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SkyCity Entertainment Group (SKC) Fair Value & Analysis

Consumer Cyclical · AU · Market cap A$518M

SE SkyCity Entertainment Group SKC · AU
PriceA$0.5000
Fair ValueA$0.4900
Upside-2.0%
Quality45/100
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Expensive Growth
Thin margins · 4.3% net margin
Moderate debt · negative free cash flow
Mixed vs. peers (6/13)
Narrow moat 31/100
Evidence: Medium Range A$0.3700 – A$0.6100 Share as image

Fair value as of: Jul 20, 2026

From 14 valuation models · updated 21 days ago

Fair value updated Jul 20, 2026, revised from A$0.5800 to A$0.4900 (−15.5%) since Jul 19, 2026. Share price +12.4% over the past month.

Below-average quality, currently priced close to our fair value.

What matters now

  • The price sits close to our fair value, market and models broadly agree here, little valuation tension.
  • Our model range runs from A$0.3700 (bear) to A$0.6100 (bull), base A$0.4900. The closer the price sits to the lower half, the larger the margin of safety.
  • Quality 45/100 (below-average quality) with medium evidence: read the verdict with care.
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Price vs Fair Value (5 years)

A$3.09 A$0.3800 Fair Value A$0.4900 May 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Jul 20, 2026.

How to read this chart

60‑month range A$0.3800 – A$3.09 · fair‑value band A$0.3700 – A$0.6100 · the A$0.5000 price screens above the A$0.4900 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Jul 20, 2026.

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Analysis

SkyCity Entertainment Group (SKC) currently trades at A$0.5000, while our model-based Fair Value estimate is A$0.4900, implying the stock looks roughly 2.0% fairly valued today. The Quality Score stands at 45/100 (below-average quality), in the Consumer Cyclical sector. Bear case: priced above our estimate, the market already discounts strong expectations. Bull case: above-average quality can justify a premium, the entry price still matters most (evidence: medium).

Over the trailing twelve months, SkyCity Entertainment Group generated revenue of A$814M at a net margin of 4.3%. Revenue declined 2.4% year over year. It earns a return on equity of 2.4%. Net debt stands at A$758M. Fundamentals as of Jul 20, 2026

Our scenario range runs from A$0.3700 (bear case) to A$0.6100 (bull case); at A$0.5000, the current price sits within that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades about 49% below its 52-week high and 23% above its 52-week low, currently below its 200-day average. For context, the median of 10 Consumer Cyclical peers we cover trades at 11% fair-value upside, at -2%, SKC screens richer than that median.

Fair Value models

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small.

Model Bear Bear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull Bull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. Evidence
Highest evidence
Residual Income A$0.8100 A$0.7700 A$0.5800 76
ROIC Compounder A$1.98 A$2.38 A$2.80 72
Gordon GGM A$0.6000 A$0.6700 A$0.7500 70
All 14 models by family
Earnings-Based
Graham-Dodd A$0.1800 A$0.2600 A$0.3100 54
EPV A$1.96 A$2.30 A$2.59 59
Dividend Discount
Gordon GGM A$0.6000 A$0.6700 A$0.7500 70
DDM Multi-Stage A$0.6000 A$0.7400 A$0.9000 61
Multiples
P/E Multiple A$0.4400 A$0.5800 A$0.7300 63
P/S Multiple A$0.3400 A$0.4500 A$0.5600 58
P/B Multiple A$0.3400 A$0.4500 A$0.5600 55
EV/EBIT A$4.17 A$5.74 A$7.32 53
EV/EBITDA A$3.36 A$4.67 A$5.97 54
EV/Revenue A$0.0700 A$0.3400 A$0.6100 43
Asset-Based
NCAV (Graham) A$0.6000 A$0.8100 A$1.21 50
Economic Profit
Residual Income A$0.8100 A$0.7700 A$0.5800 76
ROIC Compounder A$1.98 A$2.38 A$2.80 72
Growth Earnings
Growth-Adj P/E A$0.3100 A$0.4400 A$0.5700 68

Widest divergence: Asset-Based (A$0.8100) versus Earnings-Based (A$0.2600). Highest evidence: Residual Income (76).

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Key figures & financial health

Revenue (TTM) A$814M
Revenue growth (YoY) -2.4%
Net margin 4.3%
Return on equity 2.4%
Free cash flow −A$116M FY2025
P/E ratio 13.8
More key figures
Operating margin 5.4%
EPS (TTM) A$0.0300
EPS growth (YoY) +55.3%
Net debt A$758M FY2025

Figures from reported company fundamentals · as of Jul 20, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 45/100

Of which business quality 44 · Market factors (momentum, volatility) 27

Profitability 22
Margins and returns on capital today
Quality Growth 49
Are margins and returns improving?
Cashflow 25
Earnings quality: real cash, not paper profit
Fin. Strength 46
Balance sheet, leverage, solvency risk
Investment 67
Disciplined investing over empire-building
Low Volatility 60
Calm price path (market factor)
Momentum 15
Price trend over the last 3–12 months (market factor)
52W Momentum 10
Distance to the 52-week high (market factor)
Net Issuance 82
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

About the company

SkyCity Entertainment Group Limited, together with its subsidiaries, operates in the gaming, entertainment, hotel, convention, hospitality, and tourism sectors in New Zealand and Australia. It operates through Skycity Auckland, SkyCity Adelaide, Other NZ Operations, and Online segments.

