INTERNATIONAL GAME TECHNOLOG (IGT) Stock Fundamental Analysis
NYSE:IGT - New York Stock Exchange, Inc. - GB00BVG7F061 - Common Stock - Currency: USD
Taking everything into account, IGT scores 6 out of 10 in our fundamental rating. IGT was compared to 131 industry peers in the Hotels, Restaurants & Leisure industry. Both the profitability and the financial health of IGT get a neutral evaluation. Nothing too spectacular is happening here. IGT is valued quite cheap, but it does not seem to be growing. These ratings would make IGT suitable for value investing!
1. Profitability
1.1 Basic Checks
IGT had positive earnings in the past year.
In the past year IGT had a positive cash flow from operations.
Of the past 5 years IGT 4 years were profitable.
In the past 5 years IGT always reported a positive cash flow from operatings.
1.2 Ratios
IGT has a Return On Assets (2.83%) which is comparable to the rest of the industry.
The Return On Equity of IGT (17.85%) is better than 76.30% of its industry peers.
The Return On Invested Capital of IGT (7.27%) is better than 61.48% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for IGT is significantly below the industry average of 15.79%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.83% | ||
| ROE | 17.85% | ||
| ROIC | 7.27% |
ROA(3y)2.5%
ROA(5y)0.97%
ROE(3y)17.02%
ROE(5y)-5.38%
ROIC(3y)7.65%
ROIC(5y)6.46%
1.3 Margins
With a decent Profit Margin value of 10.21%, IGT is doing good in the industry, outperforming 75.56% of the companies in the same industry.
IGT's Profit Margin has improved in the last couple of years.
The Operating Margin of IGT (25.12%) is better than 89.63% of its industry peers.
In the last couple of years the Operating Margin of IGT has grown nicely.
The Gross Margin of IGT (45.71%) is comparable to the rest of the industry.
In the last couple of years the Gross Margin of IGT has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 25.12% | ||
| PM (TTM) | 10.21% | ||
| GM | 45.71% |
OM growth 3Y9.13%
OM growth 5Y15.18%
PM growth 3Y5.43%
PM growth 5YN/A
GM growth 3Y-0.98%
GM growth 5Y2.02%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so IGT is still creating some value.
IGT has more shares outstanding than it did 1 year ago.
The number of shares outstanding for IGT has been reduced compared to 5 years ago.
The debt/assets ratio for IGT has been reduced compared to a year ago.
2.2 Solvency
IGT has a debt to FCF ratio of 5.72. This is a neutral value as IGT would need 5.72 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 5.72, IGT is in the better half of the industry, outperforming 78.52% of the companies in the same industry.
IGT has a Debt/Equity ratio of 3.33. This is a high value indicating a heavy dependency on external financing.
IGT has a Debt to Equity ratio (3.33) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.33 | ||
| Debt/FCF | 5.72 | ||
| Altman-Z | N/A |
ROIC/WACC1.29
WACC5.65%
2.3 Liquidity
IGT has a Current Ratio of 2.48. This indicates that IGT is financially healthy and has no problem in meeting its short term obligations.
Looking at the Current ratio, with a value of 2.48, IGT belongs to the top of the industry, outperforming 90.37% of the companies in the same industry.
IGT has a Quick Ratio of 2.43. This indicates that IGT is financially healthy and has no problem in meeting its short term obligations.
With an excellent Quick ratio value of 2.43, IGT belongs to the best of the industry, outperforming 91.11% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.48 | ||
| Quick Ratio | 2.43 |
3. Growth
3.1 Past
The earnings per share for IGT have decreased strongly by -12.73% in the last year.
Measured over the past years, IGT shows a quite strong growth in Earnings Per Share. The EPS has been growing by 9.63% on average per year.
Looking at the last year, IGT shows a very negative growth in Revenue. The Revenue has decreased by -33.52% in the last year.
The Revenue has been decreasing by -9.03% on average over the past years.
