Aristocrat Leisure Limited's (ASX:ALL) Intrinsic Value Is Potentially 28% Above Its Share Price
Oct 18
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Australian (ASX) Hospitality Industry Analysis
UpdatedOct 31, 2024
DataAggregated Company Financials
Companies28
- 7D1.5%
- 3M0.3%
- 1Y16.4%
- YTD8.8%
The Hospitality industry is up 1.5% in the last week, with Aristocrat Leisure up 7.2%. During this same period, the Domino's Pizza Enterprises underperformed, falling 5.7%. This takes the industry's 12 month performance to a gain of 16%. As for the next few years, earnings are expected to grow by 14% per annum.
Industry Valuation and Performance
Has the Australian Hospitality Industry valuation changed over the past few years?
| Date | Market Cap | Revenue | Earnings | PE | Absolute PE | PS |
|---|---|---|---|---|---|---|
| Fri, 01 Nov 2024 | AU$69.3b | AU$24.6b | -AU$731,088,528.00 | 21.8x | -94.8x | 2.8x |
| Sun, 29 Sep 2024 | AU$71.0b | AU$24.5b | -AU$718,595,201.00 | 23.1x | -98.9x | 2.9x |
| Tue, 27 Aug 2024 | AU$66.7b | AU$24.5b | AU$565.4m | 21.1x | 117.9x | 2.7x |
| Thu, 25 Jul 2024 | AU$67.4b | AU$23.9b | AU$385.0m | 22x | 175.1x | 2.8x |
| Sat, 22 Jun 2024 | AU$65.7b | AU$23.6b | AU$365.2m | 24.4x | 180x | 2.8x |
| Mon, 20 May 2024 | AU$61.2b | AU$23.5b | AU$350.3m | 24.3x | 174.7x | 2.6x |
| Wed, 17 Apr 2024 | AU$58.7b | AU$23.4b | AU$292.0m | 24.9x | 201.1x | 2.5x |
| Fri, 15 Mar 2024 | AU$62.6b | AU$23.4b | AU$288.9m | 31x | 216.7x | 2.7x |
| Sun, 11 Feb 2024 | AU$61.4b | AU$23.0b | -AU$533,097,447.00 | 36.3x | -115.2x | 2.7x |
| Tue, 09 Jan 2024 | AU$67.4b | AU$24.8b | -AU$868,553,717.00 | 33.2x | -77.6x | 2.7x |
| Thu, 07 Dec 2023 | AU$66.9b | AU$24.8b | -AU$868,553,717.00 | 33x | -77x | 2.7x |
| Sat, 04 Nov 2023 | AU$66.0b | AU$24.2b | -AU$1,296,867,811.00 | 34x | -50.9x | 2.7x |
| Mon, 02 Oct 2023 | AU$67.5b | AU$24.2b | -AU$1,296,867,901.00 | 33.2x | -52x | 2.8x |
| Wed, 30 Aug 2023 | AU$70.4b | AU$23.7b | -AU$1,724,537,774.00 | 35.8x | -40.8x | 3x |
| Fri, 28 Jul 2023 | AU$70.8b | AU$23.6b | -AU$742,294,541.00 | 32.5x | -95.4x | 3x |
| Sun, 25 Jun 2023 | AU$66.7b | AU$23.5b | -AU$714,143,541.00 | 29x | -93.4x | 2.8x |
| Tue, 23 May 2023 | AU$69.4b | AU$23.4b | -AU$749,643,541.00 | 27.5x | -92.6x | 3x |
| Thu, 20 Apr 2023 | AU$67.7b | AU$23.0b | -AU$889,670,541.00 | 30.1x | -76.1x | 2.9x |
| Sat, 18 Mar 2023 | AU$64.8b | AU$23.0b | -AU$886,710,541.00 | 24.6x | -73.1x | 2.8x |
| Mon, 13 Feb 2023 | AU$67.6b | AU$21.1b | AU$74.1m | 29.9x | 912.6x | 3.2x |
| Wed, 11 Jan 2023 | AU$63.1b | AU$21.1b | AU$74.1m | 28.1x | 852x | 3x |
| Fri, 09 Dec 2022 | AU$64.3b | AU$21.1b | AU$74.1m | 28.2x | 868.5x | 3x |
| Sun, 06 Nov 2022 | AU$65.3b | AU$20.6b | AU$63.5m | 24.9x | 1029.7x | 3.2x |
| Tue, 04 Oct 2022 | AU$59.7b | AU$20.6b | AU$63.5m | 23.2x | 940.4x | 2.9x |
| Thu, 01 Sep 2022 | AU$66.5b | AU$20.5b | AU$93.5m | 25.2x | 710.8x | 3.2x |
