Aristocrat Leisure Limited
Aristocrat Leisure Limited Fundamental Analysis
Aristocrat Leisure Limited (ARLUF) shows strong financial fundamentals with a PE ratio of 18.16, profit margin of 26.02%, and ROE of 23.84%. The company generates $6.2B in annual revenue with moderate year-over-year growth of 4.89%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 68.9/100 based on profitability, valuation, growth, and balance sheet metrics. The C+ grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze ARLUF's fundamental strength across five key dimensions:
Efficiency Score
ExcellentARLUF demonstrates superior asset utilization.
Valuation Score
ExcellentARLUF trades at attractive valuation levels.
Growth Score
WeakARLUF faces weak or negative growth trends.
Financial Health Score
ExcellentARLUF maintains a strong and stable balance sheet.
Profitability Score
ExcellentARLUF achieves industry-leading margins.
Key Financial Metrics
Is ARLUF Expensive or Cheap?
P/E Ratio
ARLUF trades at 18.16 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, ARLUF's PEG of 1.56 indicates fair valuation.
Price to Book
The market values Aristocrat Leisure Limited at 4.54 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 10.66 times EBITDA. This signals the market has high growth expectations.
How Well Does ARLUF Make Money?
Net Profit Margin
For every $100 in sales, Aristocrat Leisure Limited keeps $26.02 as profit after all expenses.
Operating Margin
Core operations generate 21.95 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $23.84 in profit for every $100 of shareholder equity.
ROA
Aristocrat Leisure Limited generates $15.76 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Aristocrat Leisure Limited generates strong operating cash flow of $1.89B, reflecting robust business health.
Free Cash Flow
Aristocrat Leisure Limited generates strong free cash flow of $1.55B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $2.55 in free cash annually.
FCF Yield
ARLUF converts 5.44% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
18.16
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
1.56
vs 25 benchmark
P/B Ratio
Price to book value ratio
4.54
vs 25 benchmark
P/S Ratio
Price to sales ratio
4.61
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.31
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.65
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.24
vs 25 benchmark
ROA
Return on assets percentage
0.16
vs 25 benchmark
ROCE
Return on capital employed
0.16
vs 25 benchmark
How ARLUF Stacks Against Its Sector Peers
| Metric | ARLUF Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 18.16 | 23.78 | Better (Cheaper) |
| ROE | 23.84% | 1098.00% | Weak |
| Net Margin | 26.02% | -626.00% (disorted) | Strong |
| Debt/Equity | 0.31 | 0.86 | Strong (Low Leverage) |
| Current Ratio | 1.65 | 2.64 | Neutral |
| ROA | 15.76% | -8081.00% (disorted) | Strong |
ARLUF outperforms its industry in 4 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Aristocrat Leisure Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
50.14%
Industry Style: Cyclical, Growth, Discretionary
High GrowthEPS CAGR
86.48%
Industry Style: Cyclical, Growth, Discretionary
High GrowthFCF CAGR
62.58%
Industry Style: Cyclical, Growth, Discretionary
High Growth