ALL share price in focus
Founded by Len Ainsworth in 1953, Aristocrat Leisure is an Australian gambling machine operator that is headquartered in Sydney.
Currently, Aristocrat is the largest manufacturer of gambling machines in Australia and one of the world’s leading producers of slot machines. However, the company’s business extends beyond just physical machines; Aristocrat also develops online games, which have grown to contribute nearly half of its total revenue.
Aristocrat’s gaming machines can either be sold outright to venues or gaming operators or installed with a revenue-sharing model, where a portion of the earnings generated is paid back to Aristocrat on a recurring basis.
A2M shares
Founded in New Zealand in 2000, The a2 Milk Company specialises in dairy products that contain the naturally occurring A2 protein type, sold under the a2 brand.
The company does not produce its products directly but partners with over 25 certified dairy farms across Australia, where suppliers handle the production. Additionally, its instant formula products are manufactured by its supply partner, Synlait Milk, in New Zealand.
A key selling point of a2 Milk is its claimed health benefits, particularly its easier digestibility compared to regular milk. This makes it a suitable option for people who typically experience digestive issues with standard milk.
ALL & A2M share price valuation
As a growth company, some of the trends we might investigate from ALL include revenue growth, profit growth, and return on equity (ROE). These measures can indicate the growth rates and prospects of the company, as well as their ability to generate returns from their assets.
Since 2021, ALL has grown revenue at a rate of 11.7% per year to reach $6,604m in FY24. Over the same stretch of time, net profit has increased from $820m to $1,303m. As for ROE, ALL last reported a ROE of 20.0%.
Over the last 3 years, A2M has increased revenue at a rate of 11.6% per year to hit $1,673m in FY24. Meanwhile, net profit has increased from $81m to $168m. As for ROE, A2M’s last reported figure was 12.8%.
Please keep in mind that context is important. These metrics give us some indication of company performance, but it’s just the start of valuing ALL or A2M shares. To learn more about valuation, check out one of our free online investing courses.
