ASX:CWN

Stock Analysis Report

Executive Summary

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

Rewards

Trading at 33.9% below its fair value

Revenue is forecast to grow 8.72% per year

Risk Analysis

Earnings are forecast to decline by an average of -1.6% per year for the next 3 years

Dividend of 4.92% is not well covered by earnings or forecast to be in the next 3 years



Snowflake Analysis

Excellent balance sheet and good value.

Share Price & News

How has Crown Resorts's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: CWN has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-1.5%

CWN

-2.0%

AU Hospitality

-1.8%

AU Market


1 Year Return

4.6%

CWN

20.2%

AU Hospitality

20.0%

AU Market

Return vs Industry: CWN underperformed the Australian Hospitality industry which returned 20.2% over the past year.

Return vs Market: CWN underperformed the Australian Market which returned 20% over the past year.


Shareholder returns

CWNIndustryMarket
7 Day-1.5%-2.0%-1.8%
30 Day-2.3%2.2%-0.3%
90 Day-0.6%5.9%1.1%
1 Year10.0%4.6%24.8%20.2%25.9%20.0%
3 Year32.6%7.0%41.9%26.7%36.0%17.4%
5 Year30.8%-3.5%109.2%68.3%62.5%25.9%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

33.9%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: CWN (A$12.19) is trading below our estimate of fair value (A$18.45)

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


Price To Earnings Ratio

PE vs Industry: CWN is good value based on its PE Ratio (20.6x) compared to the Hospitality industry average (24.5x).

PE vs Market: CWN is poor value based on its PE Ratio (20.6x) compared to the Australian market (18.4x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: CWN is good value based on its PB Ratio (1.6x) compared to the AU Hospitality industry average (1.7x).


Next Steps

Future Growth

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

-1.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CWN's earnings are forecast to decline over the next 3 years (-1.6% per year).

Earnings vs Market: CWN's earnings are forecast to decline over the next 3 years (-1.6% per year).

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

Revenue vs Market: CWN's revenue (8.7% per year) is forecast to grow faster than the Australian market (3.6% per year).

High Growth Revenue: CWN's revenue (8.7% 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 (7.1%).


Next Steps

Past Performance

How has Crown Resorts performed over the past 5 years?

8.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CWN has high quality earnings.

Growing Profit Margin: CWN's current net profit margins (13.7%) are lower than last year (18.1%).


Past Earnings Growth Analysis

Earnings Trend: CWN's earnings have grown by 8.3% per year over the past 5 years.

Accelerating Growth: CWN's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: CWN had negative earnings growth (-28.1%) over the past year, making it difficult to compare to the Hospitality industry average (12.4%).


Return on Equity

High ROE: CWN's Return on Equity (7.9%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Crown Resorts's financial position?


Financial Position Analysis

Short Term Liabilities: CWN's short term assets (A$1.3B) exceed its short term liabilities (A$1.1B).

Long Term Liabilities: CWN's short term assets (A$1.3B) do not cover its long term liabilities (A$1.5B).


Debt to Equity History and Analysis

Debt Level: CWN's debt to equity ratio (21.3%) is considered satisfactory.

Reducing Debt: CWN's debt to equity ratio has reduced from 44.1% to 21.3% over the past 5 years.

Debt Coverage: CWN's debt is well covered by operating cash flow (71.8%).

Interest Coverage: CWN's interest payments on its debt are well covered by EBIT (16.5x coverage).


Balance Sheet

Inventory Level: CWN has a high level of physical assets or inventory.

Debt Coverage by Assets: CWN's debt is covered by short term assets (assets are 1.2x debt).


Next Steps

Dividend

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

4.92%

Current Dividend Yield


Dividend Yield vs Market

company4.9%marketbottom25%2.4%markettop25%5.6%industryaverage3.2%forecastin3Years4.9%

Current dividend yield vs market & industry

Notable Dividend: CWN's dividend (4.92%) is higher than the bottom 25% of dividend payers in the Australian market (2.44%).

High Dividend: CWN's dividend (4.92%) is low compared to the top 25% of dividend payers in the Australian market (5.57%).


