INTERNATIONAL GAME TECHNOLOG (IGT)
GB00BVG7F061 - Common Stock
Overall IGT gets a fundamental rating of 5 out of 10. We evaluated IGT against 135 industry peers in the Hotels, Restaurants & Leisure industry. IGT has only an average score on both its financial health and profitability. IGT is valued quite cheap, while showing a decent growth score. This is a good combination!
1. Profitability
1.1 Basic Checks
IGT had positive earnings in the past year.
IGT had a positive operating cash flow in the past year.
In multiple years IGT reported negative net income over the last 5 years.
IGT had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
IGT has a Return On Assets (1.48%) which is in line with its industry peers.
With a decent Return On Equity value of 10.75%, IGT is doing good in the industry, outperforming 66.42% of the companies in the same industry.
IGT has a Return On Invested Capital of 7.03%. This is comparable to the rest of the industry: IGT outperforms 57.46% of its industry peers.
IGT had an Average Return On Invested Capital over the past 3 years of 6.39%. This is below the industry average of 10.18%.
The 3 year average ROIC (6.39%) for IGT is below the current ROIC(7.03%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.48% | ||
| ROE | 10.75% | ||
| ROIC | 7.03% |
ROA(3y)2.79%
ROA(5y)0.27%
ROE(3y)22.55%
ROE(5y)-9.81%
ROIC(3y)6.39%
ROIC(5y)4.72%
1.3 Margins
Looking at the Profit Margin, with a value of 3.60%, IGT is in line with its industry, outperforming 49.25% of the companies in the same industry.
The Operating Margin of IGT (24.08%) is better than 89.55% of its industry peers.
In the last couple of years the Operating Margin of IGT has grown nicely.
IGT has a Gross Margin (48.89%) which is in line with its industry peers.
IGT's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 24.08% | ||
| PM (TTM) | 3.6% | ||
| GM | 48.89% |
OM growth 3Y47.57%
OM growth 5Y9.59%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y10.27%
GM growth 5Y2.53%
2. Health
2.1 Basic Checks
IGT has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
IGT has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, IGT has less shares outstanding
IGT has a better debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 0.92, we must say that IGT is in the distress zone and has some risk of bankruptcy.
IGT has a Altman-Z score of 0.92. This is in the lower half of the industry: IGT underperforms 66.42% of its industry peers.
The Debt to FCF ratio of IGT is 8.87, which is on the high side as it means it would take IGT, 8.87 years of fcf income to pay off all of its debts.
IGT has a better Debt to FCF ratio (8.87) than 61.94% of its industry peers.
A Debt/Equity ratio of 3.94 is on the high side and indicates that IGT has dependencies on debt financing.
With a Debt to Equity ratio value of 3.94, IGT perfoms like the industry average, outperforming 42.54% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.94 | ||
| Debt/FCF | 8.87 | ||
| Altman-Z | 0.92 |
ROIC/WACC1.21
WACC5.8%
2.3 Liquidity
A Current Ratio of 1.26 indicates that IGT should not have too much problems paying its short term obligations.
IGT's Current ratio of 1.26 is fine compared to the rest of the industry. IGT outperforms 60.45% of its industry peers.
A Quick Ratio of 1.07 indicates that IGT should not have too much problems paying its short term obligations.
IGT has a Quick ratio (1.07) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.26 | ||
| Quick Ratio | 1.07 |
3. Growth
3.1 Past
The earnings per share for IGT have decreased strongly by -15.53% in the last year.
The Earnings Per Share has been growing slightly by 6.77% on average over the past years.
IGT shows a small growth in Revenue. In the last year, the Revenue has grown by 2.01%.
IGT shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 1.60% yearly.
EPS 1Y (TTM)-15.53%
EPS 3YN/A
EPS 5Y6.77%
EPS growth Q2Q275%
Revenue 1Y (TTM)2.01%
Revenue growth 3Y11.43%
Revenue growth 5Y1.6%
Revenue growth Q2Q3.39%
3.2 Future
The Earnings Per Share is expected to grow by 25.63% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 3.91% on average over the next years.
EPS Next Y17.76%
EPS Next 2Y24.37%
EPS Next 3Y25.63%
EPS Next 5YN/A
Revenue Next Year1.39%
Revenue Next 2Y2.43%
Revenue Next 3Y2.93%
Revenue Next 5Y3.91%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 14.69 indicates a correct valuation of IGT.
IGT's Price/Earnings ratio is a bit cheaper when compared to the industry. IGT is cheaper than 78.36% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 24.55, IGT is valued a bit cheaper.
With a Price/Forward Earnings ratio of 12.47, IGT is valued correctly.
81.34% of the companies in the same industry are more expensive than IGT, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 20.92. IGT is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.69 | ||
| Fwd PE | 12.47 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of IGT indicates a rather cheap valuation: IGT is cheaper than 88.06% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of IGT indicates a rather cheap valuation: IGT is cheaper than 97.01% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.25 | ||
| EV/EBITDA | 5.82 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The decent profitability rating of IGT may justify a higher PE ratio.
A more expensive valuation may be justified as IGT's earnings are expected to grow with 25.63% in the coming years.
PEG (NY)0.83
PEG (5Y)2.17
EPS Next 2Y24.37%
EPS Next 3Y25.63%
5. Dividend
5.1 Amount
IGT has a Yearly Dividend Yield of 3.95%. Purely for dividend investing, there may be better candidates out there.
The stock price of IGT dropped by -23.73% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
IGT's Dividend Yield is rather good when compared to the industry average which is at 2.56. IGT pays more dividend than 93.28% of the companies in the same industry.
IGT's Dividend Yield is rather good when compared to the S&P500 average which is at 2.39.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.95% |
5.2 History
IGT has been paying a dividend for at least 10 years, so it has a reliable track record.
IGT has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)0%
Div Incr Years0
Div Non Decr Years3
5.3 Sustainability
103.23% of the earnings are spent on dividend by IGT. This is not a sustainable payout ratio.
DP103.23%
EPS Next 2Y24.37%
EPS Next 3Y25.63%
INTERNATIONAL GAME TECHNOLOG
NYSE:IGT (5/2/2024, 1:47:44 PM)
19.975
+0.08 (+0.38%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap4.00B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.95% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
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EPS beat(8)
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EPS beat(12)
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EPS beat(16)
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Revenue beat(2)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.69 | ||
| Fwd PE | 12.47 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)0.83
PEG (5Y)2.17
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.48% | ||
| ROE | 10.75% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 24.08% | ||
| PM (TTM) | 3.6% | ||
| GM | 48.89% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.41
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.94 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.26 | ||
| Quick Ratio | 1.07 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-15.53%
EPS 3YN/A
EPS 5Y
EPS growth Q2Q
EPS Next Y17.76%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)2.01%
Revenue growth 3Y11.43%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y