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.
The last earnings update was 61 days ago.
Discounted Cash Flow Calculation for OTCPK:ARLU.F using 2 Stage Free Cash Flow to Equity Model
The calculations below outline how an intrinsic value for
is arrived at by discounting future cash flows to their present value using the 2 stage method.
We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.
OTCPK:ARLU.F DCF 1st Stage: Next 10 year cash flow forecast
Amount off the current price
is available for.
Share price is
vs Future cash flow value of
Current Discount Checks
to be considered undervalued it must be available for at least 20% below the
current price. Less than 40% is even better.
Aristocrat Leisure's share price is below the future cash flow value, but not at a moderate discount (< 20%).
Aristocrat Leisure's share price is below the future cash flow value, but not at a substantial discount (< 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for
it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing
when they are out of season, or how much your home is worth.
The amount the stock market is willing to pay for
is considered below, and whether this is a fair price.
Price based on past earnings
Aristocrat Leisure's earnings available for a low price, and how does
this compare to other companies in the same industry?
Aristocrat Leisure's earnings are expected to grow by 14.8% yearly, however this is not considered high growth (20% yearly).
Aristocrat Leisure's revenue is expected to grow by 6.3% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can
be gauged below. We look back 3 years and see if they were any good at
predicting what actually occurred. We also show the highest and lowest estimates
looking forward to see if there is a wide range.
Aristocrat Leisure's performance over the past 5 years by checking for:
Has earnings increased in past 5 years? (1 check)
Has the earnings growth in the last year exceeded that of the
industry? (1 check)
Is the recent earnings growth over the last year higher than the average annual growth over the
past 5 years? (1 check)
Is the Return on Equity (ROE) higher than 20%? (1 check)
Is the Return on Assets (ROA) above industry average? (1 check)
Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent
earnings report. Some checks require at least 3 or 5 years worth of data.
has a total score of
4/6, see the detailed checks below.
Note: We use GAAP Net Income excluding extraordinary items in all our calculations.
A company's financial position is much like your own financial position,
it includes everything you own
The boxes below represent the relative size of what makes up
Aristocrat Leisure's finances.
The net worth of a company is the difference between its assets and liabilities.
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.
This treemap shows a more detailed breakdown of
Aristocrat Leisure's finances. If any of them are yellow this
indicates they may be out of proportion and red means they relate to one of the
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
Low level of unsold assets.
Debt is not covered by short term assets, assets are 0.5x debt.
Nearly all companies have debt. Debt in itself isn’t
however if the debt is too high, or the company can’t afford to pay the interest
on its debts this may have impacts in the future.
The graphic below shows equity (available funds) and debt, we ideally want to
see the red area (debt) decreasing.
If there is any debt we look at the companies capability to repay it, and
whether the level has increased over the past 5 years.
Management is one of the most important areas of a company. We look at
unreasonable CEO compensation, how long the team and board of directors have
been around for and insider trading.
TENURE AS CEO
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. Mr. Croker has been the Chief Executive Officer and Managing Director at Aristocrat Leisure Limited since February 28, 2017 and March 1, 2017 respectively and serves as its Director. Mr. Croker served as the Chief Digital Officer and Executive Vice President of Global Products and Insights at Aristocrat Leisure Ltd until March 1, 2017. He served as the Managing Director of Australia and New Zealand at Aristocrat Leisure Ltd. Mr. Croker served as a Managing Director of Australia, New Zealand, Asia Pacific & EMEA at Aristocrat Leisure Limited since October 2009. He has significant experience building high performance sales organizations. Mr. Croker served as a Sales Director of Carlton & United Breweries from February 2009 to June 2009. He served as a Sales Director of Foster’s Australia from 2007 to 2009, Sales Director for National Accounts from 2006 to 2007 and Director of Customer Marketing from 2005 to 2006. Mr. Croker served as a Marketing Director of Asia Pacific at Beringer Blass Wine Estates from 2004 to 2005, Sales Director, Asia Pacific from 2002 to 2004 and National Sales Director (Australia) from 1999 to 2002. He served as NSW State Manager (North) of Carlton & United Breweries from 1997 to 1999, Queensland Regional Business Manager from 1995 to 1997 and Business Development Manager from 1994 to 1995. Mr. Croker holds a Graduate Diploma in Management from University of New South Wales in 2004 and an Associate Diploma Sports Administration from Griffith University in 1987.
Trevor's compensation has been consistent with company performance over the past year, both up more than 20%.
Trevor's remuneration is lower than average for companies of similar size in United States of America.
Management Team Tenure
Average tenure of the
management team in years:
The tenure for the Aristocrat Leisure management team is about average.
CEO, MD & Director
Chief Financial Officer
CEO of Global Land Based & Chief Transformation Officer
Chief Information Officer
Global General Manager of Strategy
Executive VP & General Counsel
Chief Human Resources Officer
Senior Vice President of Platform Architecture
Chief Product Officer
Managing Director of Europe
Board of Directors Tenure
Average tenure and age of the
board of directors in years:
The average tenure for the Aristocrat Leisure board of directors is less than 3 years, this suggests a new board.
Board of Directors
CEO, MD & Director
Sylvia D. Couder
Who owns this company?
Recent Insider Trading
No 3 month individual insider trading information.
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. The company offers gaming content; and platforms and systems, including electronic gaming machines, casino management systems, and digital social games, as well as Web and mobile gaming services. It also provides cabinets and gaming products. In addition, the company operates in the online social gaming and real money wager markets. Aristocrat Leisure Limited was incorporated in 1984 and is based in North Ryde, Australia.
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