Fact based stock research
Ardent Leisure (ASX:ALG)

AU0000027484

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For every stock, we judge its performance against its peers and rank it on a scale of 1 to 100. The higher the rank, the better the stock performs than its peers. And, we do this for six investment strategies:
Value - shows how good of a value the stock is. Green is "inexpensive"; red is "expensive".

Growth - shows a company's growth potential. Green is "high growth" expected; red is "tough times ahead".

Safety - relates to the amount of debt a company has. Green is low debt level; red is high debt level.

Combined Financial - this isn't an average of the first three ranks but rather a consolidated view across several financial indicators. Green = good; red = tread carefully.

(NEW) Sentiment - quantifies professional analyst ratings and holdings as well as market pulse. Green = positive sentiment; red = skepticism (Only available to Premium Subscribers).

(NEW) 360° View - the ultimate rating with all financial and non-financial indicators.

Ardent Leisure stock research in summary

ardentleisure.com

ANALYSIS: With an Obermatt Combined Rank of 85 (better than 85% compared with investment alternatives), Ardent Leisure (Leisure Facilities, Australia) shares have much better financial characteristics than comparable stocks. Shares of Ardent Leisure are a good value (attractively priced) with a consolidated Value Rank of 71 (better than 71% of alternatives), are safely financed (Safety Rank of 72, which means low debt burdens), but show below-average growth (Growth Rank of 49). ...read more

RECOMMENDATION: A Combined Rank of 85, is a strong buy recommendation based on Ardent Leisure's financial characteristics. As the company Ardent Leisure's key financial metrics exhibit good value (Obermatt Value Rank of 71) but low growth (Obermatt Growth Rank of 49) while being safely financed (Obermatt Safety Rank of 72), it may be a safer investment because companies with low debt can better withstand times of crises. Yet the good value, better than 71% of comparable companies, may also indicate that the company's future is challenging. If you believe that low growth is temporary or just due to a specific current event, you may conclude that the good value of the stock provides an attractive investment opportunity and the downside is limited due to below-average financing risks. Obermatt Premium subscribers can further check the stock’s Sentiment Ranks, which also flow into the Obermatt 360° View for investors. ...read more

Latest Obermatt Ranks


360° View^new
Sentiment Rank^new
Value Rank	71
Growth Rank	49
Safety Rank	72
Combined Rank	85

Country	Australia
Industry	Leisure Facilities
Index	ASX 300
Size class	X-Small

19-Dec-2024. Stock data may be delayed. Log in or sign up to get the most recent research.

Further information

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Review the performance ranks of the individual metrics that form each investment strategy.

Research History: Ardent Leisure

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	26	59	52	71
GROWTH
GROWTH	79	77	37	49
SAFETY
SAFETY	10	14	76	72
SENTIMENT
SENTIMENT	n/a	46	58	^new
360° VIEW
360° VIEW	n/a	43	57	^new

Most recent update of the stock research: 19-Dec-2024. Financial reporting date used for calculating ranks: 27-Jun-2024. Stock research history is based on the Obermatt Method. The higher the rank, the better Ardent Leisure is in the corresponding investment strategy.
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Combined financial peformance in Detail

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	26	59	52	71
GROWTH
GROWTH	79	77	37	49
SAFETY
SAFETY	10	14	76	72
COMBINED
COMBINED	23	50	55	85

Last update of combined financial performance: 19-Dec-2024. Stock analysis on combined financial performance: The higher the rank of Ardent Leisure the better the performance.

Value Metrics in Detail

ANALYSIS: With an Obermatt Value Rank of 71 (better than 71% compared with alternatives), Ardent Leisure shares are more attractively priced than the majority of comparable stocks. The Value Rank is based on consolidating four value indicators, where three out of four indicators are above average for Ardent Leisure. Price-to-Sales (P/S) is 56 which means that the stock price compared with what market professionals expect for future sales is lower than for 56% of comparable companies, indicating a good value for Ardent Leisure's revenue size. The same is valid for the Price-to-Book Capital ratio (also referred to as market-to-book ratio) with a Price-to-Capital Rank of 96. Finally, compared with other companies in the same industry, dividend yields of Ardent Leisure are expected to be higher than for 78% of all competitors (a Dividend Yield rank of 78). The only low rank is for expected profits with a Price-to-Profit Rank of 19, indicating that the market expects the company's profit to be low despite a high dividend. ...read more

RECOMMENDATION: The overall picture with a consolidated Value Rank of 71, is a buy recommendation based on Ardent Leisure's stock price compared with the company's operational size and dividend yields. The low Profit Rank could result from a one-off charge, for instance, for an accident, a legal settlement, or a restructuring project. If the company keeps its dividends high, the low expected profit may be transitory. If that is the case, the three good value ranks for Sales, Capital, and Dividends are reliable indicators for good stock price value, a low stock price. We recommend further analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks, including the 360° View, before making an investment decision. ...read more

VALUE METRICS	2021	2022	2023	2024
PRICE VS. REVENUES (P/S)
PRICE VS. REVENUES (P/S)	69	100	33	56
PRICE VS. PROFITS (P/E)
PRICE VS. PROFITS (P/E)	28	15	3	19
PRICE VS. CAPITAL (Market-to-Book)
PRICE VS. CAPITAL (Market-to-Book)	14	76	87	96
DIVIDEND YIELD
DIVIDEND YIELD	1	1	17	78
CONSOLIDATED RANK: VALUE
CONSOLIDATED RANK: VALUE	26	59	52	71

Last update of Value Rank: 19-Dec-2024. Stock analysis on value ratios: The higher the rank, the lower the value ratio of Ardent Leisure; except for dividend yield where the rank is higher, the higher the yield.

