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Aristocrat Leisure Ltd ALL

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Stock XASX Rating as of
A$58.17 +0.08 (0.14%)
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As of Delayed Price Closed

Company Report

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Light & Wonder: Dragon Train Injunction Unlikely to Move the Needle

Angus Hewitt

The United States District Court of Nevada has granted Aristocrat a preliminary injunction against no-moat Light & Wonder’s Dragon Train game, prohibiting further sales in the US. The case centers around similarities between Light & Wonder’s game and narrow-moat Aristocrat’s highly successful Dragon Link series, including allegations of copyright infringement and misappropriation of trade secrets. Specifically, intellectual property and game mechanics, and the role former Aristocrat employees, now at Light & Wonder, had in its development. The court decision finds Aristocrat is “extremely likely to succeed” in demonstrating trade secrets were misappropriated in the development of Dragon Train.

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Price vs Fair Value

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ALL is trading at a 776% premium.
Price
A$58.17
Fair Value
A$32.00
Uncertainty
Medium
1-Star Price
A$92.30
5-Star Price
A$42.80
Economic Moat
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Capital Allocation
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Bulls Say, Bears Say

Bulls

Aristocrat operates in a market protected from new entrants, as stringent regulatory licensing requirements in major markets create barriers to entry for new players.

Bears

In the pursuit of continued earnings growth, Aristocrat is at risk of overpaying for acquisitions in its competitively more challenged digital gaming business.

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News

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Trading Information

Previous Close Price
A$58.09
Day Range
A$57.21–58.56
52-Week Range
A$38.06–58.60
Bid/Ask
A$57.75 / A$58.55
Market Cap
A$36.62 Bil
Volume/Avg
1.2 Mil / 1.1 Mil

Key Statistics

Price/Earnings (Normalized)
19.93
Price/Sales
5.83
Dividend Yield (Trailing)
1.20%
Dividend Yield (Forward)
1.24%
Total Yield
3.71%

Company Profile

Aristocrat Leisure is an electronic gaming machine manufacturer that sells machines to pubs, clubs, and casinos. The firm is licensed in all Australian states and territories, North American jurisdictions, and essentially every major country. Aristocrat is one of the top three largest players in the space along with International Game Technology and Light & Wonder. Through acquisitions of Plarium and more recently Big Fish, Aristocrat now derives a significant proportion of earnings from the faster growing mobile gaming business.
Sector
Consumer Cyclical
Industry
Gambling
Stock Style Box
Large Growth
Total Number of Employees
7,000
Website
https://www.aristocrat.com

Competitors

Valuation

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Metric
ALL
SGR
WYNN
Price/Earnings (Normalized)
 19.931.8516.23
Price/Book Value
 5.640.86—
Price/Sales
 5.830.381.43
Price/Cash Flow
 20.52—6.68
Price/Earnings
ALL
SGR
WYNN

Financial Strength

Metric
ALL
SGR
WYNN
Quick Ratio
 2.820.661.23
Current Ratio
 3.110.851.30
Interest Coverage
 11.24−11.361.46
Quick Ratio
ALL
SGR
WYNN

Profitability

Metric
ALL
SGR
WYNN
Return on Assets (Normalized)
 13.37%−5.90%4.62%
Return on Equity (Normalized)
 21.61%−10.16%—
Return on Invested Capital (Normalized)
 15.50%−4.53%8.96%
Return on Assets
ALL
SGR
WYNN

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1-Day Chart
Name
Price
Morningstar Rating for Stocks
Capital Allocation
Economic Moat
Market Cap
Flutter Entertainment PLC
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ZzrptxdtkPpjyxs$43.4 Bil
 Aristocrat Leisure Ltd
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—Gzn$24.9 Bil
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—Gtwz$20.6 Bil
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EVVTY
—Yqx$20.6 Bil
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DKNG
TmnxbmnTmfryc$19.9 Bil
 Churchill Downs Inc
CHDN
—Sgkqxn$9.8 Bil
 Light & Wonder Inc Ordinary Shares
LNW
NclslzrYpznn$8.3 Bil
 La Francaise Des Jeux SA Ordinary Shares
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—Jcmmv$8.0 Bil
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—Bvry$7.8 Bil
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