INTERNATIONAL GAME TECHNOLOG (IGT) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:IGT - GB00BVG7F061 - Common Stock
16.29 USD
+0.48 (+3.04%)
16.29 USD
0 (0%)
Overall IGT gets a fundamental rating of 6 out of 10. We evaluated IGT against 132 industry peers in the Hotels, Restaurants & Leisure industry. IGT has an average financial health and profitability rating. IGT has a bad growth rate and is valued cheaply. This makes IGT very considerable for value investing!
1. Profitability
1.1 Basic Checks
- In the past year IGT was profitable.
- IGT had a positive operating cash flow in the past year.
- Of the past 5 years IGT 4 years were profitable.
- IGT had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- IGT has a Return On Assets (2.83%) which is comparable to the rest of the industry.
- IGT's Return On Equity of 17.85% is fine compared to the rest of the industry. IGT outperforms 76.30% of its industry peers.
- IGT has a better Return On Invested Capital (7.27%) than 61.48% of its industry peers.
- IGT had an Average Return On Invested Capital over the past 3 years of 7.65%. This is below the industry average of 10.36%.
| 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.
- In the last couple of years the Profit Margin of IGT has grown nicely.
- IGT has a Operating Margin of 25.12%. This is amongst the best in the industry. IGT outperforms 89.63% of its industry peers.
- In the last couple of years the Operating Margin of IGT has grown nicely.
- IGT has a Gross Margin (45.71%) which 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.
- IGT has less shares outstanding than it did 5 years ago.
- Compared to 1 year ago, IGT has an improved debt to assets ratio.
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.
- IGT has a better Debt to FCF ratio (5.72) than 78.52% of its industry peers.
- A Debt/Equity ratio of 3.33 is on the high side and indicates that IGT has dependencies on debt financing.
- With a Debt to Equity ratio value of 3.33, IGT perfoms like the industry average, outperforming 43.70% of the companies in the same industry.
| 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.
- With an excellent Current ratio value of 2.48, IGT belongs to the best of the industry, outperforming 90.37% of the companies in the same industry.
- A Quick Ratio of 2.43 indicates that IGT has no problem at all paying its short term obligations.
- IGT has a Quick ratio of 2.43. This is amongst the best in the industry. IGT outperforms 91.11% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.48 | ||
| Quick Ratio | 2.43 |
3. Growth
3.1 Past
- IGT shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -12.73%.
- IGT shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 9.63% yearly.
- The Revenue for IGT has decreased by -33.52% in the past year. This is quite bad
- IGT shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -9.03% yearly.
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
- When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
- 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 (27.21), we can say IGT is valued rather cheaply.
- A Price/Forward Earnings ratio of 11.65 indicates a reasonable valuation of IGT.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of IGT indicates a rather cheap valuation: IGT is cheaper than 85.19% of the companies listed in the same industry.
- When comparing the Price/Forward Earnings ratio of IGT to the average of the S&P500 Index (25.98), we can say IGT is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.31 | ||
| Fwd PE | 11.65 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, IGT is valued a bit cheaper than 71.85% of the companies in the same industry.
- 100.00% of the companies in the same industry are more expensive than IGT, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 3.31 | ||
| EV/EBITDA | 9.78 |
4.3 Compensation for Growth
- IGT has a very decent profitability rating, which may justify a higher PE ratio.
- IGT's earnings are expected to decrease with -10.95% in the coming years. This may justify a cheaper valuation.
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.
- Compared to an average industry Dividend Yield of 1.21, IGT pays a better dividend. On top of this IGT pays more dividend than 94.07% of the companies listed in the same industry.
- IGT's Dividend Yield is rather good when compared to the S&P500 average which is at 1.81.
| 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.
- The Dividend Rate of IGT has been decling, while earnings will also be declining. This means the current dividend is most likely not sustainable.
DP68.6%
EPS Next 2Y-9.58%
EPS Next 3Y-10.95%
INTERNATIONAL GAME TECHNOLOG / IGT FAQ
Can you provide the ChartMill fundamental rating for INTERNATIONAL GAME TECHNOLOG?
ChartMill assigns a fundamental rating of 6 / 10 to IGT.
What is the valuation status of INTERNATIONAL GAME TECHNOLOG (IGT) stock?
ChartMill assigns a valuation rating of 7 / 10 to INTERNATIONAL GAME TECHNOLOG (IGT). This can be considered as Undervalued.
What is the profitability of IGT stock?
INTERNATIONAL GAME TECHNOLOG (IGT) has a profitability rating of 6 / 10.
What is the valuation of INTERNATIONAL GAME TECHNOLOG based on its PE and PB ratios?
The Price/Earnings (PE) ratio for INTERNATIONAL GAME TECHNOLOG (IGT) is 11.31 and the Price/Book (PB) ratio is 2.01.
How sustainable is the dividend of INTERNATIONAL GAME TECHNOLOG (IGT) stock?
The dividend rating of INTERNATIONAL GAME TECHNOLOG (IGT) is 6 / 10 and the dividend payout ratio is 68.6%.