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Aristocrat and Santos: Two ASX Stocks, Two Different Stories
Aristocrat's revenue grew 11.7% a year to $6.6 billion. Santos posted a 43% debt ratio and an 8.2% ROE. Two ASX stocks, two different financial profiles.
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Aristocrat Leisure and Santos Ltd offered contrasting profiles for ASX investors this week.
Aristocrat, the Sydney-based gambling machine maker, grew revenue from $6,604 million in FY24, up 11.7% a year since 2021. Net profit climbed from $820 million to $1,303 million over that stretch. The company reported a return on equity of 20%. Its business spans physical slot machines and online games, which now contribute nearly half of total revenue. Machines are either sold outright or placed under revenue-sharing deals that give Aristocrat a recurring cut of the take.
Santos, one of Australia's largest oil and gas producers, offers a different set of numbers. The company reported a debt-to-equity ratio of 43% in CY24, meaning equity still outweighs debt. Its average dividend yield since 2020 came in at 4.6% a year. Return on equity was 8.2%, below the 10% threshold often expected for a mature business. Santos has faced criticism from the ACCR over its climate targets, with net-zero plans covering only Scope 1 and 2 emissions. Scope 3 emissions, which account for more than 75% of the company's total, are not included.