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CWN

Crown ResortsASX:CWN Stock Report

Market Cap

AU$6.5b

7D

3.8%

1Y

6.5%

Updated

17 Oct, 2021

Data

Company Financials +
CWN fundamental analysis
Snowflake Score
Valuation3/6
Future Growth4/6
Past Performance0/6
Financial Health3/6
Dividends0/6

CWN Overview

Crown Resorts Limited operates in the entertainment industry primarily in Australia.

Rewards

Trading at 23.2% below our estimate of its fair value

Earnings are forecast to grow 52.12% per year

Risk Analysis

No risks detected for CWN from our risk checks.

Crown Resorts Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Crown Resorts
Historical stock prices
Current Share PriceAU$9.57
52 Week HighAU$8.06
52 Week LowAU$13.32
Beta1.09
1 Month Change0.63%
3 Month Change-10.89%
1 Year Change6.45%
3 Year Change-26.95%
5 Year Change-12.36%
Change since IPO-32.94%

Recent News & Updates

Shareholder Returns

CWNAU HospitalityAU Market
7D3.8%0.1%0.9%
1Y6.5%41.7%20.2%

Return vs Industry: CWN underperformed the Australian Hospitality industry which returned 41.7% over the past year.

Return vs Market: CWN underperformed the Australian Market which returned 20.2% over the past year.

Price Volatility

Is CWN's price volatile compared to industry and market?
CWN volatility
CWN Beta1.09
Industry Beta1.23
Market Beta1

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

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

About the Company

FoundedEmployeesCEOWebsite
200712,489Peter Crinishttps://www.crownresorts.com.au

Crown Resorts Limited operates in the entertainment industry primarily in Australia. It operates through four segments: Crown Melbourne, Crown Perth, Crown Aspinalls, and Wagering & Online. The company owns and operates two integrated resorts, including Crown Melbourne and Crown Perth.

Crown Resorts Fundamentals Summary

How do Crown Resorts's earnings and revenue compare to its market cap?
CWN fundamental statistics
Market CapAU$6.48b
Earnings (TTM)-AU$261.60m
Revenue (TTM)AU$1.54b

4.2x

P/S Ratio

-24.8x

P/E Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
CWN income statement (TTM)
RevenueAU$1.54b
Cost of RevenueAU$1.51b
Gross ProfitAU$30.70m
ExpensesAU$292.30m
Earnings-AU$261.60m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)-0.39
Gross Margin2.00%
Net Profit Margin-17.02%
Debt/Equity Ratio27.2%

How did CWN perform over the long term?

See historical performance and comparison

Valuation

Is Crown Resorts undervalued compared to its fair value and its price relative to the market?

23.2%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: CWN (A$9.57) is trading below our estimate of fair value (A$12.46)

Significantly Below Fair Value: CWN is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: CWN is unprofitable, so we can't compare its PE Ratio to the Australian Hospitality industry average.

PE vs Market: CWN is unprofitable, so we can't compare its PE Ratio to the Australian market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate CWN's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: CWN is good value based on its PB Ratio (1.5x) compared to the AU Hospitality industry average (3.7x).


Future Growth

How is Crown Resorts forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?

52.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CWN is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.9%).

Earnings vs Market: CWN is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: CWN's is expected to become profitable in the next 3 years.

Revenue vs Market: CWN's revenue (18.6% per year) is forecast to grow faster than the Australian market (5.5% per year).

High Growth Revenue: CWN's revenue (18.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: CWN's Return on Equity is forecast to be low in 3 years time (8.5%).


Past Performance

How has Crown Resorts performed over the past 5 years?

-50.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CWN is currently unprofitable.

Growing Profit Margin: CWN is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: CWN is unprofitable, and losses have increased over the past 5 years at a rate of 50.1% per year.

Accelerating Growth: Unable to compare CWN's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: CWN is unprofitable, making it difficult to compare its past year earnings growth to the Hospitality industry (4.2%).


Return on Equity

High ROE: CWN has a negative Return on Equity (-5.85%), as it is currently unprofitable.


Financial Health

How is Crown Resorts's financial position?


Financial Position Analysis

Short Term Liabilities: CWN's short term assets (A$1.1B) exceed its short term liabilities (A$1.0B).

Long Term Liabilities: CWN's short term assets (A$1.1B) do not cover its long term liabilities (A$1.6B).


Debt to Equity History and Analysis

Debt Level: CWN's debt to equity ratio (27.2%) is considered satisfactory.

Reducing Debt: CWN's debt to equity ratio has reduced from 42.3% to 27.2% over the past 5 years.

Debt Coverage: CWN's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: Insufficient data to determine if CWN's interest payments on its debt are well covered by EBIT.


Balance Sheet


Dividend

What is Crown Resorts's current dividend yield, its reliability and sustainability?

4.31%

Forecast Dividend Yield


Dividend Yield vs Market

Notable Dividend: Unable to evaluate CWN's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate CWN's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if CWN's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if CWN's dividend payments have been increasing.


Current Payout to Shareholders

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


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of CWN'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?

0.7yrs

Average management tenure


CEO

Peter Crinis

0.75

Tenure

AU$1,311,512

Compensation

Mr. Peter Crinis is Chief Executive Officer of Crown Sydney at Crown Resorts Limited from January 1, 2021. With experience in the hotel and hospitality industry across Australia, Mr. Crinis is one of Austr...


CEO Compensation Analysis

Compensation vs Market: Peter's total compensation ($USD973.44K) is below average for companies of similar size in the Australian market ($USD2.16M).

Compensation vs Earnings: Insufficient data to compare Peter's compensation with company performance.


Leadership Team

Experienced Management: CWN's management team is not considered experienced ( 0.7 years average tenure), which suggests a new team.


Board Members

Experienced Board: CWN's board of directors are not considered experienced ( 2 years average tenure), which suggests a new board.


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

Crown Resorts Limited's employee growth, exchange listings and data sources


Key Information

  • Name: Crown Resorts Limited
  • Ticker: CWN
  • Exchange: ASX
  • Founded: 2007
  • Industry: Casinos and Gaming
  • Sector: Consumer Services
  • Market Cap: AU$6.480b
  • Shares outstanding: 677.16m
  • Website: https://www.crownresorts.com.au

Number of Employees


Location

  • Crown Resorts Limited
  • Crown Towers
  • Level 3
  • Southbank
  • Victoria
  • 3006
  • Australia

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/10/17 07:04
End of Day Share Price2021/10/15 00:00
Earnings2021/06/30
Annual Earnings2021/06/30


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.