The Lottery Corporation Limited (TLC.AX) stock analysis

In our weekly check, The Lottery Corporation Limited is graded B (A to F). Of 25 checks on debt, profit, cash flow and trend: 17 pass, warnings: 5, red flags: 3.

About The Lottery Corporation Limited

The Lottery Corporation Limited is a Consumer Cyclical company (Gambling, Resorts & Casinos) based in Australia, listed on ASX as TLC.AX.

What our checks show for TLC.AX

Red flags

• Net debt is 3.3x a year of EBITDA (debt/equity 9.45). That limits room in a downturn and raises refinancing risk.
• The gross margin fell by 4.9 points, to 75.9%: costs are rising faster than prices.
• The dividend takes 184% of profit: little cushion if profit falls.

Warning signs

• Operating profit covers interest only 3 times: a weak year could make the payments hard.
• The net margin fell by 2.6 points over 5 years, to 8%: the company keeps less of each sale as profit.
• Revenue grew only 0.5% a year over the last 3 years.
• The net margin is only 8%: little room if costs rise.
• The stock is still below its previous peak.

Strengths

• Operating cash flow is 1.48x net profit: the profit arrives as real cash.
• Analysts expect earnings per share to grow about 14.1% a year over the next years.
• Its deepest fall from a peak in the available history was 21%.
• Beta 0.44: the stock usually moves less than the market.
• Actively traded: about 9.3 million shares a day.
• Return on capital (ROCE) is 17.6%: the business earns well on the money put into it.

Similar companies

DKNG · FLUT · ALWN.AT · WYNN · MGM · CHDN

Questions

What grade does The Lottery Corporation Limited (TLC.AX) have?

In our weekly check, The Lottery Corporation Limited is graded B (A to F). Of 25 checks on debt, profit, cash flow and trend: 17 pass, warnings: 5, red flags: 3. The grade is a risk check, not a buy or sell recommendation.

What are the main risks of TLC.AX stock?

This week's biggest flags for The Lottery Corporation Limited: High debt, Gross margin falling, Dividend stretched. In total 8 of 25 checks show a warning or a red flag.

What does The Lottery Corporation Limited do?

The Lottery Corporation Limited is a Consumer Cyclical company (Gambling, Resorts & Casinos) based in Australia, listed on ASX as TLC.AX.

The grade is a risk check, not a price forecast, and not investment advice. In our 10-year test (S&P 500, 2016-2026), stocks we graded A or B fell more than 30% 2-3 times less often than D or F, without a lower average return.

Updated 2026-10-31

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