Australia Stock Alert

AUSTR

CLOSING UPDATE: Aristocrat Leisure decreases 1.1%, led S&P/ASX 200 Consumer Discretionary index lower September 20, 2018 16:00:00 AEST

NEWS BITES - AUSTRALIA

This is an end of day Alert, produced after today's Australian market close. It concludes the BSS News Bites intra-day Alert series (summaries below).

Aristocrat Leisure, Australia's largest consumer services company by market capitalisation, has decreased 1.1% to trade at $A28.40 vs. the S&P/ASX 200 Consumer Discretionary index which weakened 33.9 points (or 1.4%) to 2,439.9. Representing a weighting of about 16.1% of the index, the stock accounted for 13.5% of today's loss. Compared with the All Ordinaries Index which fell 20.2 points (or 0.3%) in the day, this represented a relative price change of -0.8%.

Technical indicators complementing today's significant downtrend:

+ The negative 0.69 MACD (Moving Average Convergence Divergence) indicator suggests a bearish signal.

+ The price dropped 2.2% in the last week and tumbled 8.2% in the last month.

Fundamental measures by comparison with the sector average [in brackets] indicate:

Overvaluation:

+ Price/Sales of 7.4 [2.8]

+ Dividend yield of 1.4% [3.7%]

Other Bearish Signals include:

+ Tobin's Q Ratio is 5.5. Compared with the rest of the market the stock is overvalued and ranks in the bottom quartile of stocks by value of Q Ratio.

Note

Aristocrat Leisure today is at a discount of 14.1% to the 12-month high of $A33.06 on 30 Jul, 2018. It is at a premium of 44.8% to the 12-month low of $A19.62 on 21 Sep, 2017.

Bullish Signals:

In the last three months the stock has hit a new 52-week high five times, pointing to an uptrend.

The present value of AUD1,000 invested one year ago is $A1,419 [vs $A1,088 for the All Ordinaries Index].

Interest cover is less leveraged at 12.6 times.

Total Liabilities/EBITDA of 2.5 is comfortably below the Joseph Piotroski benchmark of <5.

Net profit margin has averaged 15.5% in the last 3 years. This is considered superior and suggests a high margin of safety.

As per the Du Pont analysis, Return on Equity is high at 36.8%. Also, this has improved from 32.6% last year.

Fundamental measures by comparison with the sector average [in brackets] indicate:

Undervaluation:

Price/Earnings of 36.5 [44.3]

Return on Equity 36.8% [4.9%]

Return on Assets 15% [2.6%]

Return on Capital Employed 30% [6.2%]

TODAY'S ALERT

Morning Alert: Aristocrat Leisure decreases 0.4%

September 20, 2018 11:00:00 AEST

Aristocrat Leisure Limited (ASX:ALL) has decreased 12.0c (or 0.4%) to trade at $A28.61.

RECENT ALERTS

CLOSING UPDATE: Aristocrat Leisure decreases 1.8%, led S&P/ASX 200 Consumer Discretionary index lower

September 18, 2018 16:00:00 AEST

Aristocrat Leisure, Australia's largest consumer services company by market capitalisation, has decreased 1.8% to trade at $A28.62 vs. the S&P/ASX 200 Consumer Discretionary index which weakened 26.5 points (or 1.1%) to 2,466.7. Representing a weighting of about 16.1% of the index, the stock accounted for 27.6% of today's loss. Trading volume was 75% of average at the end of the day. Compared with the All Ordinaries Index which fell 24.4 points (or 0.4%) in the day, this represented a relative price change of -1.4%.

Morning Alert: Aristocrat Leisure drops 2.0%

September 18, 2018 11:00:00 AEST

Aristocrat Leisure Limited (ASX:ALL) has dropped 58.50c (or 2.0%) to trade at $A28.57.

Aristocrat Leisure Limited (AU:ALL; ASX:ALL; AX:ALL)

ISIN: AU000000ALL7

PermID: 4295857388

Source: www.BuySellSignals.com