DB:MD8B

Stock Analysis Report

Executive Summary

Ardent Leisure Group Limited invests in and operates leisure and entertainment businesses in Australia and the United States.

Snowflake

Fundamentals

Reasonable growth potential and fair value.

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

5.6%

MD8B

14.2%

DE Hospitality

3.9%

DE Market


1 Year Return

-43.4%

MD8B

-16.8%

DE Hospitality

3.4%

DE Market

Return vs Industry: MD8B underperformed the German Hospitality industry which returned -16.8% over the past year.

Return vs Market: MD8B underperformed the German Market which returned 3.4% over the past year.


Shareholder returns

MD8BIndustryMarket
7 Day5.6%14.2%3.9%
30 Day-9.5%22.3%2.1%
90 Day-17.0%26.9%3.7%
1 Year-43.4%-43.4%-11.1%-16.8%6.7%3.4%
3 Yearn/a16.3%0.7%18.9%8.6%
5 Yearn/a36.2%9.2%41.8%22.5%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

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

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: MD8B (€0.57) is trading below our estimate of fair value (€1.21)

Significantly Undervalued: MD8B is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: MD8B is unprofitable, so we can't compare its PE Ratio to the Hospitality industry average.

PE vs Market: MD8B is unprofitable, so we can't compare its PE Ratio to the German market.


Price to Earnings Growth Ratio

Low PEG Ratio: Insufficient data to calculate MD8B's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: MD8B is good value based on its PB Ratio (1.2x) compared to the DE Hospitality industry average (2.6x).


Next Steps

Future Growth

How is Ardent Leisure Group forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

112.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MD8B is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (0.2%).

Earnings vs Market: MD8B is forecast to become profitable over the next 3 year, which is considered above average market growth.

High Growth Earnings: MD8B's loss is forecast to worsen by 0% next year.

Revenue vs Market: MD8B's revenue (10.8% per year) is forecast to grow faster than the German market (5% per year).

High Growth Revenue: MD8B's revenue (10.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: MD8B's Return on Equity is forecast to be low in 3 years time (6%).


Next Steps

Past Performance

How has Ardent Leisure Group performed over the past 5 years?

-55.1%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: MD8B is unprofitable, and losses have increased over the past 5 years at a rate of -55.1% per year.

Accelerating Growth: Unable to compare MD8B's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: MD8B is unprofitable, making it difficult to compare its past year earnings growth to the Hospitality industry (-28.4%).


Return on Equity

High ROE: MD8B has a negative Return on Equity (-15.65%), as it is currently unprofitable.


Return on Assets

ROA vs Industry: MD8B is currently unprofitable, so its Return on Assets is negative.


Return on Capital Employed

ROCE Improving: MD8B is currently unprofitable, so its Return on Capital Employed is negative.


Next Steps

Financial Health

How is Ardent Leisure Group's financial position?


Financial Position Analysis

Short Term Liabilities: MD8B's short term assets (A$121.7M) exceeds its short term liabilities (A$83.2M)

Long Term Liabilities: MD8B's short term assets (121.7M) do not cover its long term liabilities (237.0M)


Debt to Equity History and Analysis

Debt Level: MD8B's debt to equity ratio (44.1%) is considered high

Reducing Debt: MD8B's debt to equity ratio has reduced from 51.8% to 44.1% over the past 5 years.


Balance Sheet

Inventory Level: MD8B has a high level of physical assets or inventory.

Debt Coverage by Assets: MD8B's debt is not covered by short term assets (assets are 0.7x debt).


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: MD8B has sufficient cash runway for more than a year based on its current free cash flow.

Forecast Cash Runway: Insufficient data to determine if MD8B has enough cash runway if its free cash flow continues to grow or shrink based on historical rates.


Next Steps

Dividend

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

2.20%

Forecast Dividend Yield


Dividend Yield vs Market

company0%marketbottom25%1.5%markettop25%3.8%industryaverage6.0%forecastin3Years2.2%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: Unable to evaluate MD8B's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate MD8B's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.

Stable Dividend: Insufficient data to determine if MD8B's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if MD8B's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: MD8B is not paying a notable dividend for the German market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of MD8B's dividend in 3 years as they are not forecast to pay a notable one for the German market.


Next Steps

Management

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

1.5yrs

Average management tenure


CEO

John Osborne 0

0.9yrs

Tenure

AU$557,389

Compensation

Mr. John Osborne served as the Chief Executive Officer at Lantern Hotel Group from August 19, 2015 to May 26, 2017. Mr. Osborne served as the Chief Executive Officer at Next Generation Health and Lifestyle ...


CEO Compensation Analysis

Compensation vs. Market: Insufficient data to establish whether John's total compensation is reasonable compared to companies of similar size in the German market.

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


Management Age and Tenure

1.5yrs

Average Tenure

Experienced Management: MD8B's management team is not considered experienced ( 1.5 years average tenure), which suggests a new team.


