EPS growth is an important number as it indicates the future prospects of The Stars Group. The EPS growth rate, as it is typically called, is usually expressed as a percentage, which at this time is hard to estimate, but revenue growth has been 34.30% over the last twelve months. EPS growth is a vital measure of execution of the strategy for The Stars Group since it indicates how well the business is allocating resources to benefit shareholders.



The Stars Group is part of the consumer cyclical sector and is part of the travel and leisure industry. The company CEO is Rafael Ashkenazi. The Stars Group Inc is a gambling company operating online, mobile, and land-based casinos. The company offers real and simulated gambling along with games such as poker through its online platform at its desktop and mobile outlets.

Previous Intraday Performance:

The TSG shares had a previous change of -1.30% which opened at 16.89 and closed at 16.68. It moved to an intraday high of 16.89 and a low of 16.56.

SeekingAlpha:  The Stars Group Is Cheap – But Maybe It Should Be

Historical Performance:

Over the last five trading days, TSG shares returned 4.25% and in the past 30 trading days it returned -12.12%. Over three months, it changed -3.42%. In one year it has changed -37.29% and within that year its 52-week high was 38.95 and its 52-week low was 15.10. TSG stock is 10.46% above its 52 Week Low.

Our calculations result in a 200 day moving average of 25.91 and a 50 day moving average of 17.10. Right now, TSG stock is trading -35.63% below its 200 day moving average and may not be a great opportunity to buy as it may continue to trend down.

SeekingAlpha:  The Stars Group Is Cheap – But Maybe It Should Be

Liquidity:

The company has a market cap of $4.6b with 273.2m shares outstanding and a float of 273.2m shares. Trading volume was 758,225 shares and has experienced an average volume of 1,685,561 shares. Our calculation, using the current average volume and close price, leads me to believe that the liquidity is good.

Earnings:

The last annual reported EPS for The Stars Group was 0 which ended on 31st of December 2017. Based on 1 analyst estimate, the estimated EPS for the next quarter is 0.52. The trailing twelve month EPS is 2.25, which comes to a trailing twelve month PE of 7.41.

Below was the last reported quarterly earnings per share:
09-30-2018:  0.45
06-30-2018:  0.60
03-31-2018:  0.66
12-31-2017:  0.54

Base on our calculations, the intrinsic value per share is 22.68, which means it might be undervalued and has a margin of safety of 26.45%



Indicators Also to Watch:

Based on the latest filings, there is 72.40% of institutional ownership.

I calculated the beta to be 1.21

SeekingAlpha:  Daily Insider Ratings Round Up – Jan. 14, 2019

Fundamental Numbers:

Based on last reported financials, the company’s return on equity is -0.55%, return on assets is -0.19%, profit margin is -5.14%, price-to-sales is 2.60 and price-to-book is 1.08.

Company Score Card:

Results are out of six:
 1  : Growth Expectations Result
 1  : Financial Safety Result
 0  : Past Performance Result
 2  : Valuation Result
 0  : Dividend Safety Result
 1  : Overall Result

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Jake McWilliams
I am an independent trader, analyst and algorithmic trading expert, having worked both for the sell side (brokerage) and the buy side (fund administration). I have been trading professionally for about 20 years. I trade stocks and forex and I play both long and short positions in underlying asset or through options. I have experience with discretionary and fully automated systems (Metatrader and Quantshare).

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