ASX:ALL

Stock Analysis Report

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.

Snowflake

Fundamentals

Reasonable growth potential with acceptable track record.

Risks

  • Aristocrat Leisure has significant price volatility in the past 3 months.

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


Market Performance


7 Day Return

2.2%

ASX:ALL

0.6%

AU Hospitality

0.4%

AU Market


1 Year Return

-1.9%

ASX:ALL

-9.0%

AU Hospitality

4.6%

AU Market

ALL outperformed the Hospitality industry which returned -9% over the past year.

ALL underperformed the Market in Australia which returned 4.6% over the past year.


Share holder returns

ALLIndustryMarket
7 Day2.2%0.6%0.4%
30 Day17.6%1.6%1.5%
90 Day26.1%6.6%6.1%
1 Year-0.03%-1.9%-5.8%-9.0%10.6%4.6%
3 Year146.8%134.7%32.6%18.0%42.0%23.4%
5 Year535.5%480.9%95.0%56.7%45.3%12.8%

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 based on future cash flows and its price relative to the stock market?

31.59x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

Aristocrat Leisure's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).

Aristocrat Leisure's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).


Price Based on Earnings

Aristocrat Leisure is overvalued based on earnings compared to the AU Hospitality industry average.

Aristocrat Leisure is overvalued based on earnings compared to the Australia market.


Price Based on Expected Growth

Aristocrat Leisure is poor value based on expected growth next year.


Price Based on Value of Assets

Aristocrat Leisure is overvalued based on assets compared to the AU Hospitality industry average.


Next Steps

Future Growth

How is Aristocrat Leisure expected to perform in the next 1 to 3 years based on estimates from 15 analysts?

14.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Aristocrat Leisure's revenue is expected to grow by 6.4% yearly, however this is not considered high growth (20% yearly).

Aristocrat Leisure's earnings are expected to grow by 14.1% yearly, however this is not considered high growth (20% yearly).

Aristocrat Leisure's revenue growth is expected to exceed the Australia market average.

Aristocrat Leisure's earnings growth is expected to exceed the Australia market average.

Aristocrat Leisure's earnings growth is expected to exceed the low risk savings rate of 2.3%.


Earnings per Share Growth Estimates


Future Return on Equity

Aristocrat Leisure is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).


Next Steps

Past Performance

How has Aristocrat Leisure performed over the past 5 years?

32.0%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Aristocrat Leisure has delivered over 20% year on year earnings growth in the past 5 years.

Aristocrat Leisure's 1-year earnings growth is less than its 5-year average (25.9% vs 32%)

Aristocrat Leisure's earnings growth has not exceeded the AU Hospitality industry average in the past year (25.9% vs 25.9%).


Return on Equity

Whilst Aristocrat Leisure has efficiently used shareholders’ funds last year (Return on Equity greater than 20%), this is metric is skewed due to its high level of debt.


Return on Assets

Aristocrat Leisure used its assets more efficiently than the AU Hospitality industry average last year based on Return on Assets.


Return on Capital Employed

Aristocrat Leisure has improved its use of capital last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Aristocrat Leisure's financial position?


Financial Position Analysis

Aristocrat Leisure is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Aristocrat Leisure's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

Aristocrat Leisure's level of debt (156.5%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has increased over the past 5 years (65.2% vs 156.5% today).

Debt is well covered by operating cash flow (38.1%, greater than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 8.5x coverage).


Balance Sheet

Low level of unsold assets.

Debt is not covered by short term assets, assets are 0.5x debt.


Next Steps

Dividend

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

2.04%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Aristocrat Leisure's pays a lower dividend yield than the bottom 25% of dividend payers in Australia (2.6%).

Aristocrat Leisure's dividend is below the markets top 25% of dividend payers in Australia (5.84%).

Aristocrat Leisure is not paying a notable dividend for Australia, therefore no need to check if the payments are stable.

Aristocrat Leisure is not paying a notable dividend for Australia, therefore no need to check if the payments are increasing.


Current Payout to Shareholders

No need to calculate the sustainability of Aristocrat Leisure's dividends as it is not paying a notable one for Australia.


Future Payout to Shareholders

Dividends after 3 years are expected to be well covered by earnings (2.5x coverage).


Next Steps

Management

What is the CEO of Aristocrat Leisure's salary, the management and board of directors tenure and is there insider trading?

2.7yrs

Average management tenure


CEO

Trevor Croker

2.3yrs

Tenure

AU$4,538,983

Compensation

Mr. Trevor J. Croker serves as a Director of the Australasian Gaming Council and the American Gaming Association. He serves as Managing Director of Anz, Asia & EMEA at Aristocrat Technologies Europe Ltd. M ...


