Building up an investment case requires looking at a stock holistically. Today I’ve chosen to put the spotlight on Aristocrat Leisure Limited (ASX:ALL) due to its excellent fundamentals in more than one area. ALL has a a strong track record of performance as well as a excellent growth outlook going forward. In the following section, I expand a bit more on these key aspects. For those interested in digger a bit deeper into my commentary, read the full report on Aristocrat Leisure here.
Proven track record with reasonable growth potential
Bullish market analysts are forecasting fast-growing ALL to deliver an exceptional sales growth rate of 60% over the next year. This underlies the notable 47% return on equity over the next few years leading up to 2021. ALL delivered a satisfying double-digit returns of 33% in the most recent year Not surprisingly, ALL outperformed its industry which returned 11%, giving us more conviction of the company’s capacity to drive bottom-line growth going forward.
For Aristocrat Leisure, I’ve put together three essential factors you should further examine:
- Financial Health: Does it have a healthy balance sheet? Take a look at our free balance sheet analysis with six simple checks on key factors like leverage and risk.
- Valuation: What is ALL worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether ALL is currently mispriced by the market.
- Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of ALL? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at firstname.lastname@example.org.