# Tabcorp Holdings (TAH.AU)

Canonical: https://gigainvestors.com/s/TAH.AU

Analysis as of: 2026-10-16T07:42:44.727Z. Financial observations: FY1997–FY2026.

Listing currency: AUD. Reporting currency: AUD.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: fail; earnings resilience is evidence only). Published buy qualification: no.

Share price: AUD 0.86 per share; close as of 2026-10-15.

Estimated value: low AUD 0.50 per share, central AUD 0.55 per share, high AUD 0.63 per share. Buy at or below the central value AUD 0.55 per share. Valuation as of 2026-10-16T07:42:44.727Z; scenarios are not confidence intervals.

Expected annual return: 7.1% at the stated quote. About 7.1% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; AU 10-year bond 5.2% + 4 points).

## Checklist

### understandable: fail

- 5 revenue declines in the last 10 years (informational)

- more than 2 net loss years

- operating margin variation exceeds 0.35

- Financial history: 10 years

- Years with declining revenue: 5

- Years with a net loss: 3

- Operating margin variation: 0.70×

Chart: Operating margin; fiscal year observations.

- FY2017: 0.11×

- FY2018: 0.12×

- FY2019: 0.21×

- FY2020: 0.19×

- FY2021: 0.08×

- FY2022: 0.05×

- FY2023: 0.06×

- FY2024: -0.03×

- FY2025: 0.06×

- FY2026: 0.09×

### moat: fail

- ROIC median below threshold

- ROIC worst years below threshold (more than 1 bad year allowed)

- Recent gross margin fell 9.0pp below the typical margin (limit 4pp)

- ROIC, median of available years: 10.6%

- ROIC, second-lowest year: 7.3%

- Typical minus recent gross margin: 9.0 pp

- Typical gross margin (annual median): 29.7%

- Recent gross margin (lower of latest and 3-year median): 20.7%

- Years with nonpositive capital: 0

- Capital spending / revenue: 8.3%

- ROIC including acquisitions, ten-year median: 3.0%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2017: 10.1%

- FY2018: 13.7%

- FY2019: 19.4%

- FY2020: 18.8%

- FY2021: 7.5%

- FY2022: 7.3%

- FY2023: 8.2%

- FY2024: -5.0%

- FY2025: 11.2%

- FY2026: 15.2%

### economics: fail

- incremental invested capital return below threshold

- Owner earnings / net income, 5-yr: 1.04×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: AUD 5.8B

- Net income, five-year total: AUD 5.6B

- Return on incremental invested capital: 0.0%

- Working capital / revenue, annual change: 0.5 pp

- Working capital / revenue, change between three-year averages: 3.3 pp

- Working capital / revenue, final three-year average: -19.2%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2022: 1.01×

- FY2023: 1.23×

- FY2024: 0.97×

- FY2025: 2.64×

- FY2026: 1.85×

### management: fail

- Historical market-dollar context (not the management verdict): 2017 to 2026 (9 years)

- potential debt-funded buybacks (informational)

- buybacks leaned toward cheaper years (informational)

- ROIC first 3 years vs last 3 years: 13.7% vs 11.2%

- Per-share earnings: 0.07 to 0.02 (three-year endpoint medians)

- per-share value declined or ends nonpositive

- five-year and ten-year diluted share growth both above threshold

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: 10.9%

- Ordinary dilution, 5-year annual growth: 1.0%

- Market cap gain: AUD 1.4B

- Cumulative retained earnings: AUD -180M

- Diluted shares, 10-year annual growth: 10.9%

- Diluted shares, 5-year annual growth: 1.0%

- $1 test, starting fiscal year: FY2017

- $1 test, ending fiscal year: FY2026

- Per-share value growth: -17.5%

- Per-share value change: AUD -0.06

- Per-share value, starting three-year median: AUD 0.07

- Per-share value, ending three-year median: AUD 0.02

- Buybacks concentrated in cheaper years (correlation): 0.33

- Average buyback yield: 0.6%

- Buyback history: 8 years

- Debt-funded buybacks: Yes

- Acquisition spending: AUD 17B

- Cumulative net income, 10 years: AUD 5.5B

- ROIC, first three-year median: 13.7%

- ROIC, last three-year median: 11.2%

Chart: Earnings per share; fiscal year observations.

