Great Canadian Gaming Corp (TSX:GC) is a solid gambling stock that will rise when times are good, and will still be popular in not-so-good times. People visit casinos for many reasons, and that makes their business model appealing to investors looking to invest long term in a stock that they can just buy and forget about.
Great Canadian has a broad portfolio of assets, and it added to it last year when it scored a big deal with the Ontario Lottery and Gaming Corporation where the company would manage, in partnership, key properties in and around Toronto.
The stock has been flying high ever since as in the past 12 months its share price has more than doubled.
The stock also got a big boost earlier this month when the company posted a terrific quarter where its sales grew 62% and profits were up by a similar amount. Over the past four years, Great Canadian has seen its revenue grow by 51%, averaging an annual growth rate of 10.8% during that time.
Great Canadian has performed well recently and with a lot of potential in its future, there’s a lot of upside. However, that means it’s going to cost a premium to own, and currently the stock trades at a price-to-earnings multiple of 33 and is valued at 6.3 times its book value.
Whether the long-term potential outweighs the hefty share price is a question that investors will have to answer. However, Great Canadian is in good position to continue to grow as in the past 12 months it has accumulated $162 million in free cash.
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