CEO Compensation Analysis

Trevor's remuneration is about average for companies of similar size in Australia.

Trevor's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

2.7yrs

Average Tenure

The tenure for the Aristocrat Leisure management team is about average.


Board Age and Tenure

2.8yrs

Average Tenure

61yo

Average Age

The average tenure for the Aristocrat Leisure board of directors is less than 3 years, this suggests a new board.


Insider Trading

No 3 month insider trading information.


Recent Insider Transactions

BuyAU$100,72910 Jan 19
Sylvia D. Couder
EntityIndividual
Role
Member of the Board of Directors
Shares4,600
Max PriceAU$21.90
BuyAU$3206 Dec 18
BlackRock, Inc.
EntityCompany
Shares14,005,681
Max PriceAU$32.93
SellAU$006 Dec 18
BlackRock, Inc.
EntityCompany
Shares19,164,727
Max PriceAU$32.84
BuyAU$42,642,72605 Dec 18
The Vanguard Group, Inc.
EntityCompany
Shares1,334,888
Max PriceAU$32.15
SellAU$10,611,37905 Dec 18
The Vanguard Group, Inc.
EntityCompany
Shares332,047
Max PriceAU$32.19
BuyAU$50,08004 Dec 18
Arlene Tansey
EntityIndividual
Role
Member of the Board of Directors
Shares2,000
Max PriceAU$25.04
BuyAU$144,12004 Dec 18
Neil Chatfield
EntityIndividual
Role
Chairman of the Board
Shares6,000
Max PriceAU$24.02
BuyAU$110,76603 Oct 18
Neil Chatfield
EntityIndividual
Role
Chairman of the Board
Shares4,000
Max PriceAU$27.69

Ownership Breakdown


Management Team

  • Rich Schneider (60yo)

    Chief Product Officer

    • Tenure: 7.9yrs
  • Trevor Croker

    CEO, MD & Director

    • Tenure: 2.3yrs
    • Compensation: A$4.54m
  • Victor Blanco

    Senior Vice President of Platform Architecture

    • Tenure: 9.4yrs
    • Compensation: A$951.02k
  • Mark Dunn

    Executive VP & General Counsel

    • Tenure: 7.5yrs
  • Julie Cameron-Doe

    Chief Financial Officer

    • Tenure: 1.4yrs
    • Compensation: A$1.30m
  • Matt Wilson

    Managing Director of Americas

    • Tenure: 2.3yrs
    • Compensation: A$1.55m
  • James Alvarez

    Chief Information Officer

  • Mitch Bowen

    Managing Director of Australia & New Zeland and International

    • Tenure: 2.3yrs
    • Compensation: A$1.15m
  • Luke Bortoli

    Global General Manager of Strategy

  • Christie Roser

    Chief Human Resources Officer

    • Tenure: 3.0yrs

Board Members

  • Sandra Panem (71yo)

  • Sylvia D. Couder (65yo)

    Non-Executive Director

    • Tenure: 2.8yrs
    • Compensation: A$345.93k
  • Neil Chatfield (64yo)

    Chairman

    • Tenure: 0.3yrs
    • Compensation: A$205.33k
  • Kathleen Conlon (54yo)

    Non-Executive Director

    • Tenure: 5.3yrs
    • Compensation: A$290.35k
  • Steve Morro (59yo)

    Non-Executive Director

    • Tenure: 8.5yrs
    • Compensation: A$362.37k
  • Arlene Tansey (61yo)

    Non-Executive Director

    • Tenure: 2.9yrs
    • Compensation: A$286.18k
  • Pat Ramsey (44yo)

    Non-Executive Director

    • Tenure: 2.7yrs
    • Compensation: A$332.52k
  • Trevor Croker

    CEO, MD & Director

    • Tenure: 2.3yrs
    • Compensation: A$4.54m

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$19.929b
  • Shares outstanding: 638.54m
  • Website: Click here

Number of Employees


Location

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

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ARLU.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJul 1996
ALLASX (Australian Securities Exchange)YesOrdinary SharesAUAUDJul 1996
AC8DB (Deutsche Boerse AG)YesOrdinary SharesDEEURJul 1996
ALLCHIA (Chi-X Australia)YesOrdinary SharesAUAUDJul 1996

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 Analysis2019/06/20 10:33
End of Day Share Price2019/06/20 00:00
Earnings2019/03/31
Annual Earnings2018/09/30


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.