- FY2017: AUD -0.02

- FY2018: AUD 0.07

- FY2019: AUD 0.18

- FY2020: AUD -0.40

- FY2021: AUD 0.12

- FY2022: AUD 3.01

- FY2023: AUD 0.03

- FY2024: AUD -0.59

- FY2025: AUD 0.02

- FY2026: AUD 0.02

### accounting: pass

- latest-year receivables to sales index (DSRI) exceeds 1.465

- Sloan accruals: -8.2%

- Receivables to sales index (DSRI): 1.48×

- Restructuring years, last five: 0

- Stock compensation / operating cash flow: 0.0%

- Earnings backed by cash: Yes

- Operating cash / earnings: 6.68×

- Accounting red flags: 1

- Goodwill and intangibles / equity: 1.92×

Chart: Sloan accruals; fiscal year observations.

- FY2017: -6.5%

- FY2018: -2.3%

- FY2019: -3.0%

- FY2020: -12.4%

- FY2021: -3.8%

- FY2022: 149.2%

- FY2023: -1.3%

- FY2024: -47.4%

- FY2025: -11.8%

- FY2026: -8.2%

## Holders

## Price story

Down 25% since May 2023 · sales -17.6%

Story as of 2026-10-16T10:00:12.482Z; price observation 2026-10-15.

Price needs cash profits to grow 7.5% a year for ten years

### Sales · FY2025–2026

sales -17.6%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2017: AUD 2.2B 

- FY2018: AUD 3.8B 

- FY2019: AUD 3.5B 

- FY2020: AUD 3.2B 

- FY2021: AUD 2.1B 

- FY2022: AUD 2.0B 

- FY2023: AUD 2.1B 

- FY2024: AUD 2.3B 

- FY2025: AUD 2.6B 

- FY2026: AUD 2.2B 

### Gross margin · FY2026

gross margin 20.7%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2017: 97.6% 

- FY2018: 98.0% 

- FY2019: 31.1% 

- FY2020: 28.3% 

- FY2021: 13.9% 

- FY2022: 11.7% 

- FY2023: 16.3% 

- FY2024: 37.8% 

- FY2025: 42.5% 

- FY2026: 20.7% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in gambling; annual sales are AUD 2.2 billion.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:42:44.727Z); FY2026: revenue 2154300000; grossProfit 444900000; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); TAH.AU: Tabcorp Holdings Limited, together with its subsidiaries, engages in the provision of gambling, entertainment, and integrity services in Australia. It operates through Wagering and Media and Integrity Services segments. The Wagering and Media segment offers totalisator and fixed odds betting on racing, sports, and other events through a network of TAB agencies, hotels and clubs, and on-course operations, as well as through retail, web, a digital app on mobile devices and phone via a call centre. It also provides Trackside, a computer simulated racing product; and international wagering and pooling services. In addition, the company engages in the Sky Racing television channels broadcasting thoroughbred, and harness and greyhound racing to audiences; Sky Racing Active, a digital app providing Sky Racing's live and on-demand racing content across thoroughbred, and harness and greyhound racing; Sky Sports television channels; and Sky Sports Radio network. The Integrity Services segment provides electronic gaming machine (EGM) monitoring and related services; and provides products, technology and services to licensed gaming venues. It offers its services under the TAB, Sky Racing, and MAX brands. The company was founded in 1961 and is based in Melbourne, Australia.