Board Age and Tenure

2.1yrs

Average Tenure

60yo

Average Age

Experienced Board: MD8B's board of directors are not considered experienced ( 2.1 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: MD8B insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyAU$121,25704 Sep 19
David Haslingden
EntityIndividual
Role
Lead Director
Lead Independent Director
Shares192,307
Max PriceAU$0.63
SellAU$2,619,79814 Aug 19
Nikko Asset Management Co., Ltd.
EntityCompany
Shares3,644,766
Max PriceAU$0.72
BuyAU$9,127,38114 Aug 19
Nikko Asset Management Co., Ltd.
EntityCompany
Shares12,184,282
Max PriceAU$0.75
BuyAU$681,66126 Jun 19
Viburnum Funds Pty Ltd.
EntityCompany
Shares1,091,375
Max PriceAU$0.62
BuyAU$17,91921 Jun 19
Realindex Investments Pty Limited
EntityCompany
Shares26,528
Max PriceAU$0.68
BuyAU$1,727,91616 Jun 19
Viburnum Funds Pty Ltd.
EntityCompany
Shares2,500,000
Max PriceAU$0.69
SellAU$4,35114 Jun 19
Realindex Investments Pty Limited
EntityCompany
Shares5,996
Max PriceAU$0.73
BuyAU$4,35114 Jun 19
Realindex Investments Pty Limited
EntityCompany
Shares5,996
Max PriceAU$0.73
BuyAU$1,539,25102 Jun 19
Viburnum Funds Pty Ltd.
EntityCompany
Shares2,000,000
Max PriceAU$0.77
BuyAU$97,89030 May 19
Realindex Investments Pty Limited
EntityCompany
Shares128,226
Max PriceAU$0.76
BuyAU$1,694,62216 May 19
Viburnum Funds Pty Ltd.
EntityCompany
Shares2,200,000
Max PriceAU$0.77
BuyAU$6402 May 19
Colonial First State Asset Management (Australia) Limited
EntityCompany
Shares81
Max PriceAU$0.79
BuyAU$95,32402 May 19
Realindex Investments Pty Limited
EntityCompany
Shares121,688
Max PriceAU$0.79
SellAU$3,68702 May 19
Colonial First State Asset Management (Australia) Limited
EntityCompany
Shares4,776
Max PriceAU$0.77
BuyAU$1,396,63615 Apr 19
Viburnum Funds Pty Ltd.
EntityCompany
Shares1,864,397
Max PriceAU$0.75
BuyAU$127,07015 Apr 19
David Haslingden
EntityIndividual
Role
Lead Director
Lead Independent Director
Shares171,673
Max PriceAU$0.74
BuyAU$190,21910 Apr 19
C. Richmond
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares261,550
Max PriceAU$0.73
BuyAU$2,058,28408 Apr 19
Realindex Investments Pty Limited
EntityCompany
Shares2,265,289
Max PriceAU$0.91
BuyAU$1,621,91308 Apr 19
Colonial First State Asset Management (Australia) Limited
EntityCompany
Shares1,863,969
Max PriceAU$0.94
BuyAU$3,583,70704 Mar 19
Sun Hung Kai & Co. Limited, Asset Management Arm
EntityCompany
Shares3,580,217
Max PriceAU$1.00
SellAU$234,09104 Mar 19
Sun Hung Kai & Co. Limited, Asset Management Arm
EntityCompany
Shares216,000
Max PriceAU$1.08
BuyAU$2,060,15804 Mar 19
Allied Group Ltd., Asset Management Arm
EntityCompany
Shares1,946,733
Max PriceAU$1.06

Ownership Breakdown


Management Team

  • John Osborne

    Chief Executive Officer of the Theme Parks Division

    • Tenure: 0.9yrs
    • Compensation: AU$557.39k
  • Chris Morris (48yo)

    President & CEO of US Entertainment Centres

    • Tenure: 1.7yrs
    • Compensation: AU$1.15m
  • Darin Harper (44yo)

    Group Chief Financial Officer

    • Tenure: 1.3yrs
    • Compensation: AU$884.09k
  • Bronwyn Weir

    Company Secretary

    • Tenure: 2.5yrs

Board Members

  • Gary Weiss (66yo)

    Chairman

    • Tenure: 2.1yrs
    • Compensation: AU$210.42k
  • Randy Garfield (67yo)

    Independent Director

    • Tenure: 2.2yrs
    • Compensation: AU$160.67k
  • Brad Richmond (60yo)

    Independent Director

    • Tenure: 2.1yrs
    • Compensation: AU$168.83k
  • Toni Korsanos (50yo)

    Independent Director

    • Tenure: 1.3yrs
    • Compensation: AU$145.33k
  • David Haslingden (58yo)

    Lead Independent Director

    • Tenure: 1.4yrs
    • Compensation: AU$147.50k

Company Information

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


Key Information

  • Name: Ardent Leisure Group Limited
  • Ticker: MD8B
  • Exchange: DB
  • Founded: 2018
  • Industry: Leisure Facilities
  • Sector: Consumer Services
  • Market Cap: AU$462.779m
  • Listing Market Cap: AU$283.959m
  • Shares outstanding: 479.56m
  • Website: https://www.ardentleisure.com

Number of Employees


Location

  • Ardent Leisure Group Limited
  • 60 Miller Street
  • Level 8
  • North Sydney
  • New South Wales
  • 2060
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ANRR.FOTCPK (Pink Sheets LLC)Common Stock USUSDNo data
ALGASX (Australian Securities Exchange)YesShare CapitalAUAUDJul 1998
MD8BDB (Deutsche Boerse AG)YesShare CapitalDEEURJul 1998
ALGCHIA (Chi-X Australia)YesShare CapitalAUAUDJul 1998

Biography

Ardent Leisure Group Limited invests in and operates leisure and entertainment businesses in Australia and the United States. The company operates through Main Event and Theme Parks segments. The company o ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/17 21:45
End of Day Share Price2019/10/17 00:00
Earnings2019/06/25
Annual Earnings2019/06/25


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.