Stability and Growth of Payments

Stable Dividend: CWN's dividend payments have been volatile in the past 10 years.

Growing Dividend: CWN's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (101.6%), CWN's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: CWN's dividends in 3 years are not forecast to be well covered by earnings (106.8% payout ratio).


Next Steps

Management

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

4.6yrs

Average management tenure


CEO

John Alexander (62yo)

2.8yrs

Tenure

AU$4,467,815

Compensation

Mr. John Henry Alexander, BA, has been Executive Chairman of Crown Resorts Limited since February 1, 2017 and as its Chief Executive Officer since February 28, 2017. Mr. Alexander served as Executive Deput ...


CEO Compensation Analysis

Compensation vs Market: John's total compensation ($USD3.05M) is about average for companies of similar size in the Australian market ($USD2.96M).

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


Management Age and Tenure

4.6yrs

Average Tenure

53yo

Average Age

Experienced Management: CWN's management team is considered experienced (4.6 years average tenure).


Board Age and Tenure

3.9yrs

Average Tenure

62yo

Average Age

Experienced Board: CWN's board of directors are considered experienced (3.9 years average tenure).


Insider Trading

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


Recent Insider Transactions

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Ownership Breakdown

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


Management Team

  • John Alexander (62yo)

    Executive Chairman & CEO

    • Tenure: 2.8yrs
    • Compensation: AU$4.47m
  • Michael Neilson

    Executive Officer

    • Tenure: 2.5yrs
  • Ken Barton (53yo)

    Chief Financial Officer

    • Tenure: 9.8yrs
    • Compensation: AU$2.90m
  • Barry Felstead

    Chief Executive Officer of Australian Resorts

    • Tenure: 6.3yrs
    • Compensation: AU$2.99m
  • Mary Manos

    General Counsel & Company Secretary

    • Tenure: 2.5yrs
  • William Nisbet (51yo)

    Executive Vice President of Strategy & Development

    • Tenure: 11.7yrs
    • Compensation: AU$3.54m
  • Karl Bitar

    Executive Vice President of Group Marketing & Brand Strategy

    • Tenure: 0yrs
  • Jacinta Cubillo

    Human Resources Coordinator

    • Tenure: 0yrs

Board Members

  • Guy Jalland

    Non-Executive Director

    • Tenure: 1.7yrs
  • John Alexander (62yo)

    Executive Chairman & CEO

    • Tenure: 2.8yrs
    • Compensation: AU$4.47m
  • Harold Mitchell (77yo)

    Non-Executive Director

    • Tenure: 8.8yrs
    • Compensation: AU$197.10k
  • Andrew Demetriou

    Non-Executive Director

    • Tenure: 4.9yrs
    • Compensation: AU$180.68k
  • Mike Johnston

    Non-Executive Director

    • Tenure: 12.4yrs
  • John Poynton (67yo)

    Non-Executive Director

    • Tenure: 1.1yrs
    • Compensation: AU$181.17k
  • Toni Korsanos (50yo)

    Non-Executive Director

    • Tenure: 1.6yrs
    • Compensation: AU$250.53k
  • John Horvath

    Non-Executive Director

    • Tenure: 9.3yrs
    • Compensation: AU$310.53k
  • Lioyd Coonan

    Non-Executive Director

    • Tenure: 8yrs
    • Compensation: AU$219.00k
  • Jane Halton (59yo)

    Non-Executive Director

    • Tenure: 1.6yrs
    • Compensation: AU$197.10k

Company Information

Crown Resorts Limited's company bio, 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$8.255b
  • 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

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CWNASX (Australian Securities Exchange)YesOrdinary SharesAUAUDDec 2007
CWLD.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDDec 2007
5CWDB (Deutsche Boerse AG)YesOrdinary SharesDEEURDec 2007
CWNCHIA (Chi-X Australia)YesOrdinary SharesAUAUDDec 2007
CWLD.YOTCPK (Pink Sheets LLC)UNSPONSORD ADRUSUSDNov 2008

Biography

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


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/10 10:36
End of Day Share Price2019/12/10 00:00
Earnings2019/06/30
Annual Earnings2019/06/30


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.