### Why customers stay

Margins ranged from 20.7% to 42.5% during 2024–26; it earns 10.6% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:42:44.727Z); FY2024: grossProfit / revenue = 37.8%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:42:44.727Z); FY2025: grossProfit / revenue = 42.5%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:42:44.727Z); FY2026: grossProfit / revenue = 20.7%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:42:44.727Z); 10-year return on capital observations [[2017,0.10083839450752574],[2018,0.13660550458715595],[2019,0.19393822802538954],[2020,0.1879633956386293],[2021,0.0748557514160182],[2022,0.0725988855394172],[2023,0.08218533695475833],[2024,-0.049955029368575626],[2025,0.11176998094384037],[2026,0.15213284963722792]]; median 0.10630418772568306. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Paid dividends in 10 of 10 years.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:42:44.727Z); FY2018: growth capex 44400000; upkeep 247300000; owner earnings 152100000. Growth capex / owner earnings = 0.29191321499013806.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:42:44.727Z); FY2019: growth capex 0; upkeep 278000000; owner earnings 436500000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:42:44.727Z); FY2021: growth capex 0; upkeep 183000000; owner earnings 300300000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:42:44.727Z); FY2022: growth capex 0; upkeep 202500000; owner earnings 6823460000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:42:44.727Z); FY2023: growth capex 0; upkeep 196900000; owner earnings 82000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:42:44.727Z); FY2025: growth capex 0; upkeep 117800000; owner earnings 96700000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:42:44.727Z); FY2026: growth capex 0; upkeep 150700000; owner earnings 85460000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:42:44.727Z); Dividend observations: [[2017,194500000],[2018,548800000],[2019,393000000],[2020,392000000],[2021,146000000],[2022,279800000],[2023,122900000],[2024,43800000],[2025,28300000],[2026,50800000]]. Zero only counted when supported by a complete cash-flow statement.

### Are managers owners

Insiders own 1.3% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); TAH.AU SharesStats.PercentInsiders = 1.278 percentage points; cache date 2026-10-16.

### What the price says

The price assumes cash profits grow 7.5% yearly over ten years; actual decline was 15.8%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:42:44.727Z); Ten-year compound average after fade. Initial solved rate 0.09438589408473841. Price 0.86; FX 1; discount 0.1; same standard ten-year fade to terminal 0.03. FY2016 owner earnings/share 0.20149990038430404 → FY2026 0.036205319834982375. Closing-price date 2026-10-15.

