SJM Holdings Limited (SJMHF)
NEUTRALFundamental
35
Price
$1.45
Market Cap
$10.55B
Part 1 · What the company is worth
Overview
SJM Holdings operates casinos in Macau, the only place in China where casino gambling is legal, under one of just six gaming concessions the Macau government grants. Its flagship is the Grand Lisboa complex, alongside other self-run properties and, until their phased closure through 2025, a network of independently owned "satellite" casinos that operated under SJM's license in exchange for a share of revenue. Beyond gaming, it also runs hotels, restaurants and retail space attached to its casino properties.
How it makes money
Most revenue is gross gaming revenue — the amount players lose at the tables and slot machines, split between mass-market play and the smaller, lower-margin VIP baccarat segment — plus smaller amounts from hotel rooms, dining and retail. SJM has been shifting its mix toward mass-market and self-operated casinos and away from VIP and satellite arrangements, which historically carried a larger cut of revenue for its junket and satellite-casino partners. The company reported a net loss for 2025 as satellite-casino closures weighed on results.
Competitive moat
Patents and licences · NarrowMacau limits casino gaming to six concessionaires, so SJM's license is a genuine barrier to new entrants — but that barrier is shared equally with five well-capitalized rivals, several of which operate newer, better-located resorts on the Cotai strip. SJM's own market share has been declining, down to 11.9% in 2025 from 13.1% a year earlier, suggesting the concession alone does not protect its competitive position.
What drives demand
CyclicalCasino revenue follows tourism and disposable income in mainland China and the wider region, both of which swing with the broader Chinese economy and with government travel or currency-export policy toward Macau. Because fixed costs — casino floors, hotel staff, licensing fees — stay largely constant, a downturn in visitation compresses profit faster than it compresses revenue.
The case for
Buyers argue that SJM's decades-old Macau concession and flagship Grand Lisboa property give it a protected position in a gaming market only six companies may operate in, and that its shift toward self-operated mass-market casinos should improve margins now that lower-margin satellite arrangements are being phased out.
The case against
Sellers worry that SJM's market share has been shrinking against better-located rivals even as it posted a net loss in 2025, and that closing its satellite casino network removes revenue in the near term with no guarantee that self-operated growth will fully replace it.
Written by the editors, published on August 18, 2026
Direct competitors
Who this company fights with for the same customers
No editorial profile for this company yet
No competitor list for this company yet.
Balance Sheet & Liquidity
Revenue
$28.17B
Trailing 12 months to the last reported quarter — estimated from per-share metrics
Net Income
$-430M
Trailing 12 months to the last reported quarter — estimated from per-share metrics
Free Cash Flow
$-955M
Total Equity
$13.47B
Total Liabilities
$30.28B
Current Ratio
0.27
Interest Coverage
-
Debt/EBITDA
10.39
Earnings Per Share
Revenue & Net Income
Free Cash Flow
Income Breakdown
Historical statement
Margins over time
Debt over time
How heavy the debt is
Growth grid
Growth — Revenue
Fair Value Estimation
Fair Value
$2.11
Current Price
$1.45
Margin of Safety
+31.3%
Fair Value Range
$2.00 - $2.21
Estimation Methods
Valuation Metrics
P/E Ratio
-
ROE
-2.6%
P/B Ratio
0.78
P/FCF
-
Gross Margin
56.6%
ROIC
1.6%
Profitability Radar
Value Creation (Economic Moat)
ROIC
1.6%
WACC
2.5%
ROIC − WACC
-0.9 pp
ROIC is roughly in line with the cost of capital — the company is barely covering its capital cost.
Fundamental Analysis Criteria
Passed (5)
- Gross Margin 56.6%
- P/B Ratio 0.78
- Debt/Equity ratio
- Revenue Growth 5Y 30.3%
- Earnings Surprise avg 48.9%
Failed (11)
- Price CAGR -12.67%
- ROIC 1.6%
- Operating Margin 4.8%
- Positive Free Cash Flow
- Current Ratio
- Debt/EBITDA
- DCF valuation (Unknown)
- ROE -3.1%
- Analyst Consensus 5% Buy
- Net Margin Trend -1.5% vs 0.0%
- Piotroski F-Score 2/9
Unavailable (11)
- EPS data insufficient
- P/FCF NaN
- Dividend Payout NaN%
- CapEx intensity
- Interest Coverage
- Return on Tangible Assets
- Low reliance on intangibles
- Price below Graham Number
- PEG Ratio (need PE > 0 and growth > 0)
- Earnings Quality (OCF/Net Income)
- Share Dilution (missing shares data)
Piotroski F-Score
Serious financial concerns
Earnings Quality
Low quality: investigate accounting
Share Dilution
Buying back shares. Shareholder friendly
Governance
Executive Team
| Name | Title | Age |
|---|---|---|
| Ms. On Kei Leong | Executive Co-Chairman | 64 |
| Mr. Tsun Ting Fok | Executive Co-Chairman | 79 |
| Ms. Chiu Fung Ho | Executive Chairman | 60 |
| Mr. Hong Kuen Shum | Executive Director | 70 |
| Dr. Un Chan Chan | Executive Director | 70 |
| Mr. Sean Czoon Tan | Chief Financial Officer | 46 |
| Joseph Tam | Administrative Manager of Finance & Accounts Department | - |
| Mr. Jonathan Charles Pyne | Chief Legal Counsel | - |
| Dr. Shu Fai So | Advisor | 74 |
| Ms. Shuk Chong Kwok | Company Secretary | - |
Audit Risk
5
Board Risk
2
Compensation Risk
8
Shareholder Rights Risk
7
Part 2 · The price and when to enter
This part won't tell you whether the company is worth owning: it helps you choose when to buy it, once the fundamentals have convinced you. Inside: technical analysis, potential, historical drawdowns, gamma exposure.
Latest News
Recent headlines for SJMHF, sourced from Markets Gazette.