Full company description

SkyCity Entertainment Group Limited, together with its subsidiaries, operates in the gaming, entertainment, hotel, convention, hospitality, and tourism sectors in New Zealand and Australia. It operates through Skycity Auckland, SkyCity Adelaide, Other NZ Operations, and Online segments. The company operates casinos, hotels, conventions, food and beverage, attractions, located in Auckland, Hamilton, Queenstown, and Adelaide. It also operates SkyCity Online Casino, an offshore online casino platform for New Zealand customers. SkyCity Entertainment Group Limited was incorporated in 1994 and is headquartered in Auckland, New Zealand.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

SkyCity Entertainment Group reported revenue of A$825M in FY2025 versus A$713M in FY2021, a compound +3.7%/yr. Reported net income was A$29.2M in FY2025, compounding −34.2%/yr from FY2021.

Growth Quality 25/100
The company is growing, but growth may require heavy reinvestment or weak cash conversion.
Latest Revenue (FY 2025)
A$825M
Latest YoY
−4.2%
Avg. growth/yr (3Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+14.2%
Avg. growth/yr (5Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+5.1%
Avg. growth/yr (24Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+2.6%
Revenue +3.7%/yr
FY21 A$713M
FY22 A$554M
FY23 A$856M
FY24 A$861M
FY25 A$825M
Net income −34.2%/yr
FY21 A$156M
FY22 −A$33.6M
FY23 A$8.0M
FY24 −A$143M
FY25 A$29.2M

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Cite: Fair Value Calculator (2026). "SkyCity Entertainment Group Fair Value". https://www.fairvalue-calculator.com/stock/SKC

Peer Group

Resorts & Casinos · 76 stocks

How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.

Quality Score 45 · Below median
Fair Value upside −2% · Above median
Return on equity (TTM) 2% · Below median
Return on assets 2% · Below median
Net margin (TTM) 4% · Below median
Operating margin (TTM) 5% · Below median
Revenue growth -2% · Bottom 25%
Debt / equity 0.50× · Higher than median

Valuation Multiples vs Resorts & Casinos median · lower = cheaper

P/E (TTM) 15.7× · Cheaper than median
P/B 0.28× · Cheaper than 75% of peers
P/S (TTM) 0.45× · Cheaper than median
EV/EBITDA 6.1× · Cheaper than median
PEG 0.14× · Cheaper than 75% of peers

Snowflake

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

VALUE 31 · sector 18
FUTURE 0 · sector 33
PAST 10 · sector 19
HEALTH 75 · sector 84
DIVIDEND 0 · sector 52

Insider activity: 40/100

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

Gambling

ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.

Similar stocks

10 more Resorts & Casinos stocks, each showing price versus our Fair Value estimate (as of Jul 20, 2026).

Stock Price Fair Value vs Fair Value
Las Vegas Sands Corp LVS $44.79 $52.27 +17%
Galaxy Entertainment Group 0027 HK$34.20 HK$41.44 +21%
Sands China Ltd 1928 HK$13.08 HK$2.05 -84%
MGM Resorts International, through its subsidiaries, MGM $46.13 $13.70 -70%
Wynn Resorts, Limited WYNN $97.05 $69.39 -29%
Red Rock Resorts, Inc RRR $64.75 $17.09 -74%
Boyd Gaming Corporation BYD $87.64 $151.24 +73%
Caesars Entertainment, Inc CZR $29.91 $80.92 +171%
Genting Singapore Limited G13 0.6200 SGD 0.6900 SGD +11%
Vail Resorts, Inc MTN $150.14 $125.02 -17%

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Frequently asked questions

Is SkyCity Entertainment Group (SKC) overvalued or undervalued?
As of Jul 20, 2026, our model estimates a fair value of A$0.4900 versus a price of A$0.5000, about −2% (fairly valued).
What is the fair value of SKC?
Our model-based fair value for SkyCity Entertainment Group is A$0.4900 (as of Jul 20, 2026), built from audited fundamentals. The current price is A$0.5000.
What is the quality score of SKC?
SkyCity Entertainment Group has a Quality Score of 45/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the revenue of SkyCity Entertainment Group (SKC)?
SkyCity Entertainment Group reported trailing-twelve-month revenue of about A$814M (latest available figure, as of Jul 20, 2026).
What is the net profit margin of SKC?
The net profit margin of SkyCity Entertainment Group is about 4.3%, meaning it keeps roughly 4.3% of revenue as net income. Based on the latest reported figures.

How we calculate Fair Value

Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.

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