Growth Metrics in Detail

ANALYSIS: With an Obermatt Growth Rank of 49 (better than 49% compared with alternatives), Ardent Leisure shows a below-average growth dynamic in its industry. There is limited momentum in this company. The Growth Rank is based on consolidating four value indicators, with all but one indicator above average for Ardent Leisure. Sales Growth has a rank of 60 which means that currently, professionals expect the company to grow more than 60% of its competitors. Both Profit Growth, with a rank of 80, and Stock Returns, with a rank of 53, are also above average. But Capital Growth only has a rank of 10, which means that, currently, professionals expect the company to grow its invested capital less than 90% of its competitors. ...read more

RECOMMENDATION: The overall picture with a consolidated Growth Rank of 49, is a hold recommendation for growth and momentum investors. That may be a good sign if the company is already well positioned and doesn't require more investments at this time. They may focus on growing the top (revenues) and bottom (profits) lines, recently rewarded with above-average stock returns for shareholders. But it may also be a sign of danger as the company is falling back with capital investment activities concerning competition. This requires further analysis of corporate communications. While momentum is a popular investment factor, the value aspect might be the more important one, in the longer term. We recommend analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks to arrive at a 360° View of the stock purchase case. ...read more

GROWTH METRICS	2021	2022	2023	2024
REVENUE GROWTH
REVENUE GROWTH	41	50	88	60
PROFIT GROWTH
PROFIT GROWTH	3	72	68	80
CAPITAL GROWTH
CAPITAL GROWTH	n/a	28	13	10
STOCK RETURNS
STOCK RETURNS	96	100	17	53
CONSOLIDATED RANK: GROWTH
CONSOLIDATED RANK: GROWTH	79	77	37	49

Last update of Growth Rank: 19-Dec-2024. Stock analysis on growth metrics: The higher the rank, the higher the growth and returns of Ardent Leisure.

Safety Metrics in Detail

ANALYSIS: With an Obermatt Safety Rank of 72 (better than 72% compared with alternatives), the company Ardent Leisure has financing practices on the safer side, which mean that their overall debt burden is lower than average. This doesn't mean that the business of Ardent Leisure is safe, it only means that the company is on the safer side regarding possible bankruptcy, assuming that public reporting is correct. The Safety Rank is based on consolidating three financing indicators where two out of three are above average for Ardent Leisure.Leverage is at 89, meaning the company has a below-average debt-to-equity ratio. It has less debt than 89% of its competitors.Refinancing is at a rank of 91, meaning that the portion of the debt that is about to be refinanced is below average. It has less debt in the refinancing stage than 91% of its competitors. Liquidity is at 8, meaning that the company generates less profit to service its debt than 92% of its competitors. This indicates that the company is on the riskier side regarding debt service. ...read more

RECOMMENDATION: With a consolidated Safety Rank of 72 (better than 72% compared with alternatives), Ardent Leisure has a financing structure that is safer than that of its competitors. Low leverage and low refinancing risk mean a safer financing situation. However, low liquidity means that current company cash flows are low in relation to the level of debt. This is a sign of caution in case it is expected for profits to remain low. Investors should compare Obermatt’s Value, Growth, and Sentiment Ranks before deciding. They may also want to investigate why cash flows are expected to be low, making debt service for Ardent Leisure more challenging. ...read more

SAFETY METRICS	2021	2022	2023	2024
LEVERAGE
LEVERAGE	10	4	94	89
REFINANCING
REFINANCING	29	45	97	91
LIQUIDITY
LIQUIDITY	36	10	8	8
CONSOLIDATED RANK: SAFETY
CONSOLIDATED RANK: SAFETY	10	14	76	72

Last update of Safety Rank: 19-Dec-2024. Stock analysis on safety metrics: The higher the rank, the lower the leverage of Ardent Leisure and the more cash is available to service its debt.

Sentiment Metrics in Detail

SENTIMENT	2021	2022	2023	2024
ANALYST OPINIONS
ANALYST OPINIONS	n/a	95	73	^new
OPINIONS CHANGE
OPINIONS CHANGE	n/a	50	50	^new
PRO HOLDINGS
PRO HOLDINGS	n/a	6	60	^new
MARKET PULSE
MARKET PULSE	n/a	39	41	^new
CONSOLIDATED RANK: SENTIMENT
CONSOLIDATED RANK: SENTIMENT	n/a	46	58	^new

Last update of Sentiment Rank: 19-Dec-2024. Stock analysis on sentiment metrics: The higher the rank, the more positive the sentiment for Ardent Leisure.
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