| Sat, 30 Jul 2022 | AU$57.4b | AU$20.3b | AU$193.5m | 26.6x | 296.6x | 2.8x |
| Mon, 27 Jun 2022 | AU$55.2b | AU$20.2b | AU$181.9m | 23.2x | 303.5x | 2.7x |
| Wed, 25 May 2022 | AU$58.1b | AU$20.2b | AU$181.9m | 24.6x | 319.6x | 2.9x |
| Fri, 22 Apr 2022 | AU$70.2b | AU$19.6b | -AU$108,567,474.00 | 36.4x | -646.5x | 3.6x |
| Sun, 20 Mar 2022 | AU$71.0b | AU$19.6b | -AU$108,447,943.00 | 35.1x | -654.7x | 3.6x |
| Tue, 15 Feb 2022 | AU$75.9b | AU$18.8b | AU$106.2m | 32.7x | 715x | 4x |
| Thu, 13 Jan 2022 | AU$78.5b | AU$18.8b | AU$106.2m | 34.4x | 739.2x | 4.2x |
| Sat, 11 Dec 2021 | AU$80.3b | AU$18.8b | AU$106.2m | 35.5x | 755.9x | 4.3x |
| Mon, 08 Nov 2021 | AU$83.8b | AU$18.5b | -AU$271,678,378.00 | 39x | -308.5x | 4.5x |
Price to Earnings Ratio
-308.5x
Current Industry PE
- Investors are relatively neutral on the Australian Hospitality industry at the moment, indicating that they anticipate long term growth rates to remain steady.
- The industry is trading close to its 3-year average PS ratio of 3.0x.
Past Earnings Growth
- The earnings for companies in the Hospitality industry have deteriorated over the last three years.
- Meanwhile revenues for these companies have grown 10.0% per year.
- This means that although more sales are being generated, either the cost of doing business or the level of investment back into businesses has increased, which has caused losses to expand.
Industry Trends
Which industries have driven the changes within the Australian Consumer Discretionary industry?
| AU Market | -0.48% | |
| Consumer Discretionary | -1.34% | |
| Hospitality | 1.55% | |
| Leisure Facilities | 2.79% | |
| Casinos and Gaming | 2.74% | |
| Hotels, Resorts and Cruise Lines | -1.87% | |
| Restaurants | -2.70% | |
Industry PE
- Investors are most optimistic about the Restaurants industry which is trading above its 3-year average PE ratio of 49.2x.
- Analysts are expecting annual earnings growth of 32.2%, which is lower than the prior year's growth of 208.8% per year.
Forecasted Growth
- Analysts are most optimistic on the Leisure Facilities industry, expecting annual earnings growth of 46% over the next 5 years.
- This is better than its past earnings decline of 4.6% per year.
- In contrast, the Casinos and Gaming industry is expected to see its earnings grow by 10.0% per year over the next few years.
Top Stock Gainers and Losers
Which companies have driven the market over the last 7 days?
| Company | Last Price | 7D | 1Y | Valuation | |
|---|---|---|---|---|---|
| ALL Aristocrat Leisure | AU$61.52 | 7.2% +AU$2.6b | 57.3% | PE25.6x | |
| CTD Corporate Travel Management | AU$12.40 | 6.6% +AU$109.8m | -26.3% | PE20.9x | |
| PBH PointsBet Holdings | AU$0.79 | 15.3% +AU$34.8m | 4.6% | PS1.1x | |
| FLT Flight Centre Travel Group | AU$15.98 | 0.8% +AU$26.5m | -15.5% | PE25.2x | |
| TAH Tabcorp Holdings | AU$0.47 | 2.2% +AU$22.8m | -42.3% | PS0.5x |