Aristocrat Leisure Ltd
Morningstar Rating for Stocks | Fair Value | Economic Moat | Capital Allocation |
---|---|---|---|
A$83.00 | Btbbgk | Gmmgwxpff |
Digital Gaming and Leased Machines Spare Aristocrat the Worst
We maintain our AUD 33.00 fair value estimate for shares in narrow-moat Aristocrat following the release of its fiscal 2020 financial result. Fiscal 2020 was a difficult year for Aristocrat, with underlying net profit dropping 47% to AUD 477 million--but ahead of our AUD 451 million forecast. As expected, earnings weakness was principally due to Aristocrat's outright electronic gaming machine, or EGM, sales which have been hard-hit as coronavirus-induced shutdowns, social distancing measures, and travel restrictions weighed on the firm's casino and club customers.