group Inc. in August 2017. The Stars Group Inc. was founded in 2004 and is headquartered in Toronto, Canada.

Details
Name: The Stars Group Inc.
TSGI
Exchange: TSX
Founded: 2004
CA$8,324,149,448
289,535,633
Website: http://www.starsgroup.com
Address: The Stars Group Inc.
South Tower,
Suite 3205,
Toronto,
Ontario, M5J 2J3,
Canada
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
TSX TSGI Common Shares The Toronto Stock Exchange CA CAD 21. Jul 2010
NasdaqGS TSG Common Shares Nasdaq Global Select US USD 21. Jul 2010
DB 0AY Common Shares Deutsche Boerse AG DE EUR 21. Jul 2010
LSE 0VIO Common Shares London Stock Exchange GB CAD 21. Jul 2010
Number of employees
Current staff
Staff numbers
4,591
Stars Group employees.
Industry
Casinos and Gaming
Consumer Services
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2020/04/09 03:29
End of day share price update: 2020/04/08 00:00
Last estimates confirmation: 2020/04/08
Last earnings filing: 2020/02/27
Last earnings reported: 2019/12/31
Last annual earnings reported: 2019/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.