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Market Cap

AU$23.7b

Last Updated

2021/04/16 08:05 UTC

Data Sources

Company Financials +

Executive Summary

Aristocrat Leisure Limited, together with its subsidiaries, engages in the development, assembly, sale, distribution, and servicing of games and systems in the Americas, Australia, New Zealand, and internationally. More Details


Snowflake Analysis

Solid track record with adequate balance sheet.


Similar Companies

Share Price & News

How has Aristocrat Leisure's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: ALL is less volatile than 75% of Australian stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: ALL's weekly volatility (4%) has been stable over the past year.


Market Performance


7 Day Return

0.9%

ALL

-0.4%

AU Hospitality

1.0%

AU Market


1 Year Return

57.3%

ALL

70.2%

AU Hospitality

33.5%

AU Market

Return vs Industry: ALL underperformed the Australian Hospitality industry which returned 74.5% over the past year.

Return vs Market: ALL exceeded the Australian Market which returned 35.1% over the past year.


Shareholder returns

ALLIndustryMarket
7 Day0.9%-0.4%1.0%
30 Day6.9%5.7%4.0%
90 Day24.1%21.0%5.0%
1 Year57.8%57.3%71.8%70.2%40.5%33.5%
3 Year51.0%45.4%11.9%1.4%36.3%16.1%
5 Year305.9%278.0%66.4%37.9%67.0%31.3%

Long-Term Price Volatility Vs. Market

How volatile is Aristocrat Leisure's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Aristocrat Leisure undervalued compared to its fair value and its price relative to the market?

17.18x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: ALL (A$37.12) is trading above our estimate of fair value (A$32.18)

Significantly Below Fair Value: ALL is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: ALL is good value based on its PE Ratio (17.2x) compared to the AU Hospitality industry average (41.5x).

PE vs Market: ALL is good value based on its PE Ratio (17.2x) compared to the Australian market (20.2x).


Price to Earnings Growth Ratio

PEG Ratio: ALL's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: ALL is overvalued based on its PB Ratio (7.4x) compared to the AU Hospitality industry average (2.8x).


Future Growth

How is Aristocrat Leisure forecast to perform in the next 1 to 3 years based on estimates from 12 analysts?

-10.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ALL's earnings are forecast to decline over the next 3 years (-10% per year).

Earnings vs Market: ALL's earnings are forecast to decline over the next 3 years (-10% per year).

High Growth Earnings: ALL's earnings are forecast to decline over the next 3 years.

Revenue vs Market: ALL's revenue (9.5% per year) is forecast to grow faster than the Australian market (5.1% per year).

High Growth Revenue: ALL's revenue (9.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: ALL's Return on Equity is forecast to be high in 3 years time (26.6%)


Past Performance

How has Aristocrat Leisure performed over the past 5 years?

37.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ALL has high quality earnings.

Growing Profit Margin: ALL's current net profit margins (33.3%) are higher than last year (16%).


Past Earnings Growth Analysis

Earnings Trend: ALL's earnings have grown significantly by 37.1% per year over the past 5 years.

Accelerating Growth: ALL's earnings growth over the past year (95.7%) exceeds its 5-year average (37.1% per year).

Earnings vs Industry: ALL earnings growth over the past year (95.7%) exceeded the Hospitality industry -12.4%.


Return on Equity

High ROE: Whilst ALL's Return on Equity (43.32%) is outstanding, this metric is skewed due to their high level of debt.


Financial Health

How is Aristocrat Leisure's financial position?


Financial Position Analysis

Short Term Liabilities: ALL's short term assets (A$2.5B) exceed its short term liabilities (A$1.0B).

Long Term Liabilities: ALL's short term assets (A$2.5B) do not cover its long term liabilities (A$3.7B).


Debt to Equity History and Analysis

Debt Level: ALL's debt to equity ratio (104%) is considered high.

Reducing Debt: ALL's debt to equity ratio has reduced from 194.2% to 104% over the past 5 years.

Debt Coverage: ALL's debt is well covered by operating cash flow (30.9%).

Interest Coverage: ALL's interest payments on its debt are well covered by EBIT (3.7x coverage).


Balance Sheet


Dividend

What is Aristocrat Leisure current dividend yield, its reliability and sustainability?

0.27%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: ALL's dividend (0.27%) isn’t notable compared to the bottom 25% of dividend payers in the Australian market (1.99%).

High Dividend: ALL's dividend (0.27%) is low compared to the top 25% of dividend payers in the Australian market (5.34%).


Stability and Growth of Payments

Stable Dividend: ALL is not paying a notable dividend for the Australian market, therefore no need to check if payments are stable.

Growing Dividend: ALL is not paying a notable dividend for the Australian market, therefore no need to check if payments are increasing.


Current Payout to Shareholders

Dividend Coverage: ALL is not paying a notable dividend for the Australian market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of ALL's dividend in 3 years as they are not forecast to pay a notable one for the Australian market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

4.1yrs

Average management tenure


CEO

Trevor Croker

4.17yrs

Tenure

AU$4,457,417

Compensation

Mr. Trevor J. Croker, Advanced Management Program, MAICD, serves as a Director of the Australasian Gaming Council and the American Gaming Association and Chairman since January 2020. He serves as Managing ...


CEO Compensation Analysis

Compensation vs Market: Trevor's total compensation ($USD3.45M) is about average for companies of similar size in the Australian market ($USD3.46M).

Compensation vs Earnings: Trevor's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: ALL's management team is considered experienced (4.1 years average tenure).


Board Members

Experienced Board: ALL's board of directors are considered experienced (4.5 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Aristocrat Leisure Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Aristocrat Leisure Limited
  • Ticker: ALL
  • Exchange: ASX
  • Founded: 1984
  • Industry: Casinos and Gaming
  • Sector: Consumer Services
  • Market Cap: AU$23.671b
  • Shares outstanding: 638.54m
  • Website: https://www.aristocrat.com

Number of Employees


Location

  • Aristocrat Leisure Limited
  • Building A
  • Pinnacle Office Park
  • North Ryde
  • New South Wales
  • 2113
  • Australia

Listings


Biography

Aristocrat Leisure Limited, together with its subsidiaries, engages in the development, assembly, sale, distribution, and servicing of games and systems in the Americas, Australia, New Zealand, and interna...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/04/16 08:05
End of Day Share Price2021/04/16 00:00
Earnings2020/09/30
Annual Earnings2020/09/30


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.