TSGI CN
The Stars Group Inc
TMT
04/20/2015
Presented
| Date | 04/15/2015 |
| Price | CA$28.44 |
| Market Cap | $3.09B |
| Ent Value | $5.89B |
| P/E Ratio | 69.4x |
| Book Value | CA$10.37 |
| Div Yield | N/A |
| Shares O/S | 133.17M |
| Ave Daily Vol | 570,000 |
| Short Int | N/A |
Current
| Price | CA$37.49 |
| Market Cap | $8.62B |
| The Stars Group Inc. provides technology-based solutions, products, and services for global gaming and interactive entertainment industries worldwide. It operates through two segments, Business-to- Consumer (B2C) and Business-to-Business (B2B). The B2C segment offers online and mobile real-money and play-money poker, and other gaming products, including casino and sports betting; live poker tours and events; and branded poker rooms at casinos in major cities, as well as poker programming for television and online audiences. This segment offers its gaming and related interactive entertainment products and services under the PokerStars, Full Tilt, the European Poker Tour, PokerStars Caribbean Adventure, Latin American Poker Tour, and the Asia Pacific Poker Tour brands. The B2B segment designs, develops, manufactures, distributes, sells, and services interactive gaming solutions, such as Casino Gaming System, an online casino solution; and Mosino, a hospitality platform. It also provides land-based gaming solutions, including electronic games and systems, progressive product lines, and slot management services and systems; and lottery solutions comprising instant ticket vending machines. This segment offers its solutions to land-based and online gaming operators, and governmental agencies and bodies; and the hospitality industry, as well as indirectly to end-users and consumers. The company was formerly known as Amaya Gaming Group Inc. and changed its name to Amaya, Inc. in December 2014. Amaya, Inc. was founded in 2004 and is headquartered in Pointe-Claire, Canada. |
Please note, on 8/1/17 Amaya Inc. (AYA CN) changed its company name and ticker to The Stars Group Inc (TSGI CN). The content of this idea will make reference to the original company name and ticker symbol.
Publicly traded companies mentioned herein: Amaya Inc (AYA CN), BlackRock Inc (BLK), Blackstone Group LP/The (BX)
Highlights
The presenter is long shares of Amaya (AYA CN), forecasting significant expansion in the sports gambling and casino game business as well as increased penetration of the online poker business. With healthy free cash flow and high returns on invested capital, the presenter thinks current multiples assigned by the market are too low, and instead models 20x – 25x on $2.00 CAD FCF for a $40 - $50 CAD price target.
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