EPS 1Y (TTM)-12.73%
EPS 3Y-21.54%
EPS 5Y9.63%
EPS Q2Q%-67.5%
Revenue 1Y (TTM)-33.52%
Revenue growth 3Y-14.99%
Revenue growth 5Y-9.03%
Sales Q2Q%-45.36%
3.2 Future
Based on estimates for the next years, IGT will show a very negative growth in Earnings Per Share. The EPS will decrease by -10.95% on average per year.
Based on estimates for the next years, IGT will show a quite strong growth in Revenue. The Revenue will grow by 16.47% on average per year.
EPS Next Y-46.15%
EPS Next 2Y-9.58%
EPS Next 3Y-10.95%
EPS Next 5YN/A
Revenue Next Year0.75%
Revenue Next 2Y1.07%
Revenue Next 3Y1.36%
Revenue Next 5Y16.47%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 11.31, the valuation of IGT can be described as reasonable.
Compared to the rest of the industry, the Price/Earnings ratio of IGT indicates a rather cheap valuation: IGT is cheaper than 93.33% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of IGT to the average of the S&P500 Index (26.82), we can say IGT is valued rather cheaply.
IGT is valuated reasonably with a Price/Forward Earnings ratio of 11.65.
IGT's Price/Forward Earnings ratio is rather cheap when compared to the industry. IGT is cheaper than 85.19% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 36.21. IGT is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.31 | ||
| Fwd PE | 11.65 |
4.2 Price Multiples
IGT's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. IGT is cheaper than 71.85% of the companies 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 100.00% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 3.31 | ||
| EV/EBITDA | 9.78 |
4.3 Compensation for Growth
The decent profitability rating of IGT may justify a higher PE ratio.
A cheap valuation may be justified as IGT's earnings are expected to decrease with -10.95% in the coming years.
PEG (NY)N/A
PEG (5Y)1.18
EPS Next 2Y-9.58%
EPS Next 3Y-10.95%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.91%, IGT is a good candidate for dividend investing.
IGT's Dividend Yield is rather good when compared to the industry average which is at 4.27. IGT pays more dividend than 94.07% of the companies in the same industry.
IGT's Dividend Yield is rather good when compared to the S&P500 average which is at 2.35.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.91% |
5.2 History
The dividend of IGT decreases each year by -0.01%.
IGT has paid a dividend for at least 10 years, which is a reliable track record.
IGT has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)-0.01%
Div Incr Years0
Div Non Decr Years4
5.3 Sustainability
68.60% of the earnings are spent on dividend by IGT. This is not a sustainable payout ratio.
IGT's earnings and Dividend Rate are declining. This means the current dividend is most likely not sustainable.
DP68.6%
EPS Next 2Y-9.58%
EPS Next 3Y-10.95%
16.29
+0.48 (+3.04%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst OwnersN/A
Inst Owner Change0%
Ins OwnersN/A
Ins Owner Change0%
Market Cap3.29B
Analysts72.73
Price Target19.57 (20.14%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.91% |
Yearly Dividend0.8
Dividend Growth(5Y)-0.01%
DP68.6%
Div Incr Years0
Div Non Decr Years4
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)98.59%
Min EPS beat(2)12.91%
Max EPS beat(2)184.28%
EPS beat(4)2
Avg EPS beat(4)19.69%
Min EPS beat(4)-80.94%
Max EPS beat(4)184.28%
EPS beat(8)5
Avg EPS beat(8)20.76%
EPS beat(12)7
Avg EPS beat(12)0.06%
EPS beat(16)11
Avg EPS beat(16)38.21%
Revenue beat(2)0
Avg Revenue beat(2)-5.04%
Min Revenue beat(2)-8.06%
Max Revenue beat(2)-2.02%
Revenue beat(4)0
Avg Revenue beat(4)-3.45%
Min Revenue beat(4)-8.06%
Max Revenue beat(4)-1.74%
Revenue beat(8)4
Avg Revenue beat(8)-0.78%
Revenue beat(12)7
Avg Revenue beat(12)0.25%
Revenue beat(16)10
Avg Revenue beat(16)1.02%
PT rev (1m)-2.46%
PT rev (3m)-18.02%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-40.58%
EPS NY rev (1m)12.27%
EPS NY rev (3m)-0.06%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.62%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.04%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.31 | ||
| Fwd PE | 11.65 | ||
| P/S | 1.15 | ||
| P/FCF | 3.31 | ||
| P/OCF | 2.9 | ||
| P/B | 2.01 | ||
| P/tB | N/A | ||
| EV/EBITDA | 9.78 |
EPS(TTM)1.44
EY8.84%
EPS(NY)1.4
Fwd EY8.58%
FCF(TTM)4.92
FCFY30.18%
OCF(TTM)5.61
OCFY34.46%
SpS14.21
BVpS8.12
TBVpS-5.51
PEG (NY)N/A
PEG (5Y)1.18
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.83% | ||
| ROE | 17.85% | ||
| ROCE | 9.21% | ||
| ROIC | 7.27% | ||
| ROICexc | 7.91% | ||
| ROICexgc | 12.81% | ||
| OM | 25.12% | ||
| PM (TTM) | 10.21% | ||
| GM | 45.71% | ||
| FCFM | 34.6% |
ROA(3y)2.5%
ROA(5y)0.97%
ROE(3y)17.02%
ROE(5y)-5.38%
ROIC(3y)7.65%
ROIC(5y)6.46%
ROICexc(3y)8.23%
ROICexc(5y)6.95%
ROICexgc(3y)25.25%
ROICexgc(5y)21.43%
ROCE(3y)9.69%
ROCE(5y)8.2%
ROICexcg growth 3Y-19.39%
ROICexcg growth 5Y-0.9%
ROICexc growth 3Y0.35%
ROICexc growth 5Y13.64%
OM growth 3Y9.13%
OM growth 5Y15.18%
PM growth 3Y5.43%
PM growth 5YN/A
GM growth 3Y-0.98%
GM growth 5Y2.02%
F-Score5
Asset Turnover0.28
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.33 | ||
| Debt/FCF | 5.72 | ||
| Debt/EBITDA | 6.4 | ||
| Cap/Depr | 106.82% | ||
| Cap/Sales | 4.91% | ||
| Interest Coverage | 3.76 | ||
| Cash Conversion | 132.94% | ||
| Profit Quality | 338.91% | ||
| Current Ratio | 2.48 | ||
| Quick Ratio | 2.43 | ||
| Altman-Z | N/A |
F-Score5
WACC5.65%
ROIC/WACC1.29
Cap/Depr(3y)71.25%
Cap/Depr(5y)60.8%
Cap/Sales(3y)9.74%
Cap/Sales(5y)8.64%
Profit Quality(3y)292.14%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-12.73%
EPS 3Y-21.54%
EPS 5Y9.63%
EPS Q2Q%-67.5%
EPS Next Y-46.15%
EPS Next 2Y-9.58%
EPS Next 3Y-10.95%
EPS Next 5YN/A
Revenue 1Y (TTM)-33.52%
Revenue growth 3Y-14.99%
Revenue growth 5Y-9.03%
Sales Q2Q%-45.36%
Revenue Next Year0.75%
Revenue Next 2Y1.07%
Revenue Next 3Y1.36%
Revenue Next 5Y16.47%
EBIT growth 1Y-31.79%
EBIT growth 3Y-7.23%
EBIT growth 5Y4.78%
EBIT Next Year61.74%
EBIT Next 3Y20.59%
EBIT Next 5Y25.02%
FCF growth 1Y45.39%
FCF growth 3Y5.99%
FCF growth 5Y6.24%
OCF growth 1Y11.07%
OCF growth 3Y1.74%
OCF growth 5Y-1.18%