## Monthly share-price history (AUD per share)

- 2016-10: AUD 0.66 per share

- 2016-11: AUD 0.64 per share

- 2016-12: AUD 0.66 per share

- 2017-01: AUD 0.65 per share

- 2017-02: AUD 0.58 per share

- 2017-03: AUD 0.65 per share

- 2017-04: AUD 0.65 per share

- 2017-05: AUD 0.63 per share

- 2017-06: AUD 0.60 per share

- 2017-07: AUD 0.57 per share

- 2017-08: AUD 0.56 per share

- 2017-09: AUD 0.58 per share

- 2017-10: AUD 0.61 per share

- 2017-11: AUD 0.66 per share

- 2017-12: AUD 0.76 per share

- 2018-01: AUD 0.71 per share

- 2018-02: AUD 0.63 per share

- 2018-03: AUD 0.60 per share

- 2018-04: AUD 0.60 per share

- 2018-05: AUD 0.60 per share

- 2018-06: AUD 0.61 per share

- 2018-07: AUD 0.64 per share

- 2018-08: AUD 0.66 per share

- 2018-09: AUD 0.67 per share

- 2018-10: AUD 0.63 per share

- 2018-11: AUD 0.59 per share

- 2018-12: AUD 0.59 per share

- 2019-01: AUD 0.64 per share

- 2019-02: AUD 0.65 per share

- 2019-03: AUD 0.63 per share

- 2019-04: AUD 0.65 per share

- 2019-05: AUD 0.62 per share

- 2019-06: AUD 0.61 per share

- 2019-07: AUD 0.61 per share

- 2019-08: AUD 0.64 per share

- 2019-09: AUD 0.66 per share

- 2019-10: AUD 0.66 per share

- 2019-11: AUD 0.65 per share

- 2019-12: AUD 0.62 per share

- 2020-01: AUD 0.64 per share

- 2020-02: AUD 0.52 per share

- 2020-03: AUD 0.35 per share

- 2020-04: AUD 0.44 per share

- 2020-05: AUD 0.44 per share

- 2020-06: AUD 0.46 per share

- 2020-07: AUD 0.49 per share

- 2020-08: AUD 0.49 per share

- 2020-09: AUD 0.46 per share

- 2020-10: AUD 0.45 per share

- 2020-11: AUD 0.52 per share

- 2020-12: AUD 0.53 per share

- 2021-01: AUD 0.55 per share

- 2021-02: AUD 0.61 per share

- 2021-03: AUD 0.64 per share

- 2021-04: AUD 0.68 per share

- 2021-05: AUD 0.70 per share

- 2021-06: AUD 0.71 per share

- 2021-07: AUD 0.68 per share

- 2021-08: AUD 0.65 per share

- 2021-09: AUD 0.67 per share

- 2021-10: AUD 0.68 per share

- 2021-11: AUD 0.68 per share

- 2021-12: AUD 0.69 per share

- 2022-01: AUD 0.67 per share

- 2022-02: AUD 0.68 per share

- 2022-03: AUD 0.73 per share

- 2022-04: AUD 0.75 per share

- 2022-05: AUD 0.93 per share

- 2022-06: AUD 1.07 per share

- 2022-07: AUD 0.99 per share

- 2022-08: AUD 0.96 per share

- 2022-09: AUD 0.94 per share

- 2022-10: AUD 0.97 per share

- 2022-11: AUD 1.06 per share

- 2022-12: AUD 1.08 per share

- 2023-01: AUD 1.05 per share

- 2023-02: AUD 1.01 per share

- 2023-03: AUD 1.00 per share

- 2023-04: AUD 1.05 per share

- 2023-05: AUD 1.14 per share

- 2023-06: AUD 1.11 per share

- 2023-07: AUD 1.06 per share

- 2023-08: AUD 1.10 per share

- 2023-09: AUD 0.94 per share

- 2023-10: AUD 0.78 per share

- 2023-11: AUD 0.72 per share

- 2023-12: AUD 0.84 per share

- 2024-01: AUD 0.80 per share

- 2024-02: AUD 0.75 per share

- 2024-03: AUD 0.76 per share

- 2024-04: AUD 0.74 per share

- 2024-05: AUD 0.62 per share

- 2024-06: AUD 0.70 per share

- 2024-07: AUD 0.65 per share

- 2024-08: AUD 0.44 per share

- 2024-09: AUD 0.51 per share

- 2024-10: AUD 0.47 per share

- 2024-11: AUD 0.54 per share

- 2024-12: AUD 0.57 per share

- 2025-01: AUD 0.68 per share

- 2025-02: AUD 0.71 per share

- 2025-03: AUD 0.59 per share

- 2025-04: AUD 0.56 per share

- 2025-05: AUD 0.71 per share

- 2025-06: AUD 0.72 per share

- 2025-07: AUD 0.78 per share

- 2025-08: AUD 0.98 per share

- 2025-09: AUD 1.03 per share

- 2025-10: AUD 1.07 per share

- 2025-11: AUD 0.95 per share

- 2025-12: AUD 0.99 per share

- 2026-01: AUD 0.89 per share

- 2026-02: AUD 1.07 per share

- 2026-03: AUD 0.94 per share

- 2026-04: AUD 1.13 per share

- 2026-05: AUD 0.77 per share

- 2026-06: AUD 0.84 per share

- 2026-07: AUD 0.90 per share

- 2026-08: AUD 0.88 per share

- 2026-09: AUD 0.90 per share

- 2026-10: AUD 0.87 per share

## Annual estimated value (AUD per share)

- FY2017: low AUD 0.97 per share, central AUD 1.09 per share, high AUD 1.25 per share

- FY2018: low AUD 0.96 per share, central AUD 1.07 per share, high AUD 1.22 per share

- FY2019: low AUD 1.64 per share, central AUD 1.84 per share, high AUD 2.10 per share

- FY2020: low AUD 0.81 per share, central AUD 0.90 per share, high AUD 1.02 per share

- FY2021: low AUD 0.65 per share, central AUD 0.71 per share, high AUD 0.79 per share

- FY2022: low AUD 1.30 per share, central AUD 1.47 per share, high AUD 1.69 per share

- FY2023: low AUD 1.39 per share, central AUD 1.56 per share, high AUD 1.80 per share

- FY2024: low AUD 0.55 per share, central AUD 0.61 per share, high AUD 0.69 per share

- FY2025: low AUD 0.57 per share, central AUD 0.63 per share, high AUD 0.72 per share

- FY2026: low AUD 0.50 per share, central AUD 0.55 per share, high AUD 0.63 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

## Sources

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.